AGREEMENT ON SAFEGUARDS

　Members, 

　Having in mind the overall objective of the Members to improve and strengthen the international trading system based on GATT 1994;

　Recognizing the need to clarify and reinforce the disciplines of GATT 1994, and specifically those of its Article XIX (Emergency Action on Imports of Particular Products), to re-establish multilateral control over safeguards and eliminate measures that escape such control;

　Recognizing the importance of structural adjustment and the need to enhance rather than limit competition in international markets; 

　and Recognizing further that, for these purposes, a comprehensive agreement, applicable to all Members and based on the basic principles of GATT 1994, is called for; 

　Hereby agree as follows:

Article 1 General Provision

　This Agreement establishes rules for the application of safeguard measures which shall be understood to mean those measures provided for in Article XIX of GATT 1994.

Article 2 Conditions

1. A Member1 may apply a safeguard measure to a product only if that Member has determined, pursuant to the provisions set out below, that such product is being imported into its territory in such increased quantities, absolute or relative to domestic production, and under such conditions as to cause or threaten to cause serious injury to the domestic industry that produces like or directly competitive products.

　 1 A customs union may apply a safeguard measure as a single unit or on behalf of a member State. When a customs union applies a safeguard measure as a single unit, all the requirements for the determination of serious injury or threat thereof under this Agreement shall be based on the conditions existing in the customs union as a whole. When a safeguard measure is applied on behalf of a member State, all the requirements for the determination of serious injury or threat thereof shall be based on the conditions existing in that member State and the measure shall be limited to that member State. Nothing in this Agreement prejudges the interpretation of the relationship between Article XIX and paragraph 8 of Article XXIV of GATT 1994.

2. Safeguard measures shall be applied to a product being imported irrespective of its source.

Article 3 Investigation

1. A Member may apply a safeguard measure only following an investigation by the competent authorities of that Member pursuant to procedures previously established and made public in consonance with Article X of GATT 1994. This investigation shall include reasonable public notice to all interested parties and public hearings or other appropriate means in which importers, exporters and other interested parties could present evidence and their views, including the opportunity to respond to the presentations of other parties and to submit their views, inter alia, as to whether or not the application of a safeguard measure would be in the public interest. The competent authorities shall publish a report setting forth their findings and reasoned conclusions reached on all pertinent issues of fact and law.

2. Any information which is by nature confidential or which is provided on a confidential basis shall, upon cause being shown, be treated as such by the competent authorities. Such information shall not be disclosed without permission of the party submitting it. Parties providing confidential information may be requested to furnish non-confidential summaries thereof or, if such parties indicate that such information cannot be summarized, the reasons why a summary cannot be provided. However, if the competent authorities find that a request for confidentiality is not warranted and if the party concerned is either unwilling to make the information public or to authorize its disclosure in generalized or summary form, the authorities may disregard such information unless it can be demonstrated to their satisfaction from appropriate sources that the information is correct.

Article 4 Determination of Serious Injury or Threat Thereof

1. For the purposes of this Agreement:

(a) "serious injury" shall be understood to mean a significant overall impairment in the position of a domestic industry;

(b) "threat of serious injury" shall be understood to mean serious injury that is clearly imminent, in accordance with the provisions of paragraph 2. A determination of the existence of a threat of serious injury shall be based on facts and not merely on allegation, conjecture or remote possibility; and

(c) in determining injury or threat thereof, a "domestic industry" shall be understood to mean the producers as a whole of the like or directly competitive products operating within the territory of a Member, or those whose collective output of the like or directly competitive products constitutes a major proportion of the total domestic production of those products.

2.
(a) In the investigation to determine whether increased imports have caused or are threatening to cause serious injury to a domestic industry under the terms of this Agreement, the competent authorities shall evaluate all relevant factors of an objective and quantifiable nature having a bearing on the situation of that industry, in particular, the rate and amount of the increase in imports of the product concerned in absolute and relative terms, the share of the domestic market taken by increased imports, changes in the level of sales, production, productivity, capacity utilization, profits and losses, and employment.

(b) The determination referred to in subparagraph (a) shall not be made unless this investigation demonstrates, on the basis of objective evidence, the existence of the causal link between increased imports of the product concerned and serious injury or threat thereof. When factors other than increased imports are causing injury to the domestic industry at the same time, such injury shall not be attributed to increased imports.

(c) The competent authorities shall publish promptly, in accordance with the provisions of Article 3, a detailed analysis of the case under investigation as well as a demonstration of the relevance of the factors examined.

Article 5 Application of Safeguard Measures

1. A Member shall apply safeguard measures only to the extent necessary to prevent or remedy serious injury and to facilitate adjustment. If a quantitative restriction is used, such a measure shall not reduce the quantity of imports below the level of a recent period which shall be the average of imports in the last three representative years for which statistics are available, unless clear justification is given that a different level is necessary to prevent or remedy serious injury. Members should choose measures most suitable for the achievement of these objectives.

2.
(a) In cases in which a quota is allocated among supplying countries, me Member applying the restrictions may seek agreement with respect to the allocation of shares in the quota with all other Members having a substantial interest in supplying the product concerned. In cases in which this method is not reasonably practicable, the Member concerned shall allot to Members having a substantial interest in supplying the product shares based upon the proportions, supplied by such Members during a previous representative period, of the total quantity or value of imports of the product, due account being taken of any special factors which may have affected or may be affecting the trade in the product.

(b) A Member may depart from me provisions in subparagraph (a) provided that consultations under paragraph 3 of Article 12 are conducted under the auspices of the Committee on Safeguards provided for in paragraph 1 of Article 13 and that clear demonstration is provided to the Committee that (i) imports from certain Members have increased in disproportionate percentage in relation to the total increase of imports of the product concerned in the representative period, (ii) the reasons for the departure from the provisions in subparagraph (a) are justified, and (iii) the conditions of such departure are equitable to all suppliers of the product concerned. The duration of any such measure shall not be extended beyond the initial period under paragraph 1 of Article 7. The departure referred to above shall not be permitted in the case of threat of serious injury.

Article 6 Provisional Safeguard Measures

　In critical circumstances where delay would cause damage which it would be difficult to repair, a Member may take a provisional safeguard measure pursuant to a preliminary determination that there is clear evidence that increased imports have caused or are threatening to cause serious injury. The duration of the provisional measure shall not exceed 200 days, during which period the pertinent requirements of Articles 2 through 7 and 12 shall be met. Such measures should take the form of tariff increases to be promptly refunded if the subsequent investigation referred to in paragraph 2 of Article 4 does not determine that increased imports have caused or threatened to cause serious injury to a domestic industry. The duration of any such provisional measure shall be counted as a part of the initial period and any extension referred to in paragraphs 1, 2 and 3 of Article 7.

Article 7 Duration and Review of Safeguard Measures

1. A Member shall apply safeguard measures only for such period of time as may be necessary to prevent or remedy serious injury and to facilitate adjustment. The period shall not exceed four years, unless it is extended under paragraph 2.

2. The period mentioned in paragraph 1 may be extended provided that the competent authorities of the importing Member have determined, in conformity with the procedures set out in Articles 2,

3. 4 and 5, that the safeguard measure continues to be necessary to prevent or remedy serious injury and that there is evidence that the industry is adjusting, and provided that the pertinent provisions of Articles 8 and 12 are observed. The total period of application of a safeguard measure including the period of application of any provisional measure, the period of initial application and any extension thereof, shall not exceed eight years.

4. In order to facilitate adjustment in a situation where the expected duration of a safeguard measure as notified under the provisions of paragraph 1 of Article 12 is over one year, the Member applying the measure shall progressively liberalize it at regular intervals during the period of application. If the duration of the measure exceeds three years, the Member applying such a measure shall review the situation not later than the mid-term of the measure and, if appropriate, withdraw it or increase the pace of liberalization. A measure extended under paragraph 2 shall not be more restrictive than it was at the end of the initial period, and should continue to be liberalized.

5. No safeguard measure shall be applied again to the import of a product which has been subject to such a measure, taken after the date of entry into force of the WTO Agreement, for a period of time equal to that during which such measure had been previously applied, provided that the period of non-application is at least two years.

6. Notwithstanding the provisions of paragraph 5, a safeguard measure with a duration of 180 days or less may be applied again to the import of a product if:

(a) at least one year has elapsed since the date of introduction of a safeguard measure on the import of that product; and

(b) such a safeguard measure has not been applied on the same product more than twice in the five-year period immediately preceding the date of introduction of the measure.

Article 8 Level of Concessions and Other Obligations

1. A Member proposing to apply a safeguard measure or seeking an extension of a safeguard measure shall endeavour to maintain a substantially equivalent level of concessions and other obligations to that existing under GATT 1994 between it and the exporting Members which would be affected by such a measure, in accordance with the provisions of paragraph 3 of Article 12. To achieve this objective, the Members concerned may agree on any adequate means of trade compensation for the adverse effects of the measure on their trade.

2. If no agreement is reached within 30 days in the consultations under paragraph 3 of Article 12, then the affected exporting Members shall be free. not later than 90 days after the measure is applied, to suspend, upon the expiration of 30 days from the day on which written notice of such suspension is received by the Council for Trade in Goods, the application of substantially equivalent concessions or other obligations under GATT 1994, to the trade of the Member applying the safeguard measure, the suspension of which the Council for Trade in Goods does not disapprove.

3. The right of suspension referred to in paragraph 2 shall not be exercised for the first three years that a safeguard measure is in effect, provided that the safeguard measure has been taken as a result of an absolute increase in imports and that such a measure conforms to the provisions of this Agreement.

Article 9 Developing Country Members

1. Safeguard measures shall not be applied against a product originating in a developing country Member as long as its share of imports of the product concerned in the importing Member does not exceed 3 per cent, provided that developing country Members with less than 3 per cent import share collectively account for not more than 9 per cent of total imports of the product concerned.2

　 2 A Member shall immediately notify an action taken under paragraph 1 of Article 9 to the Committee on Safeguards.

2. A developing country Member shall have the right to extend the period of application of a safeguard measure for a period of up to two years beyond the maximum period provided for in paragraph 3 of Article 7. Notwithstanding the provisions of paragraph 5 of Article 7, a developing country Member shall have the right to apply a safeguard measure again to the import of a product which has been subject to such a measure, taken after the date of entry into force of the WTO Agreement, after a period of time equal to half that during which such a measure has been previously applied, provided that the period of non-application is at least two years.

Article 10 Pre-existing Article XIX Measures

　Members shall terminate all safeguard measures taken pursuant to Article XIX of GATT 1947 that were in existence on the date of entry into force of the WTO Agreement not later than eight years after the date on which they were first applied or five years after the date of entry into force of the WTO Agreement, whichever comes later.

Article 11 Prohibition and Elimination of Certain Measures

1.
(a) A Member shall not take or seek any emergency action on imports of particular products as set forth in Article XIX of GATT 1994 unless such action conforms with the provisions of that Article applied in accordance with this Agreement.

(b) Furthermore, a Member shall not seek, take or maintain any voluntary export restraints, orderly marketing arrangements or any other similar measures on the export or the import side.3,4 These include actions taken by a single Member as well as actions under agreements, arrangements and understandings entered into by two or more Members. Any such measure in effect on the date of entry into force of the WTO Agreement shall be brought into conformity with this Agreement or phased out in accordance with paragraph 2.

　 4 Examples of similar measures include export moderation, export-price or import-price monitoring systems, export or import surveillance, compulsory import cartels and discretionary export or import licensing schemes, any of which afford protection.

　 5 The only such exception to which the European Communities is entitled is indicated in the Annex to this Agreement.

(c) This Agreement does not apply to measures sought, taken or maintained by a Member pursuant to provisions of GATT 1994 other than Article XIX, and Multilateral Trade Agreements in Annex 1A other than this Agreement, or pursuant to protocols and agreements or arrangements concluded within the framework of GATT 1994.

2. The phasing out of measures referred to in paragraph 1(b) shall be carried out according to timetables to be presented to the Committee on Safeguards by the Members concerned not later than 180 days after the date of entry into force of the WTO Agreement. These timetables shall provide for all measures referred to in paragraph 1 to be phased out or brought into conformity with this Agreement within a period not exceeding four years after the date of entry into force of the WTO Agreement, subject to not more than one specific measure per importing Member5, the duration of which shall not extend beyond 31 December 1999. Any such exception must be mutually agreed between the Members directly concerned and notified to the Committee on Safeguards for its review and acceptance within 90 days of the entry into force of the WTO Agreement. 

　 6 The Annex to this Agreement indicates a measure which has been agreed as falling under this exception.

3. Members shall not encourage or support the adoption or maintenance by public and private enterprises of non-governmental measures equivalent to those referred to in paragraph 1.

Article 12 Notification and Consultation

1. A Member shall immediately notify the Committee on Safeguards upon:

(a) initiating an investigatory process relating to serious injury or threat thereof and the reasons for it;

(b) making a finding of serious injury or threat thereof caused by increased imports; and

(c) taking a decision to apply or extend a safeguard measure.

2. In making the notifications referred to in paragraphs 1(b) and 1(c), the Member proposing to apply or extend a safeguard measure shall provide the Committee on Safeguards with all pertinent information, which shall include evidence of serious injury or threat thereof caused by increased imports, precise description of the product involved and the proposed measure, proposed date of introduction, expected duration and timetable for progressive liberalization. In the case of an extension of a measure, evidence that the industry concerned is adjusting shall also be provided. The Council for Trade in Goods or the Committee on Safeguards may request such additional information as they may consider necessary from the Member proposing to apply or extend the measure.

3. A Member proposing to apply or extend a safeguard measure shall provide adequate opportunity for prior consultations with those Members having a substantial interest as exporters of the product concerned, with a view to, inter alia, reviewing the information provided under paragraph 2, exchanging views on the measure and reaching an understanding on ways to achieve the objective set out in paragraph 1 of Article 8.

4. A Member shall make a notification to me Committee on Safeguards before taking a provisional safeguard measure referred to in Article 6. Consultations shall be initiated immediately after the measure is taken.

5. The results of the consultations referred to in this Article, as well as the results of mid-term reviews referred to in paragraph 4 of Article 7, any form of compensation referred to in paragraph 1 of Article 8, and proposed suspensions of concessions and other obligations referred to in paragraph 2 of Article 8, shall be notified immediately to the Council for Trade in Goods by the Members concerned.

6. Members shall notify promptly the Committee on Safeguards of their laws, regulations and administrative procedures relating to safeguard measures as well as any modifications made to them.

7. Members maintaining measures described in Article 10 and paragraph 1 of Article 11 which exist on the date of entry into force of the WTO Agreement shall notify such measures to the Committee on Safeguards not later than 60 days after the date of entry into force of the WTO Agreement.

8. Any Member may notify the Committee on Safeguards of all laws, regulations, administrative procedures and any measures or actions dealt with in this Agreement that have not been notified by other Members that are required by this Agreement to make such notifications.

9. Any Member may notify the Committee on Safeguards of any non-governmental measures referred to in paragraph 3 of Article 11.

10. All notifications to the Council for Trade in Goods referred to in this Agreement shall normally be made through the Committee on Safeguards.

11. The provisions on notification in this Agreement shall not require any Member to disclose confidential information the disclosure of which would impede law enforcement or otherwise be contrary to the public interest or would prejudice the legitimate commercial interests of particular enterprises, public or private.

Article 13 Surveillance

1. A Committee on Safeguards is hereby established, under the authority of the Council for Trade in Goods, which shall be open to the participation of any Member indicating its wish to serve on it. The Committee will have the following functions:

(a) to monitor, and report annually to the Council for Trade in Goods on, the general implementation of this Agreement and make recommendations towards its improvement;

(b) to find, upon request of an affected Member, whether or not the procedural requirements of this Agreement have been complied with in connection with a safeguard measure, and report its findings to the Council for Trade in Goods;

(c) to assist Members, if they so request, in their consultations under the provisions of this Agreement;

(d) to examine measures covered by Article 10 and paragraph 1 of Article 11, monitor the phase-out of such measures and report as appropriate to the Council for Trade in Goods;

(e) to review, at the request of the Member taking a safeguard measure, whether proposals to suspend concessions or other obligations are "substantially equivalent", and report as appropriate to the Council for Trade in Goods;

(f) to receive and review all notifications provided for in this Agreement and report as appropriate to the Council for Trade in Goods; and

(g) to perform any other function connected with this Agreement that the Council for Trade in Goods may determine.

2. To assist the Committee in carrying out its surveillance function, the Secretariat shall prepare annually a factual report on the operation of this Agreement based on notifications and other reliable information available to it.

Article 14 Dispute Settlement

　The provisions of Articles XXII and XXIII of GATT 1994 as elaborated and applied by the Dispute Settlement Understanding shall apply to consultations and the settlement of disputes arising under this Agreement.

ANNEX EXCEPTION REFERRED TO IN PARAGRAPH 2 OF ARTICLE 11

                                       ANNEX

                    EXCEPTION REFERRED TO IN PARAGRAPH 2 OF ARTICLE 11

 Members concerned      Product                       Termination

 EC/Japan               Passenger cars, off road      31 December 1999
                        vehicles, light commercial
                        vehicles, light trucks(up
                        to 5 tonnes), and the same
                        vehicles in wholly
                        knocked-down form (CKD
                        sets).

