Chapter 2: Services CHAPTER 2 SERVICES · Chapter 2: Services 707 CHAPTER 2 SERVICES 1. BACKGROUND OF THE RULES The purpose of the disciplines regarding trade in services under EPAs/FTAs

Chapter 2: Services

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CHAPTER 2

SERVICES 1. BACKGROUND OF THE RULES

The purpose of the disciplines regarding trade in services under EPAs/FTAs is, as under the General Agreement on Trade in Services (GATS), to enhance trade liberalization by eliminating barriers to trade in services between Parties and increasing the transparency of measures affecting trade in services. Disciplines and specific commitments aim to be GATS plus. Therefore, provisions under EPA/FTA have been gradually developed and advanced, and on some matters, the text of the relevant provisions greatly varies from EPA/FTA to EPA/FTA. This variation reflects certain distinctions between the contracting party countries, such as their policies on liberalization in service areas, history of negotiations regarding the relevant EPA/FTA (i.e., issues with respect to multilateral negotiations or political situations of the negotiating countries).

Unlike trade in goods, where negotiations focus on the maximum tariff rate stated in the relevant schedule of concessions, the liberalization commitment approach, with respect to trade in services in individual sectors, deals with domestic regulations making it difficult to specify the effect of trade restrictions in numerical values. In the service chapter of an EPA/FTA, liberalization commitment approaches are classified into two categories -- the “negative list” and the “positive list”. The “negative list” is an approach of commitment under which the obligation of liberalization such as national treatment and MFN treatment is disciplined as a general obligation; and measures and sectors which are exempted from that obligation are explicitly inscribed in the list of non-conforming measures, and liberalization such as national treatment and MFN treatment is committed for all those which are not included in the list of non-conforming measures. The “positive list” is another approach of commitment under which the subject sectors of liberalization and the conditions and restrictions are specifically and explicitly inscribed in the list regarding national treatment and market access, and no obligations are to be undertaken regarding national treatment and market access with respect to any other sectors which are not inscribed in the positive list. In preparing the lists of the sectors with respect to which commitments are made, the Services Sectoral Classification List (MTN.GNS/W/120; 10 July 1991) used in WTO/GATS should be the basis, but Member countries can also specify the scope of implementing liberalization for sub-sectors and lower levels.

To sum up, the “negative list” is an approach under which Member countries specify the sectors which are exempted from the obligation of liberalization, while the “positive list” is a commitment approach under which Member countries specify the sectors for which liberalization is implemented. The former is considered as a framework which generally contributes to a higher level of liberalization, but of course, the achievement of liberalization all depends on the substance of commitments.

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Figure III-2-1 WTO International Agreement on Trade in Services (GATS) and Economic Partnership Agreements

2. OVERVIEW OF LEGAL DISCIPLINES

The structure of each treaty on trade in services depends on whether it adopts “positive list approach” or “negative list approach”.

(1) FOUR MODES AND THE RELATIONSHIP BASED ON THESE MODES BETWEEN THE SERVICE CHAPTER, THE CHAPTER ON INVESTMENT, AND THE CHAPTER ON THE MOVEMENT OF NATURAL PERSONS

In the Services chapter of GATS and EPAs/FTAs, trade in services is classified as four modes of supply: Mode 1: cross-border supply; Mode 2: consumption abroad; Mode 3: commercial presence; and Mode 4: movement of natural persons. Only Mode 3 is dealt with in a different way according to each specific EPA/FTA (see Chapter 12, Part II).

In the case of EPAs/FTAs in which the GATS style “positive list” approach is adopted, all four modes are covered. However, Mode 3 in the service chapter overlaps with the scope of the chapter on investment as the chapter on investment does not exclude the coverage on investments in service sectors. To avoid any inconsistency inherently arose by such an overlap, the commitment (reservation) in the chapter on investment are made principally the same as the commitment of Mode 3 in the service chapter made in the sectors concerned. Provided that inconsistency is eventually found between the two chapters, there is the provision that the disciplines and commitments in the service chapter should prevail to the extent of such inconsistency.

In the case of the NAFTA-style “negative list” approach, the service chapter covers only the cross-border supply of Modes 1, 2 and 4, while investments in service sectors, i.e., Mode 3, is dealt with in the chapter on investment. In other words, it is the chapter on investment that covers investments in service sectors made by investors of a contracting party’s country in the other contracting party’s country such in forms of subsidiaries and branches.

Bilateral commitment

s under EPAs

(GATS+α)

Partial liberal-ization

Deeper liberalization

Etc.

・・・・・・・・・・・・・

Professional servicesLegal, accounting, architecture,

and medical, etc.

Computer

and related services

Research and development services

Distribution services

Audiovisual services (motion picture

distribution, game contents, etc.)

Under the GATS, services sectors are classified into approximately 150 sectors, including sub-sectors. Each country commits under “what conditions” and to “what level” each sector can be liberalized to.

Something extra added to the above, i.e. “GATS-plus”, is a key factor of EPAs.

Comm

ission agentW

holesale tradeRetailingFranchising

An Economic Partnership Agreement (EPA) is a set of trade rules concluded between two countries. An EPA covers both trade in goods and trade in services.An EPA is a mechanism for achieving more in-depth, higher liberalization of trade in services than multilateral commitments (WTO) by negotiations between two countries.Higher “level” and broader “scope” of liberalization of trade in services committed under the WTO agreements can be achieved by EPAs.These achievements of EPAs are generally referred to as the “WTO (GATS)-plus”.

No market restrictionsLiberalization level (high)

Closed market Liberalization level (low)

Educational services

Primary/secondary/

higher/adult education

Services incidental to energy distribution

Real estate services

Financial services

BankingLife, accident and health insuranceFinancing Financial leasing

Comm

unication services

PostalCourierTelecom

mu-

nication

Other services

Hotels and restaurantsTravel agencies, etc.

Tourism and

travel related services

Sectors committed under the GATS

Sectors not committed under the GATS

GATS-plus

(Example) A case of services market in some country

Hardware installationSoftware im

plementation

Data processingSystem

m

aintenance/operation

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709

In addition, regarding Mode 4, immigration measures are dealt with in the chapter on the movement of natural persons, while the treatment after immigration is dealt with in the service chapter. In summary, Mode 4 itself includes the immigration measure but in the case of GATS style EPA/FTA, while keeping it in the scope of the service chapter, the immigration measure is excluded from the Schedule of Commitments (without any commitment); and in the case of NAFTA style EPA/FTA, the immigration measure is not within the scope of the service chapter.

Figure III-2-2 Relationship between Investment Chapter, Services Chapter, and Movement of Natural Persons Chapter

(2) DEFINITION OF SERVICE SUPPLIER OF THE OTHER PARTY AND JURIDICAL PERSON OF THE OTHER PARTY

EPAs/FTAs normally provide for definitions of basic terms in order to clarify the coverage of such basic terms. One such basic term is “service supplier of the party.” They are objects that are given the benefit of EPAs/FTAs. Entities which are eligible to be a service supplier include both natural persons and juridical persons. Under such definitions, such persons are entitled to the benefit of the agreements through, inter alia, a liberalization commitment in respect of trade in services. In addition, EPAs/FTAs usually provide for definitions of a “juridical person of the other party”. A “juridical person of the other party” is usually defined as (i) with regard to Mode 1 and Mode 2, a juridical person established within the territory of the other party, and (ii) with regard to Mode 3, a juridical person that is established within the territory of the country and owned or controlled by: (a) a natural person in the other country or (b) another juridical person established within the territory of the other party. Some EPAs/FTAs require as a criterion for such definition engagement by the “juridical person of the other party” in substantial activity in the territory of the other Party, while the others not.

EPAs/FTAs normally define “ownership” and “control” as follows:

A juridical person is deemed to be “owned” by persons if more than fifty percent (50%) of the equity interest in it is owned by such persons. Under GATS, the term “owned” is construed to mean direct ownership. Under the aforesaid definition of a “juridical person of the other party” for Mode 3, such person could mean a juridical person (a “subsidiary”) established within the territory of one contracting party country and directly owned by another juridical person (a “parent company”) established within the territory of the other contracting party country, but would not include a sub-subsidiary (a company

Investment chapter

Services chapter

Movement of natural persons

chapterBasic obligations: MFN, NT, PR

Basic obligations: MFN, NT, LP, MA

Investment in non-services sectors (manufacturing, agriculture, mining, etc.)

Investment in services sectors Mode 3 is excluded

from the services chapter and provided for in the investment

chapter (Japan-Mexico, Japan-Chile)

Mode 3 in the services chapter and investment in services sectors in the

investment chapter overlap

Immigration measure on the

entry and temporary stay of natural

persons

Mode 1

Mode 2

Mode 3

Mode 4

Immigration measure

Basic positionImmigration measure is

excluded from the services chapter and provided for in the

movement of natural services chapter

With regard to immigration measures, part of Mode 4 in the

services chapter and the movement of natural

persons chapter overlap

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708

Figure III-2-1 WTO International Agreement on Trade in Services (GATS) and Economic Partnership Agreements

2. OVERVIEW OF LEGAL DISCIPLINES

The structure of each treaty on trade in services depends on whether it adopts “positive list approach” or “negative list approach”.

(1) FOUR MODES AND THE RELATIONSHIP BASED ON THESE MODES BETWEEN THE SERVICE CHAPTER, THE CHAPTER ON INVESTMENT, AND THE CHAPTER ON THE MOVEMENT OF NATURAL PERSONS

In the Services chapter of GATS and EPAs/FTAs, trade in services is classified as four modes of supply: Mode 1: cross-border supply; Mode 2: consumption abroad; Mode 3: commercial presence; and Mode 4: movement of natural persons. Only Mode 3 is dealt with in a different way according to each specific EPA/FTA (see Chapter 12, Part II).

In the case of EPAs/FTAs in which the GATS style “positive list” approach is adopted, all four modes are covered. However, Mode 3 in the service chapter overlaps with the scope of the chapter on investment as the chapter on investment does not exclude the coverage on investments in service sectors. To avoid any inconsistency inherently arose by such an overlap, the commitment (reservation) in the chapter on investment are made principally the same as the commitment of Mode 3 in the service chapter made in the sectors concerned. Provided that inconsistency is eventually found between the two chapters, there is the provision that the disciplines and commitments in the service chapter should prevail to the extent of such inconsistency.

In the case of the NAFTA-style “negative list” approach, the service chapter covers only the cross-border supply of Modes 1, 2 and 4, while investments in service sectors, i.e., Mode 3, is dealt with in the chapter on investment. In other words, it is the chapter on investment that covers investments in service sectors made by investors of a contracting party’s country in the other contracting party’s country such in forms of subsidiaries and branches.

Bilateral commitment

s under EPAs

(GATS+α)

Partial liberal-ization

Deeper liberalization

Etc.

・・・・・・・・・・・・・

Professional servicesLegal, accounting, architecture,

and medical, etc.

Computer

and related services

Research and development services

Distribution services

Audiovisual services (motion picture

distribution, game contents, etc.)

Under the GATS, services sectors are classified into approximately 150 sectors, including sub-sectors. Each country commits under “what conditions” and to “what level” each sector can be liberalized to.

Something extra added to the above, i.e. “GATS-plus”, is a key factor of EPAs.

Comm

ission agentW

holesale tradeRetailingFranchising

An Economic Partnership Agreement (EPA) is a set of trade rules concluded between two countries. An EPA covers both trade in goods and trade in services.An EPA is a mechanism for achieving more in-depth, higher liberalization of trade in services than multilateral commitments (WTO) by negotiations between two countries.Higher “level” and broader “scope” of liberalization of trade in services committed under the WTO agreements can be achieved by EPAs.These achievements of EPAs are generally referred to as the “WTO (GATS)-plus”.

No market restrictionsLiberalization level (high)

Closed market Liberalization level (low)

Educational services

Primary/secondary/

higher/adult education

Services incidental to energy distribution

Real estate services

Financial services

BankingLife, accident and health insuranceFinancing Financial leasing

Comm

unication services

PostalCourierTelecom

mu-

nication

Other services

Hotels and restaurantsTravel agencies, etc.

Tourism and

travel related services

Sectors committed under the GATS

Sectors not committed under the GATS

GATS-plus

(Example) A case of services market in some country

Hardware installationSoftware im

plementation

Data processingSystem

m

aintenance/operation

Chapter 2: Services

709

In addition, regarding Mode 4, immigration measures are dealt with in the chapter on the movement of natural persons, while the treatment after immigration is dealt with in the service chapter. In summary, Mode 4 itself includes the immigration measure but in the case of GATS style EPA/FTA, while keeping it in the scope of the service chapter, the immigration measure is excluded from the Schedule of Commitments (without any commitment); and in the case of NAFTA style EPA/FTA, the immigration measure is not within the scope of the service chapter.

Figure III-2-2 Relationship between Investment Chapter, Services Chapter, and Movement of Natural Persons Chapter

(2) DEFINITION OF SERVICE SUPPLIER OF THE OTHER PARTY AND JURIDICAL PERSON OF THE OTHER PARTY

EPAs/FTAs normally provide for definitions of basic terms in order to clarify the coverage of such basic terms. One such basic term is “service supplier of the party.” They are objects that are given the benefit of EPAs/FTAs. Entities which are eligible to be a service supplier include both natural persons and juridical persons. Under such definitions, such persons are entitled to the benefit of the agreements through, inter alia, a liberalization commitment in respect of trade in services. In addition, EPAs/FTAs usually provide for definitions of a “juridical person of the other party”. A “juridical person of the other party” is usually defined as (i) with regard to Mode 1 and Mode 2, a juridical person established within the territory of the other party, and (ii) with regard to Mode 3, a juridical person that is established within the territory of the country and owned or controlled by: (a) a natural person in the other country or (b) another juridical person established within the territory of the other party. Some EPAs/FTAs require as a criterion for such definition engagement by the “juridical person of the other party” in substantial activity in the territory of the other Party, while the others not.

EPAs/FTAs normally define “ownership” and “control” as follows:

A juridical person is deemed to be “owned” by persons if more than fifty percent (50%) of the equity interest in it is owned by such persons. Under GATS, the term “owned” is construed to mean direct ownership. Under the aforesaid definition of a “juridical person of the other party” for Mode 3, such person could mean a juridical person (a “subsidiary”) established within the territory of one contracting party country and directly owned by another juridical person (a “parent company”) established within the territory of the other contracting party country, but would not include a sub-subsidiary (a company

Investment chapter

Services chapter

Movement of natural persons

chapterBasic obligations: MFN, NT, PR

Basic obligations: MFN, NT, LP, MA

Investment in non-services sectors (manufacturing, agriculture, mining, etc.)

Investment in services sectors Mode 3 is excluded

from the services chapter and provided for in the investment

chapter (Japan-Mexico, Japan-Chile)

Mode 3 in the services chapter and investment in services sectors in the

investment chapter overlap

Immigration measure on the

entry and temporary stay of natural

persons

Mode 1

Mode 2

Mode 3

Mode 4

Immigration measure

Basic positionImmigration measure is

excluded from the services chapter and provided for in the

movement of natural services chapter

With regard to immigration measures, part of Mode 4 in the

services chapter and the movement of natural

persons chapter overlap

541


710

that is indirectly owned by a parent company through subsidiary established within the territory of the other contracting party). In contrast, the chapter on investment in the relevant EPA/FTA normally defines “investment” (which is the subject of protection granted pursuant to that chapter), as an asset of an investor in one contracting party, and such includes any “enterprise” owned, whether directly or indirectly, by such an investor or investors.

Under the chapter on services in the relevant EPA/FTA, a juridical person is “controlled” by persons if such persons have the power to name a majority of its directors or otherwise to legally direct the actions of the juridical person.

(3) MOST-FAVOURED-NATION (“MFN”) TREATMENT The provision of MFN treatment under GATS requires that among WTO member countries: “each

Member shall accord immediately and unconditionally to services and service suppliers of any other Member treatment no less favorable than that it accords to like services and service suppliers of any other country” (Article II). According to this provision, a WTO Member country undertakes the obligation of according the same treatment to all other WTO Member countries with regard to the measures which fall under GATS. This means that in addition to national treatment and the treatment pertaining to market access with respect to which a Member country made commitments in the Schedule of Commitments, the same treatment is equally afforded to all WTO Member countries even if no commitment has been made in that country’s Schedule of Commitments. On the other hand, under Article V of GATS, Member countries that enter into an EPA/FTA may not be subject to the MFN obligation under GATS (i.e., there is no obligation to accord such treatment to the WTO Member countries other than contracting party countries to such EPA/FTA). For instance, in the case where under GATS, Member country A has committed to allow foreign capital to make an equity contribution at a rate up to 40% in the retailing service sector, if under the EPA/FTA which country A has concluded with country B (which satisfies the requirement of the said Article V), a commitment has been made to allow a rate up to 50% in the said sector for foreign capital, then there is no obligation to let the WTO Member countries other than country B equally share such committed treatment. Country A allows foreign capital to make an equity contribution at a ratio up to 50% in the retailing service sector only for service suppliers of country B, while the ratio up to 40% remains unchanged for service suppliers of other WTO Member countries.

On the other hand, the MFN treatment provided in EPAs/FTAs requires that a contracting party country should accord to the other contracting party treatment no less favorable than that it accords to like services and service suppliers of any other third country. The MFN treatment pursuant to a principle like this is widely seen in the EPAs/FTAs concluded between developed countries and was provided in agreements like NAFTA and the U.S.A.-Singapore FTA.

Under the EPAs/FTAs, such as the Japan-Viet Nam EPA and the Japan-Switzerland EPA, the MFN treatment is provided with the exception that the preferential treatment provided under the EPAs/FTAs with the third country that satisfies the requirements under Article V of the GATS is not applicable to the other contracting party country to the former EPAs/FTAs. Provisions are included in the Japan-Switzerland EPA that the contracting party country is obliged to consult with the other contracting party country or endeavor to accord to the other contracting party country treatment no less favorable than that provided under other agreements concluded and notified under Article V of the GATS. The Japan-Viet Nam EPA provides an obligation of consultation similar to that of the Japan-Switzerland EPA, but does not provide such obligation to endeavor as is stipulated in the latter EPA.

In addition, certain agreements include review provisions aimed at effectively according MFN treatment while not specifically providing for the MFN treatment. Such provisions are peculiar to EPAs/FTAs. That is to say, pursuant to a review provision, if country B newly enters into a B-C

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EPA/FTA with country C and if such new B-C EPA/FTA accords a more favorable treatment to country C (which is a third party country from country A’s perspective), then the A-B EPA/FTA, which contains a review provision, may obligate the contracting party country B to consider whether it should revise such A-B EPA/FTA in order to accord to country A treatment no less favorable than that provided to country C under the new B-C EPA/FTA. The Japan-Thailand EPA and the India-Singapore FTA are examples of an EPA/FTA providing an MFN provision of this type.

(4) MARKET ACCESS As under GATS, EPAs/FTAs provide market access provisions, primarily in order to liberalize

restrictive measures imposed on market entries mainly due to economic factors. Following the GATS approach, most such agreements are structured in the positive list format of commitments described above. However, NAFTA, which is a negative list format agreement (which entered into force before GATS), also contains disciplines on “quantitative restrictions” on trade in services. (However, “limitations on the participation of foreign capital”, which is provided in the paragraph 2 (f) of Article XVI of GATS, is excluded because Mode 3 is exclusively covered in the Investment chapter.)

(5) NATIONAL TREATMENT As under GATS, national treatment under EPAs/FTAs is a concept whereby the treatment accorded by

a contracting party to the services and the service suppliers of the other contracting party country shall be no less favorable than the treatment accorded to its own like services and service suppliers.

