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Chapter 2: Services CHAPTER 2 SERVICES · Chapter 2: Services 707 CHAPTER 2 SERVICES 1. BACKGROUND...
Transcript of Chapter 2: Services CHAPTER 2 SERVICES · Chapter 2: Services 707 CHAPTER 2 SERVICES 1. BACKGROUND...
Chapter 2: Services
707
CHAPTER 2
SERVICES 1. BACKGROUND OF THE RULES
The purpose of the disciplines regarding trade in services under EPAs/FTAs is, as under the General Agreement on Trade in Services (GATS), to enhance trade liberalization by eliminating barriers to trade in services between Parties and increasing the transparency of measures affecting trade in services. Disciplines and specific commitments aim to be GATS plus. Therefore, provisions under EPA/FTA have been gradually developed and advanced, and on some matters, the text of the relevant provisions greatly varies from EPA/FTA to EPA/FTA. This variation reflects certain distinctions between the contracting party countries, such as their policies on liberalization in service areas, history of negotiations regarding the relevant EPA/FTA (i.e., issues with respect to multilateral negotiations or political situations of the negotiating countries).
Unlike trade in goods, where negotiations focus on the maximum tariff rate stated in the relevant schedule of concessions, the liberalization commitment approach, with respect to trade in services in individual sectors, deals with domestic regulations making it difficult to specify the effect of trade restrictions in numerical values. In the service chapter of an EPA/FTA, liberalization commitment approaches are classified into two categories -- the “negative list” and the “positive list”. The “negative list” is an approach of commitment under which the obligation of liberalization such as national treatment and MFN treatment is disciplined as a general obligation; and measures and sectors which are exempted from that obligation are explicitly inscribed in the list of non-conforming measures, and liberalization such as national treatment and MFN treatment is committed for all those which are not included in the list of non-conforming measures. The “positive list” is another approach of commitment under which the subject sectors of liberalization and the conditions and restrictions are specifically and explicitly inscribed in the list regarding national treatment and market access, and no obligations are to be undertaken regarding national treatment and market access with respect to any other sectors which are not inscribed in the positive list. In preparing the lists of the sectors with respect to which commitments are made, the Services Sectoral Classification List (MTN.GNS/W/120; 10 July 1991) used in WTO/GATS should be the basis, but Member countries can also specify the scope of implementing liberalization for sub-sectors and lower levels.
To sum up, the “negative list” is an approach under which Member countries specify the sectors which are exempted from the obligation of liberalization, while the “positive list” is a commitment approach under which Member countries specify the sectors for which liberalization is implemented. The former is considered as a framework which generally contributes to a higher level of liberalization, but of course, the achievement of liberalization all depends on the substance of commitments.
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Figure III-2-1 WTO International Agreement on Trade in Services (GATS) and Economic Partnership Agreements
2. OVERVIEW OF LEGAL DISCIPLINES
The structure of each treaty on trade in services depends on whether it adopts “positive list approach” or “negative list approach”.
(1) FOUR MODES AND THE RELATIONSHIP BASED ON THESE MODES BETWEEN THE SERVICE CHAPTER, THE CHAPTER ON INVESTMENT, AND THE CHAPTER ON THE MOVEMENT OF NATURAL PERSONS
In the Services chapter of GATS and EPAs/FTAs, trade in services is classified as four modes of supply: Mode 1: cross-border supply; Mode 2: consumption abroad; Mode 3: commercial presence; and Mode 4: movement of natural persons. Only Mode 3 is dealt with in a different way according to each specific EPA/FTA (see Chapter 12, Part II).
In the case of EPAs/FTAs in which the GATS style “positive list” approach is adopted, all four modes are covered. However, Mode 3 in the service chapter overlaps with the scope of the chapter on investment as the chapter on investment does not exclude the coverage on investments in service sectors. To avoid any inconsistency inherently arose by such an overlap, the commitment (reservation) in the chapter on investment are made principally the same as the commitment of Mode 3 in the service chapter made in the sectors concerned. Provided that inconsistency is eventually found between the two chapters, there is the provision that the disciplines and commitments in the service chapter should prevail to the extent of such inconsistency.
In the case of the NAFTA-style “negative list” approach, the service chapter covers only the cross-border supply of Modes 1, 2 and 4, while investments in service sectors, i.e., Mode 3, is dealt with in the chapter on investment. In other words, it is the chapter on investment that covers investments in service sectors made by investors of a contracting party’s country in the other contracting party’s country such in forms of subsidiaries and branches.
Bilateral commitment
s under EPAs
(GATS+α)
Partial liberal-ization
Deeper liberalization
Etc.
・・・・・・・・・・・・・
Professional servicesLegal, accounting, architecture,
and medical, etc.
Computer
and related services
Research and development services
Distribution services
Audiovisual services (motion picture
distribution, game contents, etc.)
Under the GATS, services sectors are classified into approximately 150 sectors, including sub-sectors. Each country commits under “what conditions” and to “what level” each sector can be liberalized to.
Something extra added to the above, i.e. “GATS-plus”, is a key factor of EPAs.
Comm
ission agentW
holesale tradeRetailingFranchising
An Economic Partnership Agreement (EPA) is a set of trade rules concluded between two countries. An EPA covers both trade in goods and trade in services.An EPA is a mechanism for achieving more in-depth, higher liberalization of trade in services than multilateral commitments (WTO) by negotiations between two countries.Higher “level” and broader “scope” of liberalization of trade in services committed under the WTO agreements can be achieved by EPAs.These achievements of EPAs are generally referred to as the “WTO (GATS)-plus”.
No market restrictionsLiberalization level (high)
Closed market Liberalization level (low)
Educational services
Primary/secondary/
higher/adult education
Services incidental to energy distribution
Real estate services
Financial services
BankingLife, accident and health insuranceFinancing Financial leasing
Comm
unication services
PostalCourierTelecom
mu-
nication
Other services
Hotels and restaurantsTravel agencies, etc.
Tourism and
travel related services
Sectors committed under the GATS
Sectors not committed under the GATS
GATS-plus
(Example) A case of services market in some country
Hardware installationSoftware im
plementation
Data processingSystem
m
aintenance/operation
Chapter 2: Services
709
In addition, regarding Mode 4, immigration measures are dealt with in the chapter on the movement of natural persons, while the treatment after immigration is dealt with in the service chapter. In summary, Mode 4 itself includes the immigration measure but in the case of GATS style EPA/FTA, while keeping it in the scope of the service chapter, the immigration measure is excluded from the Schedule of Commitments (without any commitment); and in the case of NAFTA style EPA/FTA, the immigration measure is not within the scope of the service chapter.
Figure III-2-2 Relationship between Investment Chapter, Services Chapter, and Movement of Natural Persons Chapter
(2) DEFINITION OF SERVICE SUPPLIER OF THE OTHER PARTY AND JURIDICAL PERSON OF THE OTHER PARTY
EPAs/FTAs normally provide for definitions of basic terms in order to clarify the coverage of such basic terms. One such basic term is “service supplier of the party.” They are objects that are given the benefit of EPAs/FTAs. Entities which are eligible to be a service supplier include both natural persons and juridical persons. Under such definitions, such persons are entitled to the benefit of the agreements through, inter alia, a liberalization commitment in respect of trade in services. In addition, EPAs/FTAs usually provide for definitions of a “juridical person of the other party”. A “juridical person of the other party” is usually defined as (i) with regard to Mode 1 and Mode 2, a juridical person established within the territory of the other party, and (ii) with regard to Mode 3, a juridical person that is established within the territory of the country and owned or controlled by: (a) a natural person in the other country or (b) another juridical person established within the territory of the other party. Some EPAs/FTAs require as a criterion for such definition engagement by the “juridical person of the other party” in substantial activity in the territory of the other Party, while the others not.
EPAs/FTAs normally define “ownership” and “control” as follows:
A juridical person is deemed to be “owned” by persons if more than fifty percent (50%) of the equity interest in it is owned by such persons. Under GATS, the term “owned” is construed to mean direct ownership. Under the aforesaid definition of a “juridical person of the other party” for Mode 3, such person could mean a juridical person (a “subsidiary”) established within the territory of one contracting party country and directly owned by another juridical person (a “parent company”) established within the territory of the other contracting party country, but would not include a sub-subsidiary (a company
Investment chapter
Services chapter
Movement of natural persons
chapterBasic obligations: MFN, NT, PR
Basic obligations: MFN, NT, LP, MA
Investment in non-services sectors (manufacturing, agriculture, mining, etc.)
Investment in services sectors Mode 3 is excluded
from the services chapter and provided for in the investment
chapter (Japan-Mexico, Japan-Chile)
Mode 3 in the services chapter and investment in services sectors in the
investment chapter overlap
Immigration measure on the
entry and temporary stay of natural
persons
Mode 1
Mode 2
Mode 3
Mode 4
Immigration measure
Basic positionImmigration measure is
excluded from the services chapter and provided for in the
movement of natural services chapter
With regard to immigration measures, part of Mode 4 in the
services chapter and the movement of natural
persons chapter overlap
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Figure III-2-1 WTO International Agreement on Trade in Services (GATS) and Economic Partnership Agreements
2. OVERVIEW OF LEGAL DISCIPLINES
The structure of each treaty on trade in services depends on whether it adopts “positive list approach” or “negative list approach”.
(1) FOUR MODES AND THE RELATIONSHIP BASED ON THESE MODES BETWEEN THE SERVICE CHAPTER, THE CHAPTER ON INVESTMENT, AND THE CHAPTER ON THE MOVEMENT OF NATURAL PERSONS
In the Services chapter of GATS and EPAs/FTAs, trade in services is classified as four modes of supply: Mode 1: cross-border supply; Mode 2: consumption abroad; Mode 3: commercial presence; and Mode 4: movement of natural persons. Only Mode 3 is dealt with in a different way according to each specific EPA/FTA (see Chapter 12, Part II).
In the case of EPAs/FTAs in which the GATS style “positive list” approach is adopted, all four modes are covered. However, Mode 3 in the service chapter overlaps with the scope of the chapter on investment as the chapter on investment does not exclude the coverage on investments in service sectors. To avoid any inconsistency inherently arose by such an overlap, the commitment (reservation) in the chapter on investment are made principally the same as the commitment of Mode 3 in the service chapter made in the sectors concerned. Provided that inconsistency is eventually found between the two chapters, there is the provision that the disciplines and commitments in the service chapter should prevail to the extent of such inconsistency.
In the case of the NAFTA-style “negative list” approach, the service chapter covers only the cross-border supply of Modes 1, 2 and 4, while investments in service sectors, i.e., Mode 3, is dealt with in the chapter on investment. In other words, it is the chapter on investment that covers investments in service sectors made by investors of a contracting party’s country in the other contracting party’s country such in forms of subsidiaries and branches.
Bilateral commitment
s under EPAs
(GATS+α)
Partial liberal-ization
Deeper liberalization
Etc.
・・・・・・・・・・・・・
Professional servicesLegal, accounting, architecture,
and medical, etc.
Computer
and related services
Research and development services
Distribution services
Audiovisual services (motion picture
distribution, game contents, etc.)
Under the GATS, services sectors are classified into approximately 150 sectors, including sub-sectors. Each country commits under “what conditions” and to “what level” each sector can be liberalized to.
Something extra added to the above, i.e. “GATS-plus”, is a key factor of EPAs.
Comm
ission agentW
holesale tradeRetailingFranchising
An Economic Partnership Agreement (EPA) is a set of trade rules concluded between two countries. An EPA covers both trade in goods and trade in services.An EPA is a mechanism for achieving more in-depth, higher liberalization of trade in services than multilateral commitments (WTO) by negotiations between two countries.Higher “level” and broader “scope” of liberalization of trade in services committed under the WTO agreements can be achieved by EPAs.These achievements of EPAs are generally referred to as the “WTO (GATS)-plus”.
No market restrictionsLiberalization level (high)
Closed market Liberalization level (low)
Educational services
Primary/secondary/
higher/adult education
Services incidental to energy distribution
Real estate services
Financial services
BankingLife, accident and health insuranceFinancing Financial leasing
Comm
unication services
PostalCourierTelecom
mu-
nication
Other services
Hotels and restaurantsTravel agencies, etc.
Tourism and
travel related services
Sectors committed under the GATS
Sectors not committed under the GATS
GATS-plus
(Example) A case of services market in some country
Hardware installationSoftware im
plementation
Data processingSystem
m
aintenance/operation
Chapter 2: Services
709
In addition, regarding Mode 4, immigration measures are dealt with in the chapter on the movement of natural persons, while the treatment after immigration is dealt with in the service chapter. In summary, Mode 4 itself includes the immigration measure but in the case of GATS style EPA/FTA, while keeping it in the scope of the service chapter, the immigration measure is excluded from the Schedule of Commitments (without any commitment); and in the case of NAFTA style EPA/FTA, the immigration measure is not within the scope of the service chapter.
Figure III-2-2 Relationship between Investment Chapter, Services Chapter, and Movement of Natural Persons Chapter
(2) DEFINITION OF SERVICE SUPPLIER OF THE OTHER PARTY AND JURIDICAL PERSON OF THE OTHER PARTY
EPAs/FTAs normally provide for definitions of basic terms in order to clarify the coverage of such basic terms. One such basic term is “service supplier of the party.” They are objects that are given the benefit of EPAs/FTAs. Entities which are eligible to be a service supplier include both natural persons and juridical persons. Under such definitions, such persons are entitled to the benefit of the agreements through, inter alia, a liberalization commitment in respect of trade in services. In addition, EPAs/FTAs usually provide for definitions of a “juridical person of the other party”. A “juridical person of the other party” is usually defined as (i) with regard to Mode 1 and Mode 2, a juridical person established within the territory of the other party, and (ii) with regard to Mode 3, a juridical person that is established within the territory of the country and owned or controlled by: (a) a natural person in the other country or (b) another juridical person established within the territory of the other party. Some EPAs/FTAs require as a criterion for such definition engagement by the “juridical person of the other party” in substantial activity in the territory of the other Party, while the others not.
EPAs/FTAs normally define “ownership” and “control” as follows:
A juridical person is deemed to be “owned” by persons if more than fifty percent (50%) of the equity interest in it is owned by such persons. Under GATS, the term “owned” is construed to mean direct ownership. Under the aforesaid definition of a “juridical person of the other party” for Mode 3, such person could mean a juridical person (a “subsidiary”) established within the territory of one contracting party country and directly owned by another juridical person (a “parent company”) established within the territory of the other contracting party country, but would not include a sub-subsidiary (a company
Investment chapter
Services chapter
Movement of natural persons
chapterBasic obligations: MFN, NT, PR
Basic obligations: MFN, NT, LP, MA
Investment in non-services sectors (manufacturing, agriculture, mining, etc.)
Investment in services sectors Mode 3 is excluded
from the services chapter and provided for in the investment
chapter (Japan-Mexico, Japan-Chile)
Mode 3 in the services chapter and investment in services sectors in the
investment chapter overlap
Immigration measure on the
entry and temporary stay of natural
persons
Mode 1
Mode 2
Mode 3
Mode 4
Immigration measure
Basic positionImmigration measure is
excluded from the services chapter and provided for in the
movement of natural services chapter
With regard to immigration measures, part of Mode 4 in the
services chapter and the movement of natural
persons chapter overlap
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Part III: EPA/FTA and IIA
710
that is indirectly owned by a parent company through subsidiary established within the territory of the other contracting party). In contrast, the chapter on investment in the relevant EPA/FTA normally defines “investment” (which is the subject of protection granted pursuant to that chapter), as an asset of an investor in one contracting party, and such includes any “enterprise” owned, whether directly or indirectly, by such an investor or investors.
Under the chapter on services in the relevant EPA/FTA, a juridical person is “controlled” by persons if such persons have the power to name a majority of its directors or otherwise to legally direct the actions of the juridical person.
(3) MOST-FAVOURED-NATION (“MFN”) TREATMENT The provision of MFN treatment under GATS requires that among WTO member countries: “each
Member shall accord immediately and unconditionally to services and service suppliers of any other Member treatment no less favorable than that it accords to like services and service suppliers of any other country” (Article II). According to this provision, a WTO Member country undertakes the obligation of according the same treatment to all other WTO Member countries with regard to the measures which fall under GATS. This means that in addition to national treatment and the treatment pertaining to market access with respect to which a Member country made commitments in the Schedule of Commitments, the same treatment is equally afforded to all WTO Member countries even if no commitment has been made in that country’s Schedule of Commitments. On the other hand, under Article V of GATS, Member countries that enter into an EPA/FTA may not be subject to the MFN obligation under GATS (i.e., there is no obligation to accord such treatment to the WTO Member countries other than contracting party countries to such EPA/FTA). For instance, in the case where under GATS, Member country A has committed to allow foreign capital to make an equity contribution at a rate up to 40% in the retailing service sector, if under the EPA/FTA which country A has concluded with country B (which satisfies the requirement of the said Article V), a commitment has been made to allow a rate up to 50% in the said sector for foreign capital, then there is no obligation to let the WTO Member countries other than country B equally share such committed treatment. Country A allows foreign capital to make an equity contribution at a ratio up to 50% in the retailing service sector only for service suppliers of country B, while the ratio up to 40% remains unchanged for service suppliers of other WTO Member countries.
On the other hand, the MFN treatment provided in EPAs/FTAs requires that a contracting party country should accord to the other contracting party treatment no less favorable than that it accords to like services and service suppliers of any other third country. The MFN treatment pursuant to a principle like this is widely seen in the EPAs/FTAs concluded between developed countries and was provided in agreements like NAFTA and the U.S.A.-Singapore FTA.
Under the EPAs/FTAs, such as the Japan-Viet Nam EPA and the Japan-Switzerland EPA, the MFN treatment is provided with the exception that the preferential treatment provided under the EPAs/FTAs with the third country that satisfies the requirements under Article V of the GATS is not applicable to the other contracting party country to the former EPAs/FTAs. Provisions are included in the Japan-Switzerland EPA that the contracting party country is obliged to consult with the other contracting party country or endeavor to accord to the other contracting party country treatment no less favorable than that provided under other agreements concluded and notified under Article V of the GATS. The Japan-Viet Nam EPA provides an obligation of consultation similar to that of the Japan-Switzerland EPA, but does not provide such obligation to endeavor as is stipulated in the latter EPA.
In addition, certain agreements include review provisions aimed at effectively according MFN treatment while not specifically providing for the MFN treatment. Such provisions are peculiar to EPAs/FTAs. That is to say, pursuant to a review provision, if country B newly enters into a B-C
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EPA/FTA with country C and if such new B-C EPA/FTA accords a more favorable treatment to country C (which is a third party country from country A’s perspective), then the A-B EPA/FTA, which contains a review provision, may obligate the contracting party country B to consider whether it should revise such A-B EPA/FTA in order to accord to country A treatment no less favorable than that provided to country C under the new B-C EPA/FTA. The Japan-Thailand EPA and the India-Singapore FTA are examples of an EPA/FTA providing an MFN provision of this type.
(4) MARKET ACCESS As under GATS, EPAs/FTAs provide market access provisions, primarily in order to liberalize
restrictive measures imposed on market entries mainly due to economic factors. Following the GATS approach, most such agreements are structured in the positive list format of commitments described above. However, NAFTA, which is a negative list format agreement (which entered into force before GATS), also contains disciplines on “quantitative restrictions” on trade in services. (However, “limitations on the participation of foreign capital”, which is provided in the paragraph 2 (f) of Article XVI of GATS, is excluded because Mode 3 is exclusively covered in the Investment chapter.)
(5) NATIONAL TREATMENT As under GATS, national treatment under EPAs/FTAs is a concept whereby the treatment accorded by
a contracting party to the services and the service suppliers of the other contracting party country shall be no less favorable than the treatment accorded to its own like services and service suppliers.
Under the positive list approach, the sectors in respect of which national treatment obligations are committed and the conditions and restrictions therefore are inscribed in the “Schedule of Commitments” of the relevant EPA/FTA. On the other hand, under the negative list approach, both the sectors for which national treatment obligations are not committed and the measures which are exempted from such commitments i.e. conditions and restrictions in respect of the remaining sectors are inscribed in the “Schedule of Reservations” of the relevant EPA/FTA. Under either approach, the scope of commitments or reservations, as the case may be, is to be explicitly specified in order to enhance transparency and promote liberalization of trade in services.
(6) ADDITIONAL COMMITMENTS As under GATS, commitments which go beyond market access and national treatment obligations
may be inscribed in the “Schedule of Commitments” of the relevant EPA/FTA. Some EPAs/FTAs adopting the positive list approach provide examples of additional commitments (such as disciplines promoting competition in the telecommunications sector and additional commitments in respect of domestic regulations in the financial sector) with a view to incorporating the outcome of the GATS negotiation. No example of additional commitments is found in FTAs which adopt the negative list approach.
(7) STANDSTILL OBLIGATION Under NAFTA, which adopts the negative list approach, if the contracting party country makes
reservations on certain obligations under the agreement (such as with respect to the national treatment obligation, the MFN treatment obligation with regard to existing measures in certain sectors etc.), it owes an obligation to maintain the status quo in respect of such reservations as of the entry into force of the agreement (that is, it owes an obligation not to adopt any measure which is more restrictive than existing measures). This is referred to as a “standstill obligation.” A contracting party country may make a reservation not only on existing measures, but also on the relevant service sector, where the country does not owe any such standstill obligation with respect to existing measures, and thus may adopt any
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that is indirectly owned by a parent company through subsidiary established within the territory of the other contracting party). In contrast, the chapter on investment in the relevant EPA/FTA normally defines “investment” (which is the subject of protection granted pursuant to that chapter), as an asset of an investor in one contracting party, and such includes any “enterprise” owned, whether directly or indirectly, by such an investor or investors.
