Section 154p. 154

PUBLIC INTERNATIONAL LAW COMPENDIUM VOLUME II

service supplier of a Member, in respect of the supply of a

service.

2. The Agreement shall not apply to measures affecting

natural

persons

seeking

access

to

the employment

market of a Member, nor shall it apply to measures

regarding citizenship, residence or employment on a

permanent basis.

3. In accordance with Parts III and IV of the Agreement,

Members may negotiate specific commitments applying

to the movement of all categories of natural persons

supplying services under the Agreement. Natural persons

covered by a specific commitment shall be allowed to

supply the service in accordance with the terms of that

commitment.

4. The Agreement shall not prevent a Member from

applying

measures

to

regulate the entry of natural

persons into, or their temporary stay in, its territory,

including

those

measures

necessary

to

protect

the

integrity of, and to ensure the orderly movement of

natural persons across, its borders, provided that such

measures are not applied in such a manner as to nullify or

impair the benefits accruing to any Member under the

terms of a specific commitment. 13

ANNEX ON AIR TRANSPORT SERVICES

1. This Annex applies to measures affecting trade in air

transport services, whether scheduled or non-scheduled,

and ancillary services. It is confirmed that any specific

commitment

or

obligation

assumed

under

this

Agreement

shall

not

reduce

or

affect

a

Member's

obligations under bilateral or multilateral agreements

that are in effect on the date of entry into force of the

WTO Agreement.

2.

The

Agreement,

including

its

dispute

settlement

procedures, shall not apply to measures affecting:

(a) traffic rights, however granted; or

(b) services directly related to the exercise of traffic rights,

except as provided in paragraph 3 of this Annex.

3. The Agreement shall apply to measures affecting:

(a) aircraft repair and maintenance services;

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

(c) computer reservation system (CRS) services.

4. The dispute settlement procedures of the Agreement

may

be

invoked

only

where

obligations

or specific

commitments have been assumed by the concerned

Members and where dispute settlement procedures in

bilateral

and

other

multilateral

agreements

or

arrangements have been exhausted.

5.

The

Council

for

Trade

in

Services

shall

review

periodically, and at least every five years, developments in

the air transport sector and the operation of this Annex

with

a

view

to

considering

the

possible

further

application of the Agreement in this sector.

6. Definitions:

(a) "Aircraft repair and maintenance services" mean such

activities when undertaken on an aircraft or a part thereof

while it is withdrawn from service and do not include

so-called line maintenance.

(b) "Selling and marketing of air transport services" mean

opportunities for the air carrier concerned to sell and

market

freely

its

air transport services including all

aspects

of

marketing

such

as

market

research,

advertising

and

distribution.

These

activities

do not

include the pricing of air transport services nor the

applicable conditions.

(c) "Computer reservation system (CRS) services" mean

services provided by computerised systems that contain

information about air carriers' schedules, availability, fares

and fare rules, through which reservations can be made

or tickets may be issued.

(d) "Traffic rights" mean the right for scheduled and

non-scheduled

services

to

operate

and/or

to

carry

passengers, cargo and mail for remuneration or hire from,

to, within, or over the territory of a Member, including

points to be served, routes to be operated, types of traffic

to be carried, capacity to be provided, tariffs to be

charged and their conditions, and criteria for designation

of airlines, including such criteria as number, ownership,

and control.

ANNEX ON FINANCIAL SERVICES

1. Scope and Definition

(a) This Annex applies to measures affecting the supply of

financial services. Reference to the supply of a financial

service in this Annex shall mean the supply of a service as

defined in paragraph 2 of Article I of the Agreement.

(b) For the purposes of subparagraph 3(b) of Article I of

the Agreement, "services supplied in the exercise of

governmental authority" means the following:

(i) activities conducted by a central bank or monetary

authority or by any other public entity in pursuit of

monetary or exchange rate policies;

(ii) activities forming part of a statutory system of social

security or public retirement plans; and

(iii) other activities conducted by a public entity for the

account or with the guarantee or using the financial

resources of the Government.

(c) For the purposes of subparagraph 3(b) of Article I of

the Agreement, if a Member allows any of the activities

referred

to

in subparagraphs (b)(ii) or (b)(iii) of this

paragraph

to

be

conducted

by

its financial service

suppliers in competition with a public entity or a financial

service supplier, "services" shall include such activities.

(d) Subparagraph 3(c) of Article I of the Agreement shall

not apply to services covered by this Annex.

2. Domestic Regulation

(a)

Notwithstanding

any

other

provisions

of

the

Agreement, a Member shall not be prevented from

taking measures for prudential reasons, including for the

protection

of

investors,

depositors,

policy holders or

persons to whom a fiduciary duty is owed by a financial

service supplier, or to ensure the integrity and stability of

the

financial

system. Where such measures do not

conform with the provisions of the Agreement, they shall

not be used as a means of avoiding the Member's

commitments or obligations under the Agreement.

(b) Nothing in the Agreement shall be construed to

require a Member to disclose information relating to the

affairs

and accounts of individual customers or any

confidential or proprietary information in the possession

of public entities.

3. Recognition

(a) A Member may recognize prudential measures of any

other

country

in

determining

how

the

Member's

measures relating to financial services shall be applied.

Such

recognition,

which

may

be

achieved

through

harmonization or otherwise, may be based upon an

agreement or arrangement with the country concerned

or may be accorded autonomously.

(b) A Member that is a party to such an agreement or

arrangement referred to in subparagraph (a), whether

future or existing, shall afford adequate opportunity for

other interested Members to negotiate their accession to

such

agreements

or

arrangements,

or

to

negotiate

comparable ones with it, under circumstances in which

there

would

be

equivalent

regulation,

oversight,

implementation of such regulation, and, if appropriate,

procedures

concerning

the

sharing

of

information

between the parties to the agreement or arrangement.

Where a Member accords recognition autonomously, it

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