Section 157p. 157

PUBLIC INTERNATIONAL LAW COMPENDIUM VOLUME II

relating to the attachment of such equipment to such

networks;

(v) restrictions on inter-connection of private leased or

owned circuits with such networks or services or with

circuits leased or owned by another service supplier; or

(vi) notification, registration and licensing.

(g) Notwithstanding the preceding paragraphs of this

section, a developing country Member may, consistent

with its level of development, place reasonable conditions

on access to and use of public telecommunications

transport networks and services necessary to strengthen

its

domestic

telecommunications

infrastructure

and

service

capacity

and

to increase its participation in

international trade in telecommunications services. Such

conditions shall be specified in the Member's Schedule.

6. Technical Cooperation

(a)

Members

recognize

that

an

efficient,

advanced

telecommunications

infrastructure

in

countries,

particularly

developing

countries,

is

essential to the

expansion of their trade in services. To this end, Members

endorse and encourage the participation, to the fullest

extent

practicable,

of

developed

and

developing

countries

and

their

suppliers

of

public

telecommunications transport networks and services and

other

entities

in

the

development

programmes

of

international and regional organizations, including the

International

Telecommunication

Union,

the

United

Nations Development Programme, and the International

Bank for Reconstruction and Development.

(b)

Members

shall

encourage

and

support

telecommunications

cooperation

among

developing

countries at the international, regional and sub-regional

levels.

(c)

In

cooperation

with

relevant

international

organizations,

Members

shall

make

available,

where

practicable, to developing countries information with

respect

to

telecommunications

services

and

developments in telecommunications and information

technology to assist in strengthening their domestic

telecommunications services sector.

(d)

Members

shall

give

special

consideration

to

opportunities

for

the

least-developed

countries

to

encourage

foreign

suppliers

of

telecommunications

services to assist in the transfer of technology, training

and other activities that support the development of their

telecommunications

infrastructure

and

expansion

of

their telecommunications services trade.

7.

Relation

to

International

Organizations

and

Agreements

(a) Members recognize the importance of international

standards for global compatibility and inter-operability of

telecommunication networks and services and undertake

to promote such standards through the work of relevant

international

bodies,

including

the

International

Telecommunication

Union

and

the

International

Organization for Standardization.

(b)

Members

recognize

the

role

played

by

intergovernmental and non-governmental organizations

and agreements in ensuring the efficient operation of

domestic and global telecommunications services, in

particular the International Telecommunication Union.

Members shall make appropriate arrangements, where

relevant, for consultation with such organizations on

matters arising from the implementation of this Annex.

ANNEX ON NEGOTIATIONS ON BASIC

TELECOMMUNICATIONS

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 basic telecommunications only on:

(a) the implementation date to be determined under

paragraph 5 of the Ministerial Decision on Negotiations

on Basic Telecommunications; or,

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

final

report

of

the

Negotiating

Group

on

Basic

Telecommunications provided for in that Decision.

2. Paragraph 1 shall not apply to any specific commitment

on basic telecommunications which is inscribed in a

Member's Schedule.

Footnotes

1. This condition is understood in terms of number of

sectors, volume of trade affected and modes of supply. In

order to meet this condition, agreements should not

provide for the a priori exclusion of any mode of supply.

2. Typically,

such

integration

provides

citizens

of

the

parties concerned with a right of free entry to the

employment

markets

of

the

parties

and

includes

measures concerning conditions of pay, other conditions

of employment and social benefits.

3. The term "relevant international organizations" refers to

international bodies whose membership is open to the

relevant bodies of at least all Members of the WTO.

4. It is understood that the procedures under paragraph 5

shall be the same as the GATT 1994 procedures.

5. The public order exception may be invoked only where

a genuine and sufficiently serious threat is posed to one

of the fundamental interests of society.

6. Measures that are aimed at ensuring the equitable or

effective imposition or collection of direct taxes include

measures taken by a Member under its taxation system

which:

(i) apply to non-resident service suppliers in recognition of

the

fact

that the tax obligation of non-residents is

determined with respect to taxable items sourced or

located in the Member's territory; or

(ii)

apply

to

non-residents

in

order

to

ensure

the

imposition or collection of taxes in the Member's territory;

or

(iii) apply to non-residents or residents in order to prevent

the avoidance or evasion of taxes, including compliance

measures; or

(iv) apply to consumers of services supplied in or from the

territory of another Member in order to ensure the

imposition or collection of taxes on such consumers

derived from sources in the Member's territory; or

(v)

distinguish

service

suppliers

subject

to

tax

on

worldwide taxable items from other service suppliers, in

recognition of the difference in the nature of the tax base

between them; or

(vi) determine, allocate or apportion income, profit, gain,

loss, deduction or credit of resident persons or branches,

or between related persons or branches of the same

person, in order to safeguard the Member's tax base.

Tax terms or concepts in paragraph (d) of Article XIV and

in

this

footnote

are

determined

according

to

tax

definitions

and

concepts,

or

equivalent

or

similar

definitions and concepts, under the domestic law of the

Member taking the measure.

7. A future work programme shall determine how, and in

what

time-frame,

negotiations

on

such

multilateral

disciplines will be conducted.

8. If a Member undertakes a market-access commitment

in relation to the supply of a service through the mode of

supply referred to in subparagraph 2(a) of Article I and if

the cross-border movement of capital is an essential part

of the service itself, that Member is thereby committed to

allow such movement of capital. If a Member undertakes

a market-access commitment in relation to the supply of

a service through the mode of supply referred to in

subparagraph 2(c) of Article I, it is thereby committed to

allow related transfers of capital into its territory.

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