Under the chapter on services in the relevant EPA/FTA, a juridical person is “controlled” by persons if such persons have the power to name a majority of its directors or otherwise to legally direct the actions of the juridical person.
(3) MOST-FAVOURED-NATION (“MFN”) TREATMENT The provision of MFN treatment under GATS requires that among WTO member countries: “each
Member shall accord immediately and unconditionally to services and service suppliers of any other Member treatment no less favorable than that it accords to like services and service suppliers of any other country” (Article II). According to this provision, a WTO Member country undertakes the obligation of according the same treatment to all other WTO Member countries with regard to the measures which fall under GATS. This means that in addition to national treatment and the treatment pertaining to market access with respect to which a Member country made commitments in the Schedule of Commitments, the same treatment is equally afforded to all WTO Member countries even if no commitment has been made in that country’s Schedule of Commitments. On the other hand, under Article V of GATS, Member countries that enter into an EPA/FTA may not be subject to the MFN obligation under GATS (i.e., there is no obligation to accord such treatment to the WTO Member countries other than contracting party countries to such EPA/FTA). For instance, in the case where under GATS, Member country A has committed to allow foreign capital to make an equity contribution at a rate up to 40% in the retailing service sector, if under the EPA/FTA which country A has concluded with country B (which satisfies the requirement of the said Article V), a commitment has been made to allow a rate up to 50% in the said sector for foreign capital, then there is no obligation to let the WTO Member countries other than country B equally share such committed treatment. Country A allows foreign capital to make an equity contribution at a ratio up to 50% in the retailing service sector only for service suppliers of country B, while the ratio up to 40% remains unchanged for service suppliers of other WTO Member countries.
On the other hand, the MFN treatment provided in EPAs/FTAs requires that a contracting party country should accord to the other contracting party treatment no less favorable than that it accords to like services and service suppliers of any other third country. The MFN treatment pursuant to a principle like this is widely seen in the EPAs/FTAs concluded between developed countries and was provided in agreements like NAFTA and the U.S.A.-Singapore FTA.
Under the EPAs/FTAs, such as the Japan-Viet Nam EPA and the Japan-Switzerland EPA, the MFN treatment is provided with the exception that the preferential treatment provided under the EPAs/FTAs with the third country that satisfies the requirements under Article V of the GATS is not applicable to the other contracting party country to the former EPAs/FTAs. Provisions are included in the Japan-Switzerland EPA that the contracting party country is obliged to consult with the other contracting party country or endeavor to accord to the other contracting party country treatment no less favorable than that provided under other agreements concluded and notified under Article V of the GATS. The Japan-Viet Nam EPA provides an obligation of consultation similar to that of the Japan-Switzerland EPA, but does not provide such obligation to endeavor as is stipulated in the latter EPA.
In addition, certain agreements include review provisions aimed at effectively according MFN treatment while not specifically providing for the MFN treatment. Such provisions are peculiar to EPAs/FTAs. That is to say, pursuant to a review provision, if country B newly enters into a B-C
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711
EPA/FTA with country C and if such new B-C EPA/FTA accords a more favorable treatment to country C (which is a third party country from country A’s perspective), then the A-B EPA/FTA, which contains a review provision, may obligate the contracting party country B to consider whether it should revise such A-B EPA/FTA in order to accord to country A treatment no less favorable than that provided to country C under the new B-C EPA/FTA. The Japan-Thailand EPA and the India-Singapore FTA are examples of an EPA/FTA providing an MFN provision of this type.
(4) MARKET ACCESS As under GATS, EPAs/FTAs provide market access provisions, primarily in order to liberalize
restrictive measures imposed on market entries mainly due to economic factors. Following the GATS approach, most such agreements are structured in the positive list format of commitments described above. However, NAFTA, which is a negative list format agreement (which entered into force before GATS), also contains disciplines on “quantitative restrictions” on trade in services. (However, “limitations on the participation of foreign capital”, which is provided in the paragraph 2 (f) of Article XVI of GATS, is excluded because Mode 3 is exclusively covered in the Investment chapter.)
(5) NATIONAL TREATMENT As under GATS, national treatment under EPAs/FTAs is a concept whereby the treatment accorded by
a contracting party to the services and the service suppliers of the other contracting party country shall be no less favorable than the treatment accorded to its own like services and service suppliers.
Under the positive list approach, the sectors in respect of which national treatment obligations are committed and the conditions and restrictions therefore are inscribed in the “Schedule of Commitments” of the relevant EPA/FTA. On the other hand, under the negative list approach, both the sectors for which national treatment obligations are not committed and the measures which are exempted from such commitments i.e. conditions and restrictions in respect of the remaining sectors are inscribed in the “Schedule of Reservations” of the relevant EPA/FTA. Under either approach, the scope of commitments or reservations, as the case may be, is to be explicitly specified in order to enhance transparency and promote liberalization of trade in services.
(6) ADDITIONAL COMMITMENTS As under GATS, commitments which go beyond market access and national treatment obligations
may be inscribed in the “Schedule of Commitments” of the relevant EPA/FTA. Some EPAs/FTAs adopting the positive list approach provide examples of additional commitments (such as disciplines promoting competition in the telecommunications sector and additional commitments in respect of domestic regulations in the financial sector) with a view to incorporating the outcome of the GATS negotiation. No example of additional commitments is found in FTAs which adopt the negative list approach.
(7) STANDSTILL OBLIGATION Under NAFTA, which adopts the negative list approach, if the contracting party country makes
reservations on certain obligations under the agreement (such as with respect to the national treatment obligation, the MFN treatment obligation with regard to existing measures in certain sectors etc.), it owes an obligation to maintain the status quo in respect of such reservations as of the entry into force of the agreement (that is, it owes an obligation not to adopt any measure which is more restrictive than existing measures). This is referred to as a “standstill obligation.” A contracting party country may make a reservation not only on existing measures, but also on the relevant service sector, where the country does not owe any such standstill obligation with respect to existing measures, and thus may adopt any
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measures and maintain existing measures to an extent specifically reserved the applicability of certain obligations (such as the national treatment obligation) in the sector concerned.
In cases where standstill obligations are provided in an EPA/FTA which adopts the positive list approach (for example, under paragraph 3 of Article 75 of the Japan-Philippines EPA, and with respect to the sectors marked as “SS” (the abbreviation of “short for standstill”) in the Schedule of Commitments attached thereto (such sectors are referred to as the “SS sectors”)), the conditions and restrictions therefore may be inscribed therein only in relation to existing measures which do not conform to either market access obligations or national treatment obligations. Without regard to whether or not the relevant sector is marked “SS”, any commitment inscribed in the Schedule of Commitments for a certain sector is binding. Further, the contracting party countries would be obligated to maintain the status quo of existing measures as of the entry into force of the agreement in connection with the SS sectors. The Japan-Philippines EPA is the first agreement that adopted this approach with respect to services; the Japan-Malaysia, Japan-Indonesia, Japan-Thailand, and Japan-Mongolia EPAs followed it.
(8) AUTHORIZATIONS, LICENSES AND QUALIFICATIONS (DOMESTIC REGULATIONS) With a view to ensuring that measures relating to qualification requirements and procedures, technical
standards and licensing requirements do not create unnecessary barriers to trade in services, most EPAs/FTAs obligate contracting party countries to establish objective and transparent criteria: (i) so as to ensure that any such requirements, procedures and standards are not more burdensome than necessary to ensure the quality of the service, and (ii) so as to ensure that licensing procedures are not in and of themselves a restriction on the supply of the services. In addition, some EPAs/FTAs (for example, the U.S.A.-Singapore FTA, the U.S.A.-Australia FTA, and the India-Singapore FTA) explicitly provide that the parties thereto shall review the relevant disciplines in response to the progress, if any, in working programs concerning qualification requirements and procedures, technical standards and licensing requirements contemplated by paragraph 4 of Article VI of GATS.
(9) MUTUAL RECOGNITION This provision provides that a contracting party country may recognize the education or experience
obtained, requirements met, or licenses or certifications granted by another contracting party country for the purpose of fulfillment, in whole or a part, of its standards or criteria for the authorization, licensing or certifications of service suppliers of another contracting party country. In case of such recognition given by a contracting party country to a third party country, it is clearly provided that such recognition should not fall under the scope of MFN obligation, however, it is also provided that the contracting party country should offer an adequate opportunity to the other contracting party country to demonstrate that the other contracting party should also be treated the same with respect to such recognition. (The same provision is provided for in Article VII of GATS.)
Some agreements go a step further and explicitly provide that the contracting parties negotiate on the framework of mutual recognition by professional associations, and some even require such negotiation to be completed by specific deadlines and/or in respect of certain sectors (see, for example, the India-Singapore FTA).
(10) TRANSPARENCY As under GATS, in order to ensure transparency, contracting party countries have obligations to (or
obligations to make efforts to) promptly publish domestic measures in connection with the disciplines regarding services, establishment of enquiry points, etc. In addition, some agreements effectively provide that a contracting country party may change any existing measure, or introduce any new measure, but only after the expiration of a certain period of time after publishing a draft of such measure,
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and that it shall receive comments from the other contracting party country during such period. Some agreements even effectively provide that the parties thereto should adopt such comments to the greatest extent possible.
(11) SAFEGUARDS While most EPAs/FTAs lack specific provisions on safeguard measures for service sectors (as there
has been little progress in respect of negotiation on safeguards contemplated in Article X of GATS), some EPAs/FTAs do contain provisions in this regard. These agreements effectively provide, inter alia, that (i) the contracting party countries shall refrain from taking safeguard measures against the other contracting party; (ii) shall not initiate investigations therefore (see, for example, the Australia-Singapore FTA, and the India-Singapore FTA); and/or (iii) the parties thereto shall review the issue of safeguard measures in the context of developments in multilateral negotiations (see, for example, the India-Singapore FTA).
(12) DENIAL OF BENEFITS Denial of benefit provisions under EPAs/FTAs effectively provide that a contracting party country
may, under certain conditions, deny the benefits (i.e. liberalized market access commitment) provided to service suppliers of the other contracting party country. Many of them have followed the provisions of NAFTA, and deny benefits with respect to services or service suppliers of the other contracting party country where: (i) a juridical person of the other contracting party country is owned or controlled by a third party country which has no diplomatic relations with a contracting party country; (ii) a juridical person owned or controlled by a third party country to which measures such as economic sanctions prohibiting transactions with such juridical person are imposed by a contracting party country; or (iii) a juridical person which is owned or controlled by a juridical person of a third party country and is not engaging in substantial business activities within the territory of the other contracting party country. Regarding (iii), a contracting party country must give prior notification to and consultation with the other contracting party country, but whether or not benefits will actually be denied is left to the discretion of the contracting party country. Such prior notification and negotiations are not mandatory regarding (i) and (ii).
In addition, under GATS a Member country may deny the benefits of GATS to the supply of a service if it establishes that the service is supplied to its territory from or in the territory of a non-member country or that such service is supplied by a vessel registered under the laws of a non-member country in the maritime transport service (Article XXVII).
(13) PAYMENTS AND TRANSFERS As under GATS, while restrictions on payments and transfers for current transactions relating to trade
in services are generally prohibited, restrictions on payments and transfers for the purpose of safeguarding the balance of international payments are conditionally permitted under EPAs/FTAs.
Some EPAs/FTAs limit the coverage of this provision to the sectors committed by the contracting party country in the Schedule of Commitments, as under GATS, while others apply this provision to all sectors as a general obligation.
(14) EXCEPTIONS Most EPAs/FTAs contain provisions equivalent to those of Articles XIV and XIVbis of GATS, and
exempt (as general exceptions) measures to protect public morals, to maintain public order, health and safety, and measures in respect of national security interests.
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measures and maintain existing measures to an extent specifically reserved the applicability of certain obligations (such as the national treatment obligation) in the sector concerned.
In cases where standstill obligations are provided in an EPA/FTA which adopts the positive list approach (for example, under paragraph 3 of Article 75 of the Japan-Philippines EPA, and with respect to the sectors marked as “SS” (the abbreviation of “short for standstill”) in the Schedule of Commitments attached thereto (such sectors are referred to as the “SS sectors”)), the conditions and restrictions therefore may be inscribed therein only in relation to existing measures which do not conform to either market access obligations or national treatment obligations. Without regard to whether or not the relevant sector is marked “SS”, any commitment inscribed in the Schedule of Commitments for a certain sector is binding. Further, the contracting party countries would be obligated to maintain the status quo of existing measures as of the entry into force of the agreement in connection with the SS sectors. The Japan-Philippines EPA is the first agreement that adopted this approach with respect to services; the Japan-Malaysia, Japan-Indonesia, Japan-Thailand, and Japan-Mongolia EPAs followed it.
(8) AUTHORIZATIONS, LICENSES AND QUALIFICATIONS (DOMESTIC REGULATIONS) With a view to ensuring that measures relating to qualification requirements and procedures, technical
standards and licensing requirements do not create unnecessary barriers to trade in services, most EPAs/FTAs obligate contracting party countries to establish objective and transparent criteria: (i) so as to ensure that any such requirements, procedures and standards are not more burdensome than necessary to ensure the quality of the service, and (ii) so as to ensure that licensing procedures are not in and of themselves a restriction on the supply of the services. In addition, some EPAs/FTAs (for example, the U.S.A.-Singapore FTA, the U.S.A.-Australia FTA, and the India-Singapore FTA) explicitly provide that the parties thereto shall review the relevant disciplines in response to the progress, if any, in working programs concerning qualification requirements and procedures, technical standards and licensing requirements contemplated by paragraph 4 of Article VI of GATS.
(9) MUTUAL RECOGNITION This provision provides that a contracting party country may recognize the education or experience
obtained, requirements met, or licenses or certifications granted by another contracting party country for the purpose of fulfillment, in whole or a part, of its standards or criteria for the authorization, licensing or certifications of service suppliers of another contracting party country. In case of such recognition given by a contracting party country to a third party country, it is clearly provided that such recognition should not fall under the scope of MFN obligation, however, it is also provided that the contracting party country should offer an adequate opportunity to the other contracting party country to demonstrate that the other contracting party should also be treated the same with respect to such recognition. (The same provision is provided for in Article VII of GATS.)
Some agreements go a step further and explicitly provide that the contracting parties negotiate on the framework of mutual recognition by professional associations, and some even require such negotiation to be completed by specific deadlines and/or in respect of certain sectors (see, for example, the India-Singapore FTA).
(10) TRANSPARENCY As under GATS, in order to ensure transparency, contracting party countries have obligations to (or
obligations to make efforts to) promptly publish domestic measures in connection with the disciplines regarding services, establishment of enquiry points, etc. In addition, some agreements effectively provide that a contracting country party may change any existing measure, or introduce any new measure, but only after the expiration of a certain period of time after publishing a draft of such measure,
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and that it shall receive comments from the other contracting party country during such period. Some agreements even effectively provide that the parties thereto should adopt such comments to the greatest extent possible.
(11) SAFEGUARDS While most EPAs/FTAs lack specific provisions on safeguard measures for service sectors (as there
has been little progress in respect of negotiation on safeguards contemplated in Article X of GATS), some EPAs/FTAs do contain provisions in this regard. These agreements effectively provide, inter alia, that (i) the contracting party countries shall refrain from taking safeguard measures against the other contracting party; (ii) shall not initiate investigations therefore (see, for example, the Australia-Singapore FTA, and the India-Singapore FTA); and/or (iii) the parties thereto shall review the issue of safeguard measures in the context of developments in multilateral negotiations (see, for example, the India-Singapore FTA).
(12) DENIAL OF BENEFITS Denial of benefit provisions under EPAs/FTAs effectively provide that a contracting party country
may, under certain conditions, deny the benefits (i.e. liberalized market access commitment) provided to service suppliers of the other contracting party country. Many of them have followed the provisions of NAFTA, and deny benefits with respect to services or service suppliers of the other contracting party country where: (i) a juridical person of the other contracting party country is owned or controlled by a third party country which has no diplomatic relations with a contracting party country; (ii) a juridical person owned or controlled by a third party country to which measures such as economic sanctions prohibiting transactions with such juridical person are imposed by a contracting party country; or (iii) a juridical person which is owned or controlled by a juridical person of a third party country and is not engaging in substantial business activities within the territory of the other contracting party country. Regarding (iii), a contracting party country must give prior notification to and consultation with the other contracting party country, but whether or not benefits will actually be denied is left to the discretion of the contracting party country. Such prior notification and negotiations are not mandatory regarding (i) and (ii).
In addition, under GATS a Member country may deny the benefits of GATS to the supply of a service if it establishes that the service is supplied to its territory from or in the territory of a non-member country or that such service is supplied by a vessel registered under the laws of a non-member country in the maritime transport service (Article XXVII).
(13) PAYMENTS AND TRANSFERS As under GATS, while restrictions on payments and transfers for current transactions relating to trade
in services are generally prohibited, restrictions on payments and transfers for the purpose of safeguarding the balance of international payments are conditionally permitted under EPAs/FTAs.
Some EPAs/FTAs limit the coverage of this provision to the sectors committed by the contracting party country in the Schedule of Commitments, as under GATS, while others apply this provision to all sectors as a general obligation.
(14) EXCEPTIONS Most EPAs/FTAs contain provisions equivalent to those of Articles XIV and XIVbis of GATS, and
exempt (as general exceptions) measures to protect public morals, to maintain public order, health and safety, and measures in respect of national security interests.
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(15) REVIEW OF COMMITMENTS (REVIEW PROVISIONS) While GATS provides that Members shall enter into successive rounds of negotiations for progressive
liberalization (Article XIX), many EPAs/FTAs provide that reviews of commitments shall be made several years after the entry into force of the agreement for the purpose of further liberalization of trade in services.
EPAs/FTAs include a variety of provisions in this regard. Some agreements follow the GATS model, and advocate efforts toward progressive liberalization (see, for example, the India-Singapore FTA), some do not contain any special provisions in this respect (see, for example, the U.S.A.-Singapore FTA, and the U.S.A.-Australia FTA), some provide for biannual review of the agreement (see, for example, the EFTA-Singapore FTA), etc.
3. ECONOMIC ASPECTS AND SIGNIFICANCE
As discussed in “Part II, Chapter 12, Trade in Services (4) Economic Aspects and Significance,” trade in services by nature may include the movement of production factors as an element, and has a great positive spill-over effect on other industries, as is clear with regard to the financial and telecommunication industries. Thus, although the liberalization of bilateral and regional trade in services has some temporary effect on the employment market for existing service providers (as it does in respect of efforts in multilateral trade), over the long term it will contribute to the enhancement of the competitiveness of relevant service industries as well as to the enhancement of manufacturing efficiency in other service sectors and in manufacturing industries.
4. SUMMARY OF JAPAN’S EPAS
(1) MAJOR PROVISIONS
(a) MFN Treatment
With respect to EPAs entered into by Japan, the Japan-Mexico EPA, the Japan-Philippines EPA, the Japan-Chile EPA, the Japan-Brunei EPA, the Japan-Peru EPA, the Japan-Australia EPA and the Japan-Mongolia EPA provide that the contracting parties’ countries shall mutually accord to each other general MFN treatment, and shall enumerate in the annex (MFN Schedule of Reservations/Exemptions) as exceptions those sectors in respect of which MFN treatment is not accorded.
The Japan-Singapore EPA and the Japan-Thailand EPA, on the other hand, do not automatically accord to each party MFN treatment. However, under these EPAs, where one contracting country (assume, for example, Singapore) accords preferential treatment to a non-contracting party country (assume, for example, the United States), the other contracting country (for example, Japan) may request the first contracting country to allow such preferential treatment, and the first contracting country must consider whether to so permit.
The Japan-Viet Nam EPA and the Japan-Switzerland EPA provide the principle of MFN treatment with the exception that the preferential treatment provided under the other EPAs/FTAs which either party concludes with a third party country, and which satisfies the requirements of Article V of the GATS, is not applicable to the other party. The Japan-Viet Nam EPA provides an obligation for either party to negotiate with the other party if either party accords more favorable treatment to a third party. Under the Japan-Switzerland EPA, a contracting party country shall endeavor to accord to another contracting party country treatment no less favorable than that provided under other agreements.
Although the Japan-Malaysia EPA and the Japan-Indonesia EPA provide for MFN treatment as a general obligation, Malaysia and Indonesia made reservations with respect to all sectors in the annex,
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and made exception of those sectors that would not be accorded MFN treatment (MFN Schedule of Reservations/Exemptions). Malaysia and Indonesia consequently accord MFN treatment only in some sectors (such as rental and leasing services, etc.) as exceptions to the exceptions in the MFN Schedule of Reservations (i.e. “all sectors except”).
(b) Market Access
Japan’s EPAs with ASEAN countries, including the Japan-Singapore EPA, as well as the Japan-India EPA and the Japan-Mongolia EPA adopt the GATS-type positive list approach, and the market access provisions in these agreements follow those of the GATS model. The Japan-Mexico EPA and the Japan-Chile EPA adopt the NAFTA-type negative list approach and contains no obligatory provisions in respect of market access (NAFTA contains disciplines over quantitative restrictions on trade in services (Article 1207), but does not use the concept of market access in connection with trade in services). The Japan-Switzerland EPA is the first one for Japan to include market access obligations while adopting the negative list approach in an annex to the service chapter. The Japan-Peru EPA and the Japan-Australia EPA also include market access obligations.
(c) National Treatment
The provisions on national treatment under the Japan’s EPA’s with the Philippines, Mongolia, and Brunei are the same as those of GATS. The Japan-Singapore EPA, the Japan-Malaysia EPA, the Japan-Thailand EPA, the Japan-Indonesia EPA and the Japan-Viet Nam EPA also have provisions regarding national treatment obligations which are modeled on GATS, but provide that the foregoing provisions may not be invoked “under Chapter 21” with respect to any measure that falls within the scope of a tax treaty relating to the avoidance of double taxation. The Japan-Switzerland EPA and the Japan-Australia EPA also include the provisions to that effect. This is based on the premise that dispute resolution regarding measures covered by a bilateral tax treaty shall be conducted pursuant to such tax treaty.