Under the positive list approach, the sectors in respect of which national treatment obligations are committed and the conditions and restrictions therefore are inscribed in the “Schedule of Commitments” of the relevant EPA/FTA. On the other hand, under the negative list approach, both the sectors for which national treatment obligations are not committed and the measures which are exempted from such commitments i.e. conditions and restrictions in respect of the remaining sectors are inscribed in the “Schedule of Reservations” of the relevant EPA/FTA. Under either approach, the scope of commitments or reservations, as the case may be, is to be explicitly specified in order to enhance transparency and promote liberalization of trade in services.

(6) ADDITIONAL COMMITMENTS As under GATS, commitments which go beyond market access and national treatment obligations

may be inscribed in the “Schedule of Commitments” of the relevant EPA/FTA. Some EPAs/FTAs adopting the positive list approach provide examples of additional commitments (such as disciplines promoting competition in the telecommunications sector and additional commitments in respect of domestic regulations in the financial sector) with a view to incorporating the outcome of the GATS negotiation. No example of additional commitments is found in FTAs which adopt the negative list approach.

(7) STANDSTILL OBLIGATION Under NAFTA, which adopts the negative list approach, if the contracting party country makes

reservations on certain obligations under the agreement (such as with respect to the national treatment obligation, the MFN treatment obligation with regard to existing measures in certain sectors etc.), it owes an obligation to maintain the status quo in respect of such reservations as of the entry into force of the agreement (that is, it owes an obligation not to adopt any measure which is more restrictive than existing measures). This is referred to as a “standstill obligation.” A contracting party country may make a reservation not only on existing measures, but also on the relevant service sector, where the country does not owe any such standstill obligation with respect to existing measures, and thus may adopt any

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that is indirectly owned by a parent company through subsidiary established within the territory of the other contracting party). In contrast, the chapter on investment in the relevant EPA/FTA normally defines “investment” (which is the subject of protection granted pursuant to that chapter), as an asset of an investor in one contracting party, and such includes any “enterprise” owned, whether directly or indirectly, by such an investor or investors.

Under the chapter on services in the relevant EPA/FTA, a juridical person is “controlled” by persons if such persons have the power to name a majority of its directors or otherwise to legally direct the actions of the juridical person.

(3) MOST-FAVOURED-NATION (“MFN”) TREATMENT The provision of MFN treatment under GATS requires that among WTO member countries: “each

Member shall accord immediately and unconditionally to services and service suppliers of any other Member treatment no less favorable than that it accords to like services and service suppliers of any other country” (Article II). According to this provision, a WTO Member country undertakes the obligation of according the same treatment to all other WTO Member countries with regard to the measures which fall under GATS. This means that in addition to national treatment and the treatment pertaining to market access with respect to which a Member country made commitments in the Schedule of Commitments, the same treatment is equally afforded to all WTO Member countries even if no commitment has been made in that country’s Schedule of Commitments. On the other hand, under Article V of GATS, Member countries that enter into an EPA/FTA may not be subject to the MFN obligation under GATS (i.e., there is no obligation to accord such treatment to the WTO Member countries other than contracting party countries to such EPA/FTA). For instance, in the case where under GATS, Member country A has committed to allow foreign capital to make an equity contribution at a rate up to 40% in the retailing service sector, if under the EPA/FTA which country A has concluded with country B (which satisfies the requirement of the said Article V), a commitment has been made to allow a rate up to 50% in the said sector for foreign capital, then there is no obligation to let the WTO Member countries other than country B equally share such committed treatment. Country A allows foreign capital to make an equity contribution at a ratio up to 50% in the retailing service sector only for service suppliers of country B, while the ratio up to 40% remains unchanged for service suppliers of other WTO Member countries.

On the other hand, the MFN treatment provided in EPAs/FTAs requires that a contracting party country should accord to the other contracting party treatment no less favorable than that it accords to like services and service suppliers of any other third country. The MFN treatment pursuant to a principle like this is widely seen in the EPAs/FTAs concluded between developed countries and was provided in agreements like NAFTA and the U.S.A.-Singapore FTA.

Under the EPAs/FTAs, such as the Japan-Viet Nam EPA and the Japan-Switzerland EPA, the MFN treatment is provided with the exception that the preferential treatment provided under the EPAs/FTAs with the third country that satisfies the requirements under Article V of the GATS is not applicable to the other contracting party country to the former EPAs/FTAs. Provisions are included in the Japan-Switzerland EPA that the contracting party country is obliged to consult with the other contracting party country or endeavor to accord to the other contracting party country treatment no less favorable than that provided under other agreements concluded and notified under Article V of the GATS. The Japan-Viet Nam EPA provides an obligation of consultation similar to that of the Japan-Switzerland EPA, but does not provide such obligation to endeavor as is stipulated in the latter EPA.

In addition, certain agreements include review provisions aimed at effectively according MFN treatment while not specifically providing for the MFN treatment. Such provisions are peculiar to EPAs/FTAs. That is to say, pursuant to a review provision, if country B newly enters into a B-C

Chapter 2: Services

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EPA/FTA with country C and if such new B-C EPA/FTA accords a more favorable treatment to country C (which is a third party country from country A’s perspective), then the A-B EPA/FTA, which contains a review provision, may obligate the contracting party country B to consider whether it should revise such A-B EPA/FTA in order to accord to country A treatment no less favorable than that provided to country C under the new B-C EPA/FTA. The Japan-Thailand EPA and the India-Singapore FTA are examples of an EPA/FTA providing an MFN provision of this type.

(4) MARKET ACCESS As under GATS, EPAs/FTAs provide market access provisions, primarily in order to liberalize

restrictive measures imposed on market entries mainly due to economic factors. Following the GATS approach, most such agreements are structured in the positive list format of commitments described above. However, NAFTA, which is a negative list format agreement (which entered into force before GATS), also contains disciplines on “quantitative restrictions” on trade in services. (However, “limitations on the participation of foreign capital”, which is provided in the paragraph 2 (f) of Article XVI of GATS, is excluded because Mode 3 is exclusively covered in the Investment chapter.)

(5) NATIONAL TREATMENT As under GATS, national treatment under EPAs/FTAs is a concept whereby the treatment accorded by

a contracting party to the services and the service suppliers of the other contracting party country shall be no less favorable than the treatment accorded to its own like services and service suppliers.

Under the positive list approach, the sectors in respect of which national treatment obligations are committed and the conditions and restrictions therefore are inscribed in the “Schedule of Commitments” of the relevant EPA/FTA. On the other hand, under the negative list approach, both the sectors for which national treatment obligations are not committed and the measures which are exempted from such commitments i.e. conditions and restrictions in respect of the remaining sectors are inscribed in the “Schedule of Reservations” of the relevant EPA/FTA. Under either approach, the scope of commitments or reservations, as the case may be, is to be explicitly specified in order to enhance transparency and promote liberalization of trade in services.

(6) ADDITIONAL COMMITMENTS As under GATS, commitments which go beyond market access and national treatment obligations

may be inscribed in the “Schedule of Commitments” of the relevant EPA/FTA. Some EPAs/FTAs adopting the positive list approach provide examples of additional commitments (such as disciplines promoting competition in the telecommunications sector and additional commitments in respect of domestic regulations in the financial sector) with a view to incorporating the outcome of the GATS negotiation. No example of additional commitments is found in FTAs which adopt the negative list approach.

(7) STANDSTILL OBLIGATION Under NAFTA, which adopts the negative list approach, if the contracting party country makes

reservations on certain obligations under the agreement (such as with respect to the national treatment obligation, the MFN treatment obligation with regard to existing measures in certain sectors etc.), it owes an obligation to maintain the status quo in respect of such reservations as of the entry into force of the agreement (that is, it owes an obligation not to adopt any measure which is more restrictive than existing measures). This is referred to as a “standstill obligation.” A contracting party country may make a reservation not only on existing measures, but also on the relevant service sector, where the country does not owe any such standstill obligation with respect to existing measures, and thus may adopt any

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measures and maintain existing measures to an extent specifically reserved the applicability of certain obligations (such as the national treatment obligation) in the sector concerned.

In cases where standstill obligations are provided in an EPA/FTA which adopts the positive list approach (for example, under paragraph 3 of Article 75 of the Japan-Philippines EPA, and with respect to the sectors marked as “SS” (the abbreviation of “short for standstill”) in the Schedule of Commitments attached thereto (such sectors are referred to as the “SS sectors”)), the conditions and restrictions therefore may be inscribed therein only in relation to existing measures which do not conform to either market access obligations or national treatment obligations. Without regard to whether or not the relevant sector is marked “SS”, any commitment inscribed in the Schedule of Commitments for a certain sector is binding. Further, the contracting party countries would be obligated to maintain the status quo of existing measures as of the entry into force of the agreement in connection with the SS sectors. The Japan-Philippines EPA is the first agreement that adopted this approach with respect to services; the Japan-Malaysia, Japan-Indonesia, Japan-Thailand, and Japan-Mongolia EPAs followed it.

(8) AUTHORIZATIONS, LICENSES AND QUALIFICATIONS (DOMESTIC REGULATIONS) With a view to ensuring that measures relating to qualification requirements and procedures, technical

standards and licensing requirements do not create unnecessary barriers to trade in services, most EPAs/FTAs obligate contracting party countries to establish objective and transparent criteria: (i) so as to ensure that any such requirements, procedures and standards are not more burdensome than necessary to ensure the quality of the service, and (ii) so as to ensure that licensing procedures are not in and of themselves a restriction on the supply of the services. In addition, some EPAs/FTAs (for example, the U.S.A.-Singapore FTA, the U.S.A.-Australia FTA, and the India-Singapore FTA) explicitly provide that the parties thereto shall review the relevant disciplines in response to the progress, if any, in working programs concerning qualification requirements and procedures, technical standards and licensing requirements contemplated by paragraph 4 of Article VI of GATS.

(9) MUTUAL RECOGNITION This provision provides that a contracting party country may recognize the education or experience

obtained, requirements met, or licenses or certifications granted by another contracting party country for the purpose of fulfillment, in whole or a part, of its standards or criteria for the authorization, licensing or certifications of service suppliers of another contracting party country. In case of such recognition given by a contracting party country to a third party country, it is clearly provided that such recognition should not fall under the scope of MFN obligation, however, it is also provided that the contracting party country should offer an adequate opportunity to the other contracting party country to demonstrate that the other contracting party should also be treated the same with respect to such recognition. (The same provision is provided for in Article VII of GATS.)

Some agreements go a step further and explicitly provide that the contracting parties negotiate on the framework of mutual recognition by professional associations, and some even require such negotiation to be completed by specific deadlines and/or in respect of certain sectors (see, for example, the India-Singapore FTA).

(10) TRANSPARENCY As under GATS, in order to ensure transparency, contracting party countries have obligations to (or

obligations to make efforts to) promptly publish domestic measures in connection with the disciplines regarding services, establishment of enquiry points, etc. In addition, some agreements effectively provide that a contracting country party may change any existing measure, or introduce any new measure, but only after the expiration of a certain period of time after publishing a draft of such measure,

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and that it shall receive comments from the other contracting party country during such period. Some agreements even effectively provide that the parties thereto should adopt such comments to the greatest extent possible.

(11) SAFEGUARDS While most EPAs/FTAs lack specific provisions on safeguard measures for service sectors (as there

has been little progress in respect of negotiation on safeguards contemplated in Article X of GATS), some EPAs/FTAs do contain provisions in this regard. These agreements effectively provide, inter alia, that (i) the contracting party countries shall refrain from taking safeguard measures against the other contracting party; (ii) shall not initiate investigations therefore (see, for example, the Australia-Singapore FTA, and the India-Singapore FTA); and/or (iii) the parties thereto shall review the issue of safeguard measures in the context of developments in multilateral negotiations (see, for example, the India-Singapore FTA).

(12) DENIAL OF BENEFITS Denial of benefit provisions under EPAs/FTAs effectively provide that a contracting party country

may, under certain conditions, deny the benefits (i.e. liberalized market access commitment) provided to service suppliers of the other contracting party country. Many of them have followed the provisions of NAFTA, and deny benefits with respect to services or service suppliers of the other contracting party country where: (i) a juridical person of the other contracting party country is owned or controlled by a third party country which has no diplomatic relations with a contracting party country; (ii) a juridical person owned or controlled by a third party country to which measures such as economic sanctions prohibiting transactions with such juridical person are imposed by a contracting party country; or (iii) a juridical person which is owned or controlled by a juridical person of a third party country and is not engaging in substantial business activities within the territory of the other contracting party country. Regarding (iii), a contracting party country must give prior notification to and consultation with the other contracting party country, but whether or not benefits will actually be denied is left to the discretion of the contracting party country. Such prior notification and negotiations are not mandatory regarding (i) and (ii).

In addition, under GATS a Member country may deny the benefits of GATS to the supply of a service if it establishes that the service is supplied to its territory from or in the territory of a non-member country or that such service is supplied by a vessel registered under the laws of a non-member country in the maritime transport service (Article XXVII).

(13) PAYMENTS AND TRANSFERS As under GATS, while restrictions on payments and transfers for current transactions relating to trade

in services are generally prohibited, restrictions on payments and transfers for the purpose of safeguarding the balance of international payments are conditionally permitted under EPAs/FTAs.

Some EPAs/FTAs limit the coverage of this provision to the sectors committed by the contracting party country in the Schedule of Commitments, as under GATS, while others apply this provision to all sectors as a general obligation.

(14) EXCEPTIONS Most EPAs/FTAs contain provisions equivalent to those of Articles XIV and XIVbis of GATS, and

exempt (as general exceptions) measures to protect public morals, to maintain public order, health and safety, and measures in respect of national security interests.

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measures and maintain existing measures to an extent specifically reserved the applicability of certain obligations (such as the national treatment obligation) in the sector concerned.

In cases where standstill obligations are provided in an EPA/FTA which adopts the positive list approach (for example, under paragraph 3 of Article 75 of the Japan-Philippines EPA, and with respect to the sectors marked as “SS” (the abbreviation of “short for standstill”) in the Schedule of Commitments attached thereto (such sectors are referred to as the “SS sectors”)), the conditions and restrictions therefore may be inscribed therein only in relation to existing measures which do not conform to either market access obligations or national treatment obligations. Without regard to whether or not the relevant sector is marked “SS”, any commitment inscribed in the Schedule of Commitments for a certain sector is binding. Further, the contracting party countries would be obligated to maintain the status quo of existing measures as of the entry into force of the agreement in connection with the SS sectors. The Japan-Philippines EPA is the first agreement that adopted this approach with respect to services; the Japan-Malaysia, Japan-Indonesia, Japan-Thailand, and Japan-Mongolia EPAs followed it.

(8) AUTHORIZATIONS, LICENSES AND QUALIFICATIONS (DOMESTIC REGULATIONS) With a view to ensuring that measures relating to qualification requirements and procedures, technical

standards and licensing requirements do not create unnecessary barriers to trade in services, most EPAs/FTAs obligate contracting party countries to establish objective and transparent criteria: (i) so as to ensure that any such requirements, procedures and standards are not more burdensome than necessary to ensure the quality of the service, and (ii) so as to ensure that licensing procedures are not in and of themselves a restriction on the supply of the services. In addition, some EPAs/FTAs (for example, the U.S.A.-Singapore FTA, the U.S.A.-Australia FTA, and the India-Singapore FTA) explicitly provide that the parties thereto shall review the relevant disciplines in response to the progress, if any, in working programs concerning qualification requirements and procedures, technical standards and licensing requirements contemplated by paragraph 4 of Article VI of GATS.

(9) MUTUAL RECOGNITION This provision provides that a contracting party country may recognize the education or experience

obtained, requirements met, or licenses or certifications granted by another contracting party country for the purpose of fulfillment, in whole or a part, of its standards or criteria for the authorization, licensing or certifications of service suppliers of another contracting party country. In case of such recognition given by a contracting party country to a third party country, it is clearly provided that such recognition should not fall under the scope of MFN obligation, however, it is also provided that the contracting party country should offer an adequate opportunity to the other contracting party country to demonstrate that the other contracting party should also be treated the same with respect to such recognition. (The same provision is provided for in Article VII of GATS.)

Some agreements go a step further and explicitly provide that the contracting parties negotiate on the framework of mutual recognition by professional associations, and some even require such negotiation to be completed by specific deadlines and/or in respect of certain sectors (see, for example, the India-Singapore FTA).

(10) TRANSPARENCY As under GATS, in order to ensure transparency, contracting party countries have obligations to (or

obligations to make efforts to) promptly publish domestic measures in connection with the disciplines regarding services, establishment of enquiry points, etc. In addition, some agreements effectively provide that a contracting country party may change any existing measure, or introduce any new measure, but only after the expiration of a certain period of time after publishing a draft of such measure,

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and that it shall receive comments from the other contracting party country during such period. Some agreements even effectively provide that the parties thereto should adopt such comments to the greatest extent possible.

(11) SAFEGUARDS While most EPAs/FTAs lack specific provisions on safeguard measures for service sectors (as there

has been little progress in respect of negotiation on safeguards contemplated in Article X of GATS), some EPAs/FTAs do contain provisions in this regard. These agreements effectively provide, inter alia, that (i) the contracting party countries shall refrain from taking safeguard measures against the other contracting party; (ii) shall not initiate investigations therefore (see, for example, the Australia-Singapore FTA, and the India-Singapore FTA); and/or (iii) the parties thereto shall review the issue of safeguard measures in the context of developments in multilateral negotiations (see, for example, the India-Singapore FTA).

(12) DENIAL OF BENEFITS Denial of benefit provisions under EPAs/FTAs effectively provide that a contracting party country

may, under certain conditions, deny the benefits (i.e. liberalized market access commitment) provided to service suppliers of the other contracting party country. Many of them have followed the provisions of NAFTA, and deny benefits with respect to services or service suppliers of the other contracting party country where: (i) a juridical person of the other contracting party country is owned or controlled by a third party country which has no diplomatic relations with a contracting party country; (ii) a juridical person owned or controlled by a third party country to which measures such as economic sanctions prohibiting transactions with such juridical person are imposed by a contracting party country; or (iii) a juridical person which is owned or controlled by a juridical person of a third party country and is not engaging in substantial business activities within the territory of the other contracting party country. Regarding (iii), a contracting party country must give prior notification to and consultation with the other contracting party country, but whether or not benefits will actually be denied is left to the discretion of the contracting party country. Such prior notification and negotiations are not mandatory regarding (i) and (ii).

In addition, under GATS a Member country may deny the benefits of GATS to the supply of a service if it establishes that the service is supplied to its territory from or in the territory of a non-member country or that such service is supplied by a vessel registered under the laws of a non-member country in the maritime transport service (Article XXVII).

(13) PAYMENTS AND TRANSFERS As under GATS, while restrictions on payments and transfers for current transactions relating to trade

in services are generally prohibited, restrictions on payments and transfers for the purpose of safeguarding the balance of international payments are conditionally permitted under EPAs/FTAs.

Some EPAs/FTAs limit the coverage of this provision to the sectors committed by the contracting party country in the Schedule of Commitments, as under GATS, while others apply this provision to all sectors as a general obligation.

(14) EXCEPTIONS Most EPAs/FTAs contain provisions equivalent to those of Articles XIV and XIVbis of GATS, and

exempt (as general exceptions) measures to protect public morals, to maintain public order, health and safety, and measures in respect of national security interests.

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(15) REVIEW OF COMMITMENTS (REVIEW PROVISIONS) While GATS provides that Members shall enter into successive rounds of negotiations for progressive

liberalization (Article XIX), many EPAs/FTAs provide that reviews of commitments shall be made several years after the entry into force of the agreement for the purpose of further liberalization of trade in services.

