Section 152p. 152

PUBLIC INTERNATIONAL LAW COMPENDIUM VOLUME II

compensatory

adjustments

in

conformity

with

the

findings of the arbitration.

(b) If the modifying Member implements its proposed

modification or withdrawal and does not comply with the

findings of the arbitration, any affected Member that

participated in the arbitration may modify or withdraw

substantially equivalent benefits in conformity with those

findings. Notwithstanding Article II, such a modification

or withdrawal may be implemented solely with respect to

the modifying Member.

5.

The

Council

for

Trade

in

Services shall establish

procedures for rectification or modification of Schedules.

Any

Member

which

has

modified

or

withdrawn

scheduled commitments under this Article shall modify

its Schedule according to such procedures.

PART V Institutional Provisions

ARTICLE XXII

Consultation

1. Each Member shall accord sympathetic consideration

to, and shall afford adequate opportunity for, consultation

regarding such representations as may be made by any

other Member with respect to any matter affecting the

operation of this Agreement. The Dispute Settlement

Understanding (DSU) shall apply to such consultations.

2. The Council for Trade in Services or the Dispute

Settlement Body (DSB) may, at the request of a Member,

consult with any Member or Members in respect of any

matter for which it has not been possible to find a

satisfactory

solution

through

consultation

under

paragraph 1.

3. A Member may not invoke Article XVII, either under this

Article or Article XXIII, with respect to a measure of

another

Member

that

falls

within

the

scope of an

international agreement between them relating to the

avoidance of double taxation. In case of disagreement

between Members as to whether a measure falls within

the scope of such an agreement between them, it shall

be open to either Member to bring this matter before the

Council for Trade in Services. 11 The Council shall refer the

matter to arbitration. The decision of the arbitrator shall

be final and binding on the Members.

ARTICLE XXIII

Dispute Settlement and Enforcement

1. If any Member should consider that any other Member

fails to carry out its obligations or specific commitments

under this Agreement, it may with a view to reaching a

mutually

satisfactory

resolution

of

the

matter

have

recourse to the DSU.

2. If the DSB considers that the circumstances are serious

enough to justify such action, it may authorize a Member

or Members to suspend the application to any other

Member

or

Members

of

obligations

and

specific

commitments in accordance with Article 22 of the DSU.

3. If any Member considers that any benefit it could

reasonably have expected to accrue to it under a specific

commitment of another Member under Part III of this

Agreement is being nullified or impaired as a result of the

application of any measure which does not conflict with

the provisions of this Agreement, it may have recourse to

the DSU. If the measure is determined by the DSB to have

nullified or impaired such a benefit, the Member affected

shall be entitled to a mutually satisfactory adjustment on

the basis of paragraph 2 of Article XXI, which may include

the modification or withdrawal of the measure. In the

event an agreement cannot be reached between the

Members concerned, Article 22 of the DSU shall apply.

ARTICLE XXIV

Council for Trade in Services

1. The Council for Trade in Services shall carry out such

functions as may be assigned to it to facilitate the

operation of this Agreement and further its objectives.

The Council may establish such subsidiary bodies as it

considers appropriate for the effective discharge of its

functions.

2. The Council and, unless the Council decides otherwise,

its subsidiary bodies shall be open to participation by

representatives of all Members.

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

Members.

ARTICLE XXV

Technical Cooperation

1. Service suppliers of Members which are in need of such

assistance shall have access to the services of contact

points referred to in paragraph 2 of Article IV.

2. Technical assistance to developing countries shall be

provided at the multilateral level by the Secretariat and

shall be decided upon by the Council for Trade in

Services.

ARTICLE XXVI

Relationship with Other International Organizations

The

General

Council

shall

make

appropriate

arrangements for consultation and cooperation with the

United Nations and its specialized agencies as well as

with other intergovernmental organizations concerned

with services.

PART VI Final Provisions

ARTICLE XXVII

Denial of Benefits

A Member may deny the benefits of this Agreement:

(a) to the supply of a service, if it establishes that the

service

is

supplied

from

or

in

the

territory

of

a

non-Member or of a Member to which the denying

Member does not apply the WTO Agreement;

(b) in the case of the supply of a maritime transport

service, if it establishes that the service is supplied:

(i) by a vessel registered under the laws of a non-Member

or of a Member to which the denying Member does not

apply the WTO Agreement, and

(ii) by a person which operates and/or uses the vessel in

whole or in part but which is of a non-Member or of a

Member to which the denying Member does not apply

the WTO Agreement;

(c) to a service supplier that is a juridical person, if it

establishes that it is not a service supplier of another

Member, or that it is a service supplier of a Member to

which the denying Member does not apply the WTO

Agreement.

ARTICLE XXVIII

Definitions

For the purpose of this Agreement:

(a) "measure" means any measure by a Member, whether

in the form of a law, regulation, rule, procedure, decision,

administrative action, or any other form;

(b)

"supply

of

a

service"

includes

the

production,

distribution, marketing, sale and delivery of a service;

(c) "measures by Members affecting trade in services"

include measures in respect of

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

(ii) the access to and use of, in connection with the supply

of

a

service,

services

which

are

required

by

those

Members to be offered to the public generally;

(iii) the presence, including commercial presence, of

persons of a Member for the supply of a service in the

territory of another Member;

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