(d) Standstill Obligations
The Japan-Mexico EPA, the Japan-Chile EPA, the Japan-Switzerland EPA, the Japan-Peru EPA, and the Japan-Australia EPA, which adopt the NAFTA-type negative list approach, provide that the following measures are to be covered by standstill obligations:
(i) Existing measures not conforming to certain obligations (for example, national treatment) maintained by the federal or central government and inscribed in the Schedule of Reservations (a list of sectors reserved under the existing measures).
(ii) Existing measures not conforming to obligations (for example, national treatment) maintained by the regional government at the prefectural level as measures of the local government and inscribed in the Schedule of Reservations (a list of measures reserved under the existing measures), and existing measures not conforming to obligations (for example, national treatment) maintained by the local government other than at the prefectural level (municipalities such as cities and villages).
(iii) Existing measures not conforming to obligations (for example, national treatment) maintained by the state government as measures of the local government and inscribed in the Schedule of Reservations (a list of sectors reserved under the existing measures), and all existing measures not conforming to obligations (for example, national treatment) maintained by the local government (municipalities such as cities and districts). Regarding the Japan-Switzerland EPA, existing measures, for which the Swiss government does not specifically reserve to adopt new measures, among those measures not conforming to obligations (for example, national
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(15) REVIEW OF COMMITMENTS (REVIEW PROVISIONS) While GATS provides that Members shall enter into successive rounds of negotiations for progressive
liberalization (Article XIX), many EPAs/FTAs provide that reviews of commitments shall be made several years after the entry into force of the agreement for the purpose of further liberalization of trade in services.
EPAs/FTAs include a variety of provisions in this regard. Some agreements follow the GATS model, and advocate efforts toward progressive liberalization (see, for example, the India-Singapore FTA), some do not contain any special provisions in this respect (see, for example, the U.S.A.-Singapore FTA, and the U.S.A.-Australia FTA), some provide for biannual review of the agreement (see, for example, the EFTA-Singapore FTA), etc.
3. ECONOMIC ASPECTS AND SIGNIFICANCE
As discussed in “Part II, Chapter 12, Trade in Services (4) Economic Aspects and Significance,” trade in services by nature may include the movement of production factors as an element, and has a great positive spill-over effect on other industries, as is clear with regard to the financial and telecommunication industries. Thus, although the liberalization of bilateral and regional trade in services has some temporary effect on the employment market for existing service providers (as it does in respect of efforts in multilateral trade), over the long term it will contribute to the enhancement of the competitiveness of relevant service industries as well as to the enhancement of manufacturing efficiency in other service sectors and in manufacturing industries.
4. SUMMARY OF JAPAN’S EPAS
(1) MAJOR PROVISIONS
(a) MFN Treatment
With respect to EPAs entered into by Japan, the Japan-Mexico EPA, the Japan-Philippines EPA, the Japan-Chile EPA, the Japan-Brunei EPA, the Japan-Peru EPA, the Japan-Australia EPA and the Japan-Mongolia EPA provide that the contracting parties’ countries shall mutually accord to each other general MFN treatment, and shall enumerate in the annex (MFN Schedule of Reservations/Exemptions) as exceptions those sectors in respect of which MFN treatment is not accorded.
The Japan-Singapore EPA and the Japan-Thailand EPA, on the other hand, do not automatically accord to each party MFN treatment. However, under these EPAs, where one contracting country (assume, for example, Singapore) accords preferential treatment to a non-contracting party country (assume, for example, the United States), the other contracting country (for example, Japan) may request the first contracting country to allow such preferential treatment, and the first contracting country must consider whether to so permit.
The Japan-Viet Nam EPA and the Japan-Switzerland EPA provide the principle of MFN treatment with the exception that the preferential treatment provided under the other EPAs/FTAs which either party concludes with a third party country, and which satisfies the requirements of Article V of the GATS, is not applicable to the other party. The Japan-Viet Nam EPA provides an obligation for either party to negotiate with the other party if either party accords more favorable treatment to a third party. Under the Japan-Switzerland EPA, a contracting party country shall endeavor to accord to another contracting party country treatment no less favorable than that provided under other agreements.
Although the Japan-Malaysia EPA and the Japan-Indonesia EPA provide for MFN treatment as a general obligation, Malaysia and Indonesia made reservations with respect to all sectors in the annex,
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and made exception of those sectors that would not be accorded MFN treatment (MFN Schedule of Reservations/Exemptions). Malaysia and Indonesia consequently accord MFN treatment only in some sectors (such as rental and leasing services, etc.) as exceptions to the exceptions in the MFN Schedule of Reservations (i.e. “all sectors except”).
(b) Market Access
Japan’s EPAs with ASEAN countries, including the Japan-Singapore EPA, as well as the Japan-India EPA and the Japan-Mongolia EPA adopt the GATS-type positive list approach, and the market access provisions in these agreements follow those of the GATS model. The Japan-Mexico EPA and the Japan-Chile EPA adopt the NAFTA-type negative list approach and contains no obligatory provisions in respect of market access (NAFTA contains disciplines over quantitative restrictions on trade in services (Article 1207), but does not use the concept of market access in connection with trade in services). The Japan-Switzerland EPA is the first one for Japan to include market access obligations while adopting the negative list approach in an annex to the service chapter. The Japan-Peru EPA and the Japan-Australia EPA also include market access obligations.
(c) National Treatment
The provisions on national treatment under the Japan’s EPA’s with the Philippines, Mongolia, and Brunei are the same as those of GATS. The Japan-Singapore EPA, the Japan-Malaysia EPA, the Japan-Thailand EPA, the Japan-Indonesia EPA and the Japan-Viet Nam EPA also have provisions regarding national treatment obligations which are modeled on GATS, but provide that the foregoing provisions may not be invoked “under Chapter 21” with respect to any measure that falls within the scope of a tax treaty relating to the avoidance of double taxation. The Japan-Switzerland EPA and the Japan-Australia EPA also include the provisions to that effect. This is based on the premise that dispute resolution regarding measures covered by a bilateral tax treaty shall be conducted pursuant to such tax treaty.
(d) Standstill Obligations
The Japan-Mexico EPA, the Japan-Chile EPA, the Japan-Switzerland EPA, the Japan-Peru EPA, and the Japan-Australia EPA, which adopt the NAFTA-type negative list approach, provide that the following measures are to be covered by standstill obligations:
(i) Existing measures not conforming to certain obligations (for example, national treatment) maintained by the federal or central government and inscribed in the Schedule of Reservations (a list of sectors reserved under the existing measures).
(ii) Existing measures not conforming to obligations (for example, national treatment) maintained by the regional government at the prefectural level as measures of the local government and inscribed in the Schedule of Reservations (a list of measures reserved under the existing measures), and existing measures not conforming to obligations (for example, national treatment) maintained by the local government other than at the prefectural level (municipalities such as cities and villages).
(iii) Existing measures not conforming to obligations (for example, national treatment) maintained by the state government as measures of the local government and inscribed in the Schedule of Reservations (a list of sectors reserved under the existing measures), and all existing measures not conforming to obligations (for example, national treatment) maintained by the local government (municipalities such as cities and districts). Regarding the Japan-Switzerland EPA, existing measures, for which the Swiss government does not specifically reserve to adopt new measures, among those measures not conforming to obligations (for example, national
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treatment) maintained by the state and local government and inscribed in the Schedule of Reservations. With regard to the Japan-Peru EPA and the Japan-Australia EPA, existing measures not conforming to obligations (for example, national treatment) maintained by the central government or local government and inscribed in the Schedule of Reservations (a list of sectors reserved under the existing measures) and existing measures not conforming to obligations (for example, national treatment) maintained by the local government.
In the case of the positive list approach, sectors subject to standstill obligations are those marked SS in the Schedule of Commitments. Although the terms of such standstill obligations are provided in the Japan-Philippines EPA, the Japan-Malaysia EPA, the Japan-Thailand EPA, the Japan-Indonesia EPA, and the Japan-Mongolia EPA , such terms limit those specific commitments of sectors marked SS to conditions and restrictions under the existing measures not conforming to national treatment, etc. (as stated in Paragraph (2) 7) herein).
(e) Transparency
All EPAs that have been concluded by Japan so far provide in the chapter therein on general provisions (except the Japan-Mexico EPA, in which the relevant provisions are provided in the chapter on implementation and operation of the agreement) that those measures which pertain to or affect the operation of the agreement be published, at least within the country, and that each contracting party country is obligated to respond to questions posited by the other country with respect to such measures. This also extends to the provisions of the chapter on services. However, the following items are mentioned in the chapter as agreements provided for ensuring transparency. In addition, the chapter on trade in services in the Japan-Malaysia EPA requires that information regarding restrictive measures affecting, inter alia, market access, national treatment obligations and provision on white papers, in respect of trade in services be provided.
The Japan-Philippines EPA, the Japan-Brunei EPA, the Japan-Thailand EPA, and the Japan-Mongolia EPA provide for the preparation, delivery to the counterparty country and publication of a list of existing measures not conforming to the market access and national treatment obligations (“transparency list”) and the Japan-India EPA provides an obligation for the preparation and publication of a similar list, regardless of whether a specific commitment covers the relevant sector. Simply put, a transparency list is prepared solely for the purpose of increasing the transparency of restrictions, and does not affect the rights and duties of the contracting party countries. Measures to be covered by a transparency list include, in addition to measures included at the national level, measures of regional governments (at the prefectural level in Japan) and of municipal governments (at the level of cities, towns, and villages in Japan), except for the Japan-Philippines EPA, which does not include measures at the municipal level in the transparency list. Moreover, in addition to the aforementioned provisions in the chapters on general provisions and so forth, the Japan-Philippines EPA, the Japan-Indonesia EPA, the Japan-Brunei EPA, and the Japan-Viet Nam EPA effectively provide that a contracting party country must respond to and provide information in response to questions by a service supplier of the counterparty country through its contact point. This is significant because, unlike with respect to what information is to be provided under general provisions, such information is to be provided to the service supplier and not the government of the contracting country.
As commitments under the Japan-Mexico EPA, the Japan-Chile EPA, the Japan-Switzerland EPA, the Japan-Peru EPA, and the Japan-Australia EPA are determined using the negative list approach, it is clearly understandable from the structure of the agreement which sectors contain a measure not conforming to certain obligations (for example, the national treatment obligation), and, if any measures not conforming to such obligations exist, the nature of such measure or measures, as the case may be. This ensures a high level of transparency. In addition, it effectively provides that if a new measure which affects the implementation or the operation of the agreement is to be introduced to a sector on the
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transparency list, notification shall be made to the counterparty country, to the greatest extent possible, thereby contributing to the enhancement of transparency of regulatory measures.
(f) Denial of Benefits
Under the Japan-Singapore EPA, in addition to those services in respect of which benefit is denied under GATS (i.e. services from non-member countries, maritime transport services by vessels of a non-member nationality, etc., as described above), benefit under the EPA is denied to (i) a juridical person which is controlled or owned by a party of a third party country, established in the territory of the other contracting party country and not engaged in a substantial activity in the territory of either contracting party country, and (ii) a juridical person established in the territory of one of contracting party countries by a service supplier of a third party country and which does not engage in a substantial activity in such contracting party countries.
The Japan-Mexico EPA, the Japan-Philippines EPA, the Japan-Chile EPA, the Japan-Brunei EPA, the Japan-Indonesia EPA, the Japan-Viet Nam EPA, the Japan-Peru EPA, the Japan-Australia EPA and the Japan-Mongolia EPA, for the most part, adopt the text of the provisions of NAFTA. They provide that a service supplier of the other contracting party country will be denied benefits if it is a (i) juridical person that is owned or controlled by persons of a third party country with which Japan does not maintain diplomatic relations, or by persons of a third party country upon whom Japan is imposing economic sanctions, and (ii) juridical person that is owned or controlled by persons of a third party country and that has no substantial activities in the territory of that other contracting party country.
The Japan-Malaysia EPA effectively provides that only with respect to clause (i) discussed in the foregoing paragraph addressing the Japan-Mexico EPA and the Japan-Philippines EPA will benefits be denied. It does not provide the same in respect of clause (ii) of the foregoing paragraph because, in its definition of a “juridical person of the other Party,” the Japan-Malaysia EPA exempts from application of the agreement a juridical person which does not engage in substantive activity in the territory of the other contracting party country.
The Japan-Thailand EPA provides that clause (ii), which does not engage in substantive activity in the territory of the other contracting party, will benefits be denied in addition to the juridical person defined in clause (i).
The Japan-Switzerland EPA does not provide any provisions of denial of benefits.
(g) Payments and Transfers
The Japan-Singapore EPA, the Japan-Thailand EPA, the Japan-Brunei EPA, the Japan-Viet Nam EPA, and the Japan-India EPA extend GATS disciplines only to committed sectors. The Japan-Philippines EPA, the Japan-Malaysia EPA, the Japan-Indonesia EPA, the Japan-Switzerland EPA, the Japan-Peru EPA, the Japan-Australia EPA and the Japan-Mongolia EPA, however, extend GATS disciplines to all sectors pertaining to trade in services as general obligations and do not limit such disciplines to committed sectors. The Japan-Mexico EPA effectively provides that no restrictive measures on payments and transfers shall be applied to cross-border trade in services in the chapter therein on exceptions (which enumerates those that are beyond the scope of the entire agreement). This is not provided in the Japan-Chile EPA.
Note: The provisions on the scope of trade in services, modes and obligations (i.e., national treatment, markets access) contain many parts which overlap with provisions under GATS. Therefore, descriptions on these are not dealt with in detail here in this chapter, as “Part II Chapter 12 Trade in Services” already gave an account thereof.
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treatment) maintained by the state and local government and inscribed in the Schedule of Reservations. With regard to the Japan-Peru EPA and the Japan-Australia EPA, existing measures not conforming to obligations (for example, national treatment) maintained by the central government or local government and inscribed in the Schedule of Reservations (a list of sectors reserved under the existing measures) and existing measures not conforming to obligations (for example, national treatment) maintained by the local government.
In the case of the positive list approach, sectors subject to standstill obligations are those marked SS in the Schedule of Commitments. Although the terms of such standstill obligations are provided in the Japan-Philippines EPA, the Japan-Malaysia EPA, the Japan-Thailand EPA, the Japan-Indonesia EPA, and the Japan-Mongolia EPA , such terms limit those specific commitments of sectors marked SS to conditions and restrictions under the existing measures not conforming to national treatment, etc. (as stated in Paragraph (2) 7) herein).
(e) Transparency
All EPAs that have been concluded by Japan so far provide in the chapter therein on general provisions (except the Japan-Mexico EPA, in which the relevant provisions are provided in the chapter on implementation and operation of the agreement) that those measures which pertain to or affect the operation of the agreement be published, at least within the country, and that each contracting party country is obligated to respond to questions posited by the other country with respect to such measures. This also extends to the provisions of the chapter on services. However, the following items are mentioned in the chapter as agreements provided for ensuring transparency. In addition, the chapter on trade in services in the Japan-Malaysia EPA requires that information regarding restrictive measures affecting, inter alia, market access, national treatment obligations and provision on white papers, in respect of trade in services be provided.
The Japan-Philippines EPA, the Japan-Brunei EPA, the Japan-Thailand EPA, and the Japan-Mongolia EPA provide for the preparation, delivery to the counterparty country and publication of a list of existing measures not conforming to the market access and national treatment obligations (“transparency list”) and the Japan-India EPA provides an obligation for the preparation and publication of a similar list, regardless of whether a specific commitment covers the relevant sector. Simply put, a transparency list is prepared solely for the purpose of increasing the transparency of restrictions, and does not affect the rights and duties of the contracting party countries. Measures to be covered by a transparency list include, in addition to measures included at the national level, measures of regional governments (at the prefectural level in Japan) and of municipal governments (at the level of cities, towns, and villages in Japan), except for the Japan-Philippines EPA, which does not include measures at the municipal level in the transparency list. Moreover, in addition to the aforementioned provisions in the chapters on general provisions and so forth, the Japan-Philippines EPA, the Japan-Indonesia EPA, the Japan-Brunei EPA, and the Japan-Viet Nam EPA effectively provide that a contracting party country must respond to and provide information in response to questions by a service supplier of the counterparty country through its contact point. This is significant because, unlike with respect to what information is to be provided under general provisions, such information is to be provided to the service supplier and not the government of the contracting country.
As commitments under the Japan-Mexico EPA, the Japan-Chile EPA, the Japan-Switzerland EPA, the Japan-Peru EPA, and the Japan-Australia EPA are determined using the negative list approach, it is clearly understandable from the structure of the agreement which sectors contain a measure not conforming to certain obligations (for example, the national treatment obligation), and, if any measures not conforming to such obligations exist, the nature of such measure or measures, as the case may be. This ensures a high level of transparency. In addition, it effectively provides that if a new measure which affects the implementation or the operation of the agreement is to be introduced to a sector on the
Chapter 2: Services
717
transparency list, notification shall be made to the counterparty country, to the greatest extent possible, thereby contributing to the enhancement of transparency of regulatory measures.
(f) Denial of Benefits
Under the Japan-Singapore EPA, in addition to those services in respect of which benefit is denied under GATS (i.e. services from non-member countries, maritime transport services by vessels of a non-member nationality, etc., as described above), benefit under the EPA is denied to (i) a juridical person which is controlled or owned by a party of a third party country, established in the territory of the other contracting party country and not engaged in a substantial activity in the territory of either contracting party country, and (ii) a juridical person established in the territory of one of contracting party countries by a service supplier of a third party country and which does not engage in a substantial activity in such contracting party countries.
The Japan-Mexico EPA, the Japan-Philippines EPA, the Japan-Chile EPA, the Japan-Brunei EPA, the Japan-Indonesia EPA, the Japan-Viet Nam EPA, the Japan-Peru EPA, the Japan-Australia EPA and the Japan-Mongolia EPA, for the most part, adopt the text of the provisions of NAFTA. They provide that a service supplier of the other contracting party country will be denied benefits if it is a (i) juridical person that is owned or controlled by persons of a third party country with which Japan does not maintain diplomatic relations, or by persons of a third party country upon whom Japan is imposing economic sanctions, and (ii) juridical person that is owned or controlled by persons of a third party country and that has no substantial activities in the territory of that other contracting party country.
The Japan-Malaysia EPA effectively provides that only with respect to clause (i) discussed in the foregoing paragraph addressing the Japan-Mexico EPA and the Japan-Philippines EPA will benefits be denied. It does not provide the same in respect of clause (ii) of the foregoing paragraph because, in its definition of a “juridical person of the other Party,” the Japan-Malaysia EPA exempts from application of the agreement a juridical person which does not engage in substantive activity in the territory of the other contracting party country.
The Japan-Thailand EPA provides that clause (ii), which does not engage in substantive activity in the territory of the other contracting party, will benefits be denied in addition to the juridical person defined in clause (i).
The Japan-Switzerland EPA does not provide any provisions of denial of benefits.
(g) Payments and Transfers
The Japan-Singapore EPA, the Japan-Thailand EPA, the Japan-Brunei EPA, the Japan-Viet Nam EPA, and the Japan-India EPA extend GATS disciplines only to committed sectors. The Japan-Philippines EPA, the Japan-Malaysia EPA, the Japan-Indonesia EPA, the Japan-Switzerland EPA, the Japan-Peru EPA, the Japan-Australia EPA and the Japan-Mongolia EPA, however, extend GATS disciplines to all sectors pertaining to trade in services as general obligations and do not limit such disciplines to committed sectors. The Japan-Mexico EPA effectively provides that no restrictive measures on payments and transfers shall be applied to cross-border trade in services in the chapter therein on exceptions (which enumerates those that are beyond the scope of the entire agreement). This is not provided in the Japan-Chile EPA.
Note: The provisions on the scope of trade in services, modes and obligations (i.e., national treatment, markets access) contain many parts which overlap with provisions under GATS. Therefore, descriptions on these are not dealt with in detail here in this chapter, as “Part II Chapter 12 Trade in Services” already gave an account thereof.
549
Part III: EPA/FTA and IIA
718
(2) SALIENT FEATURES OF LIBERALIZATION COMMITMENTS OF THE COUNTERPARTY COUNTRY
Commitments were made using the “positive list” in EPAs with ASEAN countries. The counterpart countries made commitments with a higher level than under GATS regarding manufacturing industry-related repair and maintenance services, wholesale distribution services, computer and related services and also in sectors such as finance, communications, construction and transport. These commitments also include a standstill obligation; they do not deviate from the current laws and regulations, a phenomenon which is frequently seen in the commitments made by developing countries under GATS, and the inconsistency between the EPA as an international commitment with Japan and the regulations based on the counterpart country’s current domestic laws and regulations have been eliminated.
In the EPAs with Mexico, Chile, Switzerland, Peru, and Australia, commitments were made using the “negative list.” In principle, national treatment and MFN treatment obligations were made horizontally on all service sectors. In the EPA with Switzerland, Peru, and Australia, market access obligations were also provided. Reservations were made for the sectors where commitments basically were secured through a standstill obligation while leaving certain sectors (key service sectors such as communication services, sectors relating to social policy) without a standstill obligation.