EPAs/FTAs include a variety of provisions in this regard. Some agreements follow the GATS model, and advocate efforts toward progressive liberalization (see, for example, the India-Singapore FTA), some do not contain any special provisions in this respect (see, for example, the U.S.A.-Singapore FTA, and the U.S.A.-Australia FTA), some provide for biannual review of the agreement (see, for example, the EFTA-Singapore FTA), etc.

3. ECONOMIC ASPECTS AND SIGNIFICANCE

As discussed in “Part II, Chapter 12, Trade in Services (4) Economic Aspects and Significance,” trade in services by nature may include the movement of production factors as an element, and has a great positive spill-over effect on other industries, as is clear with regard to the financial and telecommunication industries. Thus, although the liberalization of bilateral and regional trade in services has some temporary effect on the employment market for existing service providers (as it does in respect of efforts in multilateral trade), over the long term it will contribute to the enhancement of the competitiveness of relevant service industries as well as to the enhancement of manufacturing efficiency in other service sectors and in manufacturing industries.

4. SUMMARY OF JAPAN’S EPAS

(1) MAJOR PROVISIONS

(a) MFN Treatment

With respect to EPAs entered into by Japan, the Japan-Mexico EPA, the Japan-Philippines EPA, the Japan-Chile EPA, the Japan-Brunei EPA, the Japan-Peru EPA, the Japan-Australia EPA and the Japan-Mongolia EPA provide that the contracting parties’ countries shall mutually accord to each other general MFN treatment, and shall enumerate in the annex (MFN Schedule of Reservations/Exemptions) as exceptions those sectors in respect of which MFN treatment is not accorded.

The Japan-Singapore EPA and the Japan-Thailand EPA, on the other hand, do not automatically accord to each party MFN treatment. However, under these EPAs, where one contracting country (assume, for example, Singapore) accords preferential treatment to a non-contracting party country (assume, for example, the United States), the other contracting country (for example, Japan) may request the first contracting country to allow such preferential treatment, and the first contracting country must consider whether to so permit.

The Japan-Viet Nam EPA and the Japan-Switzerland EPA provide the principle of MFN treatment with the exception that the preferential treatment provided under the other EPAs/FTAs which either party concludes with a third party country, and which satisfies the requirements of Article V of the GATS, is not applicable to the other party. The Japan-Viet Nam EPA provides an obligation for either party to negotiate with the other party if either party accords more favorable treatment to a third party. Under the Japan-Switzerland EPA, a contracting party country shall endeavor to accord to another contracting party country treatment no less favorable than that provided under other agreements.

Although the Japan-Malaysia EPA and the Japan-Indonesia EPA provide for MFN treatment as a general obligation, Malaysia and Indonesia made reservations with respect to all sectors in the annex,

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and made exception of those sectors that would not be accorded MFN treatment (MFN Schedule of Reservations/Exemptions). Malaysia and Indonesia consequently accord MFN treatment only in some sectors (such as rental and leasing services, etc.) as exceptions to the exceptions in the MFN Schedule of Reservations (i.e. “all sectors except”).

(b) Market Access

Japan’s EPAs with ASEAN countries, including the Japan-Singapore EPA, as well as the Japan-India EPA and the Japan-Mongolia EPA adopt the GATS-type positive list approach, and the market access provisions in these agreements follow those of the GATS model. The Japan-Mexico EPA and the Japan-Chile EPA adopt the NAFTA-type negative list approach and contains no obligatory provisions in respect of market access (NAFTA contains disciplines over quantitative restrictions on trade in services (Article 1207), but does not use the concept of market access in connection with trade in services). The Japan-Switzerland EPA is the first one for Japan to include market access obligations while adopting the negative list approach in an annex to the service chapter. The Japan-Peru EPA and the Japan-Australia EPA also include market access obligations.

(c) National Treatment

The provisions on national treatment under the Japan’s EPA’s with the Philippines, Mongolia, and Brunei are the same as those of GATS. The Japan-Singapore EPA, the Japan-Malaysia EPA, the Japan-Thailand EPA, the Japan-Indonesia EPA and the Japan-Viet Nam EPA also have provisions regarding national treatment obligations which are modeled on GATS, but provide that the foregoing provisions may not be invoked “under Chapter 21” with respect to any measure that falls within the scope of a tax treaty relating to the avoidance of double taxation. The Japan-Switzerland EPA and the Japan-Australia EPA also include the provisions to that effect. This is based on the premise that dispute resolution regarding measures covered by a bilateral tax treaty shall be conducted pursuant to such tax treaty.

(d) Standstill Obligations

The Japan-Mexico EPA, the Japan-Chile EPA, the Japan-Switzerland EPA, the Japan-Peru EPA, and the Japan-Australia EPA, which adopt the NAFTA-type negative list approach, provide that the following measures are to be covered by standstill obligations:

(i) Existing measures not conforming to certain obligations (for example, national treatment) maintained by the federal or central government and inscribed in the Schedule of Reservations (a list of sectors reserved under the existing measures).

(ii) Existing measures not conforming to obligations (for example, national treatment) maintained by the regional government at the prefectural level as measures of the local government and inscribed in the Schedule of Reservations (a list of measures reserved under the existing measures), and existing measures not conforming to obligations (for example, national treatment) maintained by the local government other than at the prefectural level (municipalities such as cities and villages).

(iii) Existing measures not conforming to obligations (for example, national treatment) maintained by the state government as measures of the local government and inscribed in the Schedule of Reservations (a list of sectors reserved under the existing measures), and all existing measures not conforming to obligations (for example, national treatment) maintained by the local government (municipalities such as cities and districts). Regarding the Japan-Switzerland EPA, existing measures, for which the Swiss government does not specifically reserve to adopt new measures, among those measures not conforming to obligations (for example, national

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(15) REVIEW OF COMMITMENTS (REVIEW PROVISIONS) While GATS provides that Members shall enter into successive rounds of negotiations for progressive

liberalization (Article XIX), many EPAs/FTAs provide that reviews of commitments shall be made several years after the entry into force of the agreement for the purpose of further liberalization of trade in services.

EPAs/FTAs include a variety of provisions in this regard. Some agreements follow the GATS model, and advocate efforts toward progressive liberalization (see, for example, the India-Singapore FTA), some do not contain any special provisions in this respect (see, for example, the U.S.A.-Singapore FTA, and the U.S.A.-Australia FTA), some provide for biannual review of the agreement (see, for example, the EFTA-Singapore FTA), etc.

3. ECONOMIC ASPECTS AND SIGNIFICANCE

As discussed in “Part II, Chapter 12, Trade in Services (4) Economic Aspects and Significance,” trade in services by nature may include the movement of production factors as an element, and has a great positive spill-over effect on other industries, as is clear with regard to the financial and telecommunication industries. Thus, although the liberalization of bilateral and regional trade in services has some temporary effect on the employment market for existing service providers (as it does in respect of efforts in multilateral trade), over the long term it will contribute to the enhancement of the competitiveness of relevant service industries as well as to the enhancement of manufacturing efficiency in other service sectors and in manufacturing industries.

4. SUMMARY OF JAPAN’S EPAS

(1) MAJOR PROVISIONS

(a) MFN Treatment

With respect to EPAs entered into by Japan, the Japan-Mexico EPA, the Japan-Philippines EPA, the Japan-Chile EPA, the Japan-Brunei EPA, the Japan-Peru EPA, the Japan-Australia EPA and the Japan-Mongolia EPA provide that the contracting parties’ countries shall mutually accord to each other general MFN treatment, and shall enumerate in the annex (MFN Schedule of Reservations/Exemptions) as exceptions those sectors in respect of which MFN treatment is not accorded.

The Japan-Singapore EPA and the Japan-Thailand EPA, on the other hand, do not automatically accord to each party MFN treatment. However, under these EPAs, where one contracting country (assume, for example, Singapore) accords preferential treatment to a non-contracting party country (assume, for example, the United States), the other contracting country (for example, Japan) may request the first contracting country to allow such preferential treatment, and the first contracting country must consider whether to so permit.

The Japan-Viet Nam EPA and the Japan-Switzerland EPA provide the principle of MFN treatment with the exception that the preferential treatment provided under the other EPAs/FTAs which either party concludes with a third party country, and which satisfies the requirements of Article V of the GATS, is not applicable to the other party. The Japan-Viet Nam EPA provides an obligation for either party to negotiate with the other party if either party accords more favorable treatment to a third party. Under the Japan-Switzerland EPA, a contracting party country shall endeavor to accord to another contracting party country treatment no less favorable than that provided under other agreements.

Although the Japan-Malaysia EPA and the Japan-Indonesia EPA provide for MFN treatment as a general obligation, Malaysia and Indonesia made reservations with respect to all sectors in the annex,

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and made exception of those sectors that would not be accorded MFN treatment (MFN Schedule of Reservations/Exemptions). Malaysia and Indonesia consequently accord MFN treatment only in some sectors (such as rental and leasing services, etc.) as exceptions to the exceptions in the MFN Schedule of Reservations (i.e. “all sectors except”).

(b) Market Access

Japan’s EPAs with ASEAN countries, including the Japan-Singapore EPA, as well as the Japan-India EPA and the Japan-Mongolia EPA adopt the GATS-type positive list approach, and the market access provisions in these agreements follow those of the GATS model. The Japan-Mexico EPA and the Japan-Chile EPA adopt the NAFTA-type negative list approach and contains no obligatory provisions in respect of market access (NAFTA contains disciplines over quantitative restrictions on trade in services (Article 1207), but does not use the concept of market access in connection with trade in services). The Japan-Switzerland EPA is the first one for Japan to include market access obligations while adopting the negative list approach in an annex to the service chapter. The Japan-Peru EPA and the Japan-Australia EPA also include market access obligations.

(c) National Treatment

The provisions on national treatment under the Japan’s EPA’s with the Philippines, Mongolia, and Brunei are the same as those of GATS. The Japan-Singapore EPA, the Japan-Malaysia EPA, the Japan-Thailand EPA, the Japan-Indonesia EPA and the Japan-Viet Nam EPA also have provisions regarding national treatment obligations which are modeled on GATS, but provide that the foregoing provisions may not be invoked “under Chapter 21” with respect to any measure that falls within the scope of a tax treaty relating to the avoidance of double taxation. The Japan-Switzerland EPA and the Japan-Australia EPA also include the provisions to that effect. This is based on the premise that dispute resolution regarding measures covered by a bilateral tax treaty shall be conducted pursuant to such tax treaty.

(d) Standstill Obligations

The Japan-Mexico EPA, the Japan-Chile EPA, the Japan-Switzerland EPA, the Japan-Peru EPA, and the Japan-Australia EPA, which adopt the NAFTA-type negative list approach, provide that the following measures are to be covered by standstill obligations:

(i) Existing measures not conforming to certain obligations (for example, national treatment) maintained by the federal or central government and inscribed in the Schedule of Reservations (a list of sectors reserved under the existing measures).

(ii) Existing measures not conforming to obligations (for example, national treatment) maintained by the regional government at the prefectural level as measures of the local government and inscribed in the Schedule of Reservations (a list of measures reserved under the existing measures), and existing measures not conforming to obligations (for example, national treatment) maintained by the local government other than at the prefectural level (municipalities such as cities and villages).

(iii) Existing measures not conforming to obligations (for example, national treatment) maintained by the state government as measures of the local government and inscribed in the Schedule of Reservations (a list of sectors reserved under the existing measures), and all existing measures not conforming to obligations (for example, national treatment) maintained by the local government (municipalities such as cities and districts). Regarding the Japan-Switzerland EPA, existing measures, for which the Swiss government does not specifically reserve to adopt new measures, among those measures not conforming to obligations (for example, national

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treatment) maintained by the state and local government and inscribed in the Schedule of Reservations. With regard to the Japan-Peru EPA and the Japan-Australia EPA, existing measures not conforming to obligations (for example, national treatment) maintained by the central government or local government and inscribed in the Schedule of Reservations (a list of sectors reserved under the existing measures) and existing measures not conforming to obligations (for example, national treatment) maintained by the local government.

In the case of the positive list approach, sectors subject to standstill obligations are those marked SS in the Schedule of Commitments. Although the terms of such standstill obligations are provided in the Japan-Philippines EPA, the Japan-Malaysia EPA, the Japan-Thailand EPA, the Japan-Indonesia EPA, and the Japan-Mongolia EPA , such terms limit those specific commitments of sectors marked SS to conditions and restrictions under the existing measures not conforming to national treatment, etc. (as stated in Paragraph (2) 7) herein).

(e) Transparency

All EPAs that have been concluded by Japan so far provide in the chapter therein on general provisions (except the Japan-Mexico EPA, in which the relevant provisions are provided in the chapter on implementation and operation of the agreement) that those measures which pertain to or affect the operation of the agreement be published, at least within the country, and that each contracting party country is obligated to respond to questions posited by the other country with respect to such measures. This also extends to the provisions of the chapter on services. However, the following items are mentioned in the chapter as agreements provided for ensuring transparency. In addition, the chapter on trade in services in the Japan-Malaysia EPA requires that information regarding restrictive measures affecting, inter alia, market access, national treatment obligations and provision on white papers, in respect of trade in services be provided.

The Japan-Philippines EPA, the Japan-Brunei EPA, the Japan-Thailand EPA, and the Japan-Mongolia EPA provide for the preparation, delivery to the counterparty country and publication of a list of existing measures not conforming to the market access and national treatment obligations (“transparency list”) and the Japan-India EPA provides an obligation for the preparation and publication of a similar list, regardless of whether a specific commitment covers the relevant sector. Simply put, a transparency list is prepared solely for the purpose of increasing the transparency of restrictions, and does not affect the rights and duties of the contracting party countries. Measures to be covered by a transparency list include, in addition to measures included at the national level, measures of regional governments (at the prefectural level in Japan) and of municipal governments (at the level of cities, towns, and villages in Japan), except for the Japan-Philippines EPA, which does not include measures at the municipal level in the transparency list. Moreover, in addition to the aforementioned provisions in the chapters on general provisions and so forth, the Japan-Philippines EPA, the Japan-Indonesia EPA, the Japan-Brunei EPA, and the Japan-Viet Nam EPA effectively provide that a contracting party country must respond to and provide information in response to questions by a service supplier of the counterparty country through its contact point. This is significant because, unlike with respect to what information is to be provided under general provisions, such information is to be provided to the service supplier and not the government of the contracting country.

As commitments under the Japan-Mexico EPA, the Japan-Chile EPA, the Japan-Switzerland EPA, the Japan-Peru EPA, and the Japan-Australia EPA are determined using the negative list approach, it is clearly understandable from the structure of the agreement which sectors contain a measure not conforming to certain obligations (for example, the national treatment obligation), and, if any measures not conforming to such obligations exist, the nature of such measure or measures, as the case may be. This ensures a high level of transparency. In addition, it effectively provides that if a new measure which affects the implementation or the operation of the agreement is to be introduced to a sector on the

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transparency list, notification shall be made to the counterparty country, to the greatest extent possible, thereby contributing to the enhancement of transparency of regulatory measures.

(f) Denial of Benefits

Under the Japan-Singapore EPA, in addition to those services in respect of which benefit is denied under GATS (i.e. services from non-member countries, maritime transport services by vessels of a non-member nationality, etc., as described above), benefit under the EPA is denied to (i) a juridical person which is controlled or owned by a party of a third party country, established in the territory of the other contracting party country and not engaged in a substantial activity in the territory of either contracting party country, and (ii) a juridical person established in the territory of one of contracting party countries by a service supplier of a third party country and which does not engage in a substantial activity in such contracting party countries.

The Japan-Mexico EPA, the Japan-Philippines EPA, the Japan-Chile EPA, the Japan-Brunei EPA, the Japan-Indonesia EPA, the Japan-Viet Nam EPA, the Japan-Peru EPA, the Japan-Australia EPA and the Japan-Mongolia EPA, for the most part, adopt the text of the provisions of NAFTA. They provide that a service supplier of the other contracting party country will be denied benefits if it is a (i) juridical person that is owned or controlled by persons of a third party country with which Japan does not maintain diplomatic relations, or by persons of a third party country upon whom Japan is imposing economic sanctions, and (ii) juridical person that is owned or controlled by persons of a third party country and that has no substantial activities in the territory of that other contracting party country.

The Japan-Malaysia EPA effectively provides that only with respect to clause (i) discussed in the foregoing paragraph addressing the Japan-Mexico EPA and the Japan-Philippines EPA will benefits be denied. It does not provide the same in respect of clause (ii) of the foregoing paragraph because, in its definition of a “juridical person of the other Party,” the Japan-Malaysia EPA exempts from application of the agreement a juridical person which does not engage in substantive activity in the territory of the other contracting party country.

The Japan-Thailand EPA provides that clause (ii), which does not engage in substantive activity in the territory of the other contracting party, will benefits be denied in addition to the juridical person defined in clause (i).

The Japan-Switzerland EPA does not provide any provisions of denial of benefits.

(g) Payments and Transfers

The Japan-Singapore EPA, the Japan-Thailand EPA, the Japan-Brunei EPA, the Japan-Viet Nam EPA, and the Japan-India EPA extend GATS disciplines only to committed sectors. The Japan-Philippines EPA, the Japan-Malaysia EPA, the Japan-Indonesia EPA, the Japan-Switzerland EPA, the Japan-Peru EPA, the Japan-Australia EPA and the Japan-Mongolia EPA, however, extend GATS disciplines to all sectors pertaining to trade in services as general obligations and do not limit such disciplines to committed sectors. The Japan-Mexico EPA effectively provides that no restrictive measures on payments and transfers shall be applied to cross-border trade in services in the chapter therein on exceptions (which enumerates those that are beyond the scope of the entire agreement). This is not provided in the Japan-Chile EPA.

Note: The provisions on the scope of trade in services, modes and obligations (i.e., national treatment, markets access) contain many parts which overlap with provisions under GATS. Therefore, descriptions on these are not dealt with in detail here in this chapter, as “Part II Chapter 12 Trade in Services” already gave an account thereof.

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treatment) maintained by the state and local government and inscribed in the Schedule of Reservations. With regard to the Japan-Peru EPA and the Japan-Australia EPA, existing measures not conforming to obligations (for example, national treatment) maintained by the central government or local government and inscribed in the Schedule of Reservations (a list of sectors reserved under the existing measures) and existing measures not conforming to obligations (for example, national treatment) maintained by the local government.

In the case of the positive list approach, sectors subject to standstill obligations are those marked SS in the Schedule of Commitments. Although the terms of such standstill obligations are provided in the Japan-Philippines EPA, the Japan-Malaysia EPA, the Japan-Thailand EPA, the Japan-Indonesia EPA, and the Japan-Mongolia EPA , such terms limit those specific commitments of sectors marked SS to conditions and restrictions under the existing measures not conforming to national treatment, etc. (as stated in Paragraph (2) 7) herein).

(e) Transparency

All EPAs that have been concluded by Japan so far provide in the chapter therein on general provisions (except the Japan-Mexico EPA, in which the relevant provisions are provided in the chapter on implementation and operation of the agreement) that those measures which pertain to or affect the operation of the agreement be published, at least within the country, and that each contracting party country is obligated to respond to questions posited by the other country with respect to such measures. This also extends to the provisions of the chapter on services. However, the following items are mentioned in the chapter as agreements provided for ensuring transparency. In addition, the chapter on trade in services in the Japan-Malaysia EPA requires that information regarding restrictive measures affecting, inter alia, market access, national treatment obligations and provision on white papers, in respect of trade in services be provided.

