Section 153p. 153

PUBLIC INTERNATIONAL LAW COMPENDIUM VOLUME II

(d) "commercial presence" means any type of business or

professional establishment, including through

(i) the constitution, acquisition or maintenance of a

juridical person, or

(ii)

the

creation

or

maintenance

of

a

branch

or a

representative office, within the territory of a Member for

the purpose of supplying a service;

(e) "sector" of a service means,

(i) with reference to a specific commitment, one or more,

or

all,

subsectors

of

that

service, as specified in a

Member's Schedule,

(ii) otherwise, the whole of that service sector, including

all of its subsectors;

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

supplied,

(i) from or in the territory of that other Member, or in the

case of maritime transport, by a vessel registered under

the laws of that other Member, or by a person of that

other Member which supplies the service through the

operation of a vessel and/or its use in whole or in part; or

(ii)

in the case of the supply of a service through

commercial presence or through the presence of natural

persons, by a service supplier of that other Member;

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

service; 12

(h) "monopoly supplier of a service" means any person,

public or private, which in the relevant market of the

territory

of

a

Member

is

authorized

or

established

formally or in effect by that Member as the sole supplier

of that service;

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

uses a service;

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

person;

(k) "natural person of another Member" means a natural

person who resides in the territory of that other Member

or any other Member, and who under the law of that

other Member:

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

(ii) has the right of permanent residence in that other

Member, in the case of a Member which:

1. does not have nationals; or

2.

accords

substantially

the

same

treatment

to

its

permanent residents as it does to its nationals in respect

of measures affecting trade in services, as notified in its

acceptance of or accession to the WTO Agreement,

provided that no Member is obligated to accord to such

permanent residents treatment more favourable than

would

be accorded by that other Member to such

permanent residents. Such notification shall include the

assurance to assume, with respect to those permanent

residents, in accordance with its laws and regulations, the

same

responsibilities that other Member bears with

respect to its nationals;

(l)

"juridical

person"

means

any

legal

entity

duly

constituted or otherwise organized under applicable law,

whether

for

profit

or

otherwise,

and

whether

privately-owned or governmentally-owned, including any

corporation,

trust,

partnership,

joint

venture,

sole

proprietorship or association;

(m)

"juridical

person

of

another

Member"

means a

juridical person which is either:

(i) constituted or otherwise organized under the law of

that

other

Member,

and

is engaged in substantive

business operations in the territory of that Member or any

other Member; or

(ii)

in the case of the supply of a service through

commercial presence, owned or controlled by:

1. natural persons of that Member; or

2. juridical persons of that other Member identified under

subparagraph (i);

(n) a juridical person is:

(i) "owned" by persons of a Member if more than 50 per

cent of the equity interest in it is beneficially owned by

persons of that Member;

(ii) "controlled" by persons of a Member if such persons

have the power to name a majority of its directors or

otherwise to legally direct its actions;

(iii) "affiliated" with another person when it controls, or is

controlled by, that other person; or when it and the other

person are both controlled by the same person;

(o) "direct taxes" comprise all taxes on total income, on

total capital or on elements of income or of capital,

including taxes on gains from the alienation of property,

taxes on estates, inheritances and gifts, and taxes on the

total amounts of wages or salaries paid by enterprises, as

well as taxes on capital appreciation.

ARTICLE XXIX

Annexes

The Annexes to this Agreement are an integral part of this

Agreement.

ANNEX ON ARTICLE II EXEMPTIONS

Scope

1. This Annex specifies the conditions under which a

Member, at the entry into force of this Agreement, is

exempted from its obligations under paragraph 1 of

Article II.

2. Any new exemptions applied for after the date of entry

into force of the WTO Agreement shall be dealt with

under paragraph 3 of Article IX of that Agreement.

Review

3. The Council for Trade in Services shall review all

exemptions granted for a period of more than 5 years. The

first such review shall take place no more than 5 years

after the entry into force of the WTO Agreement.

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

(a) examine whether the conditions which created the

need for the exemption still prevail; and

(b) determine the date of any further review.

Termination

5. The exemption of a Member from its obligations under

paragraph 1 of Article II of the Agreement with respect to

a particular measure terminates on the date provided for

in the exemption.

6. In principle, such exemptions should not exceed a

period of 10 years. In any event, they shall be subject to

negotiation in subsequent trade liberalizing rounds.

7. A Member shall notify the Council for Trade in Services

at the termination of the exemption period that the

inconsistent measure has been brought into conformity

with paragraph 1 of Article II of the Agreement.

Lists of Article II Exemptions

[The agreed lists of exemptions under paragraph 2 of

Article II will be annexed here in the treaty copy of the

WTO Agreement.]

ANNEX ON MOVEMENT OF NATURAL PERSONS

SUPPLYING SERVICES UNDER THE

AGREEMENT

1.

This

Annex

applies

to measures affecting natural

persons who are service suppliers of a Member, and

natural persons of a Member who are employed by a

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