(a) Japan-Singapore EPA (entered into force in November 2002)
(b) Japan-Mexico EPA (entered into force in April 2005)
(c) Japan-Malaysia EPA (entered into force in July 2006)
(d) Japan-Chile EPA (entered into force in September 2007)
(e) Japan –Thailand EPA (entered into force in November 2007)
(f) Japan-Indonesia EPA (entered into force in July 2008)
(g) Japan-Brunei EPA (entered into force in July 2008)
(h) Japan-Philippines EPA (entered into force in December 2008)
(i) Japan-Switzerland EPA (entered into force in September 2009)
(j) Japan-Viet Nam EPA (entered into force in October 2009)
(k) Japan-India EPA (entered into force in August 2011)
(l) Japan-Peru EPA (entered into force in March 2012)
(m) Japan-Australia EPA (entered into force in January 2015)
(n) Japan-Mongolia EPA (entered into force in June 2016)
For the features of liberalization commitments of the counterparty country of each EPA above, see pages 715-728 of the 2017 Report on Compliance by Major Trading Partners with Trade Agreements - WTO, EPA/FTA and IIA -.
Chapter 2: Services
719
(o) TRANS-PACIFIC PARTNERSHIP (TPP) (SIGNED IN FEBRUARY 2016)
The TPP provides for national treatment, MFN treatment, market access (such as a ban on quantitative restrictions) and other obligations. As with the NAFTA, the negative list approach was adopted. Among existing EPAs that have been signed by Japan with countries participating in the TPP, only EPAs with Mexico, Chile, Peru and Australia adopt the negative list approach. Therefore, a shift from the positive list to the negative list (which generally allows more liberalization) with regard to Brunei, Malaysia, Singapore, and Viet Nam represents a step forward to promote liberalization and improve transparency. Moreover, the TPP was great progress in terms of Japan’s relationship with Canada, New Zealand, and the United States as there had been no EPA/FTA with these countries.
(p) Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) (Signed March 2018)
The service-related provisions under the TPP are applied, with some provisions “suspended,” including provisions concerning express delivery services stipulated in the annex (Annex 10-B, 5 and 6) and resolution of telecommunications disputes (Article 13.21 1(d)) (*yet to be approved by the Diet as of March).
550
Part III: EPA/FTA and IIA
718
(2) SALIENT FEATURES OF LIBERALIZATION COMMITMENTS OF THE COUNTERPARTY COUNTRY
Commitments were made using the “positive list” in EPAs with ASEAN countries. The counterpart countries made commitments with a higher level than under GATS regarding manufacturing industry-related repair and maintenance services, wholesale distribution services, computer and related services and also in sectors such as finance, communications, construction and transport. These commitments also include a standstill obligation; they do not deviate from the current laws and regulations, a phenomenon which is frequently seen in the commitments made by developing countries under GATS, and the inconsistency between the EPA as an international commitment with Japan and the regulations based on the counterpart country’s current domestic laws and regulations have been eliminated.
In the EPAs with Mexico, Chile, Switzerland, Peru, and Australia, commitments were made using the “negative list.” In principle, national treatment and MFN treatment obligations were made horizontally on all service sectors. In the EPA with Switzerland, Peru, and Australia, market access obligations were also provided. Reservations were made for the sectors where commitments basically were secured through a standstill obligation while leaving certain sectors (key service sectors such as communication services, sectors relating to social policy) without a standstill obligation.
(a) Japan-Singapore EPA (entered into force in November 2002)
(b) Japan-Mexico EPA (entered into force in April 2005)
(c) Japan-Malaysia EPA (entered into force in July 2006)
(d) Japan-Chile EPA (entered into force in September 2007)
(e) Japan –Thailand EPA (entered into force in November 2007)
(f) Japan-Indonesia EPA (entered into force in July 2008)
(g) Japan-Brunei EPA (entered into force in July 2008)
(h) Japan-Philippines EPA (entered into force in December 2008)
(i) Japan-Switzerland EPA (entered into force in September 2009)
(j) Japan-Viet Nam EPA (entered into force in October 2009)
(k) Japan-India EPA (entered into force in August 2011)
(l) Japan-Peru EPA (entered into force in March 2012)
(m) Japan-Australia EPA (entered into force in January 2015)
(n) Japan-Mongolia EPA (entered into force in June 2016)
For the features of liberalization commitments of the counterparty country of each EPA above, see pages 715-728 of the 2017 Report on Compliance by Major Trading Partners with Trade Agreements - WTO, EPA/FTA and IIA -.
Chapter 2: Services
719
(o) TRANS-PACIFIC PARTNERSHIP (TPP) (SIGNED IN FEBRUARY 2016)
The TPP provides for national treatment, MFN treatment, market access (such as a ban on quantitative restrictions) and other obligations. As with the NAFTA, the negative list approach was adopted. Among existing EPAs that have been signed by Japan with countries participating in the TPP, only EPAs with Mexico, Chile, Peru and Australia adopt the negative list approach. Therefore, a shift from the positive list to the negative list (which generally allows more liberalization) with regard to Brunei, Malaysia, Singapore, and Viet Nam represents a step forward to promote liberalization and improve transparency. Moreover, the TPP was great progress in terms of Japan’s relationship with Canada, New Zealand, and the United States as there had been no EPA/FTA with these countries.
(p) Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) (Signed March 2018)
The service-related provisions under the TPP are applied, with some provisions “suspended,” including provisions concerning express delivery services stipulated in the annex (Annex 10-B, 5 and 6) and resolution of telecommunications disputes (Article 13.21 1(d)) (*yet to be approved by the Diet as of March).
551
Part III: EPA/FTA and IIA
720
Figure III-2-2 Comparison of Commitments Provided in Service Chapters of the EPAs Concluded with the ASEAN Member States (already in force):
(Chart below describes the commitments that go beyond those under the GATS. Blank space indicates that the commitments made under the GATS are the same as those under the GATS.)
EPAs Already in Force
Singapore
Malaysia Thailand At the time of entry into force in 2002
Results of Review in 2007
Maintenance and repair of equipment, rental and leasing services
Committed to unrestricted foreign equity participation
With respect to (i) rental and leasing services for construction equipment, office equipment, etc., (limited to products manufactured in Malaysia), and (ii) maintenance and repair services conducted by locally incorporated rental/leasing corporations (for equipment and machinery manufactured in Malaysia covering office machinery, boilers, etc.) foreign equity participation is restricted to 51%.
Committed to allowing Japanese equity participation ratio of up to 60% for maintenance and repair services of household electrical appliances (which are limited to the in-house products of companies in Thailand or Japan).
Computers and related services
Committed to no restriction on foreign equity participation
Committed to allowing equity participation ratio of less than 50% for Japanese capital
Distribution services Committed to unrestricted foreign equity participation (however, the handling of banned imports, etc. is reserved as out of scope of the commitment).
Committed to allowing Japanese equity participation ratio of up to 75% in wholesale trade and retailing services for in-house products of companies in Thailand, and automobiles manufactured in Japan under the same brand.
Other manufacturing industry-related services
Foreign equity participation in logistics consulting services (limited to consulting and does not include actual logistics services) is restricted to 51% (conditional upon fulfillment of a certain loan to capital ratio).
Financial services Issued new license to insurance companies. Eliminated restriction on foreign equity participation in insurance companies (49%)
Committed to an additional full banking license. Eliminated restriction on the number of wholesale banking establishments
Telecommunication services
Committed to unrestricted foreign equity participation
Committed to eliminate the foreign equity participation restriction in certain services and to improve the level of liberalization commitment in other areas.
Chapter 2: Services
721
EPAs Already in Force
Singapore
Malaysia Thailand At the time of entry into force in 2002
Results of Review in 2007
Transport services New commitments are made in certain sub-sectors, such as international maritime (passenger) transport services, maritime freight forwarding services, storage and warehousing services and leasing or rental services relating to aircraft, cars, etc.
New commitment made with respect to the rental of cargo vessels for international shipping.
New commitments made with respect to maritime cargo handling services and maritime agency services, etc., in addition to the elimination of the reservation on cargo for maritime freight transportation services.
Others Accounting; engineering; research and development for medical services; market surveying; etc.
Committed to an equity participation ratio up to 60% for Japanese capital with respect to hotel and lodging services, and 50% for Japanese capital with respect to advertising services, etc. (conditional upon fulfillment of a certain loan to capital ratio).
552
Part III: EPA/FTA and IIA
720
Figure III-2-2 Comparison of Commitments Provided in Service Chapters of the EPAs Concluded with the ASEAN Member States (already in force):
(Chart below describes the commitments that go beyond those under the GATS. Blank space indicates that the commitments made under the GATS are the same as those under the GATS.)
EPAs Already in Force
Singapore
Malaysia Thailand At the time of entry into force in 2002
Results of Review in 2007
Maintenance and repair of equipment, rental and leasing services
Committed to unrestricted foreign equity participation
With respect to (i) rental and leasing services for construction equipment, office equipment, etc., (limited to products manufactured in Malaysia), and (ii) maintenance and repair services conducted by locally incorporated rental/leasing corporations (for equipment and machinery manufactured in Malaysia covering office machinery, boilers, etc.) foreign equity participation is restricted to 51%.
Committed to allowing Japanese equity participation ratio of up to 60% for maintenance and repair services of household electrical appliances (which are limited to the in-house products of companies in Thailand or Japan).
Computers and related services
Committed to no restriction on foreign equity participation
Committed to allowing equity participation ratio of less than 50% for Japanese capital
Distribution services Committed to unrestricted foreign equity participation (however, the handling of banned imports, etc. is reserved as out of scope of the commitment).
Committed to allowing Japanese equity participation ratio of up to 75% in wholesale trade and retailing services for in-house products of companies in Thailand, and automobiles manufactured in Japan under the same brand.
Other manufacturing industry-related services
Foreign equity participation in logistics consulting services (limited to consulting and does not include actual logistics services) is restricted to 51% (conditional upon fulfillment of a certain loan to capital ratio).
Financial services Issued new license to insurance companies. Eliminated restriction on foreign equity participation in insurance companies (49%)
Committed to an additional full banking license. Eliminated restriction on the number of wholesale banking establishments
Telecommunication services
Committed to unrestricted foreign equity participation
Committed to eliminate the foreign equity participation restriction in certain services and to improve the level of liberalization commitment in other areas.
Chapter 2: Services
721
EPAs Already in Force
Singapore
Malaysia Thailand At the time of entry into force in 2002
Results of Review in 2007
Transport services New commitments are made in certain sub-sectors, such as international maritime (passenger) transport services, maritime freight forwarding services, storage and warehousing services and leasing or rental services relating to aircraft, cars, etc.
New commitment made with respect to the rental of cargo vessels for international shipping.
New commitments made with respect to maritime cargo handling services and maritime agency services, etc., in addition to the elimination of the reservation on cargo for maritime freight transportation services.
Others Accounting; engineering; research and development for medical services; market surveying; etc.
Committed to an equity participation ratio up to 60% for Japanese capital with respect to hotel and lodging services, and 50% for Japanese capital with respect to advertising services, etc. (conditional upon fulfillment of a certain loan to capital ratio).
553
Part
III: E
PA/F
TA a
nd II
A
Figu
re II
I-2-
3 Ef
fect
ive/
Sign
ed E
PAs b
etw
een
Japa
n an
d ot
her C
ount
ries
*: O
verv
iew
of t
he P
rovi
sions
in th
e C
hapt
er o
n Se
rvic
es
Nam
e Ja
pan-
Sing
apor
e EP
A
Japa
n-M
exic
o EP
A
Japa
n-M
alay
sia E
PA
Japa
n-C
hile
EPA
Ja
pan-
Thai
land
EPA
Ja
pan-
Indo
nesia
EPA
Ja
pan-
Brun
ei E
PA
Effe
ctiv
e/Si
gned
as o
f Ef
fect
ive
on 2
002.
11.3
0 Ef
fect
ive
on 2
005.
4.1
Effe
ctiv
e on
200
6.7.
13
Effe
ctiv
e on
200
7.9.
3 Ef
fect
ive
on 2
007.
11.1
Ef
fect
ive
on 2
008.
7.1
Effe
ctiv
e on
200
8.7.
31
App
roac
h on
Li
bera
lizat
ion
Com
mitm
ents
Posit
ive
list a
ppro
ach
Neg
ativ
e lis
t app
roac
h Po
sitiv
e lis
t app
roac
h N
egat
ive
list a
ppro
ach
Posit
ive
list a
ppro
ach
Posit
ive
list a
ppro
ach
Po
sitiv
e lis
t app
roac
h
MFN
Tre
atm
ent
△ N
o M
FN p
rovi
sion
in th
e ag
reem
ent.
How
ever
, re
gard
ing
the
pref
eren
tial
treat
men
t acc
orde
d to
a th
ird
party
cou
ntry
by
a co
ntra
ctin
g pa
rty c
ount
ry, i
t is p
rovi
ded
that
upo
n re
ques
t fro
m th
e ot
her c
ontra
ctin
g pa
rty c
ount
ry
it sh
ould
con
sider
whe
ther
to
acco
rd th
e eq
ual t
reat
men
t to
the
othe
r con
tract
ing
party
co
untry
.
○ In
pr in
cipl
e un
cond
ition
al
MFN
trea
tmen
t is p
rovi
ded,
w
ith e
xcep
tions
insc
ribed
in
the
anne
x (M
FN S
ched
ule
of
Rese
rvat
ions
).
△ In
pr in
cipl
e, u
ncon
ditio
nal
MFN
trea
tmen
t is p
rovi
ded.
H
owev
er, i
n th
e an
nex
(MFN
Li
st of
Exe
mpt
ions
) whi
ch
prov
ides
exc
eptio
ns,
rese
rvat
ions
on
acco
rdin
g th
e M
FN tr
eatm
ent a
re m
ade
with
re
spec
t to
all s
ecto
rs e
xcep
t a
few,
in w
hich
the
MFN
tre
atm
ent i
s acc
orde
d as
an
exce
ptio
n to
the
exce
ptio
ns.
○In
prin
cipl
e un
cond
ition
al
MFN
is p
rovi
ded,
with
ex
cept
ions
insc
ribed
in th
e an
nex
(Sch
edul
e of
Re
serv
atio
ns).
△ W
hen
a co
ntra
ctin
g pa
rty
coun
try h
as a
ccor
ded
bette
r tre
atm
ent t
o a
third
par
ty
coun
try, i
f req
ueste
d by
the
othe
r con
tract
ing
party
co
untry
, it s
houl
d co
nsid
er
acco
rdin
g no
less
favo
rabl
e tre
atm
ent t
o th
e ot
her
cont
ract
ing
party
cou
ntry
than
to
a th
ird p
arty
cou
ntry
.
△ In
pr in
cipl
e, u
ncon
ditio
nal
MFN
trea
tmen
t is p
rovi
ded.
H
owev
er, i
n th
e an
nex
(MFN
List
of
Exe
mpt
ions
) whi
ch p
rovi
des
exce
ptio
ns, r
eser
vatio
ns o
n ac
cord
ing
the
MFN
trea
tmen
t are
m
ade
with
resp
ect t
o al
l sec
tors
ex
cept
a fe
w in
whi
ch th
e M
FN
treat
men
t is a
ccor
ded
as a
n ex
cept
ion
to th
e ex
cept
ions
.
○ In
pr in
cipl
e un
cond
ition
al
MFN
is p
rovi
ded,
with
ex
cept
ions
insc
ribed
in th
e an
nex
(MFN
List
of
Exem
ptio
ns).
Nat
iona
l Tre
atm
ent
(NT)
○
Nat
iona
l Tre
atm
ent s
hall
be
acco
rded
in th
e se
ctor
s in
scrib
ed in
the
Sche
dule
of
Spec
ific
Com
mitm
ents.
○In
prin
cipl
e N
T sh
all b
e ac
cord
ed in
all
serv
ice
sect
ors
exce
pt th
e one
s ins
crib
ed in
the
anne
x (S
ched
ule
of
Rese
rvat
ions
)
○Nat
iona
l Tre
atm
ent s
hall
be
acco
rded
in th
e se
ctor
s in
scrib
ed in
the
Sche
dule
of
Spec
ific
Com
mitm
ents.
○In
prin
cipl
e N
T sh
all b
e ac
cord
ed in
all
serv
ice
sect
ors
exce
pt th
e one
s ins
crib
ed in
the
anne
x (S
ched
ule
of
Rese
rvat
ions
)
○Nat
iona
l Tre
atm
ent s
hall
be
acco
rded
in th
e se
ctor
s in
scrib
ed in
the
Sche
dule
of
Spec
ific
Com
mitm
ents.
○ N
atio
nal T
reat
men
t sha
ll be
ac
cord
ed in
the
sect
ors i
nscr
ibed
in
the
Sche
dule
of S
peci
fic
Com
mitm
ents
.
○ N
atio
nal T
reat
men
t sha
ll be
acc
orde
d in
the
sect
ors
insc
ribed
in th
e Sc
hedu
le o
f Sp
ecifi
c Co
mm
itmen
ts.
Mar
ket A
cces
s Co
mm
itmen
ts ○S
ame
prov
ision
as A
rticl
e X
VI o
f GAT
S on
mar
ket
acce
ss, w
hich
obl
iges
eac
h co
ntra
ctin
g pa
rty c
ount
ry to
ac
cord
no
less
favo
rabl
e tre
atm
ent t
han
that
und
erta
ken
and
spec
ified
in th
e Sc
hedu
le
of S
peci
fic C
omm
itmen
ts.
Mar
ket a
cces
s is n
ot p
rovi
ded
for.
Ins
tead
ther
e is
a pr
ovisi
on p
rohi
bitin
g th
e re
quire
men
t of e
stabl
ishin
g a
loca
l rep
rese
ntat
ive
offic
e or
an
y fo
rm o
f ent
erpr
ise;
exce
ptio
ns a
re in
scrib
ed in
the
anne
x (S
ched
ule
of
Rese
rvat
ions
).
○ Sam
e pr
ovisi
on a
s Arti
cle
XV
I of G
ATS
on m
arke
t ac
cess
, whi
ch o
blig
es e
ach
cont
ract
ing
party
cou
ntry
to
acco
rd n
o le
ss fa
vora
ble
treat
men
t tha
n th
at u
nder
take
n an
d sp
ecifi
ed in
the
Sche
dule
of
Spe
cific
Com
mitm
ents.
Mar
ket a
cces
s is n
ot p
rovi
ded
for.
Inste
ad th
ere
is a
prov
ision
pr
ohib
iting
the
requ
irem
ent o
f es
tabl
ishin
g a
loca
l re
pres
enta
tive
offic
e or
any
fo
rm o
f ent
erpr
ise; e
xcep
tions
ar
e in
scrib
ed in
the
anne
x (S
ched
ule
of R
eser
vatio
ns).
○ Sam
e pr
ovisi
on a
s Arti
cle
XV
I of G
ATS
on m
arke
t ac
cess
, whi
ch o
blig
es e
ach
cont
ract
ing
party
cou
ntry
to
acco
rd n
o le
ss fa
vora
ble
treat
men
t tha
n th
at u
nder
take
n an
d sp
ecifi
ed in
the
Sche
dule
of
Spe
cific
Com
mitm
ents.
○ Sa
me
prov
ision
as A
rticl
e X
VI
of G
ATS
on m
arke
t acc
ess,
whi
ch
oblig
es e
ach
cont
ract
ing
party
co
untry
to a
ccor
d no
less
fa
vora
ble
treat
men
t tha
n th
at
unde
rtake
n an
d sp
ecifi
ed in
the
Sche
dule
of S
peci
fic
Com
mitm
ents
.
○ Sa
me
prov
ision
as A
rticl
e X
VI o
f GAT
S on
mar
ket
acce
ss, w
hich
obl
iges
eac
h co
ntra
ctin
g pa
rty c
ount
ry to
ac
cord
no
less
favo
rabl
e tre
atm
ent t
han
that
un
derta
ken
and
spec
ified
in
the
Sche
dule
of S
peci
fic
Com
mitm
ents
. Tr
ansp
aren
cy
Requ
irem
ents
△Eac
h co
ntra
ctin
g pa
rty
coun
try is
obl
iged
to p
rom
ptly
m
ake
publ
ic (o
r oth
erw
ise
mak
e pu
blic
ly a
vaila
ble)
its
mea
sure
s per
tain
ing
to
or
affe
ctin
g th
e op
erat
ion
of th
e ag
reem
ent,
at le
ast w
ithin
the
coun
try, a
nd to
resp
ond
to th
e ot
her c
ontra
ctin
g pa
rty
coun
try’s
inqu
iries
abo
ut th
ese
mea
sure
s.
○ Ea
c h c
ontra
ctin
g pa
rty
coun
try is
obl
iged
to p
rom
ptly
m
ake
publ
ic (o
r oth
erw
ise
mak
e pu
blic
ly a
vaila
ble)
its
mea
sure
s per
tain
ing
to o
r af
fect
ing
the
oper
atio
n of
the
agre
emen
t, at
leas
t with
in th
e co
untry
, and
to re
spon
d to
the
othe
r con
tract
ing
party
co
untry
’s in
quiri
es a
bout
thes
e m
easu
res.
As c
omm
itmen
ts a
re m
ade
in
the
form
of t
he n
egat
ive
list
appr
oach
, reg
ardi
ng th
e sec
tors
re
serv
ed th
roug
h th
e st
ands
till
oblig
atio
n ba
sed
on th
e ex
istin
g m
easu
res,
the
desc
riptio
ns o
n th
ose m
easu
res
are
expl
icitl
y pr
ovid
ed in
the
Sche
dule
of R
eser
vatio
ns.
△ Ea
c h c
ontra
ctin
g pa
rty
coun
try is
obl
iged
to p
rom
ptly
m
ake
publ
ic (o
r oth
erw
ise
mak
e pu
blic
ly a
vaila
ble)
its
mea
sure
s per
tain
ing
to o
r af
fect
ing
the
oper
atio
n of
the
agre
emen
t, at
leas
t with
in th
e co
untry
, and
to re
spon
d to
the
othe
r con
tract
ing
party
co
untry
’s in
quiri
es a
bout
thes
e m
easu
res.