The Japan-Philippines EPA, the Japan-Brunei EPA, the Japan-Thailand EPA, and the Japan-Mongolia EPA provide for the preparation, delivery to the counterparty country and publication of a list of existing measures not conforming to the market access and national treatment obligations (“transparency list”) and the Japan-India EPA provides an obligation for the preparation and publication of a similar list, regardless of whether a specific commitment covers the relevant sector. Simply put, a transparency list is prepared solely for the purpose of increasing the transparency of restrictions, and does not affect the rights and duties of the contracting party countries. Measures to be covered by a transparency list include, in addition to measures included at the national level, measures of regional governments (at the prefectural level in Japan) and of municipal governments (at the level of cities, towns, and villages in Japan), except for the Japan-Philippines EPA, which does not include measures at the municipal level in the transparency list. Moreover, in addition to the aforementioned provisions in the chapters on general provisions and so forth, the Japan-Philippines EPA, the Japan-Indonesia EPA, the Japan-Brunei EPA, and the Japan-Viet Nam EPA effectively provide that a contracting party country must respond to and provide information in response to questions by a service supplier of the counterparty country through its contact point. This is significant because, unlike with respect to what information is to be provided under general provisions, such information is to be provided to the service supplier and not the government of the contracting country.

As commitments under the Japan-Mexico EPA, the Japan-Chile EPA, the Japan-Switzerland EPA, the Japan-Peru EPA, and the Japan-Australia EPA are determined using the negative list approach, it is clearly understandable from the structure of the agreement which sectors contain a measure not conforming to certain obligations (for example, the national treatment obligation), and, if any measures not conforming to such obligations exist, the nature of such measure or measures, as the case may be. This ensures a high level of transparency. In addition, it effectively provides that if a new measure which affects the implementation or the operation of the agreement is to be introduced to a sector on the

Chapter 2: Services

717

transparency list, notification shall be made to the counterparty country, to the greatest extent possible, thereby contributing to the enhancement of transparency of regulatory measures.

(f) Denial of Benefits

Under the Japan-Singapore EPA, in addition to those services in respect of which benefit is denied under GATS (i.e. services from non-member countries, maritime transport services by vessels of a non-member nationality, etc., as described above), benefit under the EPA is denied to (i) a juridical person which is controlled or owned by a party of a third party country, established in the territory of the other contracting party country and not engaged in a substantial activity in the territory of either contracting party country, and (ii) a juridical person established in the territory of one of contracting party countries by a service supplier of a third party country and which does not engage in a substantial activity in such contracting party countries.

The Japan-Mexico EPA, the Japan-Philippines EPA, the Japan-Chile EPA, the Japan-Brunei EPA, the Japan-Indonesia EPA, the Japan-Viet Nam EPA, the Japan-Peru EPA, the Japan-Australia EPA and the Japan-Mongolia EPA, for the most part, adopt the text of the provisions of NAFTA. They provide that a service supplier of the other contracting party country will be denied benefits if it is a (i) juridical person that is owned or controlled by persons of a third party country with which Japan does not maintain diplomatic relations, or by persons of a third party country upon whom Japan is imposing economic sanctions, and (ii) juridical person that is owned or controlled by persons of a third party country and that has no substantial activities in the territory of that other contracting party country.

The Japan-Malaysia EPA effectively provides that only with respect to clause (i) discussed in the foregoing paragraph addressing the Japan-Mexico EPA and the Japan-Philippines EPA will benefits be denied. It does not provide the same in respect of clause (ii) of the foregoing paragraph because, in its definition of a “juridical person of the other Party,” the Japan-Malaysia EPA exempts from application of the agreement a juridical person which does not engage in substantive activity in the territory of the other contracting party country.

The Japan-Thailand EPA provides that clause (ii), which does not engage in substantive activity in the territory of the other contracting party, will benefits be denied in addition to the juridical person defined in clause (i).

The Japan-Switzerland EPA does not provide any provisions of denial of benefits.

(g) Payments and Transfers

The Japan-Singapore EPA, the Japan-Thailand EPA, the Japan-Brunei EPA, the Japan-Viet Nam EPA, and the Japan-India EPA extend GATS disciplines only to committed sectors. The Japan-Philippines EPA, the Japan-Malaysia EPA, the Japan-Indonesia EPA, the Japan-Switzerland EPA, the Japan-Peru EPA, the Japan-Australia EPA and the Japan-Mongolia EPA, however, extend GATS disciplines to all sectors pertaining to trade in services as general obligations and do not limit such disciplines to committed sectors. The Japan-Mexico EPA effectively provides that no restrictive measures on payments and transfers shall be applied to cross-border trade in services in the chapter therein on exceptions (which enumerates those that are beyond the scope of the entire agreement). This is not provided in the Japan-Chile EPA.

Note: The provisions on the scope of trade in services, modes and obligations (i.e., national treatment, markets access) contain many parts which overlap with provisions under GATS. Therefore, descriptions on these are not dealt with in detail here in this chapter, as “Part II Chapter 12 Trade in Services” already gave an account thereof.

549


718

(2) SALIENT FEATURES OF LIBERALIZATION COMMITMENTS OF THE COUNTERPARTY COUNTRY

Commitments were made using the “positive list” in EPAs with ASEAN countries. The counterpart countries made commitments with a higher level than under GATS regarding manufacturing industry-related repair and maintenance services, wholesale distribution services, computer and related services and also in sectors such as finance, communications, construction and transport. These commitments also include a standstill obligation; they do not deviate from the current laws and regulations, a phenomenon which is frequently seen in the commitments made by developing countries under GATS, and the inconsistency between the EPA as an international commitment with Japan and the regulations based on the counterpart country’s current domestic laws and regulations have been eliminated.

In the EPAs with Mexico, Chile, Switzerland, Peru, and Australia, commitments were made using the “negative list.” In principle, national treatment and MFN treatment obligations were made horizontally on all service sectors. In the EPA with Switzerland, Peru, and Australia, market access obligations were also provided. Reservations were made for the sectors where commitments basically were secured through a standstill obligation while leaving certain sectors (key service sectors such as communication services, sectors relating to social policy) without a standstill obligation.

(a) Japan-Singapore EPA (entered into force in November 2002)

(b) Japan-Mexico EPA (entered into force in April 2005)

(c) Japan-Malaysia EPA (entered into force in July 2006)

(d) Japan-Chile EPA (entered into force in September 2007)

(e) Japan –Thailand EPA (entered into force in November 2007)

(f) Japan-Indonesia EPA (entered into force in July 2008)

(g) Japan-Brunei EPA (entered into force in July 2008)

(h) Japan-Philippines EPA (entered into force in December 2008)

(i) Japan-Switzerland EPA (entered into force in September 2009)

(j) Japan-Viet Nam EPA (entered into force in October 2009)

(k) Japan-India EPA (entered into force in August 2011)

(l) Japan-Peru EPA (entered into force in March 2012)

(m) Japan-Australia EPA (entered into force in January 2015)

(n) Japan-Mongolia EPA (entered into force in June 2016)

For the features of liberalization commitments of the counterparty country of each EPA above, see pages 715-728 of the 2017 Report on Compliance by Major Trading Partners with Trade Agreements - WTO, EPA/FTA and IIA -.

Chapter 2: Services

719

(o) TRANS-PACIFIC PARTNERSHIP (TPP) (SIGNED IN FEBRUARY 2016)

The TPP provides for national treatment, MFN treatment, market access (such as a ban on quantitative restrictions) and other obligations. As with the NAFTA, the negative list approach was adopted. Among existing EPAs that have been signed by Japan with countries participating in the TPP, only EPAs with Mexico, Chile, Peru and Australia adopt the negative list approach. Therefore, a shift from the positive list to the negative list (which generally allows more liberalization) with regard to Brunei, Malaysia, Singapore, and Viet Nam represents a step forward to promote liberalization and improve transparency. Moreover, the TPP was great progress in terms of Japan’s relationship with Canada, New Zealand, and the United States as there had been no EPA/FTA with these countries.

(p) Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) (Signed March 2018)

The service-related provisions under the TPP are applied, with some provisions “suspended,” including provisions concerning express delivery services stipulated in the annex (Annex 10-B, 5 and 6) and resolution of telecommunications disputes (Article 13.21 1(d)) (*yet to be approved by the Diet as of March).

550


718

(2) SALIENT FEATURES OF LIBERALIZATION COMMITMENTS OF THE COUNTERPARTY COUNTRY

Commitments were made using the “positive list” in EPAs with ASEAN countries. The counterpart countries made commitments with a higher level than under GATS regarding manufacturing industry-related repair and maintenance services, wholesale distribution services, computer and related services and also in sectors such as finance, communications, construction and transport. These commitments also include a standstill obligation; they do not deviate from the current laws and regulations, a phenomenon which is frequently seen in the commitments made by developing countries under GATS, and the inconsistency between the EPA as an international commitment with Japan and the regulations based on the counterpart country’s current domestic laws and regulations have been eliminated.

In the EPAs with Mexico, Chile, Switzerland, Peru, and Australia, commitments were made using the “negative list.” In principle, national treatment and MFN treatment obligations were made horizontally on all service sectors. In the EPA with Switzerland, Peru, and Australia, market access obligations were also provided. Reservations were made for the sectors where commitments basically were secured through a standstill obligation while leaving certain sectors (key service sectors such as communication services, sectors relating to social policy) without a standstill obligation.

(a) Japan-Singapore EPA (entered into force in November 2002)

(b) Japan-Mexico EPA (entered into force in April 2005)

(c) Japan-Malaysia EPA (entered into force in July 2006)

(d) Japan-Chile EPA (entered into force in September 2007)

(e) Japan –Thailand EPA (entered into force in November 2007)

(f) Japan-Indonesia EPA (entered into force in July 2008)

(g) Japan-Brunei EPA (entered into force in July 2008)

(h) Japan-Philippines EPA (entered into force in December 2008)

(i) Japan-Switzerland EPA (entered into force in September 2009)

(j) Japan-Viet Nam EPA (entered into force in October 2009)

(k) Japan-India EPA (entered into force in August 2011)

(l) Japan-Peru EPA (entered into force in March 2012)

(m) Japan-Australia EPA (entered into force in January 2015)

(n) Japan-Mongolia EPA (entered into force in June 2016)

For the features of liberalization commitments of the counterparty country of each EPA above, see pages 715-728 of the 2017 Report on Compliance by Major Trading Partners with Trade Agreements - WTO, EPA/FTA and IIA -.

Chapter 2: Services

719

(o) TRANS-PACIFIC PARTNERSHIP (TPP) (SIGNED IN FEBRUARY 2016)

The TPP provides for national treatment, MFN treatment, market access (such as a ban on quantitative restrictions) and other obligations. As with the NAFTA, the negative list approach was adopted. Among existing EPAs that have been signed by Japan with countries participating in the TPP, only EPAs with Mexico, Chile, Peru and Australia adopt the negative list approach. Therefore, a shift from the positive list to the negative list (which generally allows more liberalization) with regard to Brunei, Malaysia, Singapore, and Viet Nam represents a step forward to promote liberalization and improve transparency. Moreover, the TPP was great progress in terms of Japan’s relationship with Canada, New Zealand, and the United States as there had been no EPA/FTA with these countries.

(p) Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) (Signed March 2018)

The service-related provisions under the TPP are applied, with some provisions “suspended,” including provisions concerning express delivery services stipulated in the annex (Annex 10-B, 5 and 6) and resolution of telecommunications disputes (Article 13.21 1(d)) (*yet to be approved by the Diet as of March).

551


720

Figure III-2-2 Comparison of Commitments Provided in Service Chapters of the EPAs Concluded with the ASEAN Member States (already in force):

(Chart below describes the commitments that go beyond those under the GATS. Blank space indicates that the commitments made under the GATS are the same as those under the GATS.)

EPAs Already in Force

Singapore

Malaysia Thailand At the time of entry into force in 2002

Results of Review in 2007

Maintenance and repair of equipment, rental and leasing services

Committed to unrestricted foreign equity participation

With respect to (i) rental and leasing services for construction equipment, office equipment, etc., (limited to products manufactured in Malaysia), and (ii) maintenance and repair services conducted by locally incorporated rental/leasing corporations (for equipment and machinery manufactured in Malaysia covering office machinery, boilers, etc.) foreign equity participation is restricted to 51%.

Committed to allowing Japanese equity participation ratio of up to 60% for maintenance and repair services of household electrical appliances (which are limited to the in-house products of companies in Thailand or Japan).

Computers and related services

Committed to no restriction on foreign equity participation

Committed to allowing equity participation ratio of less than 50% for Japanese capital

Distribution services Committed to unrestricted foreign equity participation (however, the handling of banned imports, etc. is reserved as out of scope of the commitment).

Committed to allowing Japanese equity participation ratio of up to 75% in wholesale trade and retailing services for in-house products of companies in Thailand, and automobiles manufactured in Japan under the same brand.

Other manufacturing industry-related services

Foreign equity participation in logistics consulting services (limited to consulting and does not include actual logistics services) is restricted to 51% (conditional upon fulfillment of a certain loan to capital ratio).

Financial services Issued new license to insurance companies. Eliminated restriction on foreign equity participation in insurance companies (49%)

Committed to an additional full banking license. Eliminated restriction on the number of wholesale banking establishments

Telecommunication services


Committed to eliminate the foreign equity participation restriction in certain services and to improve the level of liberalization commitment in other areas.

Chapter 2: Services

721


Singapore



Transport services New commitments are made in certain sub-sectors, such as international maritime (passenger) transport services, maritime freight forwarding services, storage and warehousing services and leasing or rental services relating to aircraft, cars, etc.

New commitment made with respect to the rental of cargo vessels for international shipping.

New commitments made with respect to maritime cargo handling services and maritime agency services, etc., in addition to the elimination of the reservation on cargo for maritime freight transportation services.

Others Accounting; engineering; research and development for medical services; market surveying; etc.

Committed to an equity participation ratio up to 60% for Japanese capital with respect to hotel and lodging services, and 50% for Japanese capital with respect to advertising services, etc. (conditional upon fulfillment of a certain loan to capital ratio).

552


720

Figure III-2-2 Comparison of Commitments Provided in Service Chapters of the EPAs Concluded with the ASEAN Member States (already in force):

(Chart below describes the commitments that go beyond those under the GATS. Blank space indicates that the commitments made under the GATS are the same as those under the GATS.)


Singapore



Maintenance and repair of equipment, rental and leasing services


With respect to (i) rental and leasing services for construction equipment, office equipment, etc., (limited to products manufactured in Malaysia), and (ii) maintenance and repair services conducted by locally incorporated rental/leasing corporations (for equipment and machinery manufactured in Malaysia covering office machinery, boilers, etc.) foreign equity participation is restricted to 51%.

Committed to allowing Japanese equity participation ratio of up to 60% for maintenance and repair services of household electrical appliances (which are limited to the in-house products of companies in Thailand or Japan).

Computers and related services

Committed to no restriction on foreign equity participation

Committed to allowing equity participation ratio of less than 50% for Japanese capital

Distribution services Committed to unrestricted foreign equity participation (however, the handling of banned imports, etc. is reserved as out of scope of the commitment).

Committed to allowing Japanese equity participation ratio of up to 75% in wholesale trade and retailing services for in-house products of companies in Thailand, and automobiles manufactured in Japan under the same brand.

Other manufacturing industry-related services

Foreign equity participation in logistics consulting services (limited to consulting and does not include actual logistics services) is restricted to 51% (conditional upon fulfillment of a certain loan to capital ratio).

Financial services Issued new license to insurance companies. Eliminated restriction on foreign equity participation in insurance companies (49%)

Committed to an additional full banking license. Eliminated restriction on the number of wholesale banking establishments

Telecommunication services


Committed to eliminate the foreign equity participation restriction in certain services and to improve the level of liberalization commitment in other areas.

Chapter 2: Services

721


Singapore



Transport services New commitments are made in certain sub-sectors, such as international maritime (passenger) transport services, maritime freight forwarding services, storage and warehousing services and leasing or rental services relating to aircraft, cars, etc.

New commitment made with respect to the rental of cargo vessels for international shipping.

New commitments made with respect to maritime cargo handling services and maritime agency services, etc., in addition to the elimination of the reservation on cargo for maritime freight transportation services.

Others Accounting; engineering; research and development for medical services; market surveying; etc.

Committed to an equity participation ratio up to 60% for Japanese capital with respect to hotel and lodging services, and 50% for Japanese capital with respect to advertising services, etc. (conditional upon fulfillment of a certain loan to capital ratio).

553

Part

III: E

PA/F

TA a

nd II

A

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re II

I-2-

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App

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Com

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Posit

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Neg

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Posit

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list a

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Po

sitiv

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t app

roac

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MFN

Tre

atm

ent

△ N

o M

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in th

e ag

reem

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How

ever

, re

gard

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the

pref

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treat

men

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orde

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a th

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ntry

by

a co

ntra

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ount

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t is p

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m th

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her c

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it sh

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whe

ther

to

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rd th

e eq

ual t

reat

men

t to

the

othe

r con

tract

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party

co

untry

.

○ In

pr in

cipl

e un

cond

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al

MFN

trea

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w

ith e

xcep

tions

insc

ribed

in

the

anne

x (M

FN S

ched

ule

of

Rese

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).

△ In

pr in

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ncon

ditio

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MFN

trea

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H

owev

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n th

e an

nex

(MFN

Li

st of

Exe

mpt

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) whi

ch

prov

ides

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re m

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re

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in w

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tre

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s acc

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an

exce

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the

exce

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○In

prin

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MFN

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Re

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△ In

pr in

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List

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whi

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○ In

pr in

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MFN

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of

Exem

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Nat

iona

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atm

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(NT)

○

Nat

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Sche

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Com

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○In

prin

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T sh

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○Nat

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atm

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hall

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ctor

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the

Sche

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of

Spec

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Com

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○In

prin

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T sh

all b

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all

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sect

ors

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the

anne

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○Nat

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atm

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hall

be

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ctor

s in

scrib

ed in

the

Sche

dule

of

Spec

ific

Com

mitm

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○ N

atio

nal T

reat

men

t sha

ll be

ac

cord

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the

sect

ors i

nscr

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in

the

Sche

dule

of S

peci

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Com

mitm

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.

○ N

atio

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reat

men

t sha

ll be

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orde

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the

sect

ors

insc

ribed

in th

e Sc

hedu

le o

f Sp

ecifi

c Co

mm

itmen

ts.

Mar

ket A

cces

s Co

mm

itmen

ts ○S

ame

prov

ision

as A

rticl

e X

VI o

f GAT

S on

mar

ket

acce

ss, w

hich

obl

iges

eac

h co

ntra

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g pa

rty c

ount

ry to

ac

cord

no

less

favo

rabl

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atm

ent t

han

that

und

erta

ken

and

spec

ified

in th

e Sc

hedu

le

of S

peci

fic C

omm

itmen

ts.

Mar

ket a

cces

s is n

ot p

rovi

ded

for.

Ins

tead

ther

e is

a pr

ovisi

on p

rohi

bitin

g th

e re

quire

men

t of e

stabl

ishin

g a

loca

l rep

rese

ntat

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offic

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an

y fo

rm o

f ent

erpr

ise;

exce

ptio

ns a

re in

scrib

ed in

the

anne

x (S

ched

ule

of

Rese

rvat

ions

).

○ Sam

e pr

ovisi

on a

s Arti

cle

XV

I of G

ATS

on m

arke

t ac

cess

, whi

ch o

blig

es e

ach

cont

ract

ing

party

cou

ntry

to

acco

rd n

o le

ss fa

vora

ble

treat

men

t tha

n th

at u

nder

take

n an

d sp

ecifi

ed in

the

Sche

dule

of

Spe

cific

Com

mitm

ents.

Mar

ket a

cces

s is n

ot p

rovi

ded

for.