ANNEX 1B GENERAL AGREEMENT ON TRADE IN SERVICES

　 SCOPE AND DEFINITION

　Article I Scope and Definition

　PART II GENERAL OBLIGATIONS AND DISCIPLINES

　Article II Most-Favoured-Nation Treatment

　Article III Transparency

　Article III bis Disclosure of Confidential Information

　Article IV Increasing Participation of Developing Countries

　Article V Economic Integration

　Article V bis Labour Markets Integration Agreements

　Article VI Domestic Regulation

　Article VII Recognition

　Article VIII Monopolies and Exclusive Service Suppliers

　Article VIV Business Practices

　Article X Emergency Safeguard Measures

　Article XI Payments and Transfers

　Article XII Restrictions to Safeguard the Balance of Payments

　Article XIII Government Procurement

　Article XVI General Exceptions

　Article XVI bis Security Exceptions

　Article XV Subsidies

　PART III SPECIFIC COMMITMENTS

　Article XVI Market Access

　Article XVII National Treatment

　Article XVIII Additional Commitments

　PART IV PROGRESSIVE LIBERALIZATION

　Article XIX Negotiation of Specific Commitments

　Article XX Schedules of Specific Commitments

　Article XXI Modification of Schedules

　PART V INSTITUTIONAL PROVISIONS

　Article XXII Consultation

　Article XXIII Dispute Settlement and Enforcement

　Article XXIV Council for Trade in Services

　Article XXV Technical Cooperation

　Article XXVI Relationship with Other International Organizations

　PART VI FINAL PROVISIONS

　Article XXVII Denial of Benefits

　Article XXVIII Definitions

　Article XXIX Annexes

　Annex on Article II Exemptions

　Annex on Movement of Natural Persons Supplying Services under the Agreement

　Annex on Air Transport Services

　Annex on Financial Services

　Second Annex on Financial Services

　Annex on Negotiations on Maritime Transport Services

　Annex on Telecommunications

　Annex on Negotiations on Basic Telecommunications

　GENERAL AGREEMENT ON TRADE IN SERVICES

　Members, 

　Recognizing the growing importance of trade in services for the growth and development of the world economy; 

　Wishing to establish a multilateral framework of principles and rules for trade in services with a view to the expansion of such trade under conditions of transparency and progressive liberalization and as a means of promoting the economic growth of all trading partners and the development of developing countries; 

　Desiring the early achievement of progressively higher levels of liberalization of trade in services through successive rounds of multilateral negotiations aimed at promoting the interests of all participants on a mutually advantageous basis and at securing an overall balance of rights and obligations, while giving due respect to national policy objectives; 

　Recognizing the right of Members to regulate, and to introduce new regulations, on the supply of services within their territories in order to meet national policy objectives and, given asymmetries existing with respect to the degree of development of services regulations in different countries, the particular need of developing countries to exercise this right; 

　Desiring to facilitate the increasing participation of developing countries in trade in services and the expansion of their service exports including, inter alia, through the strengthening of their domestic services capacity and its efficiency and competitiveness; 

　Taking particular account of the serious difficulty of the least-developed countries in view of their special economic situation and their development, trade and financial needs; 

　Hereby agree as follows:

PART I SCOPE AND DEFINITION

Article I Scope and Definition

1. This Agreement applies to measures by Members affecting trade in services.

2. For the purposes of this Agreement, trade in services is defined as the supply of a service:

(a) from the territory of one Member into the territory of any other Member;

(b) in the territory of one Member to the service consumer of any other Member;

(c) by a service supplier of one Member, through commercial presence in the territory of any other Member;

(d) by a service supplier of one Member, through presence of natural persons of a Member in the territory of any other Member.

3. For the purposes of this Agreement:

(a) "measures by Members" means measures taken by:

(i) central, regional or local governments and authorities; and

(ii) non-governmental bodies in the exercise of powers delegated by central, regional or local governments or authorities;

　In fulfilling its obligations and commitments under the Agreement, each Member shall take such reasonable measures as may be available to it to ensure their observance by regional and local governments and authorities and non-governmental bodies within its territory;

(b) "services" includes any service in any sector except services supplied in the exercise of governmental authority;

(c) "a service supplied in the exercise of governmental authority" means any service which is supplied neither on a commercial basis, nor in competition with one or more service suppliers.

PART II GENERAL OBLIGATIONS AND DISCIPLINES

Article II Most-Favoured-Nation Treatment

1. With respect to any measure covered by this Agreement, each Member shall accord immediately and unconditionally to services and service suppliers of any other Member treatment no less favourable than that it accords to like services and service suppliers of any other country.

2. A Member may maintain a measure inconsistent with paragraph 1 provided that such a measure is listed in, and meets the conditions of, the Annex on Article IIwv Exemptions.

3. The provisions of this Agreement shall not be so construed as to prevent any Member from conferring or according advantages to adjacent countries in order to facilitate exchanges limited to contiguous frontier zones of services that are both locally produced and consumed.

Article III Transparency

1. Each Member shall publish promptly and, except in emergency situations, at the latest by the time of their entry into force, all relevant measures of general application which pertain to or affect the operation of this Agreement. International agreements pertaining to or affecting trade in services to which a Member is a signatory shall also be published.

2. Where publication as referred to in paragraph 1 is not practicable, such information shall be made otherwise publicly available.

3. Each Member shall promptly and at least annually inform the Council for Trade in Services of the introduction of any new, or any changes to existing, laws, regulations or administrative guidelines which significantly affect trade in services covered by its specific commitments under this Agreement.

4. Each Member shall respond promptly to all requests by any other Member for specific information on any of its measures of general application or international agreements within the meaning of paragraph 1. Each Member shall also establish one or more enquiry points to provide specific information to other Members, upon request, on all such matters as well as those subject to the notification requirement in paragraph 3. Such enquiry points shall be established within two years from the date of entry into force of the Agreement Establishing the WTO (referred to in this Agreement as the "WTO Agreement"). Appropriate flexibility with respect to the time-limit within which such enquiry points are to be established may be agreed upon for individual developing country Members. Enquiry points need not be depositories of laws and regulations.

5. Any Member may notify to the Council for Trade in Services any measure, taken by any other Member, which it considers affects the operation of this Agreement.

Article III bis Disclosure of Confidential Information

　Nothing in this Agreement shall require any Member to provide confidential information, the disclosure of which would impede law enforcement, or otherwise be contrary to the public interest, or which would prejudice legitimate commercial interests of particular enterprises, public or private.

Article IV Increasing Participation of Developing Countries

1. The increasing participation of developing country Members in world trade shall be facilitated through negotiated specific commitments, by different Members pursuant to Parts III and IV of this Agreement, relating to:

(a) the strengthening of their domestic services capacity and its efficiency and competitiveness, inter alia through access to technology on a commercial basis;

(b) the improvement of their access to distribution channels and information networks; and

(c) the liberalization of market access in sectors and modes of supply of export interest to them.

2. Developed country Members, and to the extent possible other Members, shall establish contact points within two years from the date of entry into force of the WTO Agreement to facilitate the access of developing country Members' service suppliers to information, related to their respective markets, concerning:

(a) commercial and technical aspects of the supply of services;

(b) registration, recognition and obtaining of professional qualifications; and

(c) the availability of services technology.

3. Special priority shall be given to the least-developed country Members in the implementation of paragraphs 1 and 2. Particular account shall be taken of the serious difficulty of the least-developed countries in accepting negotiated specific commitments in view of their special economic situation and their development, trade and financial needs.

Article V Economic Integration

1. 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 coverage1, and

　 1 This condition is understood in terms of number of sectors, volume of trade affected and modes of supply. In order to meet this condition, agreements should not provide for the a priori exclusion of any mode of supply.

(b) provides for the absence or elimination of substantially all discrimination, in the sense of Article XVII, between or among the parties, in the sectors covered under subparagraph (a), through:

(i) elimination of existing discriminatory measures, and/or

(ii) prohibition of new or more discriminatory measures,

　 either at the entry into force of that agreement or on the basis of a reasonable time-frame, except for measures permitted under Articles XI, XII, XIV and XIV bis.

2. In evaluating whether the conditions under paragraph 1(b) are met, consideration may be given to the relationship of the agreement to a wider process of economic integration or trade liberalization among the countries concerned.

3.
(a) 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, particularly with reference to subparagraph (b) thereof, in accordance with the level of development of the countries concerned, both overall and in individual sectors and subsectors.

(b) Notwithstanding paragraph 6, in the case of an agreement of the type referred to in paragraph 1 involving only developing countries, more favourable treatment may be granted to juridical persons owned or controlled by natural persons of the parties to such an agreement.

4. 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 subsectors compared to the level applicable prior to such an agreement.

5. If, in the conclusion, enlargement or any significant modification of any agreement under paragraph 1, a Member intends to withdraw or modify a specific commitment inconsistently with the terms and conditions set out in its Schedule, it shall provide at least 90 days advance notice of such modification or withdrawal and the procedure set forth in paragraphs 2, 3 and 4 of Article XXI shall apply.

6. A service supplier of any other Member that is a juridical person constituted under the laws of a party to an agreement referred to in paragraph 1 shall be entitled to treatment granted under such agreement, provided that it engages in substantive business operations in the territory of the parties to such agreement.

7.
(a) Members which are parties to any agreement referred to in paragraph 1 shall promptly notify any such agreement and any enlargement or any significant modification of that agreement to the Council for Trade in Services. They shall also make available to the Council such relevant information as may be requested by it. The Council may establish a working party to examine such an agreement or enlargement or modification of that agreement and to report to the Council on its consistency with this Article.

(b) Members which are parties to any agreement referred to in paragraph 1 which is implemented on the basis of a time-frame shall report periodically to the Council for Trade in Services on its implementation. The Council may establish a working party to examine such reports if it deems such a working party necessary.

(c) Based on the reports of the working parties referred to in subparagraphs (a) and (b), the Council may make recommendations to the parties as it deems appropriate.

8. A Member which is a party to any agreement referred to in paragraph 1 may not seek compensation for trade benefits that may accrue to any other Member from such agreement.

Article V bis Labour Markets Integration Agreements

　This Agreement shall not prevent any of its Members from being a party to an agreement establishing full integration2 of the labour markets between or among the parties to such an agreement, provided that such an agreement:

　2Typically, such integration provides citizens of the parties concerned with a right of free entry to the employment markets of the parties and includes measures concerning conditions of pay, other conditions of employment and social benefits.

(a) exempts citizens of parties to the agreement from requirements concerning residency and work permits;

(b) is notified to the Council for Trade in Services.

Article VI Domestic Regulation

1. In sectors where specific commitments are undertaken, each Member shall ensure that all measures of general application affecting trade in services are administered in a reasonable, objective and impartial manner.

2.
(a) Each Member shall maintain or institute as soon as practicable judicial, arbitral or administrative tribunals or procedures which provide, at the request of an affected service supplier, for the prompt review of, and where justified, appropriate remedies for, administrative decisions affecting trade in services. Where such procedures are not independent of the agency entrusted with the administrative decision concerned, the Member shall ensure that the procedures in fact provide for an objective and impartial review.

(b) The provisions of subparagraph (a) shall not be construed to require a Member to institute such tribunals or procedures where this would be inconsistent with its constitutional structure or the nature of its legal system.

3. Where authorization is required for the supply of a service on which a specific commitment has been made, the competent authorities of a Member shall, within a reasonable period of time after the submission of an application considered complete under domestic laws and regulations, inform the applicant of the decision concerning the application. At the request of the applicant, the competent authorities of the Member shall provide, without undue delay, information concerning the status of the application.

4. With a view to ensuring that measures relating to qualification requirements and procedures, technical standards and licensing requirements do not constitute unnecessary barriers to trade in services, the Council for Trade in Services shall, through appropriate bodies it may establish, develop any necessary disciplines. Such disciplines shall aim to ensure that such requirements are, inter alia:

(a) based on objective and transparent criteria, such as competence and the ability to supply the service;

(b) not more burdensome than necessary to ensure the quality of the service;

(c) in the case of licensing procedures, not in themselves a restriction on the supply of the service.

5.
(a) In sectors in which a Member has undertaken specific commitments, pending the entry into force of disciplines developed in these sectors pursuant to paragraph 4, the Member shall not apply licensing and qualification requirements and technical standards that nullify or impair such specific commitments in a manner which:

(i) does not comply with the criteria outlined in subparagraphs 4(a), (b) or (c); and

(ii) could not reasonably have been expected of that Member at the time the specific commitments in those sectors were made.

(b) In determining whether a Member is in conformity with the obligation under paragraph 5(a), account shall be taken of international standards of relevant international organizations3 applied by that Member.

　 3 The term "relevant international organizations" refers to international bodies whose membership is open to the relevant bodies of at least all Members of the WTO.

6. In sectors where specific commitments regarding professional services are undertaken, each Member shall provide for adequate procedures to verify the competence of professionals of any other Member.

Article VII Recognition

1. For the purposes of the fulfilment, in whole or in part, of its standards or criteria for the authorization, licensing or certification of services suppliers, and subject to the requirements of paragraph 3, a Member may recognize the education or experience obtained, requirements met, or licenses or certifications granted in a particular country. Such recognition, which may be achieved through harmonization or otherwise, may be based upon an agreement or arrangement with the country concerned or may be accorded autonomously.

2. A Member that is a party to an agreement or arrangement of the type referred to in paragraph 1, whether existing or future, shall afford adequate opportunity for other interested Members to negotiate their accession to such an agreement or arrangement or to negotiate comparable ones with it. Where a Member accords recognition autonomously, it shall afford adequate opportunity for any other Member to demonstrate that education, experience, licenses, or certifications obtained or requirements met in that other Member's territory should be recognized.

3. A Member shall not accord recognition in a manner which would constitute a means of discrimination between countries in the application of its standards or criteria for the authorization, licensing or certification of services suppliers, or a disguised restriction on trade in services.

4. Each Member shall:

(a) within 12 months from the date on which the WTO Agreement takes effect for it, inform the Council for Trade in Services of its existing recognition measures and state whether such measures are based on agreements or arrangements of the type referred to in paragraph 1;

(b) promptly inform the Council for Trade in Services as far in advance as possible of the opening of negotiations on an agreement or arrangement of the type referred to in paragraph 1 in order to provide adequate opportunity to any other Member to indicate their interest in participating in the negotiations before they enter a substantive phase;

(c) promptly inform the Council for Trade in Services when it adopts new recognition measures or significantly modifies existing ones and state whether the measures are based on an agreement or arrangement of the type referred to in paragraph 1.

5. Wherever appropriate, recognition should be based on multilaterally agreed criteria. In appropriate cases, Members shall work in cooperation with relevant intergovernmental and non- governmental organizations towards the establishment and adoption of common international standards and criteria for recognition and common international standards for the practice of relevant services trades and professions.

Article VIII Monopolies and Exclusive Service Suppliers

1. Each Member shall ensure that any monopoly supplier of a service in its territory does not, in the supply of the monopoly service in the relevant market, act in a manner inconsistent with that Member's obligations under Article 2 and specific commitments.

2. Where a Member's monopoly supplier competes, either directly or through an affiliated company, in the supply of a service outside the scope of its monopoly rights and which is subject to that Member's specific commitments, the Member shall ensure that such a supplier does not abuse its monopoly position to act in its territory in a manner inconsistent with such commitments.

3. The Council for Trade in Services may, at the request of a Member which has a reason to believe that a monopoly supplier of a service of any other Member is acting in a manner inconsistent with paragraph 1 or 2, request the Member establishing, maintaining or authorizing such supplier to provide specific information concerning the relevant operations.

4. If, after the date of entry into force of the WTO Agreement, a Member grants monopoly rights regarding the supply of a service covered by its specific commitments, that Member shall notify the Council for Trade in Services no later than three months before the intended implementation of the grant of monopoly rights and the provisions of paragraphs 2, 3 and 4 of Article XXI shall apply.

5. The provisions of this Article shall also apply to cases of exclusive service suppliers, where a Member, formally or in effect, (a) authorizes or establishes a small number of service suppliers and (b) substantially prevents competition among those suppliers in its territory.

Article IX Business Practices

1. Members recognize that certain business practices of service suppliers, other than those falling under Article 8, may restrain competition and thereby restrict trade in services.

2. Each Member shall, at the request of any other Member, enter into consultations with a view to eliminating practices referred to in paragraph 1. The Member addressed shall accord full and sympathetic consideration to such a request and shall cooperate through the supply of publicly available non-confidential information of relevance to the matter in question. The Member addressed shall also provide other information available to the requesting Member, subject to its domestic law and to the conclusion of satisfactory agreement concerning the safeguarding of its confidentiality by the requesting Member.

Article X Emergency Safeguard Measures

1. 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 date of entry into force of the WTO Agreement.

2. In the period before the entry into effect of the results of the negotiations referred to in paragraph 1, any Member may, notwithstanding the provisions of paragraph 1 of Article XXI, 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; provided that the Member shows cause to the Council that the modification or withdrawal cannot await the lapse of the three-year period provided for in paragraph 1 of Article XXI.

3. The provisions of paragraph 2 shall cease to apply three years after the date of entry into force of the WTO Agreement.

Article XI Payments and Transfers

1. Except under the circumstances envisaged in Article XII, a Member shall not apply restrictions on international transfers and payments for current transactions relating to its specific commitments.