Th
ere
are
prov
ision
s in
the
serv
ice
chap
ter o
blig
ing
each
co
ntra
ctin
g pa
rty c
ount
ry to
pr
ovid
e th
e ot
her c
ontra
ctin
g pa
rty c
ount
ry w
ith (i
) in
form
atio
n on
the
mea
sure
s af
fect
ing
its c
omm
itmen
ts re
late
d to
mar
ket a
cces
s and
na
tiona
l tre
atm
ent;
and
(ii)
copi
es o
f ann
ual r
epor
ts o
r any
ot
her p
ublic
atio
n ge
nera
lly
avai
labl
e to
the
publ
ic.
○ Ea
c h c
ontra
ctin
g pa
rty
coun
try is
obl
iged
to p
rom
ptly
m
ake
publ
ic (o
r oth
erw
ise
mak
e pu
blic
ly a
vaila
ble)
its
mea
sure
s per
tain
ing
to o
r af
fect
ing
the
oper
atio
n of
the
agre
emen
t, at
leas
t with
in th
e co
untry
, and
to re
spon
d to
the
othe
r con
tract
ing
party
co
untry
’s in
quiri
es a
bout
thes
e m
easu
res.
As c
omm
itmen
ts a
re m
ade
in
the
form
of t
he n
egat
ive
list
appr
oach
, reg
ardi
ng th
e sec
tors
re
serv
ed th
roug
h th
e st
ands
till
oblig
atio
n ba
sed
on th
e ex
istin
g m
easu
res,
the
desc
riptio
ns o
n th
ose m
easu
res
are
expl
icitl
y pr
ovid
ed in
the
Sche
dule
of R
eser
vatio
ns.
△Eac
h co
ntra
ctin
g pa
rty
coun
try is
obl
iged
to p
rom
ptly
m
ake
publ
ic (o
r oth
erw
ise
mak
e pu
blic
ly a
vaila
ble)
its
mea
sure
s per
tain
ing
to o
r af
fect
ing
the
oper
atio
n of
the
agre
emen
t, at
leas
t with
in th
e co
untry
, and
to re
spon
d to
the
othe
r con
tract
ing
party
co
untry
’s in
quiri
es a
bout
thes
e m
easu
res.
Each
par
ty sh
all p
repa
re a
no
n-le
gally
bin
ding
list
pr
ovid
ing
all r
elev
ant l
aws a
nd
regu
latio
ns w
hich
are
not
co
nfor
min
g to
the
com
mitm
ents
of m
arke
t acc
ess
and
natio
nal t
reat
men
t ac
cord
ed u
nder
the
agre
emen
t (tr
ansp
aren
cy li
st). S
aid
list
shal
l be
exch
ange
d w
ith o
ther
pa
rty.
△Eac
h co
ntra
ctin
g pa
rty c
ount
ry
is o
blig
ed to
pro
mpt
ly m
ake
publ
ic (o
r oth
erw
ise m
ake
publ
icly
ava
ilabl
e) it
s mea
sure
s pe
rtain
ing
to o
r affe
ctin
g th
e op
erat
ion
of th
e ag
reem
ent,
at
leas
t with
in th
e co
untry
, and
to
resp
ond
to th
e ot
her c
ontra
ctin
g pa
rty c
ount
ry’s
inqu
iries
abo
ut
thes
e m
easu
res.
It is
also
pro
vide
d th
at a
co
ntra
ctin
g pa
rty c
ount
ry m
ust
resp
ond
to a
nd p
rovi
de
info
rmat
ion
in re
spon
se to
qu
estio
ns fr
om a
serv
ice
supp
lier
of th
e co
unte
rpar
ty c
ount
ry
thro
ugh
its c
onta
ct p
oint
.
○Eac
h co
ntra
ctin
g pa
rty
coun
try is
obl
iged
to
prom
ptly
mak
e pu
blic
(or
othe
rwis
e m
ake
publ
icly
av
aila
ble)
its m
easu
res
perta
inin
g to
or a
ffect
ing
the
oper
atio
n of
the
agre
emen
t, at
leas
t with
in
the
coun
try, a
nd to
resp
ond
to th
e ot
her c
ontra
ctin
g pa
rty c
ount
ry’s
inqu
iries
ab
out t
hese
mea
sure
s. Ea
ch p
arty
shal
l pre
pare
a
non-
lega
lly b
indi
ng li
st
prov
idin
g al
l rel
evan
t law
s an
d re
gula
tions
whi
ch a
re
not c
onfo
rmin
g to
the
com
mitm
ents
of m
arke
t ac
cess
and
nat
iona
l tre
atm
ent a
ccor
ded
unde
r th
e ag
reem
ent
(tran
spar
ency
list)
. Sai
d lis
t sh
all b
e ex
chan
ged
with
ot
her p
arty
. It
is al
so p
rovi
ded
that
a
cont
ract
ing
party
cou
ntry
m
ust r
espo
nd to
and
prov
ide
info
rmat
ion
in re
spon
se to
qu
estio
ns fr
om a
serv
ice
supp
lier o
f the
cou
nter
party
co
untry
thro
ugh
its c
onta
ct
poin
t.
Stan
dstil
l Obl
igat
ion
No
prov
ision
in th
e ag
reem
ent.
○ Th
is ob
ligat
ion
is pr
ovid
ed
rega
rdin
g an
y ex
istin
g ○
This
oblig
atio
n is
prov
ided
on
ly fo
r sec
tors
or s
ub-s
ecto
rs
○Thi
s obl
igat
ion
is pr
ovid
ed
rega
rdin
g an
y ex
istin
g ○T
his o
blig
atio
n is
prov
ided
on
ly fo
r sec
tors
or s
ub-s
ecto
rs
○ Th
is ob
ligat
ion
is pr
ovid
ed o
nly
for s
ecto
rs o
r sub
-sec
tors
N
o pr
ovisi
on in
the
agre
emen
t.
Chap
ter
2: S
ervi
ces
Nam
e Ja
pan-
Sing
apor
e EP
A
Japa
n-M
exic
o EP
A
Japa
n-M
alay
sia E
PA
Japa
n-C
hile
EPA
Ja
pan-
Thai
land
EPA
Ja
pan-
Indo
nesia
EPA
Ja
pan-
Brun
ei E
PA
mea
sure
s whi
ch a
re
non-
conf
orm
ing
to N
T, M
FN,
or m
arke
t acc
ess o
blig
atio
n,
and
whi
ch a
re m
aint
aine
d by
a
cont
ract
ing
party
coun
try at
the
cent
ral o
r loc
al g
over
nmen
t le
vel.
Thes
e m
easu
res a
re se
t ou
t in
the
anne
x (S
ched
ule
of
Rese
rvat
ions
).
indi
cate
d by
the
“SS”
mar
k in
th
e Sc
hedu
le o
f Spe
cific
Co
mm
itmen
ts. T
his m
ark
mea
ns sp
ecifi
c co
mm
itmen
ts m
ade
in su
ch se
ctor
s or
sub-
sect
ors a
re li
mite
d to
thos
e ba
sed
on re
leva
nt e
xisti
ng
mea
sure
s whi
ch a
re
non-
conf
orm
ing
to N
T or
m
arke
t acc
ess o
blig
atio
n.
mea
sure
s whi
ch a
re
non-
conf
orm
ing
to N
T, M
FN,
or m
arke
t acc
ess o
blig
atio
n an
d w
hich
are
mai
ntai
ned
by a
co
ntra
ctin
g pa
rty co
untry
at th
e ce
ntra
l or l
ocal
gov
ernm
ent
leve
l. Th
ese
mea
sure
s are
set
out i
n th
e an
nex
(Sch
edul
e of
Re
serv
atio
ns).
indi
cate
d by
the
“SS”
mar
k in
th
e Sc
hedu
le o
f Spe
cific
Co
mm
itmen
ts. T
his m
ark
mea
ns sp
ecifi
c co
mm
itmen
ts m
ade
in su
ch se
ctor
s or
sub-
sect
ors a
re li
mite
d to
thos
e ba
sed
on re
leva
nt e
xisti
ng
mea
sure
s whi
ch a
re
non-
conf
orm
ing
to N
T or
m
arke
t acc
ess o
blig
atio
n.
indi
cate
d by
the
“SS”
mar
k in
the
Sche
dule
of S
peci
fic
Com
mitm
ents
. Thi
s mar
k m
eans
sp
ecifi
c co
mm
itmen
ts m
ade
in
such
sect
ors o
r sub
-sec
tors
are
lim
ited
to th
ose
base
d on
rele
vant
ex
istin
g m
easu
res w
hich
are
no
n-co
nfor
min
g to
NT
or m
arke
t ac
cess
obl
igat
ion.
Proh
ibiti
on o
f Re
stric
tions
on
Paym
ents
and
Tra
nsfe
rs
△Sam
e pr
ovisi
on a
s GAT
S,
whe
re su
ch p
rohi
bitio
n is
only
ap
plie
d to
restr
ictio
ns o
f in
tern
atio
nal t
rans
fers
and
pa
ymen
ts fo
r cur
rent
tra
nsac
tions
rela
ting
to sp
ecifi
c co
mm
itmen
ts.
○In
t he
sepa
rate
Cha
pter
of
Exce
ptio
ns (w
hich
iden
tifie
s ex
cept
ions
exc
lude
d fro
m th
e en
tire
agre
emen
t), th
ere
is a
prov
ision
pro
hibi
ting
restr
ictio
ns o
f int
erna
tiona
l tra
nsfe
rs a
nd p
aym
ents
for
curre
nt tr
ansa
ctio
ns re
latin
g to
cr
oss-
bord
er tr
ade
in se
rvic
es
of a
ll se
ctor
s and
sub-
sect
ors.
○The
re is
a p
rovi
sion
proh
ibiti
ng re
stric
tions
of
inte
rnat
iona
l tra
nsfe
rs a
nd
paym
ents
for c
urre
nt
trans
actio
ns re
latin
g to
trad
e in
se
rvic
es o
f all
sect
ors a
nd
sub-
sect
ors;
not l
imite
d to
just
th
ose
sect
ors a
nd su
b-se
ctor
s in
scrib
ed in
the
Sche
dule
of
Spec
ific
Com
mitm
ents.
No
prov
ision
in th
e ag
reem
ent.
△Sam
e pr
ovisi
on a
s GAT
S w
here
such
pro
hibi
tion
is on
ly
appl
ied
to re
stric
tions
of
inte
rnat
iona
l tra
nsfe
rs a
nd
paym
ents
for c
urre
nt
trans
actio
ns re
latin
g to
spec
ific
com
mitm
ents.
○ T h
ere
is a
prov
ision
pro
hibi
ting
restr
ictio
ns o
f int
erna
tiona
l tra
nsfe
rs a
nd p
aym
ents
for
curre
nt tr
ansa
ctio
ns re
latin
g to
tra
de in
serv
ices
of a
ll se
ctor
s and
su
b-se
ctor
s; no
t lim
ited
to ju
st
thos
e se
ctor
s and
sub-
sect
ors
insc
ribed
in th
e Sc
hedu
le o
f Sp
ecifi
c Co
mm
itmen
ts.
△Sam
e pr
ovisi
on a
s GAT
S w
here
such
pro
hibi
tion
is on
ly a
pplie
d to
restr
ictio
ns
of in
tern
atio
nal t
rans
fers
an
d pa
ymen
ts fo
r cur
rent
tra
nsac
tions
rela
ting
to
spec
ific
com
mitm
ents
.
554
Part
III: E
PA/F
TA a
nd II
A
Figu
re II
I-2-
3 Ef
fect
ive/
Sign
ed E
PAs b
etw
een
Japa
n an
d ot
her C
ount
ries
*: O
verv
iew
of t
he P
rovi
sions
in th
e C
hapt
er o
n Se
rvic
es
Nam
e Ja
pan-
Sing
apor
e EP
A
Japa
n-M
exic
o EP
A
Japa
n-M
alay
sia E
PA
Japa
n-C
hile
EPA
Ja
pan-
Thai
land
EPA
Ja
pan-
Indo
nesia
EPA
Ja
pan-
Brun
ei E
PA
Effe
ctiv
e/Si
gned
as o
f Ef
fect
ive
on 2
002.
11.3
0 Ef
fect
ive
on 2
005.
4.1
Effe
ctiv
e on
200
6.7.
13
Effe
ctiv
e on
200
7.9.
3 Ef
fect
ive
on 2
007.
11.1
Ef
fect
ive
on 2
008.
7.1
Effe
ctiv
e on
200
8.7.
31
App
roac
h on
Li
bera
lizat
ion
Com
mitm
ents
Pos it
ive
list a
ppro
ach
Neg
ativ
e lis
t app
roac
h Po
sitiv
e lis
t app
roac
h N
egat
ive
list a
ppro
ach
Posit
ive
list a
ppro
ach
Posit
ive
list a
ppro
ach
Po
sitiv
e lis
t app
roac
h
MFN
Tre
atm
ent
△ N
o M
FN p
rovi
sion
in th
e ag
reem
ent.
How
ever
, re
gard
ing
the
pref
eren
tial
treat
men
t acc
orde
d to
a th
ird
party
cou
ntry
by
a co
ntra
ctin
g pa
rty c
ount
ry, i
t is p
rovi
ded
that
upo
n re
ques
t fro
m th
e ot
her c
ontra
ctin
g pa
rty c
ount
ry
it sh
ould
con
sider
whe
ther
to
acco
rd th
e eq
ual t
reat
men
t to
the
othe
r con
tract
ing
party
co
untry
.
○ In
pr in
cipl
e un
cond
ition
al
MFN
trea
tmen
t is p
rovi
ded,
w
ith e
xcep
tions
insc
ribed
in
the
anne
x (M
FN S
ched
ule
of
Rese
rvat
ions
).
△ In
pr in
cipl
e, u
ncon
ditio
nal
MFN
trea
tmen
t is p
rovi
ded.
H
owev
er, i
n th
e an
nex
(MFN
Li
st of
Exe
mpt
ions
) whi
ch
prov
ides
exc
eptio
ns,
rese
rvat
ions
on
acco
rdin
g th
e M
FN tr
eatm
ent a
re m
ade
with
re
spec
t to
all s
ecto
rs e
xcep
t a
few,
in w
hich
the
MFN
tre
atm
ent i
s acc
orde
d as
an
exce
ptio
n to
the
exce
ptio
ns.
○In
prin
cipl
e un
cond
ition
al
MFN
is p
rovi
ded,
with
ex
cept
ions
insc
ribed
in th
e an
nex
(Sch
edul
e of
Re
serv
atio
ns).
△ W
hen
a co
ntra
ctin
g pa
rty
coun
try h
as a
ccor
ded
bette
r tre
atm
ent t
o a
third
par
ty
coun
try, i
f req
ueste
d by
the
othe
r con
tract
ing
party
co
untry
, it s
houl
d co
nsid
er
acco
rdin
g no
less
favo
rabl
e tre
atm
ent t
o th
e ot
her
cont
ract
ing
party
cou
ntry
than
to
a th
ird p
arty
cou
ntry
.
△ In
pr in
cipl
e, u
ncon
ditio
nal
MFN
trea
tmen
t is p
rovi
ded.
H
owev
er, i
n th
e an
nex
(MFN
List
of
Exe
mpt
ions
) whi
ch p
rovi
des
exce
ptio
ns, r
eser
vatio
ns o
n ac
cord
ing
the
MFN
trea
tmen
t are
m
ade
with
resp
ect t
o al
l sec
tors
ex
cept
a fe
w in
whi
ch th
e M
FN
treat
men
t is a
ccor
ded
as a
n ex
cept
ion
to th
e ex
cept
ions
.
○ In
pr in
cipl
e un
cond
ition
al
MFN
is p
rovi
ded,
with
ex
cept
ions
insc
ribed
in th
e an
nex
(MFN
List
of
Exem
ptio
ns).
Nat
iona
l Tre
atm
ent
(NT)
○
Nat
iona
l Tre
atm
ent s
hall
be
acco
rded
in th
e se
ctor
s in
scrib
ed in
the
Sche
dule
of
Spec
ific
Com
mitm
ents.
○In
prin
cipl
e N
T sh
all b
e ac
cord
ed in
all
serv
ice
sect
ors
exce
pt th
e one
s ins
crib
ed in
the
anne
x (S
ched
ule
of
Rese
rvat
ions
)
○Nat
iona
l Tre
atm
ent s
hall
be
acco
rded
in th
e se
ctor
s in
scrib
ed in
the
Sche
dule
of
Spec
ific
Com
mitm
ents.
○In
prin
cipl
e N
T sh
all b
e ac
cord
ed in
all
serv
ice
sect
ors
exce
pt th
e one
s ins
crib
ed in
the
anne
x (S
ched
ule
of
Rese
rvat
ions
)
○Nat
iona
l Tre
atm
ent s
hall
be
acco
rded
in th
e se
ctor
s in
scrib
ed in
the
Sche
dule
of
Spec
ific
Com
mitm
ents.
○ N
atio
nal T
reat
men
t sha
ll be
ac
cord
ed in
the
sect
ors i
nscr
ibed
in
the
Sche
dule
of S
peci
fic
Com
mitm
ents
.
○ N
atio
nal T
reat
men
t sha
ll be
acc
orde
d in
the
sect
ors
insc
ribed
in th
e Sc
hedu
le o
f Sp
ecifi
c Co
mm
itmen
ts.
Mar
ket A
cces
s Co
mm
itmen
ts ○S
ame
prov
ision
as A
rticl
e X
VI o
f GAT
S on
mar
ket
acce
ss, w
hich
obl
iges
eac
h co
ntra
ctin
g pa
rty c
ount
ry to
ac
cord
no
less
favo
rabl
e tre
atm
ent t
han
that
und
erta
ken
and
spec
ified
in th
e Sc
hedu
le
of S
peci
fic C
omm
itmen
ts.
Mar
ket a
cces
s is n
ot p
rovi
ded
for.
Ins
tead
ther
e is
a pr
ovisi
on p
rohi
bitin
g th
e re
quire
men
t of e
stabl
ishin
g a
loca
l rep
rese
ntat
ive
offic
e or
an
y fo
rm o
f ent
erpr
ise;
exce
ptio
ns a
re in
scrib
ed in
the
anne
x (S
ched
ule
of
Rese
rvat
ions
).
○ Sam
e pr
ovisi
on a
s Arti
cle
XV
I of G
ATS
on m
arke
t ac
cess
, whi
ch o
blig
es e
ach
cont
ract
ing
party
cou
ntry
to
acco
rd n
o le
ss fa
vora
ble
treat
men
t tha
n th
at u
nder
take
n an
d sp
ecifi
ed in
the
Sche
dule
of
Spe
cific
Com
mitm
ents.
Mar
ket a
cces
s is n
ot p
rovi
ded
for.
Inste
ad th
ere
is a
prov
ision
pr
ohib
iting
the
requ
irem
ent o
f es
tabl
ishin
g a
loca
l re
pres
enta
tive
offic
e or
any
fo
rm o
f ent
erpr
ise; e
xcep
tions
ar
e in
scrib
ed in
the
anne
x (S
ched
ule
of R
eser
vatio
ns).
○ Sam
e pr
ovisi
on a
s Arti
cle
XV
I of G
ATS
on m
arke
t ac
cess
, whi
ch o
blig
es e
ach
cont
ract
ing
party
cou
ntry
to
acco
rd n
o le
ss fa
vora
ble
treat
men
t tha
n th
at u
nder
take
n an
d sp
ecifi
ed in
the
Sche
dule
of
Spe
cific
Com
mitm
ents.
○ Sa
me
prov
ision
as A
rticl
e X
VI
of G
ATS
on m
arke
t acc
ess,
whi
ch
oblig
es e
ach
cont
ract
ing
party
co
untry
to a
ccor
d no
less
fa
vora
ble
treat
men
t tha
n th
at
unde
rtake
n an
d sp
ecifi
ed in
the
Sche
dule
of S
peci
fic
Com
mitm
ents
.
○ Sa
me
prov
ision
as A
rticl
e X
VI o
f GAT
S on
mar
ket
acce
ss, w
hich
obl
iges
eac
h co
ntra
ctin
g pa
rty c
ount
ry to
ac
cord
no
less
favo
rabl
e tre
atm
ent t
han
that
un
derta
ken
and
spec
ified
in
the
Sche
dule
of S
peci
fic
Com
mitm
ents
. Tr
ansp
aren
cy
Requ
irem
ents
△Eac
h co
ntra
ctin
g pa
rty
coun
try is
obl
iged
to p
rom
ptly
m
ake
publ
ic (o
r oth
erw
ise
mak
e pu
blic
ly a
vaila
ble)
its
mea
sure
s per
tain
ing
to
or
affe
ctin
g th
e op
erat
ion
of th
e ag
reem
ent,
at le
ast w
ithin
the
coun
try, a
nd to
resp
ond
to th
e ot
her c
ontra
ctin
g pa
rty
coun
try’s
inqu
iries
abo
ut th
ese
mea
sure
s.
○ Ea
c h c
ontra
ctin
g pa
rty
coun
try is
obl
iged
to p
rom
ptly
m
ake
publ
ic (o
r oth
erw
ise
mak
e pu
blic
ly a
vaila
ble)
its
mea
sure
s per
tain
ing
to o
r af
fect
ing
the
oper
atio
n of
the
agre
emen
t, at
leas
t with
in th
e co
untry
, and
to re
spon
d to
the
othe
r con
tract
ing
party
co
untry
’s in
quiri
es a
bout
thes
e m
easu
res.