Inste

ad th

ere

is a

prov

ision

pr

ohib

iting

the

requ

irem

ent o

f es

tabl

ishin

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loca

l re

pres

enta

tive

offic

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any

fo

rm o

f ent

erpr

ise; e

xcep

tions

ar

e in

scrib

ed in

the

anne

x (S

ched

ule

of R

eser

vatio

ns).

○ Sam

e pr

ovisi

on a

s Arti

cle

XV

I of G

ATS

on m

arke

t ac

cess

, whi

ch o

blig

es e

ach

cont

ract

ing

party

cou

ntry

to

acco

rd n

o le

ss fa

vora

ble

treat

men

t tha

n th

at u

nder

take

n an

d sp

ecifi

ed in

the

Sche

dule

of

Spe

cific

Com

mitm

ents.

○ Sa

me

prov

ision

as A

rticl

e X

VI

of G

ATS

on m

arke

t acc

ess,

whi

ch

oblig

es e

ach

cont

ract

ing

party

co

untry

to a

ccor

d no

less

fa

vora

ble

treat

men

t tha

n th

at

unde

rtake

n an

d sp

ecifi

ed in

the

Sche

dule

of S

peci

fic

Com

mitm

ents

.

○ Sa

me

prov

ision

as A

rticl

e X

VI o

f GAT

S on

mar

ket

acce

ss, w

hich

obl

iges

eac

h co

ntra

ctin

g pa

rty c

ount

ry to

ac

cord

no

less

favo

rabl

e tre

atm

ent t

han

that

un

derta

ken

and

spec

ified

in

the

Sche

dule

of S

peci

fic

Com

mitm

ents

. Tr

ansp

aren

cy

Requ

irem

ents

△Eac

h co

ntra

ctin

g pa

rty

coun

try is

obl

iged

to p

rom

ptly

m

ake

publ

ic (o

r oth

erw

ise

mak

e pu

blic

ly a

vaila

ble)

its

mea

sure

s per

tain

ing

to

or

affe

ctin

g th

e op

erat

ion

of th

e ag

reem

ent,

at le

ast w

ithin

the

coun

try, a

nd to

resp

ond

to th

e ot

her c

ontra

ctin

g pa

rty

coun

try’s

inqu

iries

abo

ut th

ese

mea

sure

s.

○ Ea

c h c

ontra

ctin

g pa

rty

coun

try is

obl

iged

to p

rom

ptly

m

ake

publ

ic (o

r oth

erw

ise

mak

e pu

blic

ly a

vaila

ble)

its

mea

sure

s per

tain

ing

to o

r af

fect

ing

the

oper

atio

n of

the

agre

emen

t, at

leas

t with

in th

e co

untry

, and

to re

spon

d to

the

othe

r con

tract

ing

party

co

untry

’s in

quiri

es a

bout

thes

e m

easu

res.

As c

omm

itmen

ts a

re m

ade

in

the

form

of t

he n

egat

ive

list

appr

oach

, reg

ardi

ng th

e sec

tors

re

serv

ed th

roug

h th

e st

ands

till

oblig

atio

n ba

sed

on th

e ex

istin

g m

easu

res,

the

desc

riptio

ns o

n th

ose m

easu

res

are

expl

icitl

y pr

ovid

ed in

the

Sche

dule

of R

eser

vatio

ns.

△ Ea

c h c

ontra

ctin

g pa

rty

coun

try is

obl

iged

to p

rom

ptly

m

ake

publ

ic (o

r oth

erw

ise

mak

e pu

blic

ly a

vaila

ble)

its

mea

sure

s per

tain

ing

to o

r af

fect

ing

the

oper

atio

n of

the

agre

emen

t, at

leas

t with

in th

e co

untry

, and

to re

spon

d to

the

othe

r con

tract

ing

party

co

untry

’s in

quiri

es a

bout

thes

e m

easu

res.

Th

ere

are

prov

ision

s in

the

serv

ice

chap

ter o

blig

ing

each

co

ntra

ctin

g pa

rty c

ount

ry to

pr

ovid

e th

e ot

her c

ontra

ctin

g pa

rty c

ount

ry w

ith (i

) in

form

atio

n on

the

mea

sure

s af

fect

ing

its c

omm

itmen

ts re

late

d to

mar

ket a

cces

s and

na

tiona

l tre

atm

ent;

and

(ii)

copi

es o

f ann

ual r

epor

ts o

r any

ot

her p

ublic

atio

n ge

nera

lly

avai

labl

e to

the

publ

ic.

○ Ea

c h c

ontra

ctin

g pa

rty

coun

try is

obl

iged

to p

rom

ptly

m

ake

publ

ic (o

r oth

erw

ise

mak

e pu

blic

ly a

vaila

ble)

its

mea

sure

s per

tain

ing

to o

r af

fect

ing

the

oper

atio

n of

the

agre

emen

t, at

leas

t with

in th

e co

untry

, and

to re

spon

d to

the

othe

r con

tract

ing

party

co

untry

’s in

quiri

es a

bout

thes

e m

easu

res.

As c

omm

itmen

ts a

re m

ade

in

the

form

of t

he n

egat

ive

list

appr

oach

, reg

ardi

ng th

e sec

tors

re

serv

ed th

roug

h th

e st

ands

till

oblig

atio

n ba

sed

on th

e ex

istin

g m

easu

res,

the

desc

riptio

ns o

n th

ose m

easu

res

are

expl

icitl

y pr

ovid

ed in

the

Sche

dule

of R

eser

vatio

ns.

△Eac

h co

ntra

ctin

g pa

rty

coun

try is

obl

iged

to p

rom

ptly

m

ake

publ

ic (o

r oth

erw

ise

mak

e pu

blic

ly a

vaila

ble)

its

mea

sure

s per

tain

ing

to o

r af

fect

ing

the

oper

atio

n of

the

agre

emen

t, at

leas

t with

in th

e co

untry

, and

to re

spon

d to

the

othe

r con

tract

ing

party

co

untry

’s in

quiri

es a

bout

thes

e m

easu

res.

Each

par

ty sh

all p

repa

re a

no

n-le

gally

bin

ding

list

pr

ovid

ing

all r

elev

ant l

aws a

nd

regu

latio

ns w

hich

are

not

co

nfor

min

g to

the

com

mitm

ents

of m

arke

t acc

ess

and

natio

nal t

reat

men

t ac

cord

ed u

nder

the

agre

emen

t (tr

ansp

aren

cy li

st). S

aid

list

shal

l be

exch

ange

d w

ith o

ther

pa

rty.

△Eac

h co

ntra

ctin

g pa

rty c

ount

ry

is o

blig

ed to

pro

mpt

ly m

ake

publ

ic (o

r oth

erw

ise m

ake

publ

icly

ava

ilabl

e) it

s mea

sure

s pe

rtain

ing

to o

r affe

ctin

g th

e op

erat

ion

of th

e ag

reem

ent,

at

leas

t with

in th

e co

untry

, and

to

resp

ond

to th

e ot

her c

ontra

ctin

g pa

rty c

ount

ry’s

inqu

iries

abo

ut

thes

e m

easu

res.

It is

also

pro

vide

d th

at a

co

ntra

ctin

g pa

rty c

ount

ry m

ust

resp

ond

to a

nd p

rovi

de

info

rmat

ion

in re

spon

se to

qu

estio

ns fr

om a

serv

ice

supp

lier

of th

e co

unte

rpar

ty c

ount

ry

thro

ugh

its c

onta

ct p

oint

.

○Eac

h co

ntra

ctin

g pa

rty

coun

try is

obl

iged

to

prom

ptly

mak

e pu

blic

(or

othe

rwis

e m

ake

publ

icly

av

aila

ble)

its m

easu

res

perta

inin

g to

or a

ffect

ing

the

oper

atio

n of

the

agre

emen

t, at

leas

t with

in

the

coun

try, a

nd to

resp

ond

to th

e ot

her c

ontra

ctin

g pa

rty c

ount

ry’s

inqu

iries

ab

out t

hese

mea

sure

s. Ea

ch p

arty

shal

l pre

pare

a

non-

lega

lly b

indi

ng li

st

prov

idin

g al

l rel

evan

t law

s an

d re

gula

tions

whi

ch a

re

not c

onfo

rmin

g to

the

com

mitm

ents

of m

arke

t ac

cess

and

nat

iona

l tre

atm

ent a

ccor

ded

unde

r th

e ag

reem

ent

(tran

spar

ency

list)

. Sai

d lis

t sh

all b

e ex

chan

ged

with

ot

her p

arty

. It

is al

so p

rovi

ded

that

a

cont

ract

ing

party

cou

ntry

m

ust r

espo

nd to

and

prov

ide

info

rmat

ion

in re

spon

se to

qu

estio

ns fr

om a

serv

ice

supp

lier o

f the

cou

nter

party

co

untry

thro

ugh

its c

onta

ct

poin

t.

Stan

dstil

l Obl

igat

ion

No

prov

ision

in th

e ag

reem

ent.

○ Th

is ob

ligat

ion

is pr

ovid

ed

rega

rdin

g an

y ex

istin

g ○

This

oblig

atio

n is

prov

ided

on

ly fo

r sec

tors

or s

ub-s

ecto

rs

○Thi

s obl

igat

ion

is pr

ovid

ed

rega

rdin

g an

y ex

istin

g ○T

his o

blig

atio

n is

prov

ided

on

ly fo

r sec

tors

or s

ub-s

ecto

rs

○ Th

is ob

ligat

ion

is pr

ovid

ed o

nly

for s

ecto

rs o

r sub

-sec

tors

N

o pr

ovisi

on in

the

agre

emen

t.

Chap

ter

2: S

ervi

ces

Nam

e Ja

pan-

Sing

apor

e EP

A

Japa

n-M

exic

o EP

A

Japa

n-M

alay

sia E

PA

Japa

n-C

hile

EPA

Ja

pan-

Thai

land

EPA

Ja

pan-

Indo

nesia

EPA

Ja

pan-

Brun

ei E

PA

mea

sure

s whi

ch a

re

non-

conf

orm

ing

to N

T, M

FN,

or m

arke

t acc

ess o

blig

atio

n,

and

whi

ch a

re m

aint

aine

d by

a

cont

ract

ing

party

coun

try at

the

cent

ral o

r loc

al g

over

nmen

t le

vel.

Thes

e m

easu

res a

re se

t ou

t in

the

anne

x (S

ched

ule

of

Rese

rvat

ions

).

indi

cate

d by

the

“SS”

mar

k in

th

e Sc

hedu

le o

f Spe

cific

Co

mm

itmen

ts. T

his m

ark

mea

ns sp

ecifi

c co

mm

itmen

ts m

ade

in su

ch se

ctor

s or

sub-

sect

ors a

re li

mite

d to

thos

e ba

sed

on re

leva

nt e

xisti

ng

mea

sure

s whi

ch a

re

non-

conf

orm

ing

to N

T or

m

arke

t acc

ess o

blig

atio

n.

mea

sure

s whi

ch a

re

non-

conf

orm

ing

to N

T, M

FN,

or m

arke

t acc

ess o

blig

atio

n an

d w

hich

are

mai

ntai

ned

by a

co

ntra

ctin

g pa

rty co

untry

at th

e ce

ntra

l or l

ocal

gov

ernm

ent

leve

l. Th

ese

mea

sure

s are

set

out i

n th

e an

nex

(Sch

edul

e of

Re

serv

atio

ns).

indi

cate

d by

the

“SS”

mar

k in

th

e Sc

hedu

le o

f Spe

cific

Co

mm

itmen

ts. T

his m

ark

mea

ns sp

ecifi

c co

mm

itmen

ts m

ade

in su

ch se

ctor

s or

sub-

sect

ors a

re li

mite

d to

thos

e ba

sed

on re

leva

nt e

xisti

ng

mea

sure

s whi

ch a

re

non-

conf

orm

ing

to N

T or

m

arke

t acc

ess o

blig

atio

n.

indi

cate

d by

the

“SS”

mar

k in

the

Sche

dule

of S

peci

fic

Com

mitm

ents

. Thi

s mar

k m

eans

sp

ecifi

c co

mm

itmen

ts m

ade

in

such

sect

ors o

r sub

-sec

tors

are

lim

ited

to th

ose

base

d on

rele

vant

ex

istin

g m

easu

res w

hich

are

no

n-co

nfor

min

g to

NT

or m

arke

t ac

cess

obl

igat

ion.

Proh

ibiti

on o

f Re

stric

tions

on

Paym

ents

and

Tra

nsfe

rs

△Sam

e pr

ovisi

on a

s GAT

S,

whe

re su

ch p

rohi

bitio

n is

only

ap

plie

d to

restr

ictio

ns o

f in

tern

atio

nal t

rans

fers

and

pa

ymen

ts fo

r cur

rent

tra

nsac

tions

rela

ting

to sp

ecifi

c co

mm

itmen

ts.

○In

t he

sepa

rate

Cha

pter

of

Exce

ptio

ns (w

hich

iden

tifie

s ex

cept

ions

exc

lude

d fro

m th

e en

tire

agre

emen

t), th

ere

is a

prov

ision

pro

hibi

ting

restr

ictio

ns o

f int

erna

tiona

l tra

nsfe

rs a

nd p

aym

ents

for

curre

nt tr

ansa

ctio

ns re

latin

g to

cr

oss-

bord

er tr

ade

in se

rvic

es

of a

ll se

ctor

s and

sub-

sect

ors.

○The

re is

a p

rovi

sion

proh

ibiti

ng re

stric

tions

of

inte

rnat

iona

l tra

nsfe

rs a

nd

paym

ents

for c

urre

nt

trans

actio

ns re

latin

g to

trad

e in

se

rvic

es o

f all

sect

ors a

nd

sub-

sect

ors;

not l

imite

d to

just

th

ose

sect

ors a

nd su

b-se

ctor

s in

scrib

ed in

the

Sche

dule

of

Spec

ific

Com

mitm

ents.

No

prov

ision

in th

e ag

reem

ent.

△Sam

e pr

ovisi

on a

s GAT

S w

here

such

pro

hibi

tion

is on

ly

appl

ied

to re

stric

tions

of

inte

rnat

iona

l tra

nsfe

rs a

nd

paym

ents

for c

urre

nt

trans

actio

ns re

latin

g to

spec

ific

com

mitm

ents.

○ T h

ere

is a

prov

ision

pro

hibi

ting

restr

ictio

ns o

f int

erna

tiona

l tra

nsfe

rs a

nd p

aym

ents

for

curre

nt tr

ansa

ctio

ns re

latin

g to

tra

de in

serv

ices

of a

ll se

ctor

s and

su

b-se

ctor

s; no

t lim

ited

to ju

st

thos

e se

ctor

s and

sub-

sect

ors

insc

ribed

in th

e Sc

hedu

le o

f Sp

ecifi

c Co

mm

itmen

ts.

△Sam

e pr

ovisi

on a

s GAT

S w

here

such

pro

hibi

tion

is on

ly a

pplie

d to

restr

ictio

ns

of in

tern

atio

nal t

rans

fers

an

d pa

ymen

ts fo

r cur

rent

tra

nsac

tions

rela

ting

to

spec

ific

com

mitm

ents

.

554

Part

III: E

PA/F

TA a

nd II

A

Figu

re II

I-2-

3 Ef

fect

ive/

Sign

ed E

PAs b

etw

een

Japa

n an

d ot

her C

ount

ries

*: O

verv

iew

of t

he P

rovi

sions

in th

e C

hapt

er o

n Se

rvic

es

Nam

e Ja

pan-

Sing

apor

e EP

A

Japa

n-M

exic

o EP

A

Japa

n-M

alay

sia E

PA

Japa

n-C

hile

EPA

Ja

pan-

Thai

land

EPA

Ja

pan-

Indo

nesia

EPA

Ja

pan-

Brun

ei E

PA

Effe

ctiv

e/Si

gned

as o

f Ef

fect

ive

on 2

002.

11.3

0 Ef

fect

ive

on 2

005.

4.1

Effe

ctiv

e on

200

6.7.

13

Effe

ctiv

e on

200

7.9.

3 Ef

fect

ive

on 2

007.

11.1

Ef

fect

ive

on 2

008.

7.1

Effe

ctiv

e on

200

8.7.

31

App

roac

h on

Li

bera

lizat

ion

Com

mitm

ents

Pos it

ive

list a

ppro

ach

Neg

ativ

e lis

t app

roac

h Po

sitiv

e lis

t app

roac

h N

egat

ive

list a

ppro

ach

Posit

ive

list a

ppro

ach

Posit

ive

list a

ppro

ach

Po

sitiv

e lis

t app

roac

h

MFN

Tre

atm

ent

△ N

o M

FN p

rovi

sion

in th

e ag

reem

ent.

How

ever

, re

gard

ing

the

pref

eren

tial

treat

men

t acc

orde

d to

a th

ird

party

cou

ntry

by

a co

ntra

ctin

g pa

rty c

ount

ry, i

t is p

rovi

ded

that

upo

n re

ques

t fro

m th

e ot

her c

ontra

ctin

g pa

rty c

ount

ry

it sh

ould

con

sider

whe

ther

to

acco

rd th

e eq

ual t

reat

men

t to

the

othe

r con

tract

ing

party

co

untry

.

○ In

pr in

cipl

e un

cond

ition

al

MFN

trea

tmen

t is p

rovi

ded,

w

ith e

xcep

tions

insc

ribed

in

the

anne

x (M

FN S

ched

ule

of

Rese

rvat

ions

).

△ In

pr in

cipl

e, u

ncon

ditio

nal

MFN

trea

tmen

t is p

rovi

ded.

H

owev

er, i

n th

e an

nex

(MFN

Li

st of

Exe

mpt

ions

) whi

ch

prov

ides

exc

eptio

ns,

rese

rvat

ions

on

acco

rdin

g th

e M

FN tr

eatm

ent a

re m

ade

with

re

spec

t to

all s

ecto

rs e

xcep

t a

few,

in w

hich

the

MFN

tre

atm

ent i

s acc

orde

d as

an

exce

ptio

n to

the

exce

ptio

ns.

○In

prin

cipl

e un

cond

ition

al

MFN

is p

rovi

ded,

with

ex

cept

ions

insc

ribed

in th

e an

nex

(Sch

edul

e of

Re

serv

atio

ns).

△ W

hen

a co

ntra

ctin

g pa

rty

coun

try h

as a

ccor

ded

bette

r tre

atm

ent t

o a

third

par

ty

coun

try, i

f req

ueste

d by

the

othe

r con

tract

ing

party

co

untry

, it s

houl

d co

nsid

er

acco

rdin

g no

less

favo

rabl

e tre

atm

ent t

o th

e ot

her

cont

ract

ing

party

cou

ntry

than

to

a th

ird p

arty

cou

ntry

.

△ In

pr in

cipl

e, u

ncon

ditio

nal

MFN

trea

tmen

t is p

rovi

ded.

H

owev

er, i

n th

e an

nex

(MFN

List

of

Exe

mpt

ions

) whi

ch p

rovi

des

exce

ptio

ns, r

eser

vatio

ns o

n ac

cord

ing

the

MFN

trea

tmen

t are

m

ade

with

resp

ect t

o al

l sec

tors

ex

cept

a fe

w in

whi

ch th

e M

FN

treat

men

t is a

ccor

ded

as a

n ex

cept

ion

to th

e ex

cept

ions

.

○ In

pr in

cipl

e un

cond

ition

al

MFN

is p

rovi

ded,

with

ex

cept

ions

insc

ribed

in th

e an

nex

(MFN

List

of

Exem

ptio

ns).

Nat

iona

l Tre

atm

ent

(NT)

○

Nat

iona

l Tre

atm

ent s

hall

be

acco

rded

in th

e se

ctor

s in

scrib

ed in

the

Sche

dule

of

Spec

ific

Com

mitm

ents.