2. Nothing in this Agreement shall affect the rights and obligations of the members of the International Monetary Fund under the Articles of Agreement of the Fund, including the use of exchange actions which are in conformity with the Articles of Agreement, provided that a Member shall not impose restrictions on any capital transactions inconsistently with its specific commitments regarding such transactions, except under Article XII or at the request of the Fund.

Article XII Restrictions to Safeguard the Balance of Payments

1. 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. It is recognized that particular pressures on the balance of payments of a Member in the process of economic development or economic transition may necessitate the use of restrictions to ensure, inter alia, the maintenance of a level of financial reserves adequate for the implementation of its programme of economic development or economic transition.

2. The restrictions referred to in paragraph 1:

(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 in paragraph 1;

(e) shall be temporary and be phased out progressively as the situation specified in paragraph 1 improves.

3. In determining the incidence of such restrictions. Members may give priority to the supply of services which are more essential to their economic or development programmes. However, such restrictions shall not be adopted or maintained for the purpose of protecting a particular service sector.

4. Any restrictions adopted or maintained under paragraph 1, or any changes therein, shall be promptly notified to the General Council.

5.
(a) Members applying the provisions of this Article shall consult promptly with the Committee on Balance-of-Payments Restrictions on restrictions adopted under this Article.

(b) The Ministerial Conference shall establish procedures4 for periodic consultations with the objective of enabling such recommendations to be made to the Member concerned as it may deem appropriate.

　 4 It is understood that the procedures under paragraph 5 shall be the same as the GATT 1994 procedures.

(c) Such consultations shall assess the balance-of-payment situation of the Member concerned and the restrictions adopted or maintained under this Article, taking into account, inter alia, such factors as:

(i) the nature and extent of the balance-of-payments and the external financial difficulties;

(ii) the external economic and trading environment of the consulting Member;

(iii) alternative corrective measures which may be available.

(d) The consultations shall address the compliance of any restrictions with paragraph 2. in particular the progressive phaseout of restrictions in accordance with paragraph 2(e).

(e) In such consultations, all findings of statistical and other facts presented by the International Monetary Fund relating to foreign exchange, monetary reserves and balance of payments, shall be accepted and conclusions shall be based on the assessment by the Fund of the balance-of- payments and the external financial situation of the consulting Member.

6. If a Member which is not a member of the International Monetary Fund wishes to apply the provisions of this Article, the Ministerial Conference shall establish a review procedure and any other procedures necessary.

Article XIII Government Procurement

1. Articles 2, 16 and 17 shall not apply to laws, regulations or requirements governing the procurement by governmental agencies of services purchased for governmental purposes and not with a view to commercial resale or with a view to use in the supply of services for commercial sale.

2. There shall be multilateral negotiations on government procurement in services under this Agreement within two years from the date of entry into force of the WTO Agreement.

Article XIV General Exceptions

　Subject to the requirement that such measures are not applied in a manner which would constitute a means of arbitrary or unjustifiable discrimination between countries where like conditions prevail, or a disguised restriction on trade in services, nothing in this Agreement shall be construed to prevent the adoption or enforcement by any Member of measures:

(a) necessary to protect public morals or to maintain public order;5

　 5 The public order exception may be invoked only where a genuine and sufficiently serious threat is posed to one of the fundamental interests of society.

(b) necessary to protect human, animal or plant life or health;

(c) necessary to secure compliance with laws or regulations which are not inconsistent with the provisions of this Agreement including those relating to:

(i) the prevention of deceptive and fraudulent practices or to deal with the effects of a default on services contracts;

(ii) the protection of the privacy of individuals in relation to the processing and dissemination of personal data and the protection of confidentiality of individual records and accounts;

(iii) safety;

(d) inconsistent with Article XVII, provided that the difference in treatment is aimed at ensuring the equitable or effective6 imposition or collection of direct taxes in respect of services or service suppliers of other Members;

　 6 Measures that are aimed at ensuring the equitable or effective imposition or collection of direct taxes include measures taken by a Member under its taxation system which:

(i) apply to non-resident service suppliers in recognition of the fact that the tax obligation of non-residents is determined with respect to taxable items sourced or located in the Member's territory; or

(ii) apply to non-residents in order to ensure the imposition or collection of taxes in the Member's territory; or

(iii) apply to non-residents or residents in order to prevent the avoidance or evasion of taxes, including compliance measures, or

(iv) apply to consumers of services supplied in or from the territory of another Member in order to ensure the imposition or collection of taxes on such consumers derived from sources in the Member's territory; or

(v) distinguish service suppliers subject to tax on worldwide taxable items from other service suppliers, in recognition of the difference in the nature of the tax base between them; or

(vi) determine, allocate or apportion income, profit, gain, loss, deduction or credit of resident persons or branches, or between related persons or branches of the same person, in order to safeguard the Member's tax base.

　Tax terms or concepts in paragraph (d) of Article XIV and in this footnote are determined according to tax definitions and concepts, or equivalent or similar definitions and concepts, under the domestic law of the Member taking the measure.

(e) inconsistent with Article II, provided that the difference in treatment is the result of an agreement on the avoidance of double taxation or provisions on the avoidance of double taxation in any other international agreement or arrangement by which the Member is bound.

Article XVI bisSecurity Exceptions

1. Nothing in this Agreement shall be construed:

(a) to require any Member to furnish any information, the disclosure of which it considers contrary to its essential security interests; or

(b) to prevent any Member from taking any action which it considers necessary for the protection of its essential security interests:

(i) relating to the supply of services as carried out directly or indirectly for the purpose of provisioning a military establishment;

(ii) relating to fissionable and fusionable materials or the materials from which they are derived;

(iii) taken in time of war or other emergency in international relations; or

(c) to prevent any Member from taking any action in pursuance of its obligations under the United Nations Charter for the maintenance of international peace and security.

2. The Council for Trade in Services shall be informed to the fullest extent possible of measures taken under paragraphs 1(b) and (c) and of their termination.

Article XV Subsidies

1. Members recognize that, in certain circumstances, subsidies may have distortive effects on trade in services. Members shall enter into negotiations with a view to developing the necessary multilateral disciplines to avoid such trade-distortive effects.7 The negotiations shall also address the appropriateness of countervailing procedures. Such negotiations shall recognize the role of subsidies in relation to the development programmes of developing countries and take into account the needs of Members, particularly developing country Members, for flexibility in this area. For the purpose of such negotiations, Members shall exchange information concerning all subsidies related to trade in services that they provide to their domestic service suppliers.

　 7 A future work programme shall determine how, and in what time-frame, negotiations on such multilateral disciplines will be conducted.

2. Any Member which considers that it is adversely affected by a subsidy of another Member may request consultations with that Member on such matters. Such requests shall be accorded sympathetic consideration.

PART III SPECIFIC COMMITMENTS

Article XVIMarket Access

1. With respect to market access through the modes of supply identified in Article I, each Member shall accord services and service suppliers of any other Member treatment no less favourable than that provided for under the terms, limitations and conditions agreed and specified in its Schedule.8

　 8 If a Member undertakes a market-access commitment in relation to the supply of a service through the mode of supply referred to in subparagraph 2(a) of Article I and if the cross-border movement of capital is an essential part of the service itself, that Member is thereby committed to allow such movement of capital. If a Member undertakes a market-access commitment in relation to the supply of a service through the mode of supply referred to in subparagraph 2(c) of Article I, it is thereby committed to allow related transfers of capital into its territory.

2. In sectors where market-access commitments are undertaken, the measures which a Member shall not maintain or adopt either on the basis of a regional subdivision or on the basis of its entire territory, unless otherwise specified in its Schedule, are defined as:

(a) limitations on the number of service suppliers whether in the form of numerical quotas, monopolies, exclusive service suppliers or the requirements of an economic needs test;

(b) limitations on the total value of service transactions or assets in the form of numerical quotas or the requirement of an economic needs test;

(c) limitations on the total number of service operations or on the total quantity of service output expressed in terms of designated numerical units in the form of quotas or the requirement of an economic needs test;9

　 9 Subparagraph 2(c) does not cover measures of a Member which limit inputs for the supply of services.

(d) limitations on the total number of natural persons that may be employed in a particular service sector or that a service supplier may employ and who are necessary for, and directly related to, the supply of a specific service in the form of numerical quotas or the requirement of an economic needs test;

(e) measures which restrict or require specific types of legal entity or joint venture through which a service supplier may supply a service; and

(f) limitations on the participation of foreign capital in terms of maximum percentage limit on foreign shareholding or the total value of individual or aggregate foreign investment.

Article XVIINational Treatment

1. In the sectors inscribed in its Schedule, and subject to any conditions and qualifications set out therein, each Member shall accord to services and service suppliers of any other Member, in respect of all measures affecting the supply of services, treatment no less favourable than that it accords to its own like services and service suppliers.10

　 10 Specific commitments assumed under this Article shall not be construed to require any Member to compensate for any inherent competitive disadvantages which result from the foreign character of the relevant services or service suppliers.

2. A Member may meet the requirement of paragraph 1 by according to services and service suppliers of any other Member, either formally identical treatment or formally different treatment to that it accords to its own like services and service suppliers.

3. Formally identical or formally different treatment shall be considered to be less favourable if it modifies the conditions of competition in favour of services or service suppliers of the Member compared to like services or service suppliers of any other Member.

Article XVIII Additional Commitments

　Members may negotiate commitments with respect to measures affecting trade in services not subject to scheduling under Articles XVI or XVII, including those regarding qualifications, standards or licensing matters. Such commitments shall be inscribed in a Member's Schedule.

PART IV PROGRESSIVE LIBERALIZATION

Article XIXNegotiation of Specific Commitments

1. In pursuance of the objectives of this Agreement, Members shall enter into successive rounds of negotiations, beginning not later than five years from the date of entry into force of the WTO Agreement and periodically thereafter, with a view to achieving a progressively higher level of liberalization. Such negotiations shall be directed to the reduction or elimination of the adverse effects on trade in services of measures as a means of providing effective market access. This process shall take place with a view to promoting the interests of all participants on a mutually advantageous basis and to securing an overall balance of rights and obligations.

2. The process of liberalization shall take place with due respect for national policy objectives and the level of development of individual Members, both overall and in individual sectors. There shall be appropriate flexibility for individual developing country Members for opening fewer sectors, liberalizing fewer types of transactions, progressively extending market access in line with their development situation and, when making access to their markets available to foreign service suppliers, attaching to such access conditions aimed at achieving the objectives referred to in Article IV.

3. For each round, negotiating guidelines and procedures shall be established. For the purposes of establishing such guidelines, the Council for Trade in Services shall carry out an assessment of trade in services in overall terms and on a sectoral basis with reference to the objectives of this Agreement, including those set out in paragraph 1 of Article IV. Negotiating guidelines shall establish modalities for the treatment of liberalization undertaken autonomously by Members since previous negotiations, as well as for the special treatment for least-developed country Members under the provisions of paragraph 3 of Article IV.

4. The process of progressive liberalization shall be advanced in each such round through bilateral, plurilateral or multilateral negotiations directed towards increasing the general level of specific commitments undertaken by Members under this Agreement.

Article XXSchedules of Specific Commitments

1. Each Member shall set out in a schedule the specific commitments it undertakes under Part III of this Agreement. With respect to sectors where such commitments are undertaken, each Schedule shall specify:

(a) terms, limitations and conditions on market access;

(b) conditions and qualifications on national treatment;

(c) undertakings relating to additional commitments;

(d) where appropriate the time-frame for implementation of such commitments; and

(e) the date of entry into force of such commitments.

2. Measures inconsistent with both Articles XVI and XVII shall be inscribed in the column relating to Article 16. In this case the inscription will be considered to provide a condition or qualification to Article XVII as well.

3. Schedules of specific commitments shall be annexed to this Agreement and shall form an integral part thereof.

Article XXIModification of Schedules

1.
(a) A Member (referred to in this Article as the "modifying Member") may modify or withdraw any commitment in its Schedule, at any time after three years have elapsed from the date on which that commitment entered into force, in accordance with the provisions of this Article.

(b) A modifying Member shall notify its intent to modify or withdraw a commitment pursuant to this Article to the Council for Trade in Services no later than three months before the intended date of implementation of the modification or withdrawal.

2. 
(a) At the request of any Member the benefits of which under this Agreement may be affected (referred to in this Article as an "affected Member") by a proposed modification or withdrawal notified under subparagraph 1(b), the modifying Member shall enter into negotiations with a view to reaching agreement on any necessary compensatory adjustment. In such negotiations and agreement, the Members concerned shall endeavour to maintain a general level of mutually advantageous commitments not less favourable to trade than that provided for in Schedules of specific commitments prior to such negotiations.

(b) Compensatory adjustments shall be made on a most-favoured-nation basis.

3.
(a) If agreement is not reached between the modifying Member and any affected Member before the end of the period provided for negotiations, such affected Member may refer the matter to arbitration. Any affected Member that wishes to enforce a right that it may have to compensation must participate in the arbitration.

(b) If no affected Member has requested arbitration, the modifying Member shall be free to implement the proposed modification or withdrawal.

4.
(a) The modifying Member may not modify or withdraw its commitment until it has made compensatory adjustments in conformity with the findings of the arbitration.

(b) If the modifying Member implements its proposed modification or withdrawal and does not comply with the findings of the arbitration, any affected Member that participated in the arbitration may modify or withdraw substantially equivalent benefits in conformity with those findings. Notwithstanding Article II, such a modification or withdrawal may be implemented solely with respect to the modifying Member.

5. The Council for Trade in Services shall establish procedures for rectification or modification of Schedules. Any Member which has modified or withdrawn scheduled commitments under this Article shall modify its Schedule according to such procedures.

PART V INSTITUTIONAL PROVISIONS

Article XXII Consultation

1. Each Member shall accord sympathetic consideration to, and shall afford adequate opportunity for, consultation regarding such representations as may be made by any other Member with respect to any matter affecting the operation of this Agreement. The Dispute Settlement Understanding (DSU) shall apply to such consultations.

2. The Council for Trade in Services or the Dispute Settlement Body (DSB) may, at the request of a Member, consult with any Member or Members in respect of any matter for which it has not been possible to find a satisfactory solution through consultation under paragraph 1.

3. A Member may not invoke Article XVII, either under this Article or Article XXIII, with respect to a measure of another Member that falls within the scope of an international agreement between them relating to the avoidance of double taxation. In case of disagreement between Members as to whether a measure falls within the scope of such an agreement between them, it shall be open to either Member to bring this matter before the Council for Trade in Services.11 The Council shall refer the matter to arbitration. The decision of the arbitrator shall be final and binding on the Members.

　 11 With respect to agreements on the avoidance of double taxation which exist on the date of entry into force of the WTO Agreement, such a matter may be brought before the Council for Trade in Services only with the consent of both parties to such an agreement.

Article XXIII Dispute Settlement and Enforcement

1. If any Member should consider that any other Member fails to carry out its obligations or specific commitments under this Agreement, it may with a view to reaching a mutually satisfactory resolution of the matter have recourse to the DSU.

2. If the DSB considers that the circumstances are serious enough to justify such action, it may authorize a Member or Members to suspend the application to any other Member or Members of obligations and specific commitments in accordance with Article XXII of the DSU.

3. If any Member considers that any benefit it could reasonably have expected to accrue to it under a specific commitment of another Member under Part III of this Agreement is being nullified or impaired as a result of the application of any measure which does not conflict with the provisions of this Agreement, it may have recourse to the DSU. If the measure is determined by the DSB to have nullified or impaired such a benefit, the Member affected shall be entitled to a mutually satisfactory adjustment on the basis of paragraph 2 of Article XXI, which may include the modification or withdrawal of the measure. In the event an agreement cannot be reached between the Members concerned. Article XXII of the DSU shall apply.

Article XXIV Council for Trade in Services

1. The Council for Trade in Services shall carry out such functions as may be assigned to it to facilitate the operation of this Agreement and further its objectives. The Council may establish such subsidiary bodies as it considers appropriate for the effective discharge of its functions.

2. The Council and, unless the Council decides otherwise, its subsidiary bodies shall be open to participation by representatives of all Members.

3. The Chairman of the Council shall be elected by the Members.

Article XXV Technical Cooperation

1. Service suppliers of Members which are in need of such assistance shall have access to the services of contact points referred to in paragraph 2 of Article IV.

2. Technical assistance to developing countries shall be provided at the multilateral level by the Secretariat and shall be decided upon by the Council for Trade in Services.

Article XXVI Relationship with Other International Organizations

　The General Council shall make appropriate arrangements for consultation and cooperation with the United Nations and its specialized agencies as well as with other intergovernmental organizations concerned with services.

PART VIFINAL PROVISIONS

Article XXVII Denial of Benefits

　A Member may deny the benefits of this Agreement:

(a) to the supply of a service, if it establishes that the service is supplied from or in the territory of a non-Member or of a Member to which the denying Member does not apply the WTO Agreement;

(b) in the case of the supply of a maritime transport service, if it establishes that the service is supplied:

(i) by a vessel registered under the laws of a non-Member or of a Member to which the denying Member does not apply the WTO Agreement, and

(ii) by a person which operates and/or uses the vessel in whole or in part but which is of a non-Member or of a Member to which the denying Member does not apply the WTO Agreement;

(c) to a service supplier that is a juridical person, if it establishes that it is not a service supplier of another Member, or that it is a service supplier of a Member to which the denying Member does not apply the WTO Agreement.

Article XXVIII Definitions

　For the purpose of this Agreement:

(a) "measure" means any measure by a Member, whether in the form of a law, regulation, rule, procedure, decision, administrative action, or any other form;

(b) "supply of a service" includes the production, distribution, marketing, sale and delivery of a service;

(c) "measures by Members affecting trade in services" include measures in respect of

(i) the purchase, payment or use of a service;

(ii) the access to and use of, in connection with the supply of a service, services which are required by those Members to be offered to the public generally;

(iii) the presence, including commercial presence, of persons of a Member for the supply of a service in the territory of another Member;

(d) "commercial presence" means any type of business or professional establishment, including through

(i) the constitution, acquisition or maintenance of a juridical person, or

(ii) the creation or maintenance of a branch or a representative office, within the territory of a Member for the purpose of supplying a service;

(e) "sector" of a service means,

(i) with reference to a specific commitment, one or more, or all, subsectors of that service, as specified in a Member's Schedule,

(ii) otherwise, the whole of that service sector, including all of its subsectors;

(f) "service of another Member" means a service which is supplied,

(i) from or in the territory of that other Member, or in the case of maritime transport, by a vessel registered under the laws of that other Member, or by a person of that other Member which supplies the service through the operation of a vessel and/or its use in whole or in part; or

(ii) in the case of the supply of a service through commercial presence or through the presence of natural persons, by a service supplier of that other Member;

(g) "service supplier" means any person that supplies a service;12

　 12 Where the service is not supplied directly by a juridical person but through other forms of commercial presence such as a branch or a representative office, the service supplier (i.e. the juridical person) shall, nonetheless, through such presence be accorded the treatment provided for service suppliers under the Agreement. Such treatment shall be extended to the presence through which the service is supplied and need not be extended to any other parts of the supplier located outside the territory where the service is supplied.

(h) "monopoly supplier of a service" means any person, public or private, which in the relevant market of the territory of a Member is authorized or established formally or in effect by that Member as the sole supplier of that service;

(i) "service consumer" means any person that receives or uses a service;

(j) "person" means either a natural person or a juridical person;

(k) " natural person of another Member" means a natural person who resides in the territory of that other Member or any other Member, and who under the law of that other Member:

(i) is a national of that other Member; or

(ii) has the right of permanent residence in that other Member, in the case of a Member which:

1. does not have nationals; or

2. accords substantially the same treatment to its permanent residents as it does to its nationals in respect of measures affecting trade in services, as notified in its acceptance of or accession to the WTO Agreement, provided that no Member is obligated to accord to such permanent residents treatment more favourable than would be accorded by that other Member to such permanent residents. Such notification shall include the assurance to assume, with respect to those permanent residents, in accordance with its laws and regulations, the same responsibilities that other Member bears with respect to its nationals;

(l) "juridical person" means any legal entity duly constituted or otherwise organized under applicable law, whether for profit or otherwise, and whether privately-owned or governmentally-owned, including any corporation, trust, partnership, joint venture, sole proprietorship or association;

(m) "juridical person of another Member" means a juridical person which is either:

(i) constituted or otherwise organized under the law of that other Member, and is engaged in substantive business operations in the territory of that Member or any other Member; or

(ii) in the case of the supply of a service through commercial presence, owned or controlled by:

1. natural persons of that Member; or

2. juridical persons of that other Member identified under subparagraph (i);

(n)(i) a juridical person is: "owned" by persons of a Member if more than 50 per cent of the equity interest in it is beneficially owned by persons of that Member;

(ii) "controlled" by persons of a Member if such persons have the power to name a majority of its directors or otherwise to legally direct its actions;

(iii) "affiliated" with another person when it controls, or is controlled by, that other person; or when it and the other person are both controlled by the same person;

(o) "direct taxes" comprise all taxes on total income, on total capital or on elements of income or of capital, including taxes on gains from the alienation of property,' taxes on estates, inheritances and gifts, and taxes on the total amounts of wages or salaries paid by enterprises, as well as taxes on capital appreciation.

Article XXIX Annexes

　The Annexes to this Agreement are an integral part of this Agreement.

　ANNEX ON ARTICLE II EXEMPTIONS

　Scope

1. 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.

2. Any new exemptions applied for after the date of entry into force of the WTO Agreement shall be dealt with under paragraph 3 of Article IX of that Agreement.

　Review

3. The Council for Trade in Services shall review all exemptions granted for a period of more than 5 years. The first such review shall take place no more than 5 years after the entry into force of the WTO Agreement.

4. The Council for Trade in Services in a review shall:

(a) examine whether the conditions which created the need for the exemption still prevail; and

(b) determine the date of any further review.

　Termination

5. 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.

6. In principle, such exemptions should not exceed a period of 10 years. In any event, they shall be subject to negotiation in subsequent trade liberalizing rounds.

7. A Member shall notify the Council for Trade in Services at the termination of the exemption period that the inconsistent measure has been brought into conformity with paragraph 1 of Article II of the Agreement.

　Lists of Article II Exemptions

　[The agreed lists of exemptions under paragraph 2 of Article II will be annexed here in the treaty copy of the WTO Agreement.]

　ANNEX ON MOVEMENT OF NATURAL PERSONS SUPPLYING SERVICES UNDER THE AGREEMENT

1. This Annex applies to measures affecting natural persons who are service suppliers of a Member, and natural persons of a Member who are employed by a service supplier of a Member, in respect of the supply of a service.

2. The Agreement shall not apply to measures affecting natural persons seeking access to the employment market of a Member, nor shall it apply to measures regarding citizenship, residence or employment on a permanent basis.

3. In accordance with Parts III and IV of the Agreement, Members may negotiate specific commitments applying to the movement of all categories of natural persons supplying services under the Agreement. Natural persons covered by a specific commitment shall be allowed to supply the service in accordance with the terms of that commitment.

4. The Agreement shall not prevent a Member from applying measures to regulate the entry of natural persons into, or their temporary stay in, its territory, including those measures necessary to protect the integrity of, and to ensure the orderly movement of natural persons across, its borders, provided that such measures are not applied in such a manner as to nullify or impair the benefits accruing to any Member under the terms of a specific commitment.1

　1The sole fact of requiring a visa for natural persons of certain Members and not for those of others shall not be regarded as nullifying or impairing benefits under a specific commitment.

　ANNEX ON AIR TRANSPORT SERVICES

1. This Annex applies to measures affecting trade in air transport services, whether scheduled or non-scheduled, and ancillary services. It is confirmed that any specific commitment or obligation assumed under this Agreement shall not reduce or affect a Member's obligations under bilateral or multilateral agreements that are in effect on the date of entry into force of the WTO Agreement.

2. The Agreement, including its dispute settlement procedures, shall not apply to measures affecting:

(a) traffic rights, however granted; or

(b) services directly related to the exercise of traffic rights,except as provided in paragraph 3 of this Annex.

3. The Agreement shall apply to measures affecting:

(a) aircraft repair and maintenance services;

(b) the selling and marketing of air transport services;

(c) computer reservation system (CRS) services.

4. The dispute settlement procedures of the Agreement may be invoked only where obligations or specific commitments have been assumed by the concerned Members and where dispute settlement procedures in bilateral and other multilateral agreements or arrangements have been exhausted.

5. The Council for Trade in Services shall review periodically, and at least every five years, developments in the air transport sector and the operation of this Annex with a view to considering the possible further application of the Agreement in this sector.

6. Definitions:

(a) "Aircraft repair and maintenance services" mean such activities when undertaken on an aircraft or a part thereof while it is withdrawn from service and do not include so-called line maintenance.

(b) "Selling and marketing of air transport services" mean opportunities for the air carrier concerned to sell and market freely its air transport services including all aspects of marketing such as market research, advertising and distribution. These activities do not include the pricing of air transport services nor the applicable conditions.

(c) "Computer reservation system (CRS) services" mean services provided by computerised systems that contain information about air carriers' schedules, availability, fares and fare rules, through which reservations can be made or tickets may be issued.

(d) "Traffic rights" mean the right for scheduled and non-scheduled services to operate and/or to carry passengers, cargo and mail for remuneration or hire from, to, within, or over the territory of a Member, including points to be served, routes to be operated, types of traffic to be carried, capacity to be provided, tariffs to be charged and their conditions, and criteria for designation of airlines, including such criteria as number, ownership, and control.

　ANNEX ON FINANCIAL SERVICES

1. Scope and Definition

(a) This Annex applies to measures affecting the supply of financial services. Reference to the supply of a financial service in this Annex shall mean the supply of a service as defined in paragraph 2 of Article I of the Agreement.

(b) For the purposes ofsubparagraph 3(b) of Article I of the Agreement, "services supplied in the exercise of governmental authority" means the following:

(i) activities conducted by a central bank or monetary authority or by any other public entity in pursuit of monetary or exchange rate policies;

(ii) activities forming part of a statutory system of social security or public retirement plans; and

(iii) other activities conducted by a public entity for the account or with the guarantee or using the financial resources of the Government.

(c) For the purposes of subparagraph 3(b) of Article I of the Agreement, if a Member allows any of the activities referred to in subparagraphs (b)(ii) or (b)(iii) of this paragraph to be conducted by its financial service suppliers in competition with a public entity or a financial service supplier, "services" shall include such activities.

(d) Subparagraph 3(c) of Article I of the Agreement shall not apply to services covered by this Annex.

2. Domestic Regulation

(a) Notwithstanding any other provisions of the Agreement, a Member shall not be prevented from taking measures for prudential reasons, including for the protection of investors, depositors, policy holders or persons to whom a fiduciary duty is owed by a financial service supplier, or to ensure the integrity and stability of the financial system. Where such measures do not conform with the provisions of the Agreement, they shall not be used as a means of avoiding the Member's commitments or obligations under the Agreement.

(b) Nothing in the Agreement shall be construed to require a Member to disclose information relating to the affairs and accounts of individual customers or any confidential or proprietary information in the possession of public entities.

3. Recognition

(a) A Member may recognize prudential measures of any other country in determining how the Member's measures relating to financial services shall be applied. Such recognition, which may be achieved through harmonization or otherwise, may be based upon an agreement or arrangement with the country concerned or may be accorded autonomously.

(b) A Member that is a party to such an agreement or arrangement referred to in subparagraph (a), whether future or existing, shall afford adequate opportunity for other interested Members to negotiate their accession to such agreements or arrangements, or to negotiate comparable ones with it, under circumstances in which there would be equivalent regulation, oversight, implementation of such regulation, and, if appropriate, procedures concerning thesharing of information between the parties to the agreement or arrangement. Where a Member accords recognition autonomously, it shall afford adequate opportunity for any other Member to demonstrate that such circumstances exist.

(c) Where a Member is contemplating according recognition to prudential measures of any other country, paragraph 4(b) of Article VII shall not apply.

4. Dispute Settlement

　Panels for disputes on prudential issues and other financial matters shall have the necessary expertise relevant to the specific financial service under dispute.

5. Definitions

　For the purposes of this Annex:

(a) A financial service is any service of a financial nature offered by a financial service supplier of a Member. Financial services include all insurance and insurance-related services, and all banking and other financial services (excluding insurance). Financial services include the following activities:

　Insurance and insurance-related services

(i) Direct insurance (including co-insurance):

(A) life

(B) non-life

(ii) Reinsurance and retrocession;

(iii) Insurance intermediation, such as brokerage and agency;

(iv) Services auxiliary to insurance, such as consultancy, actuarial, risk assessment and claim settlement services.

　 Banking and other financial services (excluding insurance)

(v) Acceptance of deposits and other repayable funds from the public;

(vi) Lending of all types, including consumer credit, mortgage credit, factoring and financing of commercial transaction;

(vii) Financial leasing;

(viii) All payment and money transmission services, including credit, charge and debit cards, travellers cheques and bankers drafts;

(ix) Guarantees and commitments;

(x) Trading for own account or for account of customers, whether on an exchange, in an over-the-counter market or otherwise, the following:

(A) money market instruments (including cheques, bills, certificates of deposits);

(B) foreign exchange;

(C) derivative products including, but not limited to, futures and options;

(D) exchange rate and interest rate instruments, including products such as swaps, forward rate agreements;

(E) transferable securities;

(F) other negotiable instruments and financial assets, including bullion.

(xi) Participation in issues of all kinds of securities, including underwriting and placement as agent (whether publicly or privately) and provision of services related to such issues;

(xii) Money broking;

(xiii) Asset management, such as cash or portfolio management, all forms of collective investment management, pension fund management, custodial, depository and trust services;

(xiv) Settlement and clearing services for financial assets, including securities, derivative products, and other negotiable instruments;

(xv) Provision and transfer of financial information, and financial data processing and related software by suppliers of other financial services;

(xvi) Advisory, intermediation and other auxiliary financial services on all the activities listed in subparagraphs (v) through (xv), including credit reference and analysis, investment and portfolio research and advice, advice on acquisitions and on corporate restructuring and strategy.

(b) A financial service supplier means any natural or juridical person of a Member wishing to supply or supplying financial services but the term "financial service supplier" does not include a public entity.

(c) "Public entity" means:

(i) a government, a central bank or a monetary authority, of a Member, or an entity owned or controlled by a Member, that is principally engaged in carrying out governmental functions or activities for governmental purposes, not including an entity principally engaged in supplying financial services on commercial terms; or

(ii) a private entity, performing functions normally performed by a central bank or monetary authority, when exercising those functions.

　SECOND ANNEX ON FINANCIAL SERVICES

1. Notwithstanding Article II of the Agreement and paragraphs 1 and II of the Annex on Article II Exemptions, a Member may, during a period of 60 days beginning four months after the date of entry into force of the WTO Agreement, list in that Annex measures relating to financial services which are inconsistent with paragraph 1 of Article II of the Agreement.

2. Notwithstanding Article XXI of the Agreement, a Member may, during a period of 60 days beginning four months after the date of entry into force of the WTO Agreement, improve, modify or withdraw all or part of the specific commitments on financial services inscribed in its Schedule.

3. The Council for Trade in Services shall establish any procedures necessary for the application of paragraphs 1 and 2.

　ANNEX ON NEGOTIATIONS ON MARITIME TRANSPORT SERVICES

1. Article II and the Annex on Article II Exemptions, including the requirement to list in the Annex any measure inconsistent with most-favoured-nation treatment that a Member will maintain, shall enter into force for international shipping, auxiliary services and access to and use of port facilities only on:

(a) the implementation date to be determined under paragraph 4 of the Ministerial Decision on Negotiations on Maritime Transport Services; or,

(b) should the negotiations not succeed, the date of the final report of the Negotiating Group on Maritime Transport Services provided for in that Decision.

2. Paragraph 1 shall not apply to any specific commitment on maritime transport services which is inscribed in a Member's Schedule.

3. From the conclusion of the negotiations referred to in paragraph 1, and before the implementation date, a Member may improve, modify or withdraw all or part of its specific commitments in this sector without offering compensation, notwithstanding the provisions of Article XXI.

　ANNEX ON TELECOMMUNICATIONS

1. Objectives

　Recognizing the specificities of the telecommunications services sector and, in particular, its dual role as a distinct sector of economic activity and as the underlying transport means for other economic activities, the Members have agreed to the following Annex with the objective of elaborating upon the provisions of the Agreement with respect to measures affecting access to and use of public telecommunications transport networks and services. Accordingly, this Annex provides notes and supplementary provisions to the Agreement.

2. Scope

(a) This Annex shall apply to all measures of a Member that affect access to and use of public telecommunications transport networks and services.1

　1This paragraph is understood to mean that each Member shall ensure that the obligations of this Annex are applied with respect to suppliers of public telecommunications transport networks and services by whatever measures are necessary.

(b) This Annex shall not apply to measures affecting the cable or broadcast distribution of radio or television programming.

(c) Nothing in this Annex shall be construed:

(i) to require a Member to authorize a service supplier of any other Member to establish, construct, acquire, lease, operate, or supply telecommunications transport networks or services, other than as provided for in its Schedule; or

(ii) to require a Member (or to require a Member to oblige service suppliers under its jurisdiction) to establish, construct, acquire, lease, operate or supply telecommunications transport networks or services not offered to the public generally.

3. Definitions

　For the purposes of this Annex:

(a) "Telecommunications" means the transmission and reception of signals by any electromagnetic means.

(b) "Publictelecommunications transport service" means any telecommunications transport service required, explicitly or in effect, by a Member to be offered to the public generally. Such services may include, inter alia, telegraph, telephone, telex, and data transmission typically involving the real-time transmission of customer-supplied information between two or more points without any end-to-end change in the form or content of the customer's information.

(c) "Public telecommunications transport network" means the public telecommunications infrastructure which permits telecommunications between and among defined network termination points.

(d) "Intra-corporate communications" means telecommunications through which a company communicates within the company or with or among its subsidiaries, branches and, subject to a Member's domestic laws and regulations, affiliates. For these purposes, "subsidiaries", "branches" and, where applicable, "affiliates" shall be as defined by each Member. "Intra-corporate communications" in this Annex excludes commercial or non-commercial services that are supplied to companies that are not related subsidiaries, branches or affiliates, or that are offered to customers or potential customers.

(e) Any reference to a paragraph or subparagraph of this Annex includes all subdivisions thereof.

4. Transparency

　In the application of Article 3 of the Agreement, each Member shall ensure that relevant information on conditions affecting access to and use of public telecommunications transport networks and services is publicly available, including: tariffs and other terms and conditions of service; specifications of technical interfaces with such networks and services; information on bodies responsible for the preparation and adoption of standards affecting such access and use; conditions applying to attachment of terminal or other equipment; and notifications, registration or licensing requirements, if any.

5. Access to and use of Public Telecommunications Transport Networks and Services

(a) Each Member shall ensure that any service supplier of any other Member is accorded access to and use of public telecommunications transport networks and services on reasonable and non- discriminatory terms and conditions, for the supply of a service included in its Schedule. This obligation shall be applied, inter alia, through paragraphs (b) through (f).2

　2The term "non-discriminatory" is understood to refer to most-favoured-nation and national treatment as defined in the Agreement, as well as to reflect sector-specific usage of the term to mean "terms and conditions no less favourable than those accorded to any other user of like public telecommunications transport networks or services under like circumstances".

(b) Each Member shall ensure that service suppliers of any other Member have access to and use of any public telecommunications transport network or service offered within or across the border of that Member, including private leased circuits, and to this end shall ensure, subject to paragraphs (e) and (f), that such suppliers are permitted:

(i) to purchase or lease and attach terminal or other equipment which interfaces with the network and which is necessary to supply a supplier's services;

(ii) to interconnect private leased or owned circuits with public telecommunications transport networks and services or with circuits leased or owned by another service supplier; and

(iii) to use operating protocols of the service supplier's choice in the supply of any service, other than as necessary to ensure the availability of telecommunications transport networks and services to the public generally.

(c) Each Member shall ensure that service suppliers of any other Member may use public telecommunications transport networks and services for the movement of information within and across borders, including for intra-corporate communications of such service suppliers, and for access to information contained in data bases or otherwise stored in machine-readable form in the territory of any Member. Any new or amended measures of a Member significantly affecting such use shall be notified and shall be subject to consultation, in accordance with relevant provisions of the Agreement.

(d) Notwithstanding the preceding paragraph, a Member may take such measures as are necessary to ensure the security and confidentiality of messages, subject to the requirement that such measures are not applied in a manner which would constitute a means of arbitrary or unjustifiable discrimination or a disguised restriction on trade in services.

(e) Each Member shall ensure that no condition is imposed on access to and use of public telecommunications transport networks and services other than as necessary:

(i) to safeguard the public service responsibilities of suppliers of public telecommunications transport networks and services, in particular their ability to make their networks or services available to the public generally;

(ii) to protect the technical integrity of public telecommunications transport networks or services; or

(iii) to ensure that service suppliers of any other Member do not supply services unless permitted pursuant to commitments in the Member's Schedule.

(f) Provided that they satisfy the criteria set out in paragraph (e), conditions for access to and use of public telecommunications transport networks and services may include:

(i) restrictions on resale or shared use of such services;

(ii) a requirement to use specified technical interfaces, including interface protocols, for inter-connection with such networks and services;

(iii) requirements, where necessary, for the inter-operability of such services and to encourage the achievement of the goals set out in paragraph 7(a);

(iv) type approval of terminal or other equipment which interfaces with the network and technical requirements relating to the attachment of such equipment to such networks;

(v) restrictions on inter-connection of private leased or owned circuits with such networks or services or with circuits leased or owned by another service supplier; or

(vi) notification, registration and licensing.

(g) Notwithstanding the preceding paragraphs of this section, a developing country Member may, consistent with its level of development, place reasonable conditions on access to and use of public telecommunications transport networks and services necessary to strengthen its domestic telecommunications infrastructure and service capacity and to increase its participation in international trade in telecommunications services. Such conditions shall be specified in the Member's Schedule.

6. Technical Cooperation

(a) Members recognize that an efficient, advanced telecommunications infrastructure in countries, particularly developing countries, is essential to the expansion of their trade in services. To this end, Members endorse and encourage the participation, to the fullest extent practicable, of developed and developing countries and their suppliers of public telecommunications transport networks and services and other entities in the development programmes of international and regional organizations, including the International Telecommunication Union, the United Nations Development Programme, and the International Bank for Reconstruction and Development.

(b) Members shall encourage and support telecommunications cooperation among developing countries at the international, regional and sub-regional levels.

(c) In cooperation with relevant international organizations, Members shall make available, where practicable, to developing countries information with respect to telecommunications services and developments in telecommunications and information technology to assist in strengthening their domestic telecommunications services sector.

(d) Members shall give special consideration to opportunities for the least-developed countries to encourage foreign suppliers of telecommunications services to assist in the transfer of technology, training and other activities that support the development of their telecommunications infrastructure and expansion of their telecommunications services trade.

7. Relation to International Organizations and Agreements

(a) Members recognize the importance of international standards for global compatibility and inter-operability of telecommunication networks and services and undertake to promote such standards through the work of relevant international bodies, including the International Telecommunication Union and the International Organization for Standardization.

(b) Members recognize the role played by intergovernmental and non-governmental organizations and agreements in ensuring the efficient operation of domestic and global telecommunications services, in particular the International Telecommunication Union. Members shall make appropriate arrangements, where relevant, for consultation with such organizations on matters arising from the implementation of this Annex.

　ANNEX ON NEGOTIATIONS ON BASIC TELECOMMUNICATIONS

1. Article II and the Annex on Article II Exemptions, including the requirement to list in the Annex any measure inconsistent with most-favoured-nation treatment that a Member will maintain, shall enter into force for basic telecommunications only on:

(a) the implementation date to be determined under paragraph 5 of the Ministerial Decision on Negotiations on Basic Telecommunications; or,

(b) should the negotiations not succeed, the date of the final report of the Negotiating Group on Basic Telecommunications provided for in that Decision.

2. Paragraph 1 shall not apply to any specific commitment on basic telecommunications which is inscribed in a Member's Schedule.

　JAPAN

　Schedule of Specific Commitments

　(This is authentic in English only)

　Note for transparency

i) Alphabets and numbers indicated in each sector-specific commitments are reference to Services Sectoral Classification List (GATT Secretariat's Documents MTN.GNS/W/120, dated 10 July 1991) and Provisional Central Product Classification (Statistical Papers Series M No. 77, Department of International Economic and Social Affairs, Statistical Office of the United Nations, New York, 1991). These alphabetical and numerical divisions are indicated to enhance the clarity in the description of specific commitments, but shall not be construed as being a part of the specific commitments.

ii) The modes of supply 1), 2), 3) and 4) indicated in this schedule of specific commitments correspond respectively to the supply of services defined under paragraph 2.a), b), c) and d) of Article I of this Agreement.

　15 April 1994

                                                 JAPAN-SCHEDULE OF SPECIFIC COMMITMENTS

  Modes of supply;     1)  Cross-border supply      2)  Consumption abroad      3)  Commercial presence    4)  Presence of natural persons

      Sector of subsector            Limitations on market access           Limitations on national treatment         Additional commitments


1.  HORIZONTAL COMMITMENTS

     ALL SECTORS                                                             3)  Unbound for research
     INCLUDED IN                                                                 and development subsidies
     THIS SCHEDULE
                  4)     Unbound except for                                  4)  Unbound except for
                         measures  concerning                                     measures concerning
                         the entry and temporary                                 the categories of
                         stay of a natural                                       natural persons referred
                         person who falls in one                                 to in the market access
                         of the following                                        column
                         categories:
                                                                                 Unbound for research
                   a)    A natural person who has                                and development subsidies
                         been employed by a
                         juridical person of a
                         Member other then Japan
                         for a period of not less
                         then one year immediately
                         preceding the date of his
                         application for the entry
                         and temporary stay in
                         Japan ,and who is being
                         transferred,for a period
                         not exceeding5 years,to
                         a branch office or a
                         juridical person constituted
                         or  registered in Japan
                         owned or controlled by the
                         aforementioned juridical

JAPAN(continued)

 Modes of supply;     1)  Cross-border supply      2)  Consumption abroad      3)  Commercial presence      4)  Presence of  natural persons

      Sector of subsector               Limitations on market access                    Limitations on national treatment             Additional commitments


                                     person of a Member other
                                     than Japan,provided that
                                     he will be engaged in one
                                     of the following activities:

                                ⅰ)  Activities to direct a
                                     branch office as its head;

                                ⅱ)  Activities to direct a 
                                     juridical person as its
                                     board member or auditor;

                                ⅲ)  Activities to direct one
                                     or more departments
                                     of a juridical person;

                                ⅳ)  Activities which require
                                     technology and/or
                                     knowledge at an advanced
                                     level pertinent to
                                     physical sciences,
                                     engineering or other
                                     natural sciences; and

JAPAN(continued)

 Modes of supply:   1)  Cross-border supply    2)  Consumption abroad   3)  Commercial presence    4)  Presence of natural persons

      Sector of subsector            Limitations on market access           Limitations on national treatment             Additional commitments


                             v)  Activities which require
                                 knowledge at an advanced
                                 level pertinent to
                                 jurisprudence, economics,
                                 business management, 
                                 accounting or other
                                 humanities sciences.

                             b) A natural person who has
                                been employed by a juridical
                                person of a Member other
                                than Japan or has been a
                                partner in it for a period 
                                not less than one year
                                immediately preceding
                                the date of his application
                                for the entry and temporary
                                stay in Japan ,and who is 
                                being transferred to Japan,
                                for a period not exceeding
                                5 years and who will return
                                to the aforementioned
                                juridical person of a Member
                                other then Japan upon the
                                expiration of the said
                                period, provided that he

JAPAN(continued)

 Modes of supply;      1)  Cross-border supply      2)  Consumption abroad      3)  Commercial presence      4)  Presence of  natural persons

      Sector of subsector       Limitations on market access           Limitations on national treatment             Additional commitments


                               will be engaged in one of
                               the following activities of 
                               professional services which
                               may be engaged only as a
                               natural person and not as
                               an employee:

                          ⅰ)  Legal services supplied
                               by a lawyer qualified
                               as  "Bengoshi" under
                               Japanese law;

                          ⅱ)  Consultancy on law of
                               jurisdiction where the 
                               service supplier is a
                               qualified lawyer;

                          ⅲ)  Legal services supplied
                               by a patent attorney
                               qualified as "Benrishi"
                               under Japanese law; 

                          ⅳ)  Legal services supplied
                               by a maritime procedure
                               agent qualified as
                               "kaijidairishi" under
                               Japanese law;

JAPAN(continued)

 Modes of supply;     1)  Cross-border supply      2)  Consumption abroad      3)  Commercial presence      4)  Presence of  natural persons

      Sector of subsector            Limitations on market access           Limitations on national treatment             Additional commitments


                            ⅴ)  Accounting,auditing
                                 and bookkeeping
                                 services supplied by
                                 an accountant qualified
                                 as "Koninkaikeishi"
                                 under Japanese law; and

                            ⅵ)  Taxation services
                                 supplied by a tax
                                 accountant qualified
                                 as "Zeirishi" under 
                                 Japanese law.

                             c)  A natural person who
                                 stays in Japan for a time
                                 period not exceeding
                                 90 days without acquiring
                                 remuneration from within
                                 Japan and without engaging
                                 in making direct sales to
                                 the general public or
                                 in supplying services
                                 himself , for the purposes
                                 of participating in 
                                 business contacts including
                                 negotiations for the sale 
                                 of services and/or other

JAPAN(continued)

 Modes of supply:     1)  Cross-border supply      2)  Consumption abroad      3)  Commercial presence      4)  Presence of  natural persons

      Sector of subsector            Limitations on market access           Limitations on national treatment             Additional commitments


                                    similar activities including
                                    those to prepare for
                                    establishing commercial
                                    presence in Japan.


                                    Activities which require
                                    technology or knowledge at
                                    an advanced level pertinent
                                    to natural or humanities
                                    sciences referred to in a) ⅳ)
                                    and ⅴ) mean: activities in 
                                    which the natural person may not
                                    be able to engage without the 
                                    application of specialized
                                    technology or knowledge of
                                    natural or humanities sciences
                                    acquired by him, in principle,
                                    by completing college education
                                    (i.e. bachelor`s degree) or higher
                                    education. 

JAPAN(continued)

 Modes of supply:    1) Cross-border supply     2) Consumption abroad     3) Commercial presence     4) Presence of natural persons

    Sector of subsector            Limitations on market access           Limitations on national treatment             Additional commitments


2.     SECTOR-SPECIFIC COMMITMENTS

1.     BUSINESS SERVICES  

A .    Professional
       Services

a)     Legal services                    1) Services must be supplied             1)  None
       supplied by a                        by a natural person.
       lawyer qualified as 
       "Bengoshi" under                     Commercial presence 
       Japanese law                         is required.
       (861)
                                         2) Services must be supplied             2)  None
                                            by a natural person.

                                            Commercial presence 
                                            is required.

                                         3) Services must be supplied             3)  None except as indicated in
                                            by a natural person.                      HORIZONTAL COMMITMENTS

                                         4) Unbound except as                     4)  Unbound except as 
                                            indicated in                              indicated in
                                            HORIZONTAL COMMITMENTS                    HORIZONTAL COMMITMENTS

                                            Commercial presence 
                                            is required.

APAN(continued)

 Modes of supply:    1) Cross-border supply     2) Consumption abroad     3) Commercial presence     4) Presence of natural persons

    Sector of subsector            Limitations on market access           Limitations on national treatment             Additional commitments

a)  Consultancy on law           1) Services must be supplied               1) A service supplier                          3)ⅰ) Practice of International
    of jurisdiction where           by a natural person.                       is required to stay in                         law is permitted, provided
    the service supplier                                                       Japan not less than                            that the international law
    is a qualified lawyer           Commercial presence                        180days in a year.                             is or was in force in the
                                    is required.                                                                              jurisdiction. Practice of
1)  Consultancy on law                                                                                                        third country law and
    does not include:            2) Services must be supplied               2) A Service supplier                             Japanese law is not permitted.
    a) Legal representation         by a natural person.                       is required to stay in
    for juridical procedures                                                   Japan not less than                           ⅱ) Association with
    in courts and other             Commercial presence                        180 days in a year.                            Bengoshi is permitted.
    government agencies as          is required.                                                                              Employment of Bengoshi
    well as preparation of                                                                                                    is not permitted.
    legal documents for          3) Services must be supplied               3) None except as indicated in
    such procedures;                by a natural person.                       HORIZONTAL COMMITMENTS                        ⅲ) Use of firm name is
    b) expression of legal                                                                                                    unrestricted, provided
    opinions concerning          4) Unbound except as                       4) Unbound except as                              that it is followed with
    laws other than laws            indicated in                               indicated in                                   reference to "Gaikoku-Ho-
    of the jurisdiction             HORIZONAL COMMITMENTS                      HORIZONTAL COMMITMENTS                         Jimu-Bengoshi Jimusho".
    where the service 
    supplier is qualified           Commercial presence                        A Service supplier                            ⅳ) Representation in arbitration
    as a lawyer (herein-            is required.                               is required to stay in                         is permitted,provided that
    after referred to as                                                       Japan not less than                            the applicable law in the
    the "jurisdiction"                                                         180 days in a year.                            arbitration is the law which
    in this sector);                                                                                                          the Service supplier is
    c) legal representation                                                                                                   qualified to practice in
    for the entrustment of                                                                                                    Japan.
    the preparation of
    notarial deeds; and
    d) those activities

JAPAN(continued)

 Modes of supply:     1)  Cross-border supply      2)  Consumption abroad      3)  Commercial presence      4)  Presence of  natural persons

      Sector of subsector            Limitations on market access           Limitations on national treatment             Additional commitments

      concerning a legal case
      whose primary objective
      is the acquisition or
      loss or change of rights
      concerning real property
      in Japan or of industrial 
      property rights, mining
      rights or other rights
      arising upon registration
      thereof with government
      agencies in Japan.
  2)  A service supplier shall
      be required to cooperate
      with Bengoshi or to ask
      for his advice in a legal 
      case concerning family
      relations or inheritance,
      in which a Japanese national
      is involved as a party, or
      in a legal case whose objective
      is the acquisition or loss or
      change of rights concerning
      real property in Japan or of
      industrial property rights,
      mining rights or other rights
      arising upon registration
      thereof with government
      agencies in Japan, as long as
      the above objective is not the
      primary one.

JAPAN(continued)

 Modes of supply:     1)  Cross-border supply      2)  Consumption abroad      3)  Commercial presence      4)  Presence of  natural persons

      Sector of subsector            Limitations on market access           Limitations on national treatment             Additional commitments


Note for transparency

      A service supplier must be recognized as "Gaikoku-Ho-Jimu-Bengoshi" by the Minister of Justice and register with the Japan Federation of Bar Associations.

      The conditions for granting recognition by the Minister of Justice are as follows:

      1)    The service supplier is qualified as a lawyer in the jurisdiction.

      2)    The service supplier has engaged himself as a lawyer for at least 5 years in the jurisdiction.

      3)    The service supplier is not subject to such conditions of disqualification in the jurisdiction which, if applied to Bengoshi, would disqualify the Bengoshi.

      4)    The service supplier possesses the intention to undertake the profession in good faith.

      5)    The service supplier possesses plans, residence and financial basis to perform his functions properly and steadily.

      6)    The service supplier possesses capability to compensate for damages caused to the client, if any.

JAPAN(continued)

  Modes of supply:     1)  Cross-border supply      2)  Consumption abroad      3)  Commercial presence      4)  Presence of  natural persons

      Sector of subsector            Limitations on market access           Limitations on national treatment             Additional commitments


a)    Legal services              1) Services must be supplied             1) None 
      supplied by a                  by a natural person.
      patent attorney
      qualified as                   Commercial presence 
      "Benrishi" under               is required.
      Japanese law
      (86119,8612                 2) Services must be supplied             2) None
      8613,8619)                     by a natural person.

                                     Commercial presence    
                                     is required.

                                  3) Services must be supplied             3) None except as indicated in
                                     by a natural person.                     HORIZONTAL COMMITMENTS

                                  4) Unbound except as                     4) Unbound except as 
                                     indicated in                             indicated in
                                     HORIZONTAL COMMITMENTS                   HORIZONTAL COMMITMENTS

                                     Commercial presence 
                                     is required.

a)    Legal services              1) Services must be supplied             1) None
      supplied by a                  by a natural person.
      maritime procedure
      agent qualified             2) Services must be supplied             2) None
      as "kaijidairishi"             by a natural person.
      under Japanese law

JAPAN(continued)

  Modes of supply:     1)  Cross-border supply      2)  Consumption abroad      3)  Commercial presence      4)  Presence of  natural persons

      Sector of subsector            Limitations on market access           Limitations on national treatment             Additional commitments


                                  3) Services must be supplied             1) None except as indicated in
                                     by a natural person.                     HORIZONTAL COMMITMENTS

                                  4) Unbound except as                     4) Unbound except as 
                                     indicated in                             indicated in
                                     HORIZONTAL COMMITMENTS                   HORIZONTAL COMMITMENTS

b)  Accounting, auditing          1) services must be supplied             1) None
    and bookkeeping                  by a natural person or by
    services supplied                an Audit Corporation1.
    by an accountant
    qualified as                     Commercial presence    
    "Koninkaikeishi"                 is required for an
    under Japanese law               Audit Corporation.
    (862)
                                  2) Services must be supplied             2) None
                                     by a natural person or by
                                     an Audit Corporation.

                                     Commercial presence 
                                     is required for an
                                     Audit Corporation.


1    Audit Corporation under Japanese law is composed of five or more partners who are accountants qualified as "Koninkaikeishi" under Japanese law and have the
     right and obligation to execute activities of the Audit Corporation.

JAPAN(continued)

  Modes of supply:     1)  Cross-border supply      2)  Consumption abroad      3)  Commercial presence      4)  Presence of  natural persons

      Sector of subsector            Limitations on market access           Limitations on national treatment             Additional commitments

                              3) Services must be supplied                3) None except as indicated in
                                 by a natural person or by                   HORIZONTAL COMMITMENTS
                                 an Audit Corporation.

                              4) Unbound except as                        4) Unbound except as 
                                 indicated in                                indicated in
                                 HORIZONTAL COMMITMENTS                      HORIZONTAL COMMITMENTS

c)  Taxation Services         1) Services must be supplied                1) None
    supplied by a                by a natural person.
    tax accountant
    qualified as                 Commercial presence 
    "Zeirishi" under             is required.
    Japanese law
    (863)                     2) Services must be supplied                2) None
                                 by a natural person.

                                 Commercial presence
                                 is required.

                              3) Services must be supplied                3) None except as indicated in
                                 by a natural person.                        HORIZONTAL COMMITMENTS 

                              4) Unbound except as                        4) Unbound except as 
                                 indicated in                                indicated in
                                 HORIZONTAL COMMITMENTS                      HORIZONTAL COMMITMENTS

                                 Commercial presence
                                 is required.

JAPAN(continued)

 Modes of supply:     1)  Cross-border supply      2)  Consumption abroad      3)  Commercial presence      4)  Presence of  natural persons

      Sector of subsector            Limitations on market access           Limitations on national treatment             Additional commitments


d), e) Architectural services A     1) Commercial presence                1) None
       supplied by a service           is required.
       supplier qualified as
       "Kenchikushi" under          2) Commercial presence                2) None
       Japanese law, or by             is required.
       a service supplier
       using "Kenchikushi"          3) None                               3) None except as indicated in
                                                                             HORIZONTAL COMMITMENTS
       Architectural services A
       covers services              4) Unbound except as                  4) Unbound except as 
       which must be supplied          indicated in                          indicated in
       by a service supplier           HORIZONTAL COMMITMENTS                HORIZONTAL COMMITMENTS
       qualified as "Kenchiku-
       shi" under Japanese
       law, or by a service
       supplier using
       "Kenchikushi".
       (86712,86713,867142)
       (86722,86723,867242, 
        867252,867272)



2     Limited to services necessary for building construction excluding post construction services.

JAPAN(continued)

 Modes of supply:     1)  Cross-border supply      2)  Consumption abroad      3)  Commercial presence      4) Presence of  natural persons

      Sector of subsector            Limitations on market access           Limitations on national treatment             Additional commitments


d), e) Architectural                1) Commercial presence                1) None
       services B supplied             is required3.
       by a service supplier 
       qualified as                 2) Commercial presence                2) None
       "Kenchikushi" under             is required3.
       Japanese law, or by 
       a service supplier           3) None                               3) None except as indicated in
       using "Kenchikushi"                                                   HORIZONTAL COMMITMENTS

       Architectural services B     4) Unbound except as                  4) Unbound except as
       covers services                 indicated in                          indicated in 
       which may be supplied           HORIZONTAL COMMITMENTS                HORIZONTAL COMMITMENTS
       by a service supplier           
       unqualified as
      "Kenchikushi" under
       Japanese law, or by a
       service supplier not
       using "Kenchikushi".
       (including business
       related to contracts of
       construction works for
       buildings, supervising

3  In case Architectural services B is supplied by a service supplier unqualified as "Kenchikushi" under Japanese law, or by a service supplier not using "Kenchikushi",
   commercial presence is not required.

JAPAN(continued)

  Modes of supply:     1)  Cross-border supply      2)  Consumption abroad      3)  Commercial presence      4)  Presence of  natural persons

      Sector of subsector            Limitations on market access           Limitations on national treatment             Additional commitments


     construction works
     for buildings, inspection
     and evaluation of buildings,
     and representation of
     procedures based on laws,
     regulations or ordinances
     concerning Construction 
     works for buildings).

d), e), g)
     Architectural
     services other                 1) None                                1) None
     than architectural
     services A and B               2) None                                2) None
     (867114,867144,
     867194)                        3) None                                3) None except as indicated in
     (867214)                                                                 HORIZONTAL COMMITMENTS
     (867424)
                                    4) Unbound except as                   4) Unbound except as 
                                       indicated in                           indicated in
                                       HORIZONTAL COMMITMENTS                 HORIZONTAL COMMITMENTS




4 Limited to services necessary for building construction.

JAPAN(continued)

  Modes of supply:     1)  Cross-border supply      2)  Consumption abroad      3)  Commercial presence      4)  Presence of  natural persons

      Sector of subsector            Limitations on market access           Limitations on national treatment             Additional commitments


e), f)  Engineering services          1) None                                1) None
        and integrated
        engineering services          2) None                                2) None
        (excluding services
        related to petroleum,         3) None                                3) None except as indicated in
        petroleum products,                                                     HORIZONTAL COMMITMENTS
        gas and mineral)
        (86725)                       4) Unbound except as                   4) Unbound except as 
        (86735)                          indicated in                           indicated in
                                         HORIZONTAL COMMITMENTS                 HORIZONTAL COMMITMENTS

e), g), F. e), F. m) 
        Civil engineering             1) None                                1) None
        consulting services
        (867216, 867246,              2) None                                2) None
        867276, 867296)
        (86741, 867426)               3) None                                3) None except as indicated in
        (867616)                                                                HORIZONTAL COMMITMENTS  
        (867516, 867526)

                                      4) Unbound except as                   4) Unbound except as 
                                         indicated in                           indicated in
                                         HORIZONTAL COMMITMENTS                 HORIZONTAL COMMITMENTS


5       Excluding architectural services and civil engineering consulting services.
6       Limited to services necessary for civil engineering excluding engineering design services for buildings.

JAPAN(continued)

  Modes of supply:     1)  Cross-border supply      2)  Consumption abroad      3)  Commercial presence      4)  Presence of  natural   persons

      Sector of subsector            Limitations on market access           Limitations on national treatment               Additional commitments


B.     Computer and               1) None                                  1) None
       Related Services 
       (excluding services        2) None                                  2) None
       of air transport
       computer reservation       3) None                                  3) None except as indicated in
       system)                                                                HORIZONTAL COMMITMENTS
       (841, 842,843, 
       844,845,849)               4) Unbound except as                     4) Unbound except as 
                                     indicated in                             indicated in
                                     HORIZONTAL COMMITMENTS                   HORIZONTAL COMMITMENTS
C.     Research and
       Development Services

b)     Research and               1) None                                  1) None
       development services
       on social sciences         2) None                                  2) None
       and humanities
       (852)                      3) None                                  3) None except as indicated in
                                                                              HORIZONTAL COMMITMENTS

                                  4) Unbound except as                     4) Unbound except as 
                                     indicated in                             indicated in
                                     HORIZONTAL COMMITMENTS                   HORIZONTAL COMMITMENTS

JAPAN(continued)

 Modes of supply:     1)  Cross-border supply      2)  Consumption abroad      3)  Commercial presence      4)  Presence of  natural persons

      Sector of subsector            Limitations on market access           Limitations on national treatment             Additional commitments


D.   Real Estate Services 

a)   Real estate services      1) Commercial presence                   1) None
     involving own or             is required.
     leased property 
     (for the property         2) Commercial presence                   2) None
     in Japan)                    is required.
     (821)
                               3) None                                  3) None except as indicated in
                                                                           HORIZONTAL COMMITMENTS

                               4) Unbound except as                     4) Unbound except as 
                                  indicated in                             indicated in
                                  HORIZONTAL COMMITMENTS                   HORIZONTAL COMMITMENTS

a)   Real estate services      1) None                                  1) None
     involving own or 
     leased property 
     (for the property         2) None                                  2) None
     outside Japan)
     (821)
                               3) None                                  3) None except as indicated in
                                                                           HORIZONTAL COMMITMENTS

                               4) Unbound except as                     4) Unbound except as 
                                  indicated in                             indicated in
                                  HORIZONTAL COMMITMENTS                   HORIZONTAL COMMITMENTS

JAPAN(continued)

 Modes of supply:     1)  Cross-border supply      2)  Consumption abroad      3)  Commercial presence      4)  Presence of  natural persons

      Sector of subsector            Limitations on market access           Limitations on national treatment             Additional commitments


b)   Real estate services           1) Commercial presence                   1) None
     on a fee or                       is required.
     contract basis
     (for the property              2) Commercial presence                   2) None
     in Japan)                         is required.
     (822)
                                    3) None                                  3) None except as indicated in
                                                                                HORIZONTAL COMMITMENTS

                                    4) Unbound except as                     4) Unbound except as 
                                       indicated in                             indicated in
                                       HORIZONTAL COMMITMENTS                   HORIZONTAL COMMITMENTS

b)   Real estate services           1) None                                  1) None
     on a fee or
     contract basis                 2) None                                  2) None
     (for the property 
     outside Japan)                 3) None                                  3) None except as indicated in
     (822)                                                                      HORIZONTAL COMMITMENTS

                                    4) Unbound except as                     4) Unbound except as 
                                       indicated in                             indicated in
                                       HORIZONTAL COMMITMENTS                   HORIZONTAL COMMITMENTS

JAPAN(continued)


  Modes of supply:      1)  Cross-border supply   2)  Consumption abroad   3)  Commercial presence    4)  Presence of natural persons

       Sector or subsector                 Limitations on market access              Limitations on national treatment         Additional commitments


E.     Rental and Leasing
       Services without
       Operators

c)     Rental and Leasing          1)  None                                   1)  None
       services, without
       operators, related          2)  None                                   2)  None
       to transport equipment
       other than vessels and      3)  None                                   3)  None except as indicated in
       aircrafts                                                                  HORIZONTAL COMMITMENTS
       (83101,83102, 
       83105)                      4)  Unbound except as                      4)  Unbound except as
                                       indicated in                               indicated in
                                  HORIZONTAL COMMITMENTS                HORIZONTAL COMMITMENTS 


d),e)  Rental and leasing          1)  None                                   1)  None
       services, without
       operators, related          2)  None                                   2)  None
       to machineries and
       equipment other             3)  None                                   3)  None except as indicated in
       than transport                                                             HORIZONTAL COMMITMENTS
       equipment
       (83106-83109)               4)  Unbound except as                      4)  Unbound except as
       (832)                           indicated in                               indicated in
                                  HORIZONTAL COMMITMENTS                HORIZONTAL COMMITMENTS 

JAPAN(continued)

  Modes of supply:      1)  Cross-border supply   2)  Consumption abroad   3)  Commercial presence    4)  Presence of natural persons 

       Sector or subsector                 Limitations on market access              Limitations on national treatment         Additional commitments


F.     Other Business
       Services

a)     Advertising services        1)  None                                   1)  None
       (871)
                                   2)  None                                   2)  None

                                   3)  None                                   3)  None except as indicated in
                                                                                  HORIZONTAL COMMITMENTS

                                   4)  Unbound except as                      4)  Unbound except as
                                       indicated in                               indicated in
                                  HORIZONTAL COMMITMENTS                HORIZONTAL COMMITMENTS 


b)     Market research             1)  None                                   1)  None
       and public opinion
       Polling services            2)  None                                   2)  None
       (864)
                                   3)  None                                   3)  None except as indicated in
                                                                        HORIZONTAL COMMITMENTS

                                   4)  Unbound except as                      4)  Unbound except as
                                       indicated in                               indicated in
                                       HORIZONTAL COMMITMENTS                  HORIZONTAL COMMITMENTS

JAPAN(continued)

  Modes of supply:      1)  Cross-border supply   2)  Consumption abroad   3)  Commercial presence    4)  Presence of natural persons 

       Sector or subsector                 Limitations on market access              Limitations on national treatment         Additional commitments


c)     Management                  1)  None                                   1)  None
       consulting services
       (865)                       2)  None                                   2)  None

                                   3)  None                                   3)  None except as indicated in
                                                                                  HORIZONTAL COMMITMENTS

                                   4)  Unbound except as                      4)  Unbound except as
                                       indicated in                               indicated in
                                       HORIZONTAL COMMITMENTS                     HORIZONTAL COMMITMENTS 


d)     Services related to         1)  None                                   1)  None
       management
       consulting                  2)  None                                   2)  None
       (86601,86609)
                                   3)  None                                   3)  None except as indicated in
                                                                                  HORIZONTAL COMMITMENTS

                                   4)  Unbound except as                      4)  Unbound except as
                                       indicated in                               indicated in
                                       HORIZONTAL COMMITMENTS                     HORIZONTAL COMMITMENTS 

JAPAN(continued)

  Modes of supply:      1)  Cross-border supply   2)  Consumption abroad   3)  Commercial presence    4)  Presence of natural persons 

       Sector or subsector                 Limitations on market access              Limitations on national treatment         Additional commitments


k)     Placement services of      1)  Unbound                                 1)  Unbound
       personnel within Japan     
       in the following           2)  Unbound*                                2)  Unbound* 
       twenty nine occupations
       (limited to services to    3)  The number of licences                  3)  None except as indicated in
       establish employment           conferred to service                        HORIZONTAL COMMITMENTS
       relationship between           suppliers may be limited
       a job applicant and
       an employer seeking        4)  Unbound except as                       4)  Unbound except as
       personnel on the basis         indicated in                                indicated in
      of job applications             HORIZONTAL COMMITMENTS                      HORIZONTAL COMMITMENTS 
       and offers):

        1)    fine artist,
        2)    entertainer,
        3)    scientific technician,
        4)    physician,
        5)    dentist,
        6)    pharmacist,
        7)    midwife,
        8)    nurse,
        9)    medical technician,
       10)    dental technician,
       11)    dress designer,
       12)    audiovisual and
              theatrical technician,


*      Unbound due to lack of technical feasibility.

JAPAN(continued)

  Modes of supply:      1)  Cross-border supply   2)  Consumption abroad   3)  Commercial presence    4)  Presence of natural persons 

       Sector or subsector                 Limitations on market access              Limitations on national treatment         Additional commitments


       13)    lawyer,
       14)    certified public
              accountant,
       15)    patent attorney
       16)    business manager
       17)    fresh cake making
              technician
       18)    housekeeper,
       19)    barber,
       20)    hairdresser,
       21)    Japanese-kimono dresser,
       22)    attendant for services
              at table,
       23)    model,
       24)    cook,
       25)    bartender,
       26)    laundry technician,
       27)    interpreter,
       28)    floor sales person,
              and
       29)    sightseeing bus tour
              conductor
        (87201,87202)

JAPAN(continued)

  Modes of supply:      1)  Cross-border supply   2)  Consumption abroad   3)  Commercial presence    4)  Presence of natural persons 

       Sector or subsector                 Limitations on market access              Limitations on national treatment         Additional commitments


k)     Supply services of         1)  Unbound                                 1)  Unbound
       personnel within Japan'     
       in the following sixteen   2)  Unbound*                                2)  Unbound*
       categories of business
       (limited to services       3)  The number of licences                  3)  None except as indicated in
       to dispatch workers            conferred to service                        HORIZONTAL COMMITMENTS
       employed by the service        suppliers may be limited
       supplier to work under
       the direction of           4)  Unbound except as                       4)  Unbound except as
       another person while           indicated in                                indicated in
       employment relationship        HORIZONTAL COMMITMENTS                      HORIZONTAL COMMITMENTS 
       with the service
       supplier is maintained):

       i) Designing or maintenance
       of a system run by computer,
       or designing, developing or
       maintenance of a computer
       program;
       ii) Designing or drafting
       of machinery, devices or
       instruments(hereinafter
       referred to as "machineries")
       or equipment consisting of

*      Unbound due to lack of technical feasibility.
7      (Note for transparency)
       The dispatched worker may not be supplied from outside of Japan through intra-corporate transfer.

JAPAN(continued) 

  Modes of supply:      1)  Cross-border supply   2)  Consumption abroad   3)  Commercial presence    4)  Presence of natural persons 

       Sector or subsector                 Limitations on market access              Limitations on national treatment         Additional commitments


       machineries;
       iii) Operating machinery
       for picture recording,
       sound recording, etc.,
       used in the production of
       broadcasting programs;
       iv) Directing production
       of broadcasting programs;
       v) Operating computers,
       typewriters, telex or other
       similar office machinery;
       vi) Interpretation
       translation or shorthand;
       vii) Secretarial work for
       a representative or other
       person in similar managerial
       position of a juridical
       person;
       viii) Classifying or filing
       documents, magnetic tapes,
       etc., which requires advanced
       expertise, technique or 
       experience;
       ix)  Research of market, etc.
       or arrangement or analysis
       of the result of such
       research in order to obtain
       basic data necessary for the
       development of new products,
       or the preparation of sales

JAPAN(continued)

  Modes of supply:      1)  Cross-border supply   2)  Consumption abroad   3)  Commercial presence    4)  Presence of natural persons 

       Sector or subsector                 Limitations on market access              Limitations on national treatment         Additional commitments


       plans, etc,;
       x)Preparation of balance
       sheets, statements of profits
       and loss, and other work
       handling financial affairs;
       xi)Preparation' of documents
       concerning international
       trade or other external
       transactions, or of written 
       contracts, receipt notes,
       bills of lading or other
       similar documents concerning
       domestic transactions;
       xii) Introduction and
       explanation of the capacity
       and operation, etc., of
       Computers, cars and other
       machinery which require
       advanced expertise, technique
       or experience in order to
       operate appropriately; 
       13)administering
       itineraries for tourists,
       by accompanying them,
       offering services incidental
       to such administering work
       for the convenience of
       tourists(excluding 

JAPAN(continued) 

  Modes of supply:      1)  Cross-border supply   2)  Consumption abroad   3)  Commercial presence    4)  Presence of natural persons 

       Sector or subsector                 Limitations on market access              Limitations on national treatment         Additional commitments


       attendant services provided
       inside vehicles vessels or
       aircrafts),or welcoming
       and sending off tourists In
       the buildings which are used
       for boarding and alighting
       or waiting by passengers and
       are installed at the stations
       or platforms of vehicles,
       vessels and aircrafts;
       14)Cleaning of buildings;
       15)Operation, inspection ,or
       maintenance of the facilities
       for electricity, gas, water
       supply, drainage, ventilation,
       heating, air conditioning,
       fire extinguishing, discharge
       of smoke or sanitation, and
       chimneys, elevators or
       lightning rods, installed in
       the building (hereinafter
       referred to as *building
       facilities*);and
       16)Reception of visitors
       or providing guidance to them
       in buildings or exposition
       sites, or attending a parking
       lot attached to those buildings,
       and maintenance and management
       of the facilities(excluding

JAPAN(continued)


  Modes of supply:      1)  Cross-border supply   2)  Consumption abroad   3)  Commercial presence    4)  Presence of natural persons 

       Sector or subsector                 Limitations on market access              Limitations on national treatment         Additional commitments


       building facilities)installed
       in buildings for the purpose
       of offerings convenience for
       visitors, workers or residents
       of the buildings, in order to
       facilitate efficient
       utilization of the buildings.
       (87203,87209)

   m)  Related scientific                 1)  None                                   1)  None
       and technical
       consulting services                2)  None                                   2)  None
       (excluding services
       related to petroleum,              3)  None                                   3)  None except as indicated in
       petroleum products,                                                               HORIZONTAL COMMITMENTS
       gas, mineral, and
       surveying)                         4)  Unbound except as                      4)  Unbound except as
       (86751,86752)                          indicated in                               indicated in
                                              HORIZONTAL COMMITMENTS                     HORIZONTAL COMMITMENTS 

JAPAN(continued)

  Modes of supply:      1)  Cross-border supply   2)  Consumption abroad   3)  Commercial presence    4)  Presence of natural persons 

       Sector or subsector                 Limitations on market access              Limitations on national treatment         Additional commitments


   m)  Surveying services                 1)  Commercial presence is                 1)  None
       for the land in                        required except for the
       Japan                                  surveying conducted by
       (86753,86754)                          not using Basic Survey8
                                              data or Public Survey9
                                              data, and the surveying
                                              for small areas or the
                                              surveying not requiring
                                              high accuracy.

                                          2)  Commercial presence is                 2)  None
                                              required except for the
                                              surveying conducted by
                                              not using Basic Survey
                                              data or Public Survey
                                              data, and the surveying
                                              for small areas or the
                                              surveying not requiring
                                              high accuracy.

                                          3)  None                                   3)  None except as indicated in
                                                                                         HORIZONTAL COMMITMENTS




8 Basic Survey is a primary or fundamental survey, conducted by the Geographical Survey Institute of the Ministry of Construction, for all surveys.
9 Public Survey is a survey, other than Basic Survey, which does not include the surveying for small areas and the surveying not requiring high accuracy,
  conducted under the expenses partially or in full of, or under the subsidization of the Government or other public entities. 

JAPAN(continued)

  Modes of supply:      1)  Cross-border supply   2)  Consumption abroad   3)  Commercial presence    4)  Presence of natural persons 

       Sector or subsector                 Limitations on market access              Limitations on national treatment         Additional commitments


                                   4)  Unbound except as                      4)  Unbound except as
                                       indicated in                               indicated in
                                       HORIZONTAL COMMITMENTS                     HORIZONTAL COMMITMENTS 

m)     Surveying services          1)  None                                   1)  None
       for the land outside       Japan               
        2)  None                                   2)  None
       (86753,86754.)
                                   3)  None                                   3)  None except as indicated in
                                                                                  HORIZONTAL COMMITMENTS

                                   4)  Unbound except as                      4)  Unbound except as
                                       indicated in                               indicated in
                                       HORIZONTAL COMMITMENTS                     HORIZONTAL COMMITMENTS 

n)     Maintenance and             1)  Unbound*                               1)  Unbound*
       repair services
       of equipment                2)  None                                   2)  None
       (excluding vessels,
       aircrafts and other         3)  None                                   3)  None except as indicated in
       transport equipment                                                        HORIZONTAL COMMITMENTS
       (633,8861-8866)
                                   4)  Unbound except as                      4)  Unbound except as
                                       indicated in                               indicated in
                                       HORIZONTAL COMMITMENTS                     HORIZONTAL COMMITMENTS 


*      Unbound due to lack of technical feasibility.

JAPAN(continued)

  Modes of supply:      1)  Cross-border supply   2)  Consumption abroad   3)  Commercial presence    4)  Presence of natural persons 

       Sector or subsector                 Limitations on market access              Limitations on national treatment         Additional commitments


o)     Building-cleaning          1)  Unbound*                               1)  Unbound*
       services
       (87401,87402,              2)  None                                   2)  None
       87403,87409)
                                  3)  None                                   3)  None except as indicated in
                                                                                 HORIZONTAL COMMITMENTS

                                  4)  Unbound except as                      4)  Unbound except as
                                      indicated in                               indicated in
                                      HORIZONTAL COMMITMENTS                     HORIZONTAL COMMITMENTS 

p)     Photographic services      1)  None                                   1)  None
       (875)
                                  2)  None                                   2)  None

                                  3)  None                                   3)  None except as indicated in
                                                                                 HORIZONTAL COMMITMENTS

                                  4)  Unbound except as                      4)  Unbound except as
                                      indicated in                               indicated in
                                      HORIZONTAL COMMITMENTS                     HORIZONTAL COMMITMENTS

q)     Packaging services         1)  None                                   1)  None
       (876)
                                  2)  None                                   2)  None

*      Unbound due to lack of technical feasibility. 
page 33

JAPAN(continued)

  Modes of supply:      1)  Cross-border supply   2)  Consumption abroad   3)  Commercial presence    4)  Presence of natural persons

       Sector or subsector                 Limitations on market access              Limitations on national treatment         Additional commitments


                                  3)  None                                   3)  None except as indicated in
                                                                                 HORIZONTAL COMMITMENTS

                                  4)  Unbound except as                      4)  Unbound except as
                                      indicated in                               indicated in
                                      HORIZONTAL COMMITMENTS                     HORIZONTAL COMMITMENTS 

r)     Printing and               1)  None                                   1)  None
       publishing services
       (88442)                    2)  None                                   2)  None

                                  3)  None                                   3)  None except as indicated in
                                                                                 HORIZONTAL COMMITMENTS

                                  4)  Unbound except as                      4)  Unbound except as
                                      indicated in                               indicated in
                                      HORIZONTAL COMMITMENTS                     HORIZONTAL COMMITMENTS 

s)     Convention services        1)  Unbound*                               1)  Unbound*
       (87909)
                                  2)  None                                   2)  None

                                  3)  None                                   3)  None except as indicated in
                                                                                 HORIZONTAL COMMITMENTS




*      Unbound due to lack of technical feasibility. 

JAPAN(continued)

  Modes of supply:      1)  Cross-border supply   2)  Consumption abroad   3)  Commercial presence    4)  Presence of natural persons 

       Sector or subsector                 Limitations on market access              Limitations on national treatment         Additional commitments


                                   4)  Unbound except as                      4)  Unbound except as
                                       indicated in                               indicated in
                                       HORIZONTAL COMMITMENTS                     HORIZONTAL COMMITMENTS 

t)     Translation and             1)  None                                   1)  None
       interpretation
       services                    2)  None                                   2)  None
       (87905)
                                   3)  None                                   3)  None except as indicated in
                                                                                  HORIZONTAL COMMITMENTS

                                   4)  Unbound except as                      4)  Unbound except as
                                       indicated in                               indicated in
                                       HORIZONTAL COMMITMENTS                     HORIZONTAL COMMITMENTS 

t)     Specialty design            1)  None                                   1)  None
       services
       (87907)                     2)  None                                   2)  None
      
                                   3)  None                                   3)  None except as indicated in
                                                                                  HORIZONTAL COMMITMENTS
       
                                   4)  Unbound except as                      4)  Unbound except as
                                       indicated in                               indicated in
                                       HORIZONTAL COMMITMENTS                     HORIZONTAL COMMITMENTS

JAPAN(continued) 

  Modes of supply:      1)  Cross-border supply   2)  Consumption abroad   3)  Commercial presence    4)  Presence of natural persons 

       Sector or subsector                 Limitations on market access              Limitations on national treatment         Additional commitments


2.     COMMUNICATION
       SERVICES

C.     Telecommunications
       Services

       The following domestic      1)  None                                   1)  None
       Telecommunications
       Services supplied           2)  None                                   2)  None
       by Type II tele-
       communications              3)  None                                   3)  None except as indicated in
       business:                                                                  HORIZONTAL COMMITMENTS
 
b)     Packet-switched data        4)  Unbound except as                      4)  Unbound except as
       transmission services;          indicated in                               indicated in
      (7523)                           HORIZONTAL COMMITMENTS                     HORIZONTAL COMMITMENTS 


c)     Circuit-switched data
       transmission services;
       (7523)

d)     Telex services;
       (7523)

f)     Facsimile services; and
       (7529)

JAPAN(continued)

  Modes of supply:      1)  Cross-border supply   2)  Consumption abroad   3)  Commercial presence    4)  Presence of natural persons 

       Sector or subsector                 Limitations on market access              Limitations on national treatment         Additional commitments


g)     Private leased circuit
       Services
       (7529)
     
       Value-added services        1)  None                                   1)  None
       supplied by Type 2
       telecommunications          2)  None                                   2)  None
       business including:
                                   3)  None                                   3)  None except as indicated in
h)     Electronic mail services;                                                  HORIZONTAL COMMITMENTS
       (7523)   
                                   4)  Unbound except as                      4)  Unbound except as
i)     Voice mail services;            indicated in                               indicated in
      (7521)                           HORIZONTAL COMMITMENTS                     HORIZONTAL COMMITMENTS 

j)     On－line information and
       data base retrieval
       services;
       (7523)

k)     Electronic data
       interchange(EDI)
       services;
       (7523)

l)     Enhanced facsimile
       services;
       (7529)

JAPAN(continued)

  Modes of supply:      1)  Cross-border supply   2)  Consumption abroad   3)  Commercial presence    4)  Presence of natural persons 

       Sector or subsector                 Limitations on market access              Limitations on national treatment         Additional commitments


m)     Code and protocol
       conversion services; and
       (7523)

n)     On-line information
       And/or data
       processing services.
       (843)

       Specific commitments
       in the sectors of
       Telecommunications
       Services do not include
       voice transmission
       services supplied through
       the use of domestic leased
       circuits interconnected
       with public switched
       networks.

       Type II telecommunications
       business is any
       telecommunications business
       other than Type I
       telecommunications business
       Type I telecommunications
       business is any business
       Which supplies

JAPAN(continued)

  Modes of supply:      1)  Cross-border supply   2)  Consumption abroad   3)  Commercial presence    4)  Presence of natural persons 

       Sector or subsector                 Limitations on market access              Limitations on national treatment         Additional commitments


       telecommunications services
       by establishing
       telecommunications circuit
       facilities.Telecommunications
       circuit facilities are
       transmission line facilities
       connecting transmitting
       points with receiving points,
       switching facilities installed
       as inseparable units therefrom,
       and other facilities accessory
       to such facilities.

D.     Audiovisual Services

a)     Motion picture               1)  None                                   1)  None
       and video tape
       production and               2)  None                                   2)  None
       distribution services
       (9611)                       3)  None                                   3)  None except as indicated in
                                                                                   HORIZONTAL COMMITMENTS
       
                                    4)  Unbound except as                      4)  Unbound except as
                                        indicated in                               indicated in
                                        HORIZONTAL COMMITMENTS                     HORIZONTAL COMMITMENTS

JAPAN(continued)

  Modes of supply:      1)  Cross-border supply   2)  Consumption abroad   3)  Commercial presence    4)  Presence of natural persons 

       Sector or subsector                 Limitations on market access              Limitations on national treatment         Additional commitments


b)     Motion picture             1)  Unbound*                               1)  Unbound*
       projection services
       (9612)                     2)  None                                   2)  None
       
                                  3)  None                                   3)  None except as indicated in
                                                                                 HORIZONTAL COMMITMENTS

                                  4)  Unbound except as                      4)  Unbound except as
                                      indicated in                               indicated in
                                      HORIZONTAL COMMITMENTS                     HORIZONTAL COMMITMENTS 

e)     Sound recording            1)  None                                   1)  None
       services
                                  2)  None                                   2)  None

                                  3)  None                                   3)  None except as indicated in
                                                                                 HORIZONTAL COMMITMENTS

                                  4)  Unbound except as                      4)  Unbound except as
                                      indicated in                               indicated in
                                      HORIZONTAL COMMITMENTS                     HORIZONTAL COMMITMENTS





*      Unbound due to lack of technical feasibility. 

JAPAN(continued)

  Modes of supply:      1)  Cross-border supply   2)  Consumption abroad   3)  Commercial presence    4)  Presence of natural persons 

       Sector or subsector                 Limitations on market access              Limitations on national treatment         Additional commitments


3.     CONSTRUCTION AND           1)  Unbound*                               1)  Unbound*
       RELATED ENGINEERING
       SERVICES (excluding        2)  None                                   2)  None
       services related to
       mining)                    3)  None                                   3)  None except as indicated in
                                                                                 HORIZONTAL COMMITMENTS
A.     General Construction
       Services for Buildings     4)  Unbound except as                      4)  Unbound except as
       (512)                          indicated in                               indicated in
                                      HORIZONTAL COMMITMENTS                     HORIZONTAL COMMITMENTS 

B.     General Construction
       Services for Civil
       Engineering
       (513)

C.     Installation and
       Assembly Services
       (514,516)

D.     Building Completion
       and finishing Services
       (517)

E.     Other
       (511,515,518)

*      Unbound due to lack of technical feasibility

JAPAN(continued)

  Modes of supply:      1)  Cross-border supply   2)  Consumption abroad   3)  Commercial presence    4)  Presence of natural persons 

       Sector or subsector                 Limitations on market access              Limitations on national treatment         Additional commitments


4.     DISTRIBUTION
       SERVICES

A.     Commission Agents'         1)  None                                   1)  None
       Services
       (621,61111,                2)  None                                   2)  None
       61130,61210)
                                  3)  None                                   3)  None except as indicated in
                                                                                 HORIZONTAL COMMITMENTS
B.     Wholesale Trade
       Services                   4)  Unbound except as                      4)  Unbound except as
       (622,61111,                    indicated in                               indicated in
       61130,61210)                   HORIZONTAL COMMITMENTS                     HORIZONTAL COMMITMENTS 

C.     Retailing Services
       (631,632,61112,
       61130,61210)

D.     Franchising Services
       (8929)

       Specific commitments
       in the sectors of
       Distribution Services
       do not include
       services related to
       petroleum, petroleum
       products, rice, tobacco,
       salt, alcoholic beverages,

JAPAN(continued)

  Modes of supply:      1)  Cross-border supply   2)  Consumption abroad   3)  Commercial presence    4)  Presence of natural persons 

       Sector or subsector                 Limitations on market access              Limitations on national treatment         Additional commitments

       and those supplied at
       Public Wholesale
       Market. Public
       Wholesale Market is
       a market established
       under national or local
       government approval
       for commission agents'
       services and wholesale
       trade services of
       fresh foods including
       vegetables, fruits,
       marine products, meats
       and other daily foods,
       and flowers, with
       auction or bidding hall,
       parking lot and other
       facilities necessary
       for trade and disposal
       of above goods, which is
       operated on a permanent
       basis

JAPAN(continued)

  Modes of supply:      1)  Cross-border supply   2)  Consumption abroad   3)  Commercial presence    4)  Presence of natural persons 

       Sector or subsector                 Limitations on market access              Limitations on national treatment         Additional commitments

5.     EDUCATIONAL
       SERVICES

       The following                  1)  Unbound*                               1)  Unbound*
       Educational Services
       supplied by Formal
       Education Institutions         2)  Unbound*                               2)  Unbound*
       established in Japan
       (Formal Education              3)  Formal Education                       3)  None except as indicated in
       Institutions are                   Institutions must                          HORIZONTAL COMMITMENTS
       elementary schools,                be established by
       lower secondary schools,           school juridical persons.10
       upper secondary
       schools, universities,         4)  Unbound                                4)  Unbound 
       technical colleges,
       schools, universities,
       technical colleges,
       schools for the blind,
       schools for the deaf,
       schools for the handi-
       capped and kindergartens.):

A.     Primary Educational
       Services;
       (9211,9219)

*      Unbound due to lack of technical feasibility
10     A school juridical person is a non-profit juridical person established for the purpose of supplying educational services under Japanese law.

JAPAN(continued)

  Modes of supply:      1)  Cross-border supply   2)  Consumption abroad   3)  Commercial presence    4)  Presence of natural persons 

       Sector or subsector                 Limitations on market access              Limitations on national treatment         Additional commitments

B.     Secondary educational
       Services; and
       (9221,9222,9223)

C.     Higher Educational
       Services.
       (9231,9239)

D.     Adult Educational
       Services

       Foreign language tuition               1)  None                                   1)  None
       services for adults
       (excluding services                    2)  None                                   2)  None
       supplied by Formal
       Education Institutions                 3)  None                                   3)  None except as indicated in
       established in Japan.                                                                 HORIZONTAL COMMITMENTS
       Formal Education
       Institutions are                       4)  Unbound except as                      4)  Unbound except as 
       elementary schools,                        indicated in                               indicated in     
       lower secondary schools,                   HORIZONTAL COMMITMENTS                     HORIZONTAL COMMITMENTS
       upper secondary schools,
       colleges, schools for
       the blind, schools for
       the deaf, schools for the

JAPAN(continued)

  Modes of supply:      1)  Cross-border supply   2)  Consumption abroad   3)  Commercial presence    4)  Presence of natural persons 

       Sector or subsector                 Limitations on market access              Limitations on national treatment         Additional commitments

       handicapped, kindergartens,
       special training colleges
       and miscellaneous schools.)
       (92400)

6.     ENVIRONMENTAL
       SERVICES.

A.     Sewage Services                        1)  Unbound*                               1)  Unbound* 
       (9401)
                                              2)  None                                   2)  None
      
                                              3)  None                                   3)  None except as indicated in
                                                                                             HORIZONTAL COMMITMENTS

                                              4)  Unbound except as                      4)  Unbound except as 
                                                  indicated in                               indicated in     
                                                  HORIZONTAL COMMITMENTS                     HORIZONTAL COMMITMENTS

B.    Refuse Disposal                         1)  unbound*                               1)  unbound* 
      Services
      (9402)                                  2)  none                                   2)  none







*     Unbound due to lack of technical feasibility.

JAPAN(continued)

  Modes of supply:      1)  Cross-border supply   2)  Consumption abroad   3)  Commercial presence    4)  Presence of natural persons 

       Sector or subsector                 Limitations on market access              Limitations on national treatment         Additional commitments


                                        3) The number of licences                    3) None except as indicated in
                                           conferred to service                         FORIZONTAL COMMITMENTS
                                           suppliers of waste oil
                                           disposal at sea from
                                           vessels may be limited.

                                        4) Unbound except as                         4) unbound except as
                                           indicated in                                 indicated in
                                           HORIZONTAL COMMITMENTS                       HORIZONTAL COMMITMENTS

C.     Sanitation and                   1) Unbound*                                  1) Unbound*
       Similar Services
       (9403) 2) None                   2) None
 
                                        3) None                                      3) None except as indicated in
                                                                                        HORIZONTAL COMMITMENT

                                        4) Unbound except as                         4) Unbound except as
                                           indicated in                                 indicated in
                                           HORIZONTAL COMMITMENTS                       HORIZONTAL COMMITMENTS





        Unbound due to lack of technical feasibility.

JAPAN(continued)

  Modes of supply:      1)  Cross-border supply   2)  Consumption abroad   3)  Commercial presence    4)  Presence of natural persons 

       Sector or subsector                 Limitations on market access              Limitations on national treatment         Additional commitments


D. Other

   Cleaning Services                1) Unbound*                                  1) Unbound*
   Of Exhaust Gases
   (9404)                           2) None                                      2) None
 
   Noise Abatement                  3) None                                      3) None except as indicated in
   Services                                                                         HORIZONTAL COMMITMENTS
   (9405)
                                    4) Unbound except as                         4) Unbound except as
   Nature and Landscape                indicated in                                 indicated in
   Protection Services                 HORIZONTAL COMMITMENTS                       HORIZONTAL COMMITMENTS
   (9406)

   Other Environmental
   Protection Services
   (9409)

7. FINANCIAL SERVICES

   In addition to Part III of this Agreement and the Annex on Financial Services, Japan undertakes its specific commitments with respect to Financial Services under this Agreement
in accordance with the Understanding on Commitments in Financial services (hereinafter referred to as the "Understanding", attached to this schedule, which forms an integral
part of this schedule). Thus, the obligations under the Understanding are incurred in the sectors of Financial Services additionally to those covered by the provisions of Part 3
of this Agreement and the Annex on Financial Services.

   For prudential reasons within the context of paragraph 2.a)of the Annex on Financial Services, Japan shall not be prevented from taking measures such as non-discriminatory
limitations on juridical forms of a commercial presence. For the same reasons, Japan shall not be prevented from applying non-discriminatory limitations concerning admission
to the market of new financial services which shall be consistent with regulatory framework aimed at achieving such prudential objectives. In this context, securities firms are
allowed to deal in securities defined in the relevant Japanese law, and banks are not allowed to deal in those securities unless allowed in accordance with the said law.


*      Unbound due to lack of technical feasibility

JAPAN(continued)

  Modes of supply:      1)  Cross-border supply   2)  Consumption abroad   3)  Commercial presence    4)  Presence of natural persons 

       Sector or subsector                 Limitations on market access              Limitations on national treatment         Additional commitments

       With respect to specific commitments in the sectors of Financial Services, services supplied in the territory of a Member other than Japan to the service
consumer in Japan without any active marketing from the service supplier are considered as services supplied under paragraph 2 b) of Article I of this Agreement.

A.     Insurance and                Specific commitments in the market
       Insurance-                   access column with respect to
       Related Services             the supply of a service as prescribed
                                    in paragraph 2 a) and b) of
                                    Article I of this Agreement are
                                    unbound except for obligations
                                    under paragraph 3 and 4 of the
                                    Understanding respectively which
                                    are incurred in this sector
                                    additionally to those covered by
                                    the provisions of part III of
                                    this Agreement and the Annex on
                                    Financial Services, subject to
                                    conditions and qualifications set
                                    out below.

                                    1) Commercial presence is                                 1)  None
                                       in principle required for
                                       insurance contracts on the
                                       following items and any
                                       liability arising therefrom:

                                    a) goods being transported
                                       within Japan

JAPAN(continued)

  Modes of supply:      1)  Cross-border supply   2)  Consumption abroad   3)  Commercial presence    4)  Presence of natural persons 

       Sector or subsector                 Limitations on market access              Limitations on national treatment         Additional commitments



                                    b) ships and aircrafts of
                                       Japanese registration

                                       Japan intends to
                                       take measures
                                       necessary for making
                                       substantial liberalization
                                       of the cross-border
                                       insurance transactions
                                       for ships of Japanese
                                       registration which are
                                       used for international
                                       maritime transport and
                                       aircrafts of Japanese
                                       registration, as an integral
                                       part of the Insurance
                                       System Reform in 1955.

                                       60% of amounts of
                                       reinsurance on the
                                       compulsory automobile
                                       third party liability
                                       insurance is subject to
                                       the compulsory coverage
                                       by the Government.

JAPAN(continued)

  Modes of supply:      1)  Cross-border supply   2)  Consumption abroad   3)  Commercial presence    4)  Presence of natural persons 

       Sector or subsector                 Limitations on market access              Limitations on national treatment         Additional commitments


                                       Insurance services are
                                       not allowed to be supplied
                                       through an intermediary
                                       in Japan.

                                    2) Commercial presence is                    2) None
                                       in principle required for
                                       insurance contracts on the
                                       following items and any
                                       liability arising therefrom:

                                       a) goods being transported
                                          within Japan

                                       b) ships and aircrafts of
                                          Japanese registration.

                                          Japan intends to
                                          Take measures
                                          necessary for making
                                          substantial liberalization
                                          of the cross-border
                                          insurance transactions
                                          for ships of Japanese
                                          registration which are
                                          used for international
                                          maritime transport and
                                          aircrafts of Japanese

JAPAN(continued)

  Modes of supply:      1)  Cross-border supply   2)  Consumption abroad   3)  Commercial presence    4)  Presence of natural persons 

       Sector or subsector                 Limitations on market access              Limitations on national treatment         Additional commitments



                                          registration, as an integral
                                          part of the Insurance
                                          System Reform in 1955.

                                          60% of amounts of
                                          reinsurance on the
                                          compulsory automobile
                                          third party liability
                                          insurance is subject to
                                          the compulsory coverage
                                          by the Government

                                          Insurance services are
                                          not allowed to be supplied
                                          through an intermediary
                                          in Japan.

                                   3) Establishment of                            3) Foreign life insurance
                                      commercial presence                            companies are required
                                      as insurance brokers                           to retain in yen
                                      is not allowed.                                Currency an amount
                                                                                     corresponding to their
                                      Japan intends to take                          technical and claim
                                      measures necessary for                         reserves for yen-
                                      introducing the insurance                      denominated insurance
                                      brokerage system, as an                        policies in Japan.
                                      integral part of the 
                                      Insurance System Reform                        As indicated in
                                      in 1995.                                       HORIZONTAL COMMITMENTS

JAPAN(continued)

  Modes of supply:      1)  Cross-border supply   2)  Consumption abroad   3)  Commercial presence    4)  Presence of natural persons 

       Sector or subsector                 Limitations on market access              Limitations on national treatment         Additional commitments


                                          60% of amounts of
                                          reinsurance on the
                                          compulsory automobile
                                          third party liability
                                          insurance is subject to
                                          the compulsory coverage
                                          by the Government

                                          Insurance intermediation
                                          services are not allowed to
                                          be supplied for insurance
                                          contracts made by an insurance
                                          service supplier who is not
                                          licensed in Japan.

                                       4) Unbound except as                           4) Unbound except as
                                          indicated in                                   indicated in
                                          HORIZONTAL COMMITMENTS                         HORIZONTAL COMMITMENTS

B.   Banking and Other                Specific commitments in the
     Financial Services               market access column with respect
     (excluding Insurance             to the supply of a service as
     and Insurance-Related            prescribed in paragraph 2 a) and
     Services)                        b) of Article I of this Agreement
                                      are unbound except for obligations
                                      under paragraph 3 and 4 of the
                                      Understanding respectively which

JAPAN(continued)

  Modes of supply:      1)  Cross-border supply   2)  Consumption abroad   3)  Commercial presence    4)  Presence of natural persons 

       Sector or subsector                 Limitations on market access              Limitations on national treatment         Additional commitments
                                   
                                   
                                   are incurred in this sector
                                   additionally to those covered by
                                   the provisions of part III of
                                   this Agreement and the Annex on
                                   Financial Services, subject to
                                   conditions and qualifications set
                                   out below.

                                   1) Commercial presence is                          1) None
                                      required for discretionary
                                      investment management
                                      services.
                                   
                                   2) Overseas deposits                               2) None
                                      and trust contracts
                                      denominated in
                                      foreign currencies,
                                      the sum of which are
                                      over 100 million yen
                                      value, and those
                                      denominated in yen
                                      are subject to approval.

                                      The following capital
                                      transaction services may
                                      be supplied through
                                      authorized foreign
                                      exchange banks in
                                      Japan, or otherwise

JAPAN(continued)

  Modes of supply:      1)  Cross-border supply   2)  Consumption abroad   3)  Commercial presence    4)  Presence of natural persons 

       Sector or subsector                 Limitations on market access              Limitations on national treatment         Additional commitments


                                       are in principle subject
                                       to approval:
                                    
                                       a)   Trade in:

                                       i)   payment instruments
                                            such as cheques
                                            and bills;

                                       ii)  foreign exchange;
                                            and

                                       iii) derivative
                                            products which
                                            involve outright
                                            foreign exchange
                                            transactions such
                                            as currency spot
                                            options.
                                       b)   Special methods of
                                            settlement such as
                                            offsetting and any
                                            method whereby a
                                            resident either
                                            makes payment for the

JAPAN(continued)

  Modes of supply:      1)  Cross-border supply   2)  Consumption abroad   3)  Commercial presence    4)  Presence of natural persons 

       Sector or subsector                 Limitations on market access              Limitations on national treatment         Additional commitments


                                           non-resident concerned
                                           to another resident
                                           or receives payment
                                           made by another
                                           resident for the
                                           non-resident concerned

                                        c) Swaps

                                        d) Factoring

                                        Commercial presence is
                                        required for financial/
                                        securities futures and options
                                        transaction services, except
                                        for the services supplied to
                                        the financial institutions in
                                        accordance with the designation
                                        by Minister of Finance under
                                        the relevant Japanese laws.

JAPAN(continued) 

  Modes of supply:      1)  Cross-border supply   2)  Consumption abroad   3)  Commercial presence    4)  Presence of natural persons 

       Sector or subsector                 Limitations on market access              Limitations on national treatment         Additional commitments


                                     3)  Commercial presence for                3)  The deposit insurance                       3)  Japan intends to
                                         investment trust management                system does not cover                           expand the scope of
                                         services must be a juridical               deposits taken by                               Employee's Pension
                                         person established in Japan.               branches of foreign banks.                      Fund(hereinafter
                                                                                                                                    referred to as "fund")
                                         Unbound for standstill                     Unbound for standstill                          assets which can be
                                         obligation under the                       obligation under the                            managed by discretionary
                                         Understanding with respect                 Understanding with                              investment management
                                         to the limitations below:                  respect to the                                  firms, in respect of the
                                                                                    limitations a) and b)                           funds qualified by Minister
                                         a) Licences required for                   referred to in the                              of Health and Welfare, by
                                            establishing subsidiaries               market access column                            removing classification
                                            and branch offices                                                                      between New Money11 and
                                            are not granted                         As indicated in                                 assets other than New 
                                            to foreign service                      HORIZONTAL COMMITMENTS                          Money.
                                            suppliers.







11 New Money is asset mainly consisting of accumulation of premiums collected by a fund after the day when the fund is qualified by Minister of Health and Welfare as appropriate
for expanding its means of asset management to include discretionary investment management services.

JAPAN(continued)

  Modes of supply:      1)  Cross-border supply   2)  Consumption abroad   3)  Commercial presence    4)  Presence of natural persons 

       Sector or subsector                 Limitations on market access              Limitations on national treatment         Additional commitments


                                         b) Authorization or
                                         qualification for
                                         licensed service
                                         suppliers to expand
                                         existing operations or
                                         conduct new activities
                                         is not granted to
                                         foreign service
                                         suppliers.

                                    4) Unbound except as                       4) Unbound except as
                                       indicated in                               indicated in
                                       HORIZONTAL COMMITMENTS                     HORIZONTAL COMMITMENTS