Section 155p. 155

PUBLIC INTERNATIONAL LAW COMPENDIUM VOLUME II

shall afford adequate opportunity for any other Member

to demonstrate that such circumstances exist.

(c)

Where

a

Member

is

contemplating

according

recognition to prudential measures of any other country,

paragraph 4(b) of Article VII shall not apply.

4. Dispute Settlement

Panels

for

disputes

on

prudential

issues and other

financial

matters

shall

have the necessary expertise

relevant to the specific financial service under dispute.

5. Definitions

For the purposes of this Annex:

(a) A financial service is any service of a financial nature

offered by a financial service supplier of a Member.

Financial

services

include

all

insurance

and

insurance-related services, and all banking and other

financial services (excluding insurance). Financial services

include the following activities:

Insurance and insurance-related services

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

(A) life

(B) non-life

(ii) Reinsurance and retrocession;

(iii) Insurance intermediation, such as brokerage and

agency;

(iv) Services auxiliary to insurance, such as consultancy,

actuarial, risk assessment and claim settlement services.

Banking

and

other

financial

services

(excluding

insurance)

(v) Acceptance of deposits and other repayable funds

from the public;

(vi) Lending of all types, including consumer credit,

mortgage credit, factoring and financing of commercial

transaction;

(vii) Financial leasing;

(viii)

All

payment

and

money

transmission

services,

including

credit,

charge

and

debit

cards,

travellers

cheques and bankers drafts;

(ix) Guarantees and commitments;

(x) Trading for own account or for account of customers,

whether on an exchange, in an over-the-counter market

or otherwise, the following:

(A) money market instruments (including cheques, bills,

certificates of deposits);

(B) foreign exchange;

(C) derivative products including, but not limited to,

futures and options;

(D)

exchange

rate

and

interest

rate

instruments,

including

products

such

as

swaps,

forward

rate

agreements;

(E) transferable securities;

(F) other negotiable instruments and financial assets,

including bullion.

(xi)

Participation

in

issues of all kinds of securities,

including underwriting and placement as agent (whether

publicly or privately) and provision of services related to

such issues;

(xii) Money broking;

(xiii)

Asset

management,

such

as

cash

or

portfolio

management,

all

forms

of

collective

investment

management,

pension

fund

management,

custodial,

depository and trust services;

(xiv) Settlement and clearing services for financial assets,

including

securities,

derivative

products,

and

other

negotiable instruments;

(xv) Provision and transfer of financial information, and

financial

data

processing

and

related

software

by

suppliers of other financial services;

(xvi) Advisory, intermediation and other auxiliary financial

services on all the activities listed in subparagraphs (v)

through (xv), including credit reference and analysis,

investment and portfolio research and advice, advice on

acquisitions and on corporate restructuring and strategy.

(b) A financial service supplier means any natural or

juridical

person

of

a Member wishing to supply or

supplying

financial

services

but

the

term

"financial

service supplier" does not include a public entity.

(c) "Public entity" means:

(i) a government, a central bank or a monetary authority,

of a Member, or an entity owned or controlled by a

Member, that is principally engaged in carrying out

governmental functions or activities for governmental

purposes, not including an entity principally engaged in

supplying financial services on commercial terms; or

(ii)

a

private

entity,

performing

functions

normally

performed by a central bank or monetary authority, when

exercising those functions.

SECOND ANNEX ON FINANCIAL SERVICES

1.

Notwithstanding

Article

II

of the Agreement and

paragraphs 1 and 2 of the Annex on Article II Exemptions,

a Member may, during a period of 60 days beginning four

months after the date of entry into force of the WTO

Agreement,

list

in

that Annex measures relating to

financial services which are inconsistent with paragraph 1

of Article II of the Agreement.

2.

Notwithstanding

Article

XXI of the Agreement, a

Member may, during a period of 60 days beginning four

months after the date of entry into force of the WTO

Agreement, improve, modify or withdraw all or part of the

specific commitments on financial services inscribed in

its Schedule.

3. The Council for Trade in Services shall establish any

procedures necessary for the application of paragraphs 1

and 2.

ANNEX ON NEGOTIATIONS ON MARITIME

TRANSPORT SERVICES

1. Article II and the Annex on Article II Exemptions,

including the requirement to list in the Annex any

measure

inconsistent

with

most-favoured-nation

treatment that a Member will maintain, shall enter into

force for international shipping, auxiliary services and

access to and use of port facilities only on:

(a) the implementation date to be determined under

paragraph 4 of the Ministerial Decision on Negotiations

on Maritime Transport Services; or,

(b) should the negotiations not succeed, the date of the

final

report

of

the

Negotiating

Group

on

Maritime

Transport Services provided for in that Decision.

2. Paragraph 1 shall not apply to any specific commitment

on maritime transport services which is inscribed in a

Member's Schedule.

3. From the conclusion of the negotiations referred to in

paragraph 1, and before the implementation date, a

Member may improve, modify or withdraw all or part of

its specific commitments in this sector without offering

compensation, notwithstanding the provisions of Article

XXI.

ANNEX ON TELECOMMUNICATIONS

1. Objectives

Recognizing the specificities of the telecommunications

services sector and, in particular, its dual role as a distinct

sector

of

economic

activity

and

as

the

underlying

© Compiled by RGL

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