○In

prin

cipl

e N

T sh

all b

e ac

cord

ed in

all

serv

ice

sect

ors

exce

pt th

e one

s ins

crib

ed in

the

anne

x (S

ched

ule

of

Rese

rvat

ions

)

○Nat

iona

l Tre

atm

ent s

hall

be

acco

rded

in th

e se

ctor

s in

scrib

ed in

the

Sche

dule

of

Spec

ific

Com

mitm

ents.

○In

prin

cipl

e N

T sh

all b

e ac

cord

ed in

all

serv

ice

sect

ors

exce

pt th

e one

s ins

crib

ed in

the

anne

x (S

ched

ule

of

Rese

rvat

ions

)

○Nat

iona

l Tre

atm

ent s

hall

be

acco

rded

in th

e se

ctor

s in

scrib

ed in

the

Sche

dule

of

Spec

ific

Com

mitm

ents.

○ N

atio

nal T

reat

men

t sha

ll be

ac

cord

ed in

the

sect

ors i

nscr

ibed

in

the

Sche

dule

of S

peci

fic

Com

mitm

ents

.

○ N

atio

nal T

reat

men

t sha

ll be

acc

orde

d in

the

sect

ors

insc

ribed

in th

e Sc

hedu

le o

f Sp

ecifi

c Co

mm

itmen

ts.

Mar

ket A

cces

s Co

mm

itmen

ts ○S

ame

prov

ision

as A

rticl

e X

VI o

f GAT

S on

mar

ket

acce

ss, w

hich

obl

iges

eac

h co

ntra

ctin

g pa

rty c

ount

ry to

ac

cord

no

less

favo

rabl

e tre

atm

ent t

han

that

und

erta

ken

and

spec

ified

in th

e Sc

hedu

le

of S

peci

fic C

omm

itmen

ts.

Mar

ket a

cces

s is n

ot p

rovi

ded

for.

Ins

tead

ther

e is

a pr

ovisi

on p

rohi

bitin

g th

e re

quire

men

t of e

stabl

ishin

g a

loca

l rep

rese

ntat

ive

offic

e or

an

y fo

rm o

f ent

erpr

ise;

exce

ptio

ns a

re in

scrib

ed in

the

anne

x (S

ched

ule

of

Rese

rvat

ions

).

○ Sam

e pr

ovisi

on a

s Arti

cle

XV

I of G

ATS

on m

arke

t ac

cess

, whi

ch o

blig

es e

ach

cont

ract

ing

party

cou

ntry

to

acco

rd n

o le

ss fa

vora

ble

treat

men

t tha

n th

at u

nder

take

n an

d sp

ecifi

ed in

the

Sche

dule

of

Spe

cific

Com

mitm

ents.

Mar

ket a

cces

s is n

ot p

rovi

ded

for.

Inste

ad th

ere

is a

prov

ision

pr

ohib

iting

the

requ

irem

ent o

f es

tabl

ishin

g a

loca

l re

pres

enta

tive

offic

e or

any

fo

rm o

f ent

erpr

ise; e

xcep

tions

ar

e in

scrib

ed in

the

anne

x (S

ched

ule

of R

eser

vatio

ns).

○ Sam

e pr

ovisi

on a

s Arti

cle

XV

I of G

ATS

on m

arke

t ac

cess

, whi

ch o

blig

es e

ach

cont

ract

ing

party

cou

ntry

to

acco

rd n

o le

ss fa

vora

ble

treat

men

t tha

n th

at u

nder

take

n an

d sp

ecifi

ed in

the

Sche

dule

of

Spe

cific

Com

mitm

ents.

○ Sa

me

prov

ision

as A

rticl

e X

VI

of G

ATS

on m

arke

t acc

ess,

whi

ch

oblig

es e

ach

cont

ract

ing

party

co

untry

to a

ccor

d no

less

fa

vora

ble

treat

men

t tha

n th

at

unde

rtake

n an

d sp

ecifi

ed in

the

Sche

dule

of S

peci

fic

Com

mitm

ents

.

○ Sa

me

prov

ision

as A

rticl

e X

VI o

f GAT

S on

mar

ket

acce

ss, w

hich

obl

iges

eac

h co

ntra

ctin

g pa

rty c

ount

ry to

ac

cord

no

less

favo

rabl

e tre

atm

ent t

han

that

un

derta

ken

and

spec

ified

in

the

Sche

dule

of S

peci

fic

Com

mitm

ents

. Tr

ansp

aren

cy

Requ

irem

ents

△Eac

h co

ntra

ctin

g pa

rty

coun

try is

obl

iged

to p

rom

ptly

m

ake

publ

ic (o

r oth

erw

ise

mak

e pu

blic

ly a

vaila

ble)

its

mea

sure

s per

tain

ing

to

or

affe

ctin

g th

e op

erat

ion

of th

e ag

reem

ent,

at le

ast w

ithin

the

coun

try, a

nd to

resp

ond

to th

e ot

her c

ontra

ctin

g pa

rty

coun

try’s

inqu

iries

abo

ut th

ese

mea

sure

s.

○ Ea

c h c

ontra

ctin

g pa

rty

coun

try is

obl

iged

to p

rom

ptly

m

ake

publ

ic (o

r oth

erw

ise

mak

e pu

blic

ly a

vaila

ble)

its

mea

sure

s per

tain

ing

to o

r af

fect

ing

the

oper

atio

n of

the

agre

emen

t, at

leas

t with

in th

e co

untry

, and

to re

spon

d to

the

othe

r con

tract

ing

party

co

untry

’s in

quiri

es a

bout

thes

e m

easu

res.

As c

omm

itmen

ts a

re m

ade

in

the

form

of t

he n

egat

ive

list

appr

oach

, reg

ardi

ng th

e sec

tors

re

serv

ed th

roug

h th

e st

ands

till

oblig

atio

n ba

sed

on th

e ex

istin

g m

easu

res,

the

desc

riptio

ns o

n th

ose m

easu

res

are

expl

icitl

y pr

ovid

ed in

the

Sche

dule

of R

eser

vatio

ns.

△ Ea

c h c

ontra

ctin

g pa

rty

coun

try is

obl

iged

to p

rom

ptly

m

ake

publ

ic (o

r oth

erw

ise

mak

e pu

blic

ly a

vaila

ble)

its

mea

sure

s per

tain

ing

to o

r af

fect

ing

the

oper

atio

n of

the

agre

emen

t, at

leas

t with

in th

e co

untry

, and

to re

spon

d to

the

othe

r con

tract

ing

party

co

untry

’s in

quiri

es a

bout

thes

e m

easu

res.

Th

ere

are

prov

ision

s in

the

serv

ice

chap

ter o

blig

ing

each

co

ntra

ctin

g pa

rty c

ount

ry to

pr

ovid

e th

e ot

her c

ontra

ctin

g pa

rty c

ount

ry w

ith (i

) in

form

atio

n on

the

mea

sure

s af

fect

ing

its c

omm

itmen

ts re

late

d to

mar

ket a

cces

s and

na

tiona

l tre

atm

ent;

and

(ii)

copi

es o

f ann

ual r

epor

ts o

r any

ot

her p

ublic

atio

n ge

nera

lly

avai

labl

e to

the

publ

ic.

○ Ea

c h c

ontra

ctin

g pa

rty

coun

try is

obl

iged

to p

rom

ptly

m

ake

publ

ic (o

r oth

erw

ise

mak

e pu

blic

ly a

vaila

ble)

its

mea

sure

s per

tain

ing

to o

r af

fect

ing

the

oper

atio

n of

the

agre

emen

t, at

leas

t with

in th

e co

untry

, and

to re

spon

d to

the

othe

r con

tract

ing

party

co

untry

’s in

quiri

es a

bout

thes

e m

easu

res.

As c

omm

itmen

ts a

re m

ade

in

the

form

of t

he n

egat

ive

list

appr

oach

, reg

ardi

ng th

e sec

tors

re

serv

ed th

roug

h th

e st

ands

till

oblig

atio

n ba

sed

on th

e ex

istin

g m

easu

res,

the

desc

riptio

ns o

n th

ose m

easu

res

are

expl

icitl

y pr

ovid

ed in

the

Sche

dule

of R

eser

vatio

ns.

△Eac

h co

ntra

ctin

g pa

rty

coun

try is

obl

iged

to p

rom

ptly

m

ake

publ

ic (o

r oth

erw

ise

mak

e pu

blic

ly a

vaila

ble)

its

mea

sure

s per

tain

ing

to o

r af

fect

ing

the

oper

atio

n of

the

agre

emen

t, at

leas

t with

in th

e co

untry

, and

to re

spon

d to

the

othe

r con

tract

ing

party

co

untry

’s in

quiri

es a

bout

thes

e m

easu

res.

Each

par

ty sh

all p

repa

re a

no

n-le

gally

bin

ding

list

pr

ovid

ing

all r

elev

ant l

aws a

nd

regu

latio

ns w

hich

are

not

co

nfor

min

g to

the

com

mitm

ents

of m

arke

t acc

ess

and

natio

nal t

reat

men

t ac

cord

ed u

nder

the

agre

emen

t (tr

ansp

aren

cy li

st). S

aid

list

shal

l be

exch

ange

d w

ith o

ther

pa

rty.

△Eac

h co

ntra

ctin

g pa

rty c

ount

ry

is o

blig

ed to

pro

mpt

ly m

ake

publ

ic (o

r oth

erw

ise m

ake

publ

icly

ava

ilabl

e) it

s mea

sure

s pe

rtain

ing

to o

r affe

ctin

g th

e op

erat

ion

of th

e ag

reem

ent,

at

leas

t with

in th

e co

untry

, and

to

resp

ond

to th

e ot

her c

ontra

ctin

g pa

rty c

ount

ry’s

inqu

iries

abo

ut

thes

e m

easu

res.

It is

also

pro

vide

d th

at a

co

ntra

ctin

g pa

rty c

ount

ry m

ust

resp

ond

to a

nd p

rovi

de

info

rmat

ion

in re

spon

se to

qu

estio

ns fr

om a

serv

ice

supp

lier

of th

e co

unte

rpar

ty c

ount

ry

thro

ugh

its c

onta

ct p

oint

.

○Eac

h co

ntra

ctin

g pa

rty

coun

try is

obl

iged

to

prom

ptly

mak

e pu

blic

(or

othe

rwis

e m

ake

publ

icly

av

aila

ble)

its m

easu

res

perta

inin

g to

or a

ffect

ing

the

oper

atio

n of

the

agre

emen

t, at

leas

t with

in

the

coun

try, a

nd to

resp

ond

to th

e ot

her c

ontra

ctin

g pa

rty c

ount

ry’s

inqu

iries

ab

out t

hese

mea

sure

s. Ea

ch p

arty

shal

l pre

pare

a

non-

lega

lly b

indi

ng li

st

prov

idin

g al

l rel

evan

t law

s an

d re

gula

tions

whi

ch a

re

not c

onfo

rmin

g to

the

com

mitm

ents

of m

arke

t ac

cess

and

nat

iona

l tre

atm

ent a

ccor

ded

unde

r th

e ag

reem

ent

(tran

spar

ency

list)

. Sai

d lis

t sh

all b

e ex

chan

ged

with

ot

her p

arty

. It

is al

so p

rovi

ded

that

a

cont

ract

ing

party

cou

ntry

m

ust r

espo

nd to

and

prov

ide

info

rmat

ion

in re

spon

se to

qu

estio

ns fr

om a

serv

ice

supp

lier o

f the

cou

nter

party

co

untry

thro

ugh

its c

onta

ct

poin

t.

Stan

dstil

l Obl

igat

ion

No

prov

ision

in th

e ag

reem

ent.

○ Th

is ob

ligat

ion

is pr

ovid

ed

rega

rdin

g an

y ex

istin

g ○

This

oblig

atio

n is

prov

ided

on

ly fo

r sec

tors

or s

ub-s

ecto

rs

○Thi

s obl

igat

ion

is pr

ovid

ed

rega

rdin

g an

y ex

istin

g ○T

his o

blig

atio

n is

prov

ided

on

ly fo

r sec

tors

or s

ub-s

ecto

rs

○ Th

is ob

ligat

ion

is pr

ovid

ed o

nly

for s

ecto

rs o

r sub

-sec

tors

N

o pr

ovisi

on in

the

agre

emen

t.

Chap

ter

2: S

ervi

ces

Nam

e Ja

pan-

Sing

apor

e EP

A

Japa

n-M

exic

o EP

A

Japa

n-M

alay

sia E

PA

Japa

n-C

hile

EPA

Ja

pan-

Thai

land

EPA

Ja

pan-

Indo

nesia

EPA

Ja

pan-

Brun

ei E

PA

mea

sure

s whi

ch a

re

non-

conf

orm

ing

to N

T, M

FN,

or m

arke

t acc

ess o

blig

atio

n,

and

whi

ch a

re m

aint

aine

d by

a

cont

ract

ing

party

coun

try at

the

cent

ral o

r loc

al g

over

nmen

t le

vel.

Thes

e m

easu

res a

re se

t ou

t in

the

anne

x (S

ched

ule

of

Rese

rvat

ions

).

indi

cate

d by

the

“SS”

mar

k in

th

e Sc

hedu

le o

f Spe

cific

Co

mm

itmen

ts. T

his m

ark

mea

ns sp

ecifi

c co

mm

itmen

ts m

ade

in su

ch se

ctor

s or

sub-

sect

ors a

re li

mite

d to

thos

e ba

sed

on re

leva

nt e

xisti

ng

mea

sure

s whi

ch a

re

non-

conf

orm

ing

to N

T or

m

arke

t acc

ess o

blig

atio

n.

mea

sure

s whi

ch a

re

non-

conf

orm

ing

to N

T, M

FN,

or m

arke

t acc

ess o

blig

atio

n an

d w

hich

are

mai

ntai

ned

by a

co

ntra

ctin

g pa

rty co

untry

at th

e ce

ntra

l or l

ocal

gov

ernm

ent

leve

l. Th

ese

mea

sure

s are

set

out i

n th

e an

nex

(Sch

edul

e of

Re

serv

atio

ns).

indi

cate

d by

the

“SS”

mar

k in

th

e Sc

hedu

le o

f Spe

cific

Co

mm

itmen

ts. T

his m

ark

mea

ns sp

ecifi

c co

mm

itmen

ts m

ade

in su

ch se

ctor

s or

sub-

sect

ors a

re li

mite

d to

thos

e ba

sed

on re

leva

nt e

xisti

ng

mea

sure

s whi

ch a

re

non-

conf

orm

ing

to N

T or

m

arke

t acc

ess o

blig

atio

n.

indi

cate

d by

the

“SS”

mar

k in

the

Sche

dule

of S

peci

fic

Com

mitm

ents

. Thi

s mar

k m

eans

sp

ecifi

c co

mm

itmen

ts m

ade

in

such

sect

ors o

r sub

-sec

tors

are

lim

ited

to th

ose

base

d on

rele

vant

ex

istin

g m

easu

res w

hich

are

no

n-co

nfor

min

g to

NT

or m

arke

t ac

cess

obl

igat

ion.

Proh

ibiti

on o

f Re

stric

tions

on

Paym

ents

and

Tra

nsfe

rs

△Sam

e pr

ovisi

on a

s GAT

S,

whe

re su

ch p

rohi

bitio

n is

only

ap

plie

d to

restr

ictio

ns o

f in

tern

atio

nal t

rans

fers

and

pa

ymen

ts fo

r cur

rent

tra

nsac

tions

rela

ting

to sp

ecifi

c co

mm

itmen

ts.

○In

t he

sepa

rate

Cha

pter

of

Exce

ptio

ns (w

hich

iden

tifie

s ex

cept

ions

exc

lude

d fro

m th

e en

tire

agre

emen

t), th

ere

is a

prov

ision

pro

hibi

ting

restr

ictio

ns o

f int

erna

tiona

l tra

nsfe

rs a

nd p

aym

ents

for

curre

nt tr

ansa

ctio

ns re

latin

g to

cr

oss-

bord

er tr

ade

in se

rvic

es

of a

ll se

ctor

s and

sub-

sect

ors.

○The

re is

a p

rovi

sion

proh

ibiti

ng re

stric

tions

of

inte

rnat

iona

l tra

nsfe

rs a

nd

paym

ents

for c

urre

nt

trans

actio

ns re

latin

g to

trad

e in

se

rvic

es o

f all

sect

ors a

nd

sub-

sect

ors;

not l

imite

d to

just

th

ose

sect

ors a

nd su

b-se

ctor

s in

scrib

ed in

the

Sche

dule

of

Spec

ific

Com

mitm

ents.

No

prov

ision

in th

e ag

reem

ent.

△Sam

e pr

ovisi

on a

s GAT

S w

here

such

pro

hibi

tion

is on

ly

appl

ied

to re

stric

tions

of

inte

rnat

iona

l tra

nsfe

rs a

nd

paym

ents

for c

urre

nt

trans

actio

ns re

latin

g to

spec

ific

com

mitm

ents.

○ T h

ere

is a

prov

ision

pro

hibi

ting

restr

ictio

ns o

f int

erna

tiona

l tra

nsfe

rs a

nd p

aym

ents

for

curre

nt tr

ansa

ctio

ns re

latin

g to

tra

de in

serv

ices

of a

ll se

ctor

s and

su

b-se

ctor

s; no

t lim

ited

to ju

st

thos

e se

ctor

s and

sub-

sect

ors

insc

ribed

in th

e Sc

hedu

le o

f Sp

ecifi

c Co

mm

itmen

ts.

△Sam

e pr

ovisi

on a

s GAT

S w

here

such

pro

hibi

tion

is on

ly a

pplie

d to

restr

ictio

ns

of in

tern

atio

nal t

rans

fers

an

d pa

ymen

ts fo

r cur

rent

tra

nsac

tions

rela

ting

to

spec

ific

com

mitm

ents

.

555

Part

III: E

PA/F

TA a

nd II

A

Nam

e Ja

pan-

Phili

ppin

e EP

A

Japa

n-Sw

itzer

land

EP

A

Japa

n-Vi

et N

am E

PA

Japa

n-In

dia

EPA

Ja

pan-

Peru

EPA

Ja

pan-

Aus

tral

ia E

PA

Japa

n-M

ongo

lia E

PA

Tran

s-Pa

cific

Par

tner

ship

(T

PP) A

gree

men

t Ef

fect

ive/

Sign

ed

as o

f E f

fect

ive

on 2

008.

12.1

1 Ef

fect

ive o

n 20

09.9

.1

Effe

ctiv

e on

200

9.10

.1

Effe

ctiv

e on

201

1.8.

1

Effe

ctiv

e on

201

2.3.

1 Ef

fect

ive

on 2

015.

1.15

Si

gned

on

2015

.2.1

0 Si

gned

on

2016

.2.4

App

roac

h on

Li

bera

lizat

ion

Com

mitm

ents

Pos it

ive

list a

ppro

ach

Neg

ativ

e lis

t ap

proa

ch

Posit

ive

list a

ppro

ach

Posit

ive

list a

ppro

ach

Neg

ativ

e lis

t app

roac

h N

egat

ive

list a

ppro

ach

Posit

ive

list a

ppro

ach

Neg

ativ

e lis

t app

roac

h

MFN

Tre

atm

ent

○ In

pr in

cipl

e,

unco

nditi

onal

MFN

is

prov

ided

, with

ex

cept

ions

insc

ribed

in

the

anne

x (M

FN L

ist o

f Ex

empt

ions

).

△ In

pr in

cipl

e,

unco

nditi

onal

MFN

tre

atm

ent i

s pr

ovid

ed. E

xcep

tions

ar

e su

bjec

t to

mea

sure

s ins

crib

ed in

th

e an

nex

(Sch

edul

e of

Res

erva

tions

) and

th

e tre

atm

ent

acco

rded

und

er o

ther

EP

As/

FTA

s tha

t sa

tisfy

the

requ

irem

ents

unde

r A

rticl

e V

of G

ATS.

Th

e co

ntra

ctin

g pa

rty

coun

try is

obl

iged

to

ende

avor

to ac

cord

to

the

othe

r con

tract

ing

party

cou

ntry

tre

atm

ent n

o le

ss

favo

rabl

e th

an th

at

prov

ided

und

er th

e EP

As/

FTA

s co

nclu

ded

with

the

third

cou

ntry

.

△ In

pr in

cipl

e un

cond

ition

al

MFN

trea

tmen

t is p

rovi

ded.

Ex

cept

ions

are

subj

ect t

o m

easu

res i

nscr

ibed

in th

e ann

ex

(MFN

List

of E

xem

ptio

ns) a

nd

the

treat

men

t acc

orde

d un

der

othe

r EPA

s/FTA

s tha

t sat

isfy

the

requ

irem

ents

und

er A

rticl

e V

of G

ATS.

The

con

tract

ing

party

cou

ntry

is o

blig

ed to

giv

e th

e ot

her t

he c

ontra

ctin

g pa

rty

coun

try a

n op

portu

nity

to

cons

ult o

n w

heth

er th

e m

ore

favo

rabl

e tre

atm

ent a

ccor

ded

to

the

third

cou

ntry

und

er th

e ot

her E

PAs/F

TAs m

ay b

e ac

cord

ed to

the

othe

r co

ntra

ctin

g pa

rty c

ount

ry.

△If a

con

tract

ing

party

co

untry

acc

ords

bet

ter

treat

men

t to

a th

ird p

arty

co

untry

, the

n at

the

requ

est

of th

e ot

her c

ontra

ctin

g pa

rty

coun

try, a

ccor

ding

bet

ter

treat

men

t will

be

cons

ider

ed.

○ In

pr in

cipl

e,

unco

nditi

onal

MFN

tre

atm

ent i

s pro

vide

d,

with

exc

eptio

ns in

scrib

ed

in th

e an

nex

(MFN

List

of

Exem

ptio

ns).

○ In

prin

cipl

e,

unco

nditi

onal

MFN

tre

atm

ent i

s pro

vide

d,

with

exc

eptio

ns in

scrib

ed

in th

e an

nex

(MFN

List

of

Exem

ptio

ns).

○ In

prin

cipl

e,

unco

nditi

onal

MFN

tre

atm

ent i

s pro

vide

d,

with

exc

eptio

ns

insc

ribed

in th

e an

nex

(MFN

List

of

Exem

ptio

ns).

○In

prin

cipl

e un

cond

ition

al

MFN

trea

tmen

t is

prov

ided

, w

ith e

xcep

tions

insc

ribed

in

the

anne

x (S

ched

ule

of

Rese

rvat

ions

).

Nat

iona

l Tr

eatm

ent (

NT)

○

Nat

iona

l Tre

atm

ent

shal

l be

acco

rded

in th

e se

ctor

s ins

crib

ed in

the

Sche

dule

of S

peci

fic

Com

mitm

ents

.

○In

prin

cipl

e, N

T sh

all b

e ac

cord

ed in

al

l ser

vice

sect

ors

exce

pt fo

r the

one

s in

scrib

ed in

the

anne

x (S

ched

ule

of

Rese

rvat

ions

).

○Nat

iona

l Tre

atm

ent s

hall

be

acco

rded

in th

e se

ctor

s in

scrib

ed in

the

Sche

dule

of

Spec

ific

Com

mitm

ents.

○Nat

iona

l Tre

atm

ent s

hall

be

acco

rded

in th

e se

ctor

s in

scrib

ed in

the

Sche

dule

of

Spec

ific

Com

mitm

ents.

○In

prin

cipl

e, N

T sh

all b

e ac

cord

ed in

all

serv

ice

sect

ors e

xcep

t for

the

ones

in

scrib

ed in

the

anne

x (S

ched

ule

of

Rese

rvat

ions

).

○ In

pr in

cipl

e, N

T sh

all b

e ac

cord

ed in

all

serv

ice

sect

ors e

xcep

t for

the

ones

in

scrib

ed in

the

anne

x (S

ched

ule

of

Rese

rvat

ions

).

○ N

atio

nal T

reat

men

t sh

all b

e ac

cord

ed in

the

sect

ors i

nscr

ibed

in th

e Sc

hedu

le o

f Spe

cific

Co

mm

itmen

ts.

○In

prin

cipl

e N

T sh

all

be

acco

rded

in

al

l se

rvic

e se

ctor

s ex

cept

th

e on

es

insc

ribed

in

th

e an

nex

(Sch

edul

e of

Res

erva

tions

).

Mar

ket A

cces

s Co

mm

itmen

ts ○

Sam

e pr

ovisi

on a

s A

rticl

e X

VI o

f GAT

S on

mar

ket a

cces

s, w

hich

obl

iges

eac

h co

ntra

ctin

g pa

rty

coun

try to

acc

ord

no

less

favo

rabl

e tre

atm

ent

than

that

und

erta

ken

and

spec

ified

in th

e Sc

hedu

le o

f Spe

cific

Co

mm

itmen

ts.

○ In

pr in

cipl

e, th

e sa

me

prov

ision

as

Arti

cle

XV

I of G

ATS

on m

arke

t acc

ess i

s pr

ovid

ed.

Exce

ptio

ns a

re

insc

ribed

in th

e an

nex

(Sch

edul

e of

Re

serv

atio

ns).

○ Sa

me

prov

ision

as A

rticl

e X

VI o

f GAT

S on

mar

ket

acce

ss, w

hich

obl

iges

eac

h co

ntra

ctin

g pa

rty c

ount

ry to

ac

cord

no

less

favo

rabl

e tre

atm

ent t

han

that

und

erta

ken

and

spec

ified

in th

e Sch

edul

e of

Spec

ific

Com

mitm

ents.

○ Sa

me

prov

ision

as A

rticl

e X

VI o

f GAT

S on

mar

ket

acce

ss, w

hich

obl

iges

eac

h co

ntra

ctin

g pa

rty c

ount

ry to

ac

cord

no

less

favo

rabl

e tre

atm

ent t

han

that

un

derta

ken

and

spec

ified

in

the

Sche

dule

of S

peci

fic

Com

mitm

ents

.

○ In

pr in

cipl

e, th

e sa

me

prov

ision

as A

rticl

e X

VI

of G

ATS

on m

arke

t acc

ess

(exc

ept l

imita

tions

on

the

parti

cipa

tion

of fo

reig

n ca

pita

l) is

prov

ided

. The

re

is a

pro

visio

n pr

ohib

iting

th

e re

quire

men

t of

esta

blish

ing

a lo

cal

repr

esen

tativ

e of

fice

or

any

form

of e

nter

prise

; ex

cept

ions

are i

nscr

ibed

in

the

anne

x (S

ched

ule

of

Rese

rvat

ions

)

○ In

pr in

cipl

e, th

e sa

me

prov

ision

as A

rticl

e X

VI

of G

ATS

on m

arke

t acc

ess

is p

rovi

ded.

The

re is

a

prov

ision

pro

hibi

ting

the

requ

irem

ent o

f es

tabl

ishin

g a

loca

l re

pres

enta

tive

offic

e or

an

y fo

rm o

f ent

erpr

ise;

exce

ptio

ns ar

e ins

crib

ed in

th

e an

nex

(Sch

edul

e of

Re

serv

atio

ns)

○ Sa

me

prov

ision

as

A

rticl

e X

VI

of G

ATS

on

mar

ket

acce

ss

(mar

ket a

cces

s sh

all b

e ac

cord

ed w

ithin

a ra

nge

spec

ified

in

th

e Sc

hedu

le

of

Spec

ific

Com

mitm

ents)

.

○ In

pr

inci

ple,

th

e sa

me

mar

ket

acce

ss a

s in

Arti

cle

XV

I of

GAT

S on

mar

ket

acce

ss

(exc

ept

limita

tions

on

th

e pa

rtici

patio

n of

fo

reig

n ca

pita

l) is

acco

rded

. Th

ere

is a

prov

ision

pr

ohib

iting

the

req

uire

men

t of

es

tabl

ishin

g a

loca

l re

pres

enta

tive

offic

e or

any

fo

rm

of

ente

rpris

e.

Exce

ptio

ns a

re i

nscr

ibed

in

the

anne

x (S

ched

ule

of

Rese

rvat

ions

). Tr

ansp

aren

cy

Requ

irem

ents

○Eac

h co

ntra

ctin

g pa

rty

coun

try is

obl

iged

to

prom

ptly

mak

e pu

blic

(o

r oth

erw

ise m

ake

publ

icly

ava

ilabl

e) it

s m

easu

res p

erta

inin

g to

or

affe

ctin

g th

e op

erat

ion

of th

e ag

reem

ent,

at le

ast

with

in th

e co

untry

, and

to

resp

ond

to th

e ot

her

cont

ract

ing

party

co

untry

’s in

quiri

es

abou

t the

se m

easu

res.

Each

par

ty sh

all p

repa

re

a no

n-le

gally

bin

ding

○ Ea

c h c

ontra

ctin

g pa

rty c

ount

ry is

ob

liged

to p

rom

ptly

m

ake

publ

ic (o

r ot

herw

ise m

ake

publ

icly

avai

labl

e) it

s m

easu

res p

erta

inin

g to

or a

ffect

ing

the

oper

atio

n of

the

agre

emen

t, at

leas

t w

ithin

the

coun

try,

and

to re

spon

d to

the

othe

r con

tract

ing

party

cou

ntry

’s

inqu

iries

abo

ut th

ese

mea

sure

s.

△ Ea

c h c

ontra

ctin

g pa

rty

coun

try is

obl

iged

to p

rom

ptly

m

ake

publ

ic (o

r oth

erw

ise

mak

e pu

blic

ly a

vaila

ble)

its

mea

sure

s per

tain

ing

to o

r af

fect

ing

the

oper

atio

n of

the

agre

emen

t, at

leas

t with

in th

e co

untry

, and

to re

spon

d to

the

othe

r con

tract

ing

party

co

untry

’s in

quiri

es a

bout

thes

e m

easu

res.

It is

also

pro

vide

d th

at a

co

ntra

ctin

g pa

rty c

ount

ry m

ust

resp

ond

to a

nd p

rovi

de

info

rmat

ion

in re

spon

se to

qu

estio

ns fr

om a

serv

ice

○Eac

h co

ntra

ctin

g pa

rty

coun

try is

obl

iged

to

prom

ptly

mak

e pu

blic

(or

othe

rwis

e m

ake

publ

icly

av

aila

ble)

its m

easu

res

perta

inin

g to

or a

ffect

ing

the

oper

atio

n of

the

agre

emen

t, at

leas

t with

in th

e co

untry

, an

d to

resp

ond

to th

e ot

her

cont

ract

ing

party

cou

ntry

’s

inqu

iries

abo

ut th

ese

mea

sure

s. Ea

ch p

arty

shal

l pre

pare

a

non-

lega

lly b

indi

ng li

st

prov

idin

g al

l rel

evan

t law

s an

d re

gula

tions

whi

ch a

re

○Eac

h co

ntra

ctin

g co

untry

is

oblig

ed to

mak

e ef

forts

to

resp

ond

to q

uesti

ons o

n th

e re

leva

nt la

ws a

nd

regu

latio

ns fr

om

inte

reste

d pa

rties

as m

uch

as p

ossib

le, a

nd to

pr

ompt

ly m

ake

publ

ic (o

r ot

herw

ise

mak

e pu

blic

ly

avai

labl

e) th

e op

inio

ns

and

exam

inat

ion

resu

lts o

f pu

blic

com

men

ts o

n th

e ad

optio

n of

fina

l law

s and

re

gula

tions

.

○ W

hen

a pa

rty m

aint

ains

m

easu

res r

elat

ed to

lic

ensin

g re

quire

men

ts an

d pr

oced

ures

, qu

alifi

catio

n re

quire

men

ts an

d pr

oced

ures

, and

te

chni

cal s

tand

ards

, the

pa

rty sh

all m

ake

publ

icly

av

aila

ble

the

info

rmat

ion

on th

e re

quire

men

ts an

d pr

oced

ures

to o

btai

n,

rene

w, o

r ret

ain

any

licen

ses o

r pro

fess

iona

l qu

alifi

catio

ns a

nd th

e in

form

atio

n on

tech

nica

l sta

ndar

ds, w

here

○ Ea

ch p

arty

shal

l pr

epar

e a

non-

lega

lly

bind

ing

list p

rovi

ding

al

l rel

evan

t mea

sure

s af

fect

ing

the

oblig

atio

ns o

f m

arke

t ac

cess

, nat

iona

l tre

atm

ent,

and

Mos

t-Fav

ored

-Nat

ion

Trea

tmen

t in

all s

ecto

r (tr

ansp

aren

cy li

st)

(obl

igat

ory

prov

ision

s).

This

list s

hall

be

exch

ange

d w

ith th

e ot

her p

arty

with

in fi

ve

year

s fro

m th

e da

te o

f

○ W

ith re

gard

to re

gula

tions

on

mat

ters

sub

ject

to

the

prov

ision

s of

thi

s ch

apte

r, ob

ligat

ions

ar

e pr

ovid

ed,

such

as

ad

optio

n or

m

aint

enan

ce

of

an

appr

opria

te m

echa

nism

for

re

spon

ding

to in

quiri

es fr

om

stak

ehol

ders

.

Chap

ter

2: S

ervi

ces

* Th

e EP

As r

efer

red

to in

this

tabl

e ar

e lim

ited

to th

ose

signe

d an

d ap

prov

ed b

y th

e D

iet.

list p

rovi

ding

all

rele

vant

law

s and

re

gula

tions

whi

ch a

re

not c

onfo

rmin

g to

co

mm

itmen

ts of

mar

ket

acce

ss a

nd n

atio

nal

treat

men

t acc

orde

d un

der t

he a

gree

men

t (tr

ansp

aren

cy li

st).S

aid

list s

hall

be e

xcha

nged

w

ith o

ther

par

ty.

It is

also

pro

vide

d th

at a

co

ntra

ctin

g pa

rty

coun

try m

ust r

espo

nd to

an

d pr

ovid

e in

form

atio

n in

resp

onse

to

que

stion

s fro

m a

se

rvic

e su

pplie

r of t

he

coun

terp

arty

cou

ntry

th

roug

h its

con

tact

po

int.

As t

he a

gree

men

t ad

opts

the

nega

tive

list a

ppro

ach,

det

ails

of e

xisti

ng la

ws a

nd

regu

latio

ns w

hich

are

re

serv

ed u

nder

the

stan

dstil

l obl

igat

ions

ar

e sp

ecifi

ed in

the

anne

x (L

ist o

f Re

serv

atio

ns).

supp

lier o

f the

cou

nter

party

co

untry

thro

ugh

its c

onta

ct

poin

t.

not c

onfo

rmin

g to

co

mm

itmen

ts of

mar

ket

acce

ss an

d na

tiona

l tre

atm

ent

acco

rded

und

er th

e ag

reem

ent (

trans

pare

ncy

list)

(dut

y to

end

eavo

r pr

ovisi

ons)

. Sa

id li

st sh

all

be e

xcha

nged

with

oth

er

party

. It

is al

so p

rovi

ded

that

a

cont

ract

ing

party

cou

ntry

m

ust r

espo

nd to

and

pro

vide

in

form

atio

n in

resp

onse

to

ques

tions

from

a se

rvic

e su

pplie

r of t

he c

ount

erpa

rty

coun

try th

roug

h its

con

tact

po

int.

ava i

labl

e.

Whe

re a

ny fo

rm o

f au

thor

izat

ion

is re

quire

d fo

r the

supp

ly o

f a se

rvic

e,

the

party

shal

l ens

ure

that

it

will

whe

re p

ract

icab

le,

in th

e ca

se o

f an

inco

mpl

ete a

pplic

atio

n, o

n re

ques

t of a

n ap

plic

ant,

iden

tify

all t

he a

dditi

onal

in

form

atio

n th

at is

re

quire

d to

com

plet

e th

e ap

plic

atio

n;

entry

into

forc

e of

this

agre

emen

t. W

here

ne

cess

ary

or a

s agr

eed

betw

een

the

parti

es, t

he

list s

hall

be su

bjec

t to

futu

re re

view

and

re

visio

n.

Stan

dstil

l O

blig

atio

n ○

T his

oblig

atio

n is

prov

ided

onl

y fo

r se

ctor

s or s

ub-s

ecto

rs

indi

cate

d by

the

“SS”

m

ark

in th

e Sc

hedu

le o

f Sp

ecifi

c Co

mm

itmen

ts.

This

mar

k m

eans

sp

ecifi

c co

mm

itmen

ts

mad

e in

such

sect

ors o

r su

b-se

ctor

s are

lim

ited

to th

ose

base

d on

re

leva

nt e

xisti

ng

mea

sure

s whi

ch a

re

non-

conf

orm

ing

to N

T or

mar

ket a

cces

s ob

ligat

ion.

○Thi

s obl

igat

ion

is pr

ovid

ed fo

r any

ex

istin

g m

easu

res

whi

ch a

re

non-

conf

orm

ing

to

NT,

MFN

, or m

arke

t ac

cess

obl

igat

ion,

an

d w

hich

are

m

aint

aine

d by

a

cont

ract

ing

party

co

untry

at a

ll le

vels

of th

e gov

ernm

ent (

at

cent

ral,

regi

onal

, or

mun

icip

al le

vel).

Th

ese

mea

sure

s are

se

t out

in th

e an

nex

(Sch

edul

e of

Re

serv

atio

ns).

No

prov

ision

in th

e ag

reem

ent.

No

prov

ision

in th

e ag

reem

ent.

(How

ever

, the

re is

a

stan

dstil

l obl

igat

ion

rega

rdin

g ap

plic

atio

n of

FD

I po

licy)

○ Th

is ob

ligat

ion

is pr

ovid

ed fo

r any

exi

sting

m

easu

res w

hich

are

no

n-co

nfor

min

g to

NT

oblig

atio

n, e

tc.,

and

whi

ch

are

mai

ntai

ned

by th

e ce

ntra

l or l

ocal

go

vern

men

t. Th

ese

mea

sure

s are

set o

ut in

the

anne

x (S

ched

ule

of

Rese

rvat

ions

).

○ T h

is ob

ligat

ion

is pr

ovid

ed fo

r any

exi

sting

m

easu

res w

hich

are

no

n-co

nfor

min

g to

NT

oblig

atio

n, e

tc.,

and

whi

ch

are

mai

ntai

ned

by th

e ce

ntra

l or l

ocal

go

vern

men

t. Th

ese

mea

sure

s are

set o

ut in

the

anne

x (S

ched

ule

of

Rese

rvat

ions

).

○ Th

is ob

ligat

ion

is pr

ovid

ed o

nly

for

sect

ors o

r sub

-sec

tors

in

dica

ted

by th

e “S

S”

mar

k in

the

Sche

dule

of

Spec

ific

Com

mitm

ents.

Th

is m

ark

mea

ns

spec

ific

com

mitm

ents

m

ade

in su

ch se

ctor

s or

sub-

sect

ors a

re li

mite

d to

thos

e ba

sed

on

rele

vant

exi

sting

m

easu

res w

hich

are

no

n-co

nfor

min

g to

NT

or m

arke

t acc

ess

oblig

atio

n.

○ Th

is ob

ligat

ion

is pr

ovid

ed

for

any

exist

ing

mea

sure

s w

hich

ar

e no

n-co

nfor

min

g to

N

T ob

ligat

ion,

etc

., an

d w

hich

ar

e m

aint

aine

d by

th

e ce

ntra

l or l

ocal

gov

ernm

ent.

Thes

e m

easu

res

are

set

out

in t

he a

nnex

(Sc

hedu

le o

f Re

serv

atio

ns).

Proh

ibiti

on o

n Re

stric

tions

on

Paym

ents

and

Tr

ansf

ers

○ T h

ere

is a

pro

visio

n pr

ohib

iting

restr

ictio

ns

of in

tern

atio

nal

trans

fers

and

pay

men

ts fo

r cur

rent

tran

sact

ions

re

latin

g to

trad

e in

se

rvic

es o

f all

sect

ors

and

sub-

sect

ors;

not

limite

d to

just

thos

e in

scrib

ed in

the

Sche

dule

of S

peci

fic

Com

mitm

ents.

○ T h

ere

is a

prov

ision

pro

hibi

ting

restr

ictio

ns o

f in

tern

atio

nal

trans

fers

and

pa

ymen

ts fo

r cur

rent

tra

nsac

tions

rela

ting

to tr

ade

in se

rvic

es o

f al

l sec

tors

and

su

b-se

ctor

s.

△Sam

e pr

ovisi

on a

s GAT

S,

whe

re su

ch p

rohi

bitio

n is

only

ap

plie

d to

restr

ictio

ns o

f in

tern

atio

nal t

rans

fers

and

pa

ymen

ts fo

r cur

rent

tra

nsac

tions

rela

ting

to sp

ecifi

c co

mm

itmen

ts.

△Sam

e pr

ovisi

on a

s GAT

S,

whe

re su

ch p

rohi

bitio

n is

only

appl

ied

to re

stric

tions

of

inte

rnat

iona

l tra

nsfe

rs a

nd

paym

ents

for c

urre

nt

trans

actio

ns re

latin

g to

sp

ecifi

c co

mm

itmen

ts.

○ T h

ere

is a

pro

visio

n pr

ohib

iting

restr

ictio

ns o

f in

tern

atio

nal t

rans

fers

and

pa

ymen

ts fo

r cur

rent

tra

nsac

tions

rela

ting

to

trade

in se

rvic

es o

f all

sect

ors a

nd su

b-se

ctor

s.

○ T h

ere

is a

pro

visio

n pr

ohib

iting

restr

ictio

ns o

f in

tern

atio

nal t

rans

fers

and

pa

ymen

ts fo

r cur

rent

tra

nsac

tions

rela

ting

to

trade

in se

rvic

es o

f all

sect

ors a

nd su

b-se

ctor

s.

○ Th

ere

is a

pro

visio

n pr

ohib

iting

restr

ictio

ns

of in

tern

atio

nal

trans

fers

and

pay

men

ts fo

r cur

rent

tran

sact

ions

re

latin

g to

trad

e in

se

rvic

es o

f all

sect

ors

and

sub-

sect

ors.

This

oblig

atio

n is

prov

ided

so

tha

t al

l fu

nds

rela

ted

to

cros

s-bo

rder

pr

ovisi

on

of

serv

ices

can

be

trans

ferre

d or

pai

d fre

ely

and

with

out

dela

y to

and

from

the a

rea o

f th

at c

ount

ry

556

Part

III: E

PA/F

TA a

nd II

A

Nam

e Ja

pan-

Phili

ppin

e EP

A

Japa

n-Sw

itzer

land

EP

A

Japa

n-Vi

et N

am E

PA

Japa

n-In

dia

EPA

Ja

pan-

Peru

EPA

Ja

pan-

Aus

tral

ia E

PA

Japa

n-M

ongo

lia E

PA

Tran

s-Pa

cific

Par

tner

ship

(T

PP) A

gree

men

t Ef

fect

ive/

Sign

ed

as o

f E f

fect

ive

on 2

008.

12.1

1 Ef

fect

ive o

n 20

09.9

.1

Effe

ctiv

e on

200

9.10

.1

Effe

ctiv

e on

201

1.8.

1

Effe

ctiv

e on

201

2.3.

1 Ef

fect

ive

on 2

015.

1.15

Si

gned

on

2015

.2.1

0 Si

gned

on

2016

.2.4

App

roac

h on

Li

bera

lizat

ion

Com

mitm

ents

Pos it

ive

list a

ppro

ach

Neg

ativ

e lis

t ap

proa

ch

Posit

ive

list a

ppro

ach

Posit

ive

list a

ppro

ach

Neg

ativ

e lis

t app

roac

h N

egat

ive

list a

ppro

ach

Posit

ive

list a

ppro

ach

Neg

ativ

e lis

t app

roac

h

MFN

Tre

atm

ent

○ In

pr in

cipl

e,

unco

nditi

onal

MFN

is

prov

ided

, with

ex

cept

ions

insc

ribed

in

the

anne

x (M

FN L

ist o

f Ex

empt

ions

).

△ In

pr in

cipl

e,

unco

nditi

onal

MFN

tre

atm

ent i

s pr

ovid

ed. E

xcep

tions

ar

e su

bjec

t to

mea

sure

s ins

crib

ed in

th

e an

nex

(Sch

edul

e of

Res

erva

tions

) and

th

e tre

atm

ent

acco

rded

und

er o

ther

EP

As/

FTA

s tha

t sa

tisfy

the

requ

irem

ents

unde

r A

rticl

e V

of G

ATS.

Th

e co

ntra

ctin

g pa

rty

coun

try is

obl

iged

to

ende

avor

to ac

cord

to

the

othe

r con

tract

ing

party

cou

ntry

tre

atm

ent n

o le

ss

favo

rabl

e th

an th

at

prov

ided

und

er th

e EP

As/

FTA

s co

nclu

ded

with

the

third

cou

ntry

.

△ In

pr in

cipl

e un

cond

ition

al

MFN

trea

tmen

t is p

rovi

ded.

Ex

cept

ions

are

subj

ect t

o m

easu

res i

nscr

ibed

in th

e ann

ex

(MFN

List

of E

xem

ptio

ns) a

nd

the

treat

men

t acc

orde

d un

der

othe

r EPA

s/FTA

s tha

t sat

isfy

the

requ

irem

ents

und

er A

rticl

e V

of G

ATS.

The

con

tract

ing

party

cou

ntry

is o

blig

ed to

giv

e th

e ot

her t

he c

ontra

ctin

g pa

rty

coun

try a

n op

portu

nity

to

cons

ult o

n w

heth

er th

e m

ore

favo

rabl

e tre

atm

ent a

ccor

ded

to

the

third

cou

ntry

und

er th

e ot

her E

PAs/F

TAs m

ay b

e ac

cord

ed to

the

othe

r co

ntra

ctin

g pa

rty c

ount

ry.

△If a

con

tract

ing

party

co

untry

acc

ords

bet

ter

treat

men

t to

a th

ird p

arty

co

untry

, the

n at

the

requ

est

of th

e ot

her c

ontra

ctin

g pa

rty

coun

try, a

ccor

ding

bet

ter

treat

men

t will

be

cons

ider

ed.

○ In

pr in

cipl

e,

unco

nditi

onal

MFN

tre

atm

ent i

s pro

vide

d,

with

exc

eptio

ns in

scrib

ed

in th

e an

nex

(MFN

List

of

Exem

ptio

ns).

○ In

pr in

cipl

e,

unco

nditi

onal

MFN

tre

atm

ent i

s pro

vide

d,

with

exc

eptio

ns in

scrib

ed

in th

e an

nex

(MFN

List

of

Exem

ptio

ns).

○ In

pr in

cipl

e,

unco

nditi

onal

MFN

tre

atm

ent i

s pro

vide

d,

with

exc

eptio

ns

insc

ribed

in th

e an

nex

(MFN

List

of

Exem

ptio

ns).

○In

prin

cipl

e un

cond

ition

al

MFN

trea

tmen

t is

prov

ided

, w

ith e

xcep

tions

insc

ribed

in

the

anne

x (S

ched

ule

of

Rese

rvat

ions

).

Nat

iona

l Tr

eatm

ent (

NT)

○

Nat

iona

l Tre

atm

ent

shal

l be

acco

rded

in th

e se

ctor

s ins

crib

ed in

the

Sche

dule

of S

peci

fic

Com

mitm

ents

.

○In

prin

cipl

e, N

T sh

all b

e ac

cord

ed in

al

l ser

vice

sect

ors

exce

pt fo

r the

one

s in

scrib

ed in

the

anne

x (S

ched

ule

of

Rese

rvat

ions

).

○Nat

iona

l Tre

atm

ent s

hall

be

acco

rded

in th

e se

ctor

s in

scrib

ed in

the

Sche

dule

of

Spec

ific

Com

mitm

ents.

○Nat

iona

l Tre

atm

ent s

hall

be

acco

rded

in th

e se

ctor

s in

scrib

ed in

the

Sche

dule

of

Spec

ific

Com

mitm

ents.

○In

prin

cipl

e, N

T sh

all b

e ac

cord

ed in

all

serv

ice

sect

ors e

xcep

t for

the

ones

in

scrib

ed in

the

anne

x (S

ched

ule

of

Rese

rvat

ions

).

○ In

prin

cipl

e, N

T sh

all b

e ac

cord

ed in

all

serv

ice

sect

ors e

xcep

t for

the

ones

in

scrib

ed in

the

anne

x (S

ched

ule

of

Rese

rvat

ions

).

○ N

atio

nal T

reat

men

t sh

all b

e ac

cord

ed in

the

sect

ors i

nscr

ibed

in th

e Sc

hedu

le o

f Spe

cific

Co

mm

itmen

ts.

○In

prin

cipl

e N

T sh

all

be

acco

rded

in

al

l se

rvic

e se

ctor

s ex

cept

th

e on

es

insc

ribed

in

th

e an

nex

(Sch

edul

e of

Res

erva

tions

).

Mar

ket A

cces

s Co

mm

itmen

ts ○

Sam

e pr

ovisi

on a

s A

rticl

e X

VI o

f GAT

S on

mar

ket a

cces

s, w

hich

obl

iges

eac

h co

ntra

ctin

g pa

rty

coun

try to

acc

ord

no

less

favo

rabl

e tre

atm

ent

than

that

und

erta

ken

and

spec

ified

in th

e Sc

hedu

le o

f Spe

cific

Co

mm

itmen

ts.

○ In

pr in

cipl

e, th

e sa

me

prov

ision

as

Arti

cle

XV

I of G

ATS

on m

arke

t acc

ess i

s pr

ovid

ed.

Exce

ptio

ns a

re

insc

ribed

in th

e an

nex

(Sch

edul

e of

Re

serv

atio

ns).

○ Sa

me

prov

ision

as A

rticl

e X

VI o

f GAT

S on

mar

ket

acce

ss, w

hich

obl

iges

eac

h co

ntra

ctin

g pa

rty c

ount

ry to

ac

cord

no

less

favo

rabl

e tre

atm

ent t

han

that

und

erta

ken

and

spec

ified

in th

e Sch

edul

e of

Spec

ific

Com

mitm

ents.

○ Sa

me

prov

ision

as A

rticl

e X

VI o

f GAT

S on

mar

ket

acce

ss, w

hich

obl

iges

eac

h co

ntra

ctin

g pa

rty c

ount

ry to

ac

cord

no

less

favo

rabl

e tre

atm

ent t

han

that

un

derta

ken

and

spec

ified

in

the

Sche

dule

of S

peci

fic

Com

mitm

ents

.

○ In

pr in

cipl

e, th

e sa

me

prov

ision

as A

rticl

e X

VI

of G

ATS

on m

arke

t acc

ess

(exc

ept l

imita

tions

on

the

parti

cipa

tion

of fo

reig

n ca

pita

l) is

prov

ided

. The

re

is a

pro

visio

n pr

ohib

iting

th

e re

quire

men

t of

esta

blish

ing

a lo

cal

repr

esen

tativ

e of

fice

or

any

form

of e

nter

prise

; ex

cept

ions

are i

nscr

ibed

in

the

anne

x (S

ched

ule

of

Rese

rvat

ions

)

○ In

pr in

cipl

e, th

e sa

me

prov

ision

as A

rticl

e X

VI

of G

ATS

on m

arke

t acc

ess

is p

rovi

ded.

The

re is

a

prov

ision

pro

hibi

ting

the

requ

irem

ent o

f es

tabl

ishin

g a

loca

l re

pres

enta

tive

offic

e or

an

y fo

rm o

f ent

erpr

ise;

exce

ptio

ns ar

e ins

crib

ed in

th

e an

nex

(Sch

edul

e of

Re

serv

atio

ns)

○ Sa

me

prov

ision

as

A

rticl

e X

VI

of G

ATS

on

mar

ket

acce

ss

(mar

ket a

cces

s sh

all b

e ac

cord

ed w

ithin

a ra

nge

spec

ified

in

th

e Sc

hedu

le

of

Spec

ific

Com

mitm

ents)

.

○ In

pr

inci

ple,

th

e sa

me

mar

ket

acce

ss a

s in

Arti

cle

XV

I of

GAT

S on

mar

ket

acce

ss

(exc

ept

limita

tions

on

th

e pa

rtici

patio

n of

fo

reig

n ca

pita

l) is

acco

rded

. Th

ere

is a

prov

ision

pr

ohib

iting

the

req

uire

men

t of

es

tabl

ishin

g a

loca

l re

pres

enta

tive

offic

e or

any

fo

rm

of

ente

rpris

e.

Exce

ptio

ns a

re i

nscr

ibed

in

the

anne

x (S

ched

ule

of

Rese

rvat

ions

). Tr

ansp

aren

cy

Requ

irem

ents

○Eac

h co

ntra

ctin

g pa

rty

coun

try is

obl

iged

to

prom

ptly

mak

e pu

blic

(o

r oth

erw

ise m

ake

publ

icly

ava

ilabl

e) it

s m

easu

res p

erta

inin

g to

or

affe

ctin

g th

e op

erat

ion

of th

e ag

reem

ent,

at le

ast

with

in th

e co

untry

, and

to

resp

ond

to th

e ot

her

cont

ract

ing

party

co

untry

’s in

quiri

es

abou

t the

se m

easu

res.

Each

par

ty sh

all p

repa

re

a no

n-le

gally

bin

ding

○ Ea

c h c

ontra

ctin

g pa

rty c

ount

ry is

ob

liged

to p

rom

ptly

m

ake

publ

ic (o

r ot

herw

ise m

ake

publ

icly

avai

labl

e) it

s m

easu

res p

erta

inin

g to

or a

ffect

ing

the

oper

atio

n of

the

agre

emen

t, at

leas

t w

ithin

the

coun

try,

and

to re

spon

d to

the

othe

r con

tract

ing

party

cou

ntry

’s

inqu

iries

abo

ut th

ese

mea

sure

s.

△ Ea

c h c

ontra

ctin

g pa

rty

coun

try is

obl

iged

to p

rom

ptly

m

ake

publ

ic (o

r oth

erw

ise

mak

e pu

blic

ly a

vaila

ble)

its

mea

sure

s per

tain

ing

to o

r af

fect

ing

the

oper

atio

n of

the

agre

emen

t, at

leas

t with

in th

e co

untry

, and

to re

spon

d to

the

othe

r con

tract

ing

party

co

untry

’s in

quiri

es a

bout

thes

e m

easu

res.

It is

also

pro

vide

d th

at a

co

ntra

ctin

g pa

rty c

ount

ry m

ust

resp

ond

to a

nd p

rovi

de

info

rmat

ion

in re

spon

se to

qu

estio

ns fr

om a

serv

ice

○Eac

h co

ntra

ctin

g pa

rty

coun

try is

obl

iged

to

prom

ptly

mak

e pu

blic

(or

othe

rwis

e m

ake

publ

icly

av

aila

ble)

its m

easu

res

perta

inin

g to

or a

ffect

ing

the

oper

atio

n of

the

agre

emen

t, at

leas

t with

in th

e co

untry

, an

d to

resp

ond

to th

e ot

her

cont

ract

ing

party

cou

ntry

’s

inqu

iries

abo

ut th

ese

mea

sure

s. Ea

ch p

arty

shal

l pre

pare

a

non-

lega

lly b

indi

ng li

st

prov

idin

g al

l rel

evan

t law

s an

d re

gula

tions

whi

ch a

re

○Eac

h co

ntra

ctin

g co

untry

is

oblig

ed to

mak

e ef

forts

to

resp

ond

to q

uesti

ons o

n th

e re

leva

nt la

ws a

nd

regu

latio

ns fr

om

inte

reste

d pa

rties

as m

uch

as p

ossib

le, a

nd to

pr

ompt

ly m

ake

publ

ic (o

r ot

herw

ise

mak

e pu

blic

ly

avai

labl

e) th

e op

inio

ns

and

exam

inat

ion

resu

lts o

f pu

blic

com

men

ts o

n th

e ad

optio

n of

fina

l law

s and

re

gula

tions

.

○ W

hen

a pa

rty m

aint

ains

m

easu

res r

elat

ed to

lic

ensin

g re

quire

men

ts an

d pr

oced

ures

, qu

alifi

catio

n re

quire

men

ts an

d pr

oced

ures

, and

te

chni

cal s

tand

ards

, the

pa

rty sh

all m

ake

publ

icly

av

aila

ble

the

info

rmat

ion

on th

e re

quire

men

ts an

d pr

oced

ures

to o

btai

n,

rene

w, o

r ret

ain

any

licen

ses o

r pro

fess

iona

l qu

alifi

catio

ns a

nd th

e in

form

atio

n on

tech

nica

l sta

ndar

ds, w

here

○ Ea

ch p

arty

shal

l pr

epar

e a

non-

lega

lly

bind

ing

list p

rovi

ding

al

l rel

evan

t mea

sure

s af

fect

ing

the

oblig

atio

ns o

f m

arke

t ac

cess

, nat

iona

l tre

atm

ent,

and

Mos

t-Fav

ored

-Nat

ion

Trea

tmen

t in

all s

ecto

r (tr

ansp

aren

cy li

st)

(obl

igat

ory

prov

ision

s).

This

list s

hall

be

exch

ange

d w

ith th

e ot

her p

arty

with

in fi

ve

year

s fro

m th

e da

te o

f

○ W

ith re

gard

to re

gula

tions

on

mat

ters

sub

ject

to

the

prov

ision

s of

thi

s ch

apte

r, ob

ligat

ions

ar

e pr

ovid

ed,

such

as

ad

optio

n or

m

aint

enan

ce

of

an

appr

opria

te m

echa

nism

for

re

spon

ding

to in

quiri

es fr

om

stak

ehol

ders

.

Chap

ter

2: S

ervi

ces

* Th

e EP

As r

efer

red

to in

this

tabl

e ar

e lim

ited

to th

ose

signe

d an

d ap

prov

ed b

y th

e D

iet.

list p

rovi

ding

all

rele

vant

law

s and

re

gula

tions

whi

ch a

re

not c

onfo

rmin

g to

co

mm

itmen

ts of

mar

ket

acce

ss a

nd n

atio

nal

treat

men

t acc

orde

d un

der t

he a

gree

men

t (tr

ansp

aren

cy li

st).S

aid

list s

hall

be e

xcha

nged

w

ith o

ther

par

ty.

It is

also

pro

vide

d th

at a

co

ntra

ctin

g pa

rty

coun

try m

ust r

espo

nd to

an

d pr

ovid

e in

form

atio

n in

resp

onse

to

que

stion

s fro

m a

se

rvic

e su

pplie

r of t

he

coun

terp

arty

cou

ntry

th

roug

h its

con

tact

po

int.

As t

he a

gree

men

t ad

opts

the

nega

tive

list a