As c
omm
itmen
ts a
re m
ade
in
the
form
of t
he n
egat
ive
list
appr
oach
, reg
ardi
ng th
e sec
tors
re
serv
ed th
roug
h th
e st
ands
till
oblig
atio
n ba
sed
on th
e ex
istin
g m
easu
res,
the
desc
riptio
ns o
n th
ose m
easu
res
are
expl
icitl
y pr
ovid
ed in
the
Sche
dule
of R
eser
vatio
ns.
△ Ea
c h c
ontra
ctin
g pa
rty
coun
try is
obl
iged
to p
rom
ptly
m
ake
publ
ic (o
r oth
erw
ise
mak
e pu
blic
ly a
vaila
ble)
its
mea
sure
s per
tain
ing
to o
r af
fect
ing
the
oper
atio
n of
the
agre
emen
t, at
leas
t with
in th
e co
untry
, and
to re
spon
d to
the
othe
r con
tract
ing
party
co
untry
’s in
quiri
es a
bout
thes
e m
easu
res.
Th
ere
are
prov
ision
s in
the
serv
ice
chap
ter o
blig
ing
each
co
ntra
ctin
g pa
rty c
ount
ry to
pr
ovid
e th
e ot
her c
ontra
ctin
g pa
rty c
ount
ry w
ith (i
) in
form
atio
n on
the
mea
sure
s af
fect
ing
its c
omm
itmen
ts re
late
d to
mar
ket a
cces
s and
na
tiona
l tre
atm
ent;
and
(ii)
copi
es o
f ann
ual r
epor
ts o
r any
ot
her p
ublic
atio
n ge
nera
lly
avai
labl
e to
the
publ
ic.
○ Ea
c h c
ontra
ctin
g pa
rty
coun
try is
obl
iged
to p
rom
ptly
m
ake
publ
ic (o
r oth
erw
ise
mak
e pu
blic
ly a
vaila
ble)
its
mea
sure
s per
tain
ing
to o
r af
fect
ing
the
oper
atio
n of
the
agre
emen
t, at
leas
t with
in th
e co
untry
, and
to re
spon
d to
the
othe
r con
tract
ing
party
co
untry
’s in
quiri
es a
bout
thes
e m
easu
res.
As c
omm
itmen
ts a
re m
ade
in
the
form
of t
he n
egat
ive
list
appr
oach
, reg
ardi
ng th
e sec
tors
re
serv
ed th
roug
h th
e st
ands
till
oblig
atio
n ba
sed
on th
e ex
istin
g m
easu
res,
the
desc
riptio
ns o
n th
ose m
easu
res
are
expl
icitl
y pr
ovid
ed in
the
Sche
dule
of R
eser
vatio
ns.
△Eac
h co
ntra
ctin
g pa
rty
coun
try is
obl
iged
to p
rom
ptly
m
ake
publ
ic (o
r oth
erw
ise
mak
e pu
blic
ly a
vaila
ble)
its
mea
sure
s per
tain
ing
to o
r af
fect
ing
the
oper
atio
n of
the
agre
emen
t, at
leas
t with
in th
e co
untry
, and
to re
spon
d to
the
othe
r con
tract
ing
party
co
untry
’s in
quiri
es a
bout
thes
e m
easu
res.
Each
par
ty sh
all p
repa
re a
no
n-le
gally
bin
ding
list
pr
ovid
ing
all r
elev
ant l
aws a
nd
regu
latio
ns w
hich
are
not
co
nfor
min
g to
the
com
mitm
ents
of m
arke
t acc
ess
and
natio
nal t
reat
men
t ac
cord
ed u
nder
the
agre
emen
t (tr
ansp
aren
cy li
st). S
aid
list
shal
l be
exch
ange
d w
ith o
ther
pa
rty.
△Eac
h co
ntra
ctin
g pa
rty c
ount
ry
is o
blig
ed to
pro
mpt
ly m
ake
publ
ic (o
r oth
erw
ise m
ake
publ
icly
ava
ilabl
e) it
s mea
sure
s pe
rtain
ing
to o
r affe
ctin
g th
e op
erat
ion
of th
e ag
reem
ent,
at
leas
t with
in th
e co
untry
, and
to
resp
ond
to th
e ot
her c
ontra
ctin
g pa
rty c
ount
ry’s
inqu
iries
abo
ut
thes
e m
easu
res.
It is
also
pro
vide
d th
at a
co
ntra
ctin
g pa
rty c
ount
ry m
ust
resp
ond
to a
nd p
rovi
de
info
rmat
ion
in re
spon
se to
qu
estio
ns fr
om a
serv
ice
supp
lier
of th
e co
unte
rpar
ty c
ount
ry
thro
ugh
its c
onta
ct p
oint
.
○Eac
h co
ntra
ctin
g pa
rty
coun
try is
obl
iged
to
prom
ptly
mak
e pu
blic
(or
othe
rwis
e m
ake
publ
icly
av
aila
ble)
its m
easu
res
perta
inin
g to
or a
ffect
ing
the
oper
atio
n of
the
agre
emen
t, at
leas
t with
in
the
coun
try, a
nd to
resp
ond
to th
e ot
her c
ontra
ctin
g pa
rty c
ount
ry’s
inqu
iries
ab
out t
hese
mea
sure
s. Ea
ch p
arty
shal
l pre
pare
a
non-
lega
lly b
indi
ng li
st
prov
idin
g al
l rel
evan
t law
s an
d re
gula
tions
whi
ch a
re
not c
onfo
rmin
g to
the
com
mitm
ents
of m
arke
t ac
cess
and
nat
iona
l tre
atm
ent a
ccor
ded
unde
r th
e ag
reem
ent
(tran
spar
ency
list)
. Sai
d lis
t sh
all b
e ex
chan
ged
with
ot
her p
arty
. It
is al
so p
rovi
ded
that
a
cont
ract
ing
party
cou
ntry
m
ust r
espo
nd to
and
prov
ide
info
rmat
ion
in re
spon
se to
qu
estio
ns fr
om a
serv
ice
supp
lier o
f the
cou
nter
party
co
untry
thro
ugh
its c
onta
ct
poin
t.
Stan
dstil
l Obl
igat
ion
No
prov
ision
in th
e ag
reem
ent.
○ Th
is ob
ligat
ion
is pr
ovid
ed
rega
rdin
g an
y ex
istin
g ○
This
oblig
atio
n is
prov
ided
on
ly fo
r sec
tors
or s
ub-s
ecto
rs
○Thi
s obl
igat
ion
is pr
ovid
ed
rega
rdin
g an
y ex
istin
g ○T
his o
blig
atio
n is
prov
ided
on
ly fo
r sec
tors
or s
ub-s
ecto
rs
○ Th
is ob
ligat
ion
is pr
ovid
ed o
nly
for s
ecto
rs o
r sub
-sec
tors
N
o pr
ovisi
on in
the
agre
emen
t.
Chap
ter
2: S
ervi
ces
Nam
e Ja
pan-
Sing
apor
e EP
A
Japa
n-M
exic
o EP
A
Japa
n-M
alay
sia E
PA
Japa
n-C
hile
EPA
Ja
pan-
Thai
land
EPA
Ja
pan-
Indo
nesia
EPA
Ja
pan-
Brun
ei E
PA
mea
sure
s whi
ch a
re
non-
conf
orm
ing
to N
T, M
FN,
or m
arke
t acc
ess o
blig
atio
n,
and
whi
ch a
re m
aint
aine
d by
a
cont
ract
ing
party
coun
try at
the
cent
ral o
r loc
al g
over
nmen
t le
vel.
Thes
e m
easu
res a
re se
t ou
t in
the
anne
x (S
ched
ule
of
Rese
rvat
ions
).
indi
cate
d by
the
“SS”
mar
k in
th
e Sc
hedu
le o
f Spe
cific
Co
mm
itmen
ts. T
his m
ark
mea
ns sp
ecifi
c co
mm
itmen
ts m
ade
in su
ch se
ctor
s or
sub-
sect
ors a
re li
mite
d to
thos
e ba
sed
on re
leva
nt e
xisti
ng
mea
sure
s whi
ch a
re
non-
conf
orm
ing
to N
T or
m
arke
t acc
ess o
blig
atio
n.
mea
sure
s whi
ch a
re
non-
conf
orm
ing
to N
T, M
FN,
or m
arke
t acc
ess o
blig
atio
n an
d w
hich
are
mai
ntai
ned
by a
co
ntra
ctin
g pa
rty co
untry
at th
e ce
ntra
l or l
ocal
gov
ernm
ent
leve
l. Th
ese
mea
sure
s are
set
out i
n th
e an
nex
(Sch
edul
e of
Re
serv
atio
ns).
indi
cate
d by
the
“SS”
mar
k in
th
e Sc
hedu
le o
f Spe
cific
Co
mm
itmen
ts. T
his m
ark
mea
ns sp
ecifi
c co
mm
itmen
ts m
ade
in su
ch se
ctor
s or
sub-
sect
ors a
re li
mite
d to
thos
e ba
sed
on re
leva
nt e
xisti
ng
mea
sure
s whi
ch a
re
non-
conf
orm
ing
to N
T or
m
arke
t acc
ess o
blig
atio
n.
indi
cate
d by
the
“SS”
mar
k in
the
Sche
dule
of S
peci
fic
Com
mitm
ents
. Thi
s mar
k m
eans
sp
ecifi
c co
mm
itmen
ts m
ade
in
such
sect
ors o
r sub
-sec
tors
are
lim
ited
to th
ose
base
d on
rele
vant
ex
istin
g m
easu
res w
hich
are
no
n-co
nfor
min
g to
NT
or m
arke
t ac
cess
obl
igat
ion.
Proh
ibiti
on o
f Re
stric
tions
on
Paym
ents
and
Tra
nsfe
rs
△Sam
e pr
ovisi
on a
s GAT
S,
whe
re su
ch p
rohi
bitio
n is
only
ap
plie
d to
restr
ictio
ns o
f in
tern
atio
nal t
rans
fers
and
pa
ymen
ts fo
r cur
rent
tra
nsac
tions
rela
ting
to sp
ecifi
c co
mm
itmen
ts.
○In
t he
sepa
rate
Cha
pter
of
Exce
ptio
ns (w
hich
iden
tifie
s ex
cept
ions
exc
lude
d fro
m th
e en
tire
agre
emen
t), th
ere
is a
prov
ision
pro
hibi
ting
restr
ictio
ns o
f int
erna
tiona
l tra
nsfe
rs a
nd p
aym
ents
for
curre
nt tr
ansa
ctio
ns re
latin
g to
cr
oss-
bord
er tr
ade
in se
rvic
es
of a
ll se
ctor
s and
sub-
sect
ors.
○The
re is
a p
rovi
sion
proh
ibiti
ng re
stric
tions
of
inte
rnat
iona
l tra
nsfe
rs a
nd
paym
ents
for c
urre
nt
trans
actio
ns re
latin
g to
trad
e in
se
rvic
es o
f all
sect
ors a
nd
sub-
sect
ors;
not l
imite
d to
just
th
ose
sect
ors a
nd su
b-se
ctor
s in
scrib
ed in
the
Sche
dule
of
Spec
ific
Com
mitm
ents.
No
prov
ision
in th
e ag
reem
ent.
△Sam
e pr
ovisi
on a
s GAT
S w
here
such
pro
hibi
tion
is on
ly
appl
ied
to re
stric
tions
of
inte
rnat
iona
l tra
nsfe
rs a
nd
paym
ents
for c
urre
nt
trans
actio
ns re
latin
g to
spec
ific
com
mitm
ents.
○ T h
ere
is a
prov
ision
pro
hibi
ting
restr
ictio
ns o
f int
erna
tiona
l tra
nsfe
rs a
nd p
aym
ents
for
curre
nt tr
ansa
ctio
ns re
latin
g to
tra
de in
serv
ices
of a
ll se
ctor
s and
su
b-se
ctor
s; no
t lim
ited
to ju
st
thos
e se
ctor
s and
sub-
sect
ors
insc
ribed
in th
e Sc
hedu
le o
f Sp
ecifi
c Co
mm
itmen
ts.
△Sam
e pr
ovisi
on a
s GAT
S w
here
such
pro
hibi
tion
is on
ly a
pplie
d to
restr
ictio
ns
of in
tern
atio
nal t
rans
fers
an
d pa
ymen
ts fo
r cur
rent
tra
nsac
tions
rela
ting
to
spec
ific
com
mitm
ents
.
555
Part
III: E
PA/F
TA a
nd II
A
Nam
e Ja
pan-
Phili
ppin
e EP
A
Japa
n-Sw
itzer
land
EP
A
Japa
n-Vi
et N
am E
PA
Japa
n-In
dia
EPA
Ja
pan-
Peru
EPA
Ja
pan-
Aus
tral
ia E
PA
Japa
n-M
ongo
lia E
PA
Tran
s-Pa
cific
Par
tner
ship
(T
PP) A
gree
men
t Ef
fect
ive/
Sign
ed
as o
f E f
fect
ive
on 2
008.
12.1
1 Ef
fect
ive o
n 20
09.9
.1
Effe
ctiv
e on
200
9.10
.1
Effe
ctiv
e on
201
1.8.
1
Effe
ctiv
e on
201
2.3.
1 Ef
fect
ive
on 2
015.
1.15
Si
gned
on
2015
.2.1
0 Si
gned
on
2016
.2.4
App
roac
h on
Li
bera
lizat
ion
Com
mitm
ents
Pos it
ive
list a
ppro
ach
Neg
ativ
e lis
t ap
proa
ch
Posit
ive
list a
ppro
ach
Posit
ive
list a
ppro
ach
Neg
ativ
e lis
t app
roac
h N
egat
ive
list a
ppro
ach
Posit
ive
list a
ppro
ach
Neg
ativ
e lis
t app
roac
h
MFN
Tre
atm
ent
○ In
pr in
cipl
e,
unco
nditi
onal
MFN
is
prov
ided
, with
ex
cept
ions
insc
ribed
in
the
anne
x (M
FN L
ist o
f Ex
empt
ions
).
△ In
pr in
cipl
e,
unco
nditi
onal
MFN
tre
atm
ent i
s pr
ovid
ed. E
xcep
tions
ar
e su
bjec
t to
mea
sure
s ins
crib
ed in
th
e an
nex
(Sch
edul
e of
Res
erva
tions
) and
th
e tre
atm
ent
acco
rded
und
er o
ther
EP
As/
FTA
s tha
t sa
tisfy
the
requ
irem
ents
unde
r A
rticl
e V
of G
ATS.
Th
e co
ntra
ctin
g pa
rty
coun
try is
obl
iged
to
ende
avor
to ac
cord
to
the
othe
r con
tract
ing
party
cou
ntry
tre
atm
ent n
o le
ss
favo
rabl
e th
an th
at
prov
ided
und
er th
e EP
As/
FTA
s co
nclu
ded
with
the
third
cou
ntry
.
△ In
pr in
cipl
e un
cond
ition
al
MFN
trea
tmen
t is p
rovi
ded.
Ex
cept
ions
are
subj
ect t
o m
easu
res i
nscr
ibed
in th
e ann
ex
(MFN
List
of E
xem
ptio
ns) a
nd
the
treat
men
t acc
orde
d un
der
othe
r EPA
s/FTA
s tha
t sat
isfy
the
requ
irem
ents
und
er A
rticl
e V
of G
ATS.
The
con
tract
ing
party
cou
ntry
is o
blig
ed to
giv
e th
e ot
her t
he c
ontra
ctin
g pa
rty
coun
try a
n op
portu
nity
to
cons
ult o
n w
heth
er th
e m
ore
favo
rabl
e tre
atm
ent a
ccor
ded
to
the
third
cou
ntry
und
er th
e ot
her E
PAs/F
TAs m
ay b
e ac
cord
ed to
the
othe
r co
ntra
ctin
g pa
rty c
ount
ry.
△If a
con
tract
ing
party
co
untry
acc
ords
bet
ter
treat
men
t to
a th
ird p
arty
co
untry
, the
n at
the
requ
est
of th
e ot
her c
ontra
ctin
g pa
rty
coun
try, a
ccor
ding
bet
ter
treat
men
t will
be
cons
ider
ed.
○ In
pr in
cipl
e,
unco
nditi
onal
MFN
tre
atm
ent i
s pro
vide
d,
with
exc
eptio
ns in
scrib
ed
in th
e an
nex
(MFN
List
of
Exem
ptio
ns).
○ In
prin
cipl
e,
unco
nditi
onal
MFN
tre
atm
ent i
s pro
vide
d,
with
exc
eptio
ns in
scrib
ed
in th
e an
nex
(MFN
List
of
Exem
ptio
ns).
○ In
prin
cipl
e,
unco
nditi
onal
MFN
tre
atm
ent i
s pro
vide
d,
with
exc
eptio
ns
insc
ribed
in th
e an
nex
(MFN
List
of
Exem
ptio
ns).
○In
prin
cipl
e un
cond
ition
al
MFN
trea
tmen
t is
prov
ided
, w
ith e
xcep
tions
insc
ribed
in
the
anne
x (S
ched
ule
of
Rese
rvat
ions
).
Nat
iona
l Tr
eatm
ent (
NT)
○
Nat
iona
l Tre
atm
ent
shal
l be
acco
rded
in th
e se
ctor
s ins
crib
ed in
the
Sche
dule
of S
peci
fic
Com
mitm
ents
.
○In
prin
cipl
e, N
T sh
all b
e ac
cord
ed in
al
l ser
vice
sect
ors
exce
pt fo
r the
one
s in
scrib
ed in
the
anne
x (S
ched
ule
of
Rese
rvat
ions
).
○Nat
iona
l Tre
atm
ent s
hall
be
acco
rded
in th
e se
ctor
s in
scrib
ed in
the
Sche
dule
of
Spec
ific
Com
mitm
ents.
○Nat
iona
l Tre
atm
ent s
hall
be
acco
rded
in th
e se
ctor
s in
scrib
ed in
the
Sche
dule
of
Spec
ific
Com
mitm
ents.
○In
prin
cipl
e, N
T sh
all b
e ac
cord
ed in
all
serv
ice
sect
ors e
xcep
t for
the
ones
in
scrib
ed in
the
anne
x (S
ched
ule
of
Rese
rvat
ions
).
○ In
pr in
cipl
e, N
T sh
all b
e ac
cord
ed in
all
serv
ice
sect
ors e
xcep
t for
the
ones
in
scrib
ed in
the
anne
x (S
ched
ule
of
Rese
rvat
ions
).
○ N
atio
nal T
reat
men
t sh
all b
e ac
cord
ed in
the
sect
ors i
nscr
ibed
in th
e Sc
hedu
le o
f Spe
cific
Co
mm
itmen
ts.
○In
prin
cipl
e N
T sh
all
be
acco
rded
in
al
l se
rvic
e se
ctor
s ex
cept
th
e on
es
insc
ribed
in
th
e an
nex
(Sch
edul
e of
Res
erva
tions
).
Mar
ket A
cces
s Co
mm
itmen
ts ○
Sam
e pr
ovisi
on a
s A
rticl
e X
VI o
f GAT
S on
mar
ket a
cces
s, w
hich
obl
iges
eac
h co
ntra
ctin
g pa
rty
coun
try to
acc
ord
no
less
favo
rabl
e tre
atm
ent
than
that
und
erta
ken
and
spec
ified
in th
e Sc
hedu
le o
f Spe
cific
Co
mm
itmen
ts.
○ In
pr in
cipl
e, th
e sa
me
prov
ision
as
Arti
cle
XV
I of G
ATS
on m
arke
t acc
ess i
s pr
ovid
ed.
Exce
ptio
ns a
re
insc
ribed
in th
e an
nex
(Sch
edul
e of
Re
serv
atio
ns).
○ Sa
me
prov
ision
as A
rticl
e X
VI o
f GAT
S on
mar
ket
acce
ss, w
hich
obl
iges
eac
h co
ntra
ctin
g pa
rty c
ount
ry to
ac
cord
no
less
favo
rabl
e tre
atm
ent t
han
that
und
erta
ken
and
spec
ified
in th
e Sch
edul
e of
Spec
ific
Com
mitm
ents.
○ Sa
me
prov
ision
as A
rticl
e X
VI o
f GAT
S on
mar
ket
acce
ss, w
hich
obl
iges
eac
h co
ntra
ctin
g pa
rty c
ount
ry to
ac
cord
no
less
favo
rabl
e tre
atm
ent t
han
that
un
derta
ken
and
spec
ified
in
the
Sche
dule
of S
peci
fic
Com
mitm
ents
.
○ In
pr in
cipl
e, th
e sa
me
prov
ision
as A
rticl
e X
VI
of G
ATS
on m
arke
t acc
ess
(exc
ept l
imita
tions
on
the
parti
cipa
tion
of fo
reig
n ca
pita
l) is
prov
ided
. The
re
is a
pro
visio
n pr
ohib
iting
th
e re
quire
men
t of
esta
blish
ing
a lo
cal
repr
esen
tativ
e of
fice
or
any
form
of e
nter
prise
; ex
cept
ions
are i
nscr
ibed
in
the
anne
x (S
ched
ule
of
Rese
rvat
ions
)
○ In
pr in
cipl
e, th
e sa
me
prov
ision
as A
rticl
e X
VI
of G
ATS
on m
arke
t acc
ess
is p
rovi
ded.
The
re is
a
prov
ision
pro
hibi
ting
the
requ
irem
ent o
f es
tabl
ishin
g a
loca
l re
pres
enta
tive
offic
e or
an
y fo
rm o
f ent
erpr
ise;
exce
ptio
ns ar
e ins
crib
ed in
th
e an
nex
(Sch
edul
e of
Re
serv
atio
ns)
○ Sa
me
prov
ision
as
A
rticl
e X
VI
of G
ATS
on
mar
ket
acce
ss
(mar
ket a
cces
s sh
all b
e ac
cord
ed w
ithin
a ra
nge
spec
ified
in
th
e Sc
hedu
le
of
Spec
ific
Com
mitm
ents)
.
○ In
pr
inci
ple,
th
e sa
me
mar
ket
acce
ss a
s in
Arti
cle
XV
I of
GAT
S on
mar
ket
acce
ss
(exc
ept
limita
tions
on
th
e pa
rtici
patio
n of
fo
reig
n ca
pita
l) is
acco
rded
. Th
ere
is a
prov
ision
pr
ohib
iting
the
req
uire
men
t of
es
tabl
ishin
g a
loca
l re
pres
enta
tive
offic
e or
any
fo
rm
of
ente
rpris
e.
Exce
ptio
ns a
re i
nscr
ibed
in
the
anne
x (S
ched
ule
of
Rese
rvat
ions
). Tr
ansp
aren
cy
Requ
irem
ents
○Eac
h co
ntra
ctin
g pa
rty
coun
try is
obl
iged
to
prom
ptly
mak
e pu
blic
(o
r oth
erw
ise m
ake
publ
icly
ava
ilabl
e) it
s m
easu
res p
erta
inin
g to
or
affe
ctin
g th
e op
erat
ion
of th
e ag
reem
ent,
at le
ast
with
in th
e co
untry
, and
to
resp
ond
to th
e ot
her
cont
ract
ing
party
co
untry
’s in
quiri
es
abou
t the
se m
easu
res.
Each
par
ty sh
all p
repa
re
a no
n-le
gally
bin
ding
○ Ea
c h c
ontra
ctin
g pa
rty c
ount
ry is
ob
liged
to p
rom
ptly
m
ake
publ
ic (o
r ot
herw
ise m
ake
publ
icly
avai
labl
e) it
s m
easu
res p
erta
inin
g to
or a
ffect
ing
the
oper
atio
n of
the
agre
emen
t, at
leas
t w
ithin
the
coun
try,
and
to re
spon
d to
the
othe
r con
tract
ing
party
cou
ntry
’s
inqu
iries
abo
ut th
ese
mea
sure
s.
△ Ea
c h c
ontra
ctin
g pa
rty
coun
try is
obl
iged
to p
rom
ptly
m
ake
publ
ic (o
r oth
erw
ise
mak
e pu
blic
ly a
vaila
ble)
its
mea
sure
s per
tain
ing
to o
r af
fect
ing
the
oper
atio
n of
the
agre
emen
t, at
leas
t with
in th
e co
untry
, and
to re
spon
d to
the
othe
r con
tract
ing
party
co
untry
’s in
quiri
es a
bout
thes
e m
easu
res.
It is
also
pro
vide
d th
at a
co
ntra
ctin
g pa
rty c
ount
ry m
ust
resp
ond
to a
nd p
rovi
de
info
rmat
ion
in re
spon
se to
qu
estio
ns fr
om a
serv
ice
○Eac
h co
ntra
ctin
g pa
rty
coun
try is
obl
iged
to
prom
ptly
mak
e pu
blic
(or
othe
rwis
e m
ake
publ
icly
av
aila
ble)
its m
easu
res
perta
inin
g to
or a
ffect
ing
the
oper
atio
n of
the
agre
emen
t, at
leas
t with
in th
e co
untry
, an
d to
resp
ond
to th
e ot
her
cont
ract
ing
party
cou
ntry
’s
inqu
iries
abo
ut th
ese
mea
sure
s. Ea
ch p
arty
shal
l pre
pare
a
non-
lega
lly b
indi
ng li
st
prov
idin
g al
l rel
evan
t law
s an
d re
gula
tions
whi
ch a
re
○Eac
h co
ntra
ctin
g co
untry
is
oblig
ed to
mak
e ef
forts
to
resp
ond
to q
uesti
ons o
n th
e re
leva
nt la
ws a
nd
regu
latio
ns fr
om
inte
reste
d pa
rties
as m
uch
as p
ossib
le, a
nd to
pr
ompt
ly m
ake
publ
ic (o
r ot
herw
ise
mak
e pu
blic
ly
avai
labl
e) th
e op
inio
ns
and
exam
inat
ion
resu
lts o
f pu
blic
com
men
ts o
n th
e ad
optio
n of
fina
l law
s and
re
gula
tions
.
○ W
hen
a pa
rty m
aint
ains
m
easu
res r
elat
ed to
lic
ensin
g re
quire
men
ts an
d pr
oced
ures
, qu
alifi
catio
n re
quire
men
ts an
d pr
oced
ures
, and
te
chni
cal s
tand
ards
, the
pa
rty sh
all m
ake
publ
icly
av
aila
ble
the
info
rmat
ion
on th
e re
quire
men
ts an
d pr
oced
ures
to o
btai
n,
rene
w, o
r ret
ain
any
licen
ses o
r pro
fess
iona
l qu
alifi
catio
ns a
nd th
e in
form
atio
n on
tech
nica
l sta
ndar
ds, w
here
○ Ea
ch p
arty
shal
l pr
epar
e a
non-
lega
lly
bind
ing
list p
rovi
ding
al
l rel
evan
t mea
sure
s af
fect
ing
the
oblig
atio
ns o
f m
arke
t ac
cess
, nat
iona
l tre
atm
ent,
and
Mos
t-Fav
ored
-Nat
ion
Trea
tmen
t in
all s
ecto
r (tr
ansp
aren
cy li
st)
(obl
igat
ory
prov
ision
s).
This
list s
hall
be
exch
ange
d w
ith th
e ot
her p
arty
with
in fi
ve
year
s fro
m th
e da
te o
f
○ W
ith re
gard
to re
gula
tions
on
mat
ters
sub
ject
to
the
prov
ision
s of
thi
s ch
apte
r, ob
ligat
ions
ar
e pr
ovid
ed,
such
as
ad
optio
n or
m
aint
enan
ce
of
an
appr
opria
te m
echa
nism
for
re
spon
ding
to in
quiri
es fr
om
stak
ehol
ders
.
Chap
ter
2: S
ervi
ces
* Th
e EP
As r
efer
red
to in
this
tabl
e ar
e lim
ited
to th
ose
signe
d an
d ap
prov
ed b
y th
e D
iet.
list p
rovi
ding
all
rele
vant
law
s and
re
gula
tions
whi
ch a
re
not c
onfo
rmin
g to
co
mm
itmen
ts of
mar
ket
acce
ss a
nd n
atio
nal
treat
men
t acc
orde
d un
der t
he a
gree
men
t (tr
ansp
aren
cy li
st).S
aid
list s
hall
be e
xcha
nged
w
ith o
ther
par
ty.
It is
also
pro
vide
d th
at a
co
ntra
ctin
g pa
rty
coun
try m
ust r
espo
nd to
an
d pr
ovid
e in
form
atio
n in
resp
onse
to
que
stion
s fro
m a
se
rvic
e su
pplie
r of t
he
coun
terp
arty
cou
ntry
th
roug
h its
con
tact
po
int.
As t
he a
gree
men
t ad
opts
the
nega
tive
list a
ppro
ach,
det
ails
of e
xisti
ng la
ws a
nd
regu
latio
ns w
hich
are
re
serv
ed u
nder
the
stan
dstil
l obl
igat
ions
ar
e sp
ecifi
ed in
the
anne
x (L
ist o
f Re
serv
atio
ns).
supp
lier o
f the
cou
nter
party
co
untry
thro
ugh
its c
onta
ct
poin
t.
not c
onfo
rmin
g to
co
mm
itmen
ts of
mar
ket
acce
ss an
d na
tiona
l tre
atm
ent
acco
rded
und
er th
e ag
reem
ent (
trans
pare
ncy
list)
(dut
y to
end
eavo
r pr
ovisi
ons)
. Sa
id li
st sh
all
be e
xcha
nged
with
oth
er
party
. It
is al
so p
rovi
ded
that
a
cont
ract
ing
party
cou
ntry
m
ust r
espo
nd to
and
pro
vide
in
form
atio
n in
resp
onse
to
ques
tions
from
a se
rvic
e su
pplie
r of t
he c
ount
erpa
rty
coun
try th
roug
h its
con
tact
po
int.
ava i
labl
e.
Whe
re a
ny fo
rm o
f au
thor
izat
ion
is re
quire
d fo
r the
supp
ly o
f a se
rvic
e,
the
party
shal
l ens
ure
that
it
will
whe
re p
ract
icab
le,
in th
e ca
se o
f an
inco
mpl
ete a
pplic
atio
n, o
n re
ques
t of a
n ap
plic
ant,
iden
tify
all t
he a
dditi
onal
in
form
atio
n th
at is
re
quire
d to
com
plet
e th
e ap
plic
atio
n;
entry
into
forc
e of
this
agre
emen
t. W
here
ne
cess
ary
or a
s agr
eed
betw
een
the
parti
es, t
he
list s
hall
be su
bjec
t to
futu
re re
view
and
re
visio
n.
Stan
dstil
l O
blig
atio
n ○
T his
oblig
atio
n is
prov
ided
onl
y fo
r se
ctor
s or s
ub-s
ecto
rs
indi
cate
d by
the
“SS”
m
ark
in th
e Sc
hedu
le o
f Sp
ecifi
c Co
mm
itmen
ts.
This
mar
k m
eans
sp
ecifi
c co
mm
itmen
ts
mad
e in
such
sect
ors o
r su
b-se
ctor
s are
lim
ited
to th
ose
base
d on
re
leva
nt e
xisti
ng
mea
sure
s whi
ch a
re
non-
conf
orm
ing
to N
T or
mar
ket a
cces
s ob
ligat
ion.
○Thi
s obl
igat
ion
is pr
ovid
ed fo
r any
ex
istin
g m
easu
res
whi
ch a
re
non-
conf
orm
ing
to
NT,
MFN
, or m
arke
t ac
cess
obl
igat
ion,
an
d w
hich
are
m
aint
aine
d by
a
cont
ract
ing
party
co
untry
at a
ll le
vels
of th
e gov
ernm
ent (
at
cent
ral,
regi
onal
, or
mun
icip
al le
vel).
Th
ese
mea
sure
s are
se
t out
in th
e an
nex
(Sch
edul
e of
Re
serv
atio
ns).
No
prov
ision
in th
e ag
reem
ent.
No
prov
ision
in th
e ag
reem
ent.
(How
ever
, the
re is
a
stan
dstil
l obl
igat
ion
rega
rdin
g ap
plic
atio
n of
FD
I po
licy)
○ Th
is ob
ligat
ion
is pr
ovid
ed fo
r any
exi
sting
m
easu
res w
hich
are
no
n-co
nfor
min
g to
NT
oblig
atio
n, e
tc.,
and
whi
ch
are
mai
ntai
ned
by th
e ce
ntra
l or l
ocal
go
vern
men
t. Th
ese
mea
sure
s are
set o
ut in
the
anne
x (S
ched
ule
of
Rese
rvat
ions
).
○ T h
is ob
ligat
ion
is pr
ovid
ed fo
r any
exi
sting
m
easu
res w
hich
are
no
n-co
nfor
min
g to
NT
oblig
atio
n, e
tc.,
and
whi
ch
are
mai
ntai
ned
by th
e ce
ntra
l or l
ocal
go
vern
men
t. Th
ese
mea
sure
s are
set o
ut in
the
anne
x (S
ched
ule
of
Rese
rvat
ions
).
○ Th
is ob
ligat
ion
is pr
ovid
ed o
nly
for
sect
ors o
r sub
-sec
tors
in
dica
ted
by th
e “S
S”
mar
k in
the
Sche
dule
of
Spec
ific
Com
mitm
ents.
Th
is m
ark
mea
ns
spec
ific
com
mitm
ents
m
ade
in su
ch se
ctor
s or
sub-
sect
ors a
re li
mite
d to
thos
e ba
sed
on
rele
vant
exi
sting
m
easu
res w
hich
are
no
n-co
nfor
min
g to
NT
or m
arke
t acc
ess
oblig
atio
n.
○ Th
is ob
ligat
ion
is pr
ovid
ed
for
any
exist
ing
mea
sure
s w
hich
ar
e no
n-co
nfor
min
g to
N
T ob
ligat
ion,
etc
., an
d w
hich
ar
e m
aint
aine
d by
th
e ce
ntra
l or l
ocal
gov
ernm
ent.
Thes
e m
easu
res
are
set
out
in t
he a
nnex
(Sc
hedu
le o
f Re
serv
atio
ns).
Proh
ibiti
on o
n Re
stric
tions
on
Paym
ents
and
Tr
ansf
ers
○ T h
ere
is a
pro
visio
n pr
ohib
iting
restr
ictio
ns
of in
tern
atio
nal
trans
fers
and
pay
men
ts fo
r cur
rent
tran
sact
ions
re
latin
g to
trad
e in
se
rvic
es o
f all
sect
ors
and
sub-
sect
ors;
not
limite
d to
just
thos
e in
scrib
ed in
the
Sche
dule
of S
peci
fic
Com
mitm
ents.
○ T h
ere
is a
prov
ision
pro
hibi
ting
restr
ictio
ns o
f in
tern
atio
nal
trans
fers
and
pa
ymen
ts fo
r cur
rent
tra
nsac
tions
rela
ting
to tr
ade
in se
rvic
es o
f al
l sec
tors
and
su
b-se
ctor
s.
△Sam
e pr
ovisi
on a
s GAT
S,
whe
re su
ch p
rohi
bitio
n is
only
ap
plie
d to
restr
ictio
ns o
f in
tern
atio
nal t
rans
fers
and
pa
ymen
ts fo
r cur
rent
tra
nsac
tions
rela
ting
to sp
ecifi
c co
mm
itmen
ts.
△Sam
e pr
ovisi
on a
s GAT
S,
whe
re su
ch p
rohi
bitio
n is
only
appl
ied
to re
stric
tions
of
inte
rnat
iona
l tra
nsfe
rs a
nd
paym
ents
for c
urre
nt
trans
actio
ns re
latin
g to
sp
ecifi
c co
mm
itmen
ts.
○ T h
ere
is a
pro
visio
n pr
ohib
iting
restr
ictio
ns o
f in
tern
atio
nal t
rans
fers
and
pa
ymen
ts fo
r cur
rent
tra
nsac
tions
rela
ting
to
trade
in se
rvic
es o
f all
sect
ors a
nd su
b-se
ctor
s.
○ T h
ere
is a
pro
visio
n pr
ohib
iting
restr
ictio
ns o
f in
tern
atio
nal t
rans
fers
and
pa
ymen
ts fo
r cur
rent
tra
nsac
tions
rela
ting
to
trade
in se
rvic
es o
f all
sect
ors a
nd su
b-se
ctor
s.
○ Th
ere
is a
pro
visio
n pr
ohib
iting
restr
ictio
ns
of in
tern
atio
nal
trans
fers
and
pay
men
ts fo
r cur
rent
tran
sact
ions
re
latin
g to
trad
e in
se
rvic
es o
f all
sect
ors
and
sub-
sect
ors.
This
oblig
atio
n is
prov
ided
so
tha
t al
l fu
nds
rela
ted
to
cros
s-bo
rder
pr
ovisi
on
of
serv
ices
can
be
trans
ferre
d or
pai
d fre
ely
and
with
out
dela
y to
and
from
the a
rea o
f th
at c
ount
ry
556
Part
III: E
PA/F
TA a
nd II
A
Nam
e Ja
pan-
Phili
ppin
e EP
A
Japa
n-Sw
itzer
land
EP
A
Japa
n-Vi
et N
am E
PA
Japa
n-In
dia
EPA
Ja
pan-
Peru
EPA
Ja
pan-
Aus
tral
ia E
PA
Japa
n-M
ongo
lia E
PA
Tran
s-Pa
cific
Par
tner
ship
(T
PP) A
gree
men
t Ef
fect
ive/
Sign
ed
as o
f E f
fect
ive
on 2
008.
12.1
1 Ef
fect
ive o
n 20
09.9
.1
Effe
ctiv
e on
200
9.10
.1
Effe
ctiv
e on
201
1.8.
1
Effe
ctiv
e on
201
2.3.
1 Ef
fect
ive
on 2
015.
1.15
Si
gned
on
2015
.2.1
0 Si
gned
on
2016
.2.4
App
roac
h on
Li
bera
lizat
ion
Com
mitm
ents
Pos it
ive
list a
ppro
ach
Neg
ativ
e lis
t ap
proa
ch
Posit
ive
list a
ppro
ach
Posit
ive
list a
ppro
ach
Neg
ativ
e lis
t app
roac
h N
egat
ive
list a
ppro
ach
Posit
ive
list a
ppro
ach
Neg
ativ
e lis
t app
roac
h
MFN
Tre
atm
ent
○ In
pr in
cipl
e,
unco
nditi
onal
MFN
is
prov
ided
, with
ex
cept
ions
insc
ribed
in
the
anne
x (M
FN L
ist o
f Ex
empt
ions
).
△ In
pr in
cipl
e,
unco
nditi
onal
MFN
tre
atm
ent i
s pr
ovid
ed. E
xcep
tions
ar
e su
bjec
t to
mea
sure
s ins
crib
ed in
th
e an
nex
(Sch
edul
e of
Res
erva
tions
) and
th
e tre
atm
ent
acco
rded
und
er o
ther
EP
As/
FTA
s tha
t sa
tisfy
the
requ
irem
ents
unde
r A
rticl
e V
of G
ATS.
Th
e co
ntra
ctin
g pa
rty
coun
try is
obl
iged
to
ende
avor
to ac
cord
to
the
othe
r con
tract
ing
party
cou
ntry
tre
atm
ent n
o le
ss
favo
rabl
e th
an th
at
prov
ided
und
er th
e EP
As/
FTA
s co
nclu
ded
with
the
third
cou
ntry
.
△ In
pr in
cipl
e un
cond
ition
al
MFN
trea
tmen
t is p
rovi
ded.
Ex
cept
ions
are
subj
ect t
o m
easu
res i
nscr
ibed
in th
e ann
ex
(MFN
List
of E
xem
ptio
ns) a
nd
the
treat
men
t acc
orde
d un
der
othe
r EPA
s/FTA
s tha
t sat
isfy
the
requ
irem
ents
und
er A
rticl
e V
of G
ATS.
The
con
tract
ing
party
cou
ntry
is o
blig
ed to
giv
e th
e ot
her t
he c
ontra
ctin
g pa
rty
coun
try a
n op
portu
nity
to
cons
ult o
n w
heth
er th
e m
ore
favo
rabl
e tre
atm
ent a
ccor
ded
to
the
third
cou
ntry
und
er th
e ot
her E
PAs/F
TAs m
ay b
e ac
cord
ed to
the
othe
r co
ntra
ctin
g pa
rty c
ount
ry.
△If a
con
tract
ing
party
co
untry
acc
ords
bet
ter
treat
men
t to
a th
ird p
arty
co
untry
, the
n at
the
requ
est
of th
e ot
her c
ontra
ctin
g pa
rty
coun
try, a
ccor
ding
bet
ter
treat
men
t will
be
cons
ider
ed.
○ In
pr in
cipl
e,
unco
nditi
onal
MFN
tre
atm
ent i
s pro
vide
d,
with
exc
eptio
ns in
scrib
ed
in th
e an
nex
(MFN
List
of
Exem
ptio
ns).
○ In
pr in
cipl
e,
unco
nditi
onal
MFN
tre
atm
ent i
s pro
vide
d,
with
exc
eptio
ns in
scrib
ed
in th
e an
nex
(MFN
List
of
Exem
ptio
ns).
○ In
pr in
cipl
e,
unco
nditi
onal
MFN
tre
atm
ent i
s pro
vide
d,
with
exc
eptio
ns
insc
ribed
in th
e an
nex
(MFN
List
of
Exem
ptio
ns).
○In
prin
cipl
e un
cond
ition
al
MFN
trea
tmen
t is
prov
ided
, w
ith e
xcep
tions
insc
ribed
in
the
anne
x (S
ched
ule
of
Rese
rvat
ions
).
Nat
iona
l Tr
eatm
ent (
NT)
○
Nat
iona
l Tre
atm
ent
shal
l be
acco
rded
in th
e se
ctor
s ins
crib
ed in
the
Sche
dule
of S
peci
fic
Com
mitm
ents
.
○In
prin
cipl
e, N
T sh
all b
e ac
cord
ed in
al
l ser
vice
sect
ors
exce
pt fo
r the
one
s in
scrib
ed in
the
anne
x (S
ched
ule
of
Rese
rvat
ions
).
○Nat
iona
l Tre
atm
ent s
hall
be
acco
rded
in th
e se
ctor
s in
scrib
ed in
the
Sche
dule
of
Spec
ific
Com
mitm
ents.
○Nat
iona
l Tre
atm
ent s
hall
be
acco
rded
in th
e se
ctor
s in
scrib
ed in
the
Sche
dule
of
Spec
ific
Com
mitm
ents.
○In
prin
cipl
e, N
T sh
all b
e ac
cord
ed in
all
serv
ice
sect
ors e
xcep
t for
the
ones
in
scrib
ed in
the
anne
x (S
ched
ule
of
Rese
rvat
ions
).
○ In
prin
cipl
e, N
T sh
all b
e ac
cord
ed in
all
serv
ice
sect
ors e
xcep
t for
the
ones
in
scrib
ed in
the
anne
x (S
ched
ule
of
Rese
rvat
ions
).
○ N
atio
nal T
reat
men
t sh
all b
e ac
cord
ed in
the
sect
ors i
nscr
ibed
in th
e Sc
hedu
le o
f Spe
cific
Co
mm
itmen
ts.
○In
prin
cipl
e N
T sh
all
be
acco
rded
in
al
l se
rvic
e se
ctor
s ex
cept
th
e on
es
insc
ribed
in
th
e an
nex
(Sch
edul
e of
Res
erva
tions
).
Mar
ket A
cces
s Co
mm
itmen
ts ○
Sam
e pr
ovisi
on a
s A
rticl
e X
VI o
f GAT
S on
mar
ket a
cces
s, w
hich
obl
iges
eac
h co
ntra
ctin
g pa
rty
coun
try to
acc
ord
no
less
favo
rabl
e tre
atm
ent
than
that
und
erta
ken
and
spec
ified
in th
e Sc
hedu
le o
f Spe
cific
Co
mm
itmen
ts.
○ In
pr in
cipl
e, th
e sa
me
prov
ision
as
Arti
cle
XV
I of G
ATS
on m
arke
t acc
ess i
s pr
ovid
ed.
Exce
ptio
ns a
re
insc
ribed
in th
e an
nex
(Sch
edul
e of
Re
serv
atio
ns).
○ Sa
me
prov
ision
as A
rticl
e X
VI o
f GAT
S on
mar
ket
acce
ss, w
hich
obl
iges
eac
h co
ntra
ctin
g pa
rty c
ount
ry to
ac
cord
no
less
favo
rabl
e tre
atm
ent t
han
that
und
erta
ken
and
spec
ified
in th
e Sch
edul
e of
Spec
ific
Com
mitm
ents.
○ Sa
me
prov
ision
as A
rticl
e X
VI o
f GAT
S on
mar
ket
acce
ss, w
hich
obl
iges
eac
h co
ntra
ctin
g pa
rty c
ount
ry to
ac
cord
no
less
favo
rabl
e tre
atm
ent t
han
that
un
derta
ken
and
spec
ified
in
the
Sche
dule
of S
peci
fic
Com
mitm
ents
.
○ In
pr in
cipl
e, th
e sa
me
prov
ision
as A
rticl
e X
VI
of G
ATS
on m
arke
t acc
ess
(exc
ept l
imita
tions
on
the
parti
cipa
tion
of fo
reig
n ca
pita
l) is
prov
ided
. The
re
is a
pro
visio
n pr
ohib
iting
th
e re
quire
men
t of
esta
blish
ing
a lo
cal
repr
esen
tativ
e of
fice
or
any
form
of e
nter
prise
; ex
cept
ions
are i
nscr
ibed
in
the
anne
x (S
ched
ule
of
Rese
rvat
ions
)
○ In
pr in
cipl
e, th
e sa
me
prov
ision
as A
rticl
e X
VI
of G
ATS
on m
arke
t acc
ess
is p
rovi
ded.
The
re is
a
prov
ision
pro
hibi
ting
the
requ
irem
ent o
f es
tabl
ishin
g a
loca
l re
pres
enta
tive
offic
e or
an
y fo
rm o
f ent
erpr
ise;
exce
ptio
ns ar
e ins
crib
ed in
th
e an
nex
(Sch
edul
e of
Re
serv
atio
ns)
○ Sa
me
prov
ision
as
A
rticl
e X
VI
of G
ATS
on
mar
ket
acce
ss
(mar
ket a
cces
s sh
all b
e ac
cord
ed w
ithin
a ra
nge
spec
ified
in
th
e Sc
hedu
le
of
Spec
ific
Com
mitm
ents)
.
○ In
pr
inci
ple,
th
e sa
me
mar
ket
acce
ss a
s in
Arti
cle
XV
I of
GAT
S on
mar
ket
acce
ss
(exc
ept
limita
tions
on
th
e pa
rtici
patio
n of
fo
reig
n ca
pita
l) is
acco
rded
. Th
ere
is a
prov
ision
pr
ohib
iting
the
req
uire
men
t of
es
tabl
ishin
g a
loca
l re
pres
enta
tive
offic
e or
any
fo
rm
of
ente
rpris
e.
Exce
ptio
ns a
re i
nscr
ibed
in
the
anne
x (S
ched
ule
of
Rese
rvat
ions
). Tr
ansp
aren
cy
Requ
irem
ents
○Eac
h co
ntra
ctin
g pa
rty
coun
try is
obl
iged
to
prom
ptly
mak
e pu
blic
(o
r oth
erw
ise m
ake
publ
icly
ava
ilabl
e) it
s m
easu
res p
erta
inin
g to
or
affe
ctin
g th
e op
erat
ion
of th
e ag
reem
ent,
at le
ast
with
in th
e co
untry
, and
to
resp
ond
to th
e ot
her
cont
ract
ing
party
co
untry
’s in
quiri
es
abou
t the
se m
easu
res.
Each
par
ty sh
all p
repa
re
a no
n-le
gally
bin
ding
○ Ea
c h c
ontra
ctin
g pa
rty c
ount
ry is
ob
liged
to p
rom
ptly
m
ake
publ
ic (o
r ot
herw
ise m
ake
publ
icly
avai
labl
e) it
s m
easu
res p
erta
inin
g to
or a
ffect
ing
the
oper
atio
n of
the
agre
emen
t, at
leas
t w
ithin
the
coun
try,
and
to re
spon
d to
the
othe
r con
tract
ing
party
cou
ntry
’s
inqu
iries
abo
ut th
ese
mea
sure
s.
△ Ea
c h c
ontra
ctin
g pa
rty
coun
try is
obl
iged
to p
rom
ptly
m
ake
publ
ic (o
r oth
erw
ise
mak
e pu
blic
ly a
vaila
ble)
its
mea
sure
s per
tain
ing
to o
r af
fect
ing
the
oper
atio
n of
the
agre
emen
t, at
leas
t with
in th
e co
untry
, and
to re
spon
d to
the
othe
r con
tract
ing
party
co
untry
’s in
quiri
es a
bout
thes
e m
easu
res.
It is
also
pro
vide
d th
at a
co
ntra
ctin
g pa
rty c
ount
ry m
ust
resp
ond
to a
nd p
rovi
de
info
rmat
ion
in re
spon
se to
qu
estio
ns fr
om a
serv
ice
○Eac
h co
ntra
ctin
g pa
rty
coun
try is
obl
iged
to
prom
ptly
mak
e pu
blic
(or
othe
rwis
e m
ake
publ
icly
av
aila
ble)
its m
easu
res
perta
inin
g to
or a
ffect
ing
the
oper
atio
n of
the
agre
emen
t, at
leas
t with
in th
e co
untry
, an
d to
resp
ond
to th
e ot
her
cont
ract
ing
party
cou
ntry
’s
inqu
iries
abo
ut th
ese
mea
sure
s. Ea
ch p
arty
shal
l pre
pare
a
non-
lega
lly b
indi
ng li
st
prov
idin
g al
l rel
evan
t law
s an
d re
gula
tions
whi
ch a
re
○Eac
h co
ntra
ctin
g co
untry
is
oblig
ed to
mak
e ef
forts
to
resp
ond
to q
uesti
ons o
n th
e re
leva
nt la
ws a
nd
regu
latio
ns fr
om
inte
reste
d pa
rties
as m
uch
as p
ossib
le, a
nd to
pr
ompt
ly m
ake
publ
ic (o
r ot
herw
ise
mak
e pu
blic
ly
avai
labl
e) th
e op
inio
ns
and
exam
inat
ion
resu
lts o
f pu
blic
com
men
ts o
n th
e ad
optio
n of
fina
l law
s and
re
gula
tions
.
○ W
hen
a pa
rty m
aint
ains
m
easu
res r
elat
ed to
lic
ensin
g re
quire
men
ts an
d pr
oced
ures
, qu
alifi
catio
n re
quire
men
ts an
d pr
oced
ures
, and
te
chni
cal s
tand
ards
, the
pa
rty sh
all m
ake
publ
icly
av
aila
ble
the
info
rmat
ion
on th
e re
quire
men
ts an
d pr
oced
ures
to o
btai
n,
rene
w, o
r ret
ain
any
licen
ses o
r pro
fess
iona
l qu
alifi
catio
ns a
nd th
e in
form
atio
n on
tech
nica
l sta
ndar
ds, w
here
○ Ea
ch p
arty
shal
l pr
epar
e a
non-
lega
lly
bind
ing
list p
rovi
ding
al
l rel
evan
t mea
sure
s af
fect
ing
the
oblig
atio
ns o
f m
arke
t ac
cess
, nat
iona
l tre
atm
ent,
and
Mos
t-Fav
ored
-Nat
ion
Trea
tmen
t in
all s
ecto
r (tr
ansp
aren
cy li
st)
(obl
igat
ory
prov
ision
s).
This
list s
hall
be
exch
ange
d w
ith th
e ot
her p
arty
with
in fi
ve
year
s fro
m th
e da
te o
f
○ W
ith re
gard
to re
gula
tions
on
mat
ters
sub
ject
to
the
prov
ision
s of
thi
s ch
apte
r, ob
ligat
ions
ar
e pr
ovid
ed,
such
as
ad
optio
n or
m
aint
enan
ce
of
an
appr
opria
te m
echa
nism
for
re
spon
ding
to in
quiri
es fr
om
stak
ehol
ders
.
Chap
ter
2: S
ervi
ces
* Th
e EP
As r
efer
red
to in
this
tabl
e ar
e lim
ited
to th
ose
signe
d an
d ap
prov
ed b
y th
e D
iet.
list p
rovi
ding
all
rele
vant
law
s and
re
gula
tions
whi
ch a
re
not c
onfo
rmin
g to
co
mm
itmen
ts of
mar
ket
acce
ss a
nd n
atio
nal
treat
men
t acc
orde
d un
der t
he a
gree
men
t (tr
ansp
aren
cy li
st).S
aid
list s
hall
be e
xcha
nged
w
ith o
ther
par
ty.
It is
also
pro
vide
d th
at a
co
ntra
ctin
g pa
rty
coun
try m
ust r
espo
nd to
an
d pr
ovid
e in
form
atio
n in
resp
onse
to
que
stion
s fro
m a
se
rvic
e su
pplie
r of t
he
coun
terp
arty
cou
ntry
th
roug
h its
con
tact
po
int.
As t
he a
gree
men
t ad
opts
the
nega
tive
list a
ppro
ach,
det
ails
of e
xisti
ng la
ws a
nd
regu
latio
ns w
hich
are
re
serv
ed u
nder
the
stan
dstil
l obl
igat
ions
ar
e sp
ecifi
ed in
the
anne
x (L
ist o
f Re
serv
atio
ns).
supp
lier o
f the
cou
nter
party
co
untry
thro
ugh
its c
onta
ct
poin
t.
not c
onfo
rmin
g to
co
mm
itmen
ts of
mar
ket
acce
ss an
d na
tiona
l tre
atm
ent
acco
rded
und
er th
e ag
reem
ent (
trans
pare
ncy
list)
(dut
y to
end
eavo
r pr
ovisi
ons)
. Sa
id li
st sh
all
be e
xcha
nged
with
oth
er
party
. It
is al
so p
rovi
ded
that
a
cont
ract
ing
party
cou
ntry
m
ust r
espo
nd to
and
pro
vide
in
form
atio
n in
resp
onse
to
ques
tions
from
a se
rvic
e su
pplie
r of t
he c
ount
erpa
rty
coun
try th
roug
h its
con
tact
po
int.
ava i
labl
e.
Whe
re a
ny fo
rm o
f au
thor
izat
ion
is re
quire
d fo
r the
supp
ly o
f a se
rvic
e,
the
party
shal
l ens
ure
that
it
will
whe
re p
ract
icab
le,
in th
e ca
se o
f an
inco
mpl
ete a
pplic
atio
n, o
n re
ques
t of a
n ap
plic
ant,
iden
tify
all t
he a
dditi
onal
in
form
atio
n th
at is
re
quire
d to
com
plet
e th
e ap
plic
atio
n;
entry
into
forc
e of
this
agre
emen
t. W
here
ne
cess
ary
or a
s agr
eed
betw
een
the
parti
es, t
he
list s
hall
be su
bjec
t to
futu
re re
view
and
re
visio
n.
Stan
dstil
l O
blig
atio
n ○
T his
oblig
atio
n is
prov
ided
onl
y fo
r se
ctor
s or s
ub-s
ecto
rs
indi
cate
d by
the
“SS”
m
ark
in th
e Sc
hedu
le o
f Sp
ecifi
c Co
mm
itmen
ts.
This
mar
k m
eans
sp
ecifi
c co
mm
itmen
ts
mad
e in
such
sect
ors o
r su
b-se
ctor
s are
lim
ited
to th
ose
base
d on
re
leva
nt e
xisti
ng
mea
sure
s whi
ch a
re
non-
conf
orm
ing
to N
T or
mar
ket a
cces
s ob
ligat
ion.
○Thi
s obl
igat
ion
is pr
ovid
ed fo
r any
ex
istin
g m
easu
res
whi
ch a
re
non-
conf
orm
ing
to
NT,
MFN
, or m
arke
t ac
cess
obl
igat
ion,
an
d w
hich
are
m
aint
aine
d by
a
cont
ract
ing
party
co
untry
at a
ll le
vels
of th
e gov
ernm
ent (
at
cent
ral,
regi
onal
, or
mun
icip
al le
vel).
Th
ese
mea
sure
s are
se
t out
in th
e an
nex
(Sch
edul
e of
Re
serv
atio
ns).
No
prov
ision
in th
e ag
reem
ent.
No
prov
ision
in th
e ag
reem
ent.
(How
ever
, the
re is
a
stan
dstil
l obl
igat
ion
rega
rdin
g ap
plic
atio
n of
FD
I po
licy)
○ T h
is ob
ligat
ion
is pr
ovid
ed fo
r any
exi
sting
m
easu
res w
hich
are
no
n-co
nfor
min
g to
NT
oblig
atio
n, e
tc.,
and
whi
ch
are
mai
ntai
ned
by th
e ce
ntra
l or l
ocal
go
vern
men
t. Th
ese
mea
sure
s are
set o
ut in
the
anne
x (S
ched
ule
of
Rese
rvat
ions
).
○ T h
is ob
ligat
ion
is pr
ovid
ed fo
r any
exi
sting
m
easu
res w
hich
are
no
n-co
nfor
min
g to
NT
oblig
atio
n, e
tc.,
and
whi
ch
are
mai
ntai
ned
by th
e ce
ntra
l or l
ocal
go
vern
men
t. Th
ese
mea
sure
s are
set o
ut in
the
anne
x (S
ched
ule
of
Rese
rvat
ions
).
○ Th
is ob
ligat
ion
is pr
ovid
ed o
nly
for
sect
ors o
r sub
-sec
tors
in
dica
ted
by th
e “S
S”
mar
k in
the
Sche
dule
of
Spec
ific
Com
mitm
ents.
Th
is m
ark
mea
ns
spec
ific
com
mitm
ents
m
ade
in su
ch se
ctor
s or
sub-
sect
ors a
re li
mite
d to
thos
e ba
sed
on
rele
vant
exi
sting
m
easu
res w
hich
are
no
n-co
nfor
min
g to
NT
or m
arke
t acc
ess
oblig
atio
n.
○ Th
is ob
ligat
ion
is pr
ovid
ed
for
any
exist
ing
mea
sure
s w
hich
ar
e no
n-co
nfor
min
g to
N
T ob
ligat
ion,
etc
., an
d w
hich
ar
e m
aint
aine
d by
th
e ce
ntra
l or l
ocal
gov
ernm
ent.
Thes
e m
easu
res
are
set
out
in t
he a
nnex
(Sc
hedu
le o
f Re
serv
atio
ns).
Proh
ibiti
on o
n Re
stric
tions
on
Paym
ents
and
Tr
ansf
ers
○ T h
ere
is a
pro
visio
n pr
ohib
iting
restr
ictio
ns
of in
tern
atio
nal
trans
fers
and
pay
men
ts fo
r cur
rent
tran
sact
ions
re
latin
g to
trad
e in
se
rvic
es o
f all
sect
ors
and
sub-
sect
ors;
not
limite
d to
just
thos
e in
scrib
ed in
the
Sche
dule
of S
peci
fic
Com
mitm
ents.
○ T h
ere
is a
prov
ision
pro
hibi
ting
restr
ictio
ns o
f in
tern
atio
nal
trans
fers
and
pa
ymen
ts fo
r cur
rent
tra
nsac
tions
rela
ting
to tr
ade
in se
rvic
es o
f al
l sec
tors
and
su
b-se
ctor
s.
△Sam
e pr
ovisi
on a
s GAT
S,
whe
re su
ch p
rohi
bitio
n is
only
ap
plie
d to
restr
ictio
ns o
f in
tern
atio
nal t
rans
fers
and
pa
ymen
ts fo
r cur
rent
tra
nsac
tions
rela
ting
to sp
ecifi
c co
mm
itmen
ts.
△Sam
e pr
ovisi
on a
s GAT
S,
whe
re su
ch p
rohi
bitio
n is
only
appl
ied
to re
stric
tions
of
inte
rnat
iona
l tra
nsfe
rs a
nd
paym
ents
for c
urre
nt
trans
actio
ns re
latin
g to
sp
ecifi
c co
mm
itmen
ts.
○ T h
ere
is a
pro
visio
n pr
ohib
iting
restr
ictio
ns o
f in
tern
atio
nal t
rans
fers
and
pa
ymen
ts fo
r cur
rent
tra
nsac
tions
rela
ting
to
trade
in se
rvic
es o
f all
sect
ors a
nd su
b-se
ctor
s.
○ T h
ere
is a
pro
visio
n pr
ohib
iting
restr
ictio
ns o
f in
tern
atio
nal t
rans
fers
and
pa
ymen
ts fo
r cur
rent
tra
nsac
tions
rela
ting
to
trade
in se
rvic
es o
f all
sect
ors a
nd su
b-se
ctor
s.
○ Th
ere
is a
pro
visio
n pr
ohib
iting
restr
ictio
ns
of in
tern
atio
nal
trans
fers
and
pay
men
ts fo
r cur
rent
tran
sact
ions
re
latin
g to
trad
e in
se
rvic
es o
f all
sect
ors
and
sub-
sect
ors.
This
oblig
atio
n is
prov
ided
so
tha
t al
l fu
nds
rela
ted
to
cros
s-bo
rder
pr
ovisi
on
of
serv
ices
can
be
trans
ferre
d or
pai
d fre
ely
and
with
out
dela
y to
and
from
the a
rea o
f th
at c
ount
ry
557
Part III: EPA/FTA and IIA
726
5. SUBSTANCE OF AGREEMENTS ON SERVICES IN OTHER COUNTRIES
If a member of the WTO enters into an FTA regarding trade in services, it must notify the WTO under Article V of GATS.
Prior to 1993, there were only two regional economic integrations that included integration in the services sector. They were the European Economic Community, which entered into force in 1958, and the Australia New Zealand Closer Economic Relations Trade Agreement (ANZCERTA), which entered into force in 1989. In addition, from 1994 (after the conclusion of NAFTA) to 2000, there were only 10 regional economic integration agreements which included integration in the services sectors that entered into force. There were seven such cases in 2001, four in 2002; thereafter, EPAs/FTAs regarding trade in services have entered into force at a rate of three to seven per year. Most economic integrations include trade in services. For analysis of nine characteristic FTAs (NAFTA, Australia-Singapore FTA, US-Singapore FTA, US-Australia FTA, US-ROK FTA, EFTA-Singapore FTA, Australia-Thailand FTA, India-Singapore FTA, and ESTA-ROK FTA), see page 735 of the 2017 Report on Compliance by Major Trading Partners with Trade Agreements - WTO, EPA/FTA and IIA -.
Chapter 3: Movement of Natural Persons
747
CHAPTER 3
MOVEMENT OF NATURAL PERSONS
1. OVERVIEW OF THE RULES
(See Part II, Chapter 12 “Trade in Services” for Mode Four movement of natural persons under GATS)
Chapters on the “movement of natural persons” in EPAs/FTAs address the issue of how, within the scope of trade in services, a contracting party country can satisfy the demands of another contracting party with respect to GATS (as well as other items). A chapter in the EU-Swiss FTA addresses another issue -- immigration policy outside the scope of trade in services.
Mode Four of GATS covers a wide range of persons, from high-level engineers to unskilled workers, in its commitment to liberalization. However, many Member countries, including Japan, have only made “horizontal commitments” to date, and their Schedules of Commitments generally indicate, with regard to market access regarding specific service sectors, “unbound except for measures concerning the categories of natural persons referred to in the market access column.” In other words, such commitments made by Members under GATS are generally extremely restricted in nature. This is also the case with Japan, which has made horizontal commitments only in three areas: intra-corporate transferees, professional services and temporary stays (see Chapter 2).
The extent to which liberalization of trade in services provided for in an EPA/FTA will go beyond the market access commitments made on the movement of natural persons under GATS will generally become a point of negotiation. Each EPA/FTA can provide for a different level of commitment depending on the relationships of the contracting parties. For example, an EPA/FTA may go beyond the liberalization of GATS by including a broader range of professional services or lowering the required expertise level of covered workers. Reflecting the progress of the request-offer process in the Doha Round service negotiations, in some of the EPAs entered into by Japan, Japan made commitments in five areas (the three areas mentioned above plus contractual service suppliers and investors). Japan liberalized these areas as required by commitments made under the EPAs, but on an MFN basis rather than only in relation to the relevant EPA partners.
The immigration control system of Japan is operated according to the government policy of proactively accepting professionals and engineers, and accordingly, is vested with the discretion to allow non-Japan nationals to enter and stay in excess of its liberalization commitment under GATS. Therefore, if Japan extends preferential treatment, including at the practice level, to certain countries on a bilateral basis, the issue at negotiation would be setting the scope and conditions for entry of acceptable professionals within the extent of the aforesaid discretion (e.g. nurses and care workers), in order to improve the level of commitment and/or to work out more favorable conditions for permitted entry and stay only with certain countries. On the other hand, it is important to set flexible conditions so as to establish long-term win-win relationships between Japan and counterpart countries, while taking into consideration the future impact of the continuous proactive acceptance of professionals (e.g., degradation of services due to decrease in the number of nurses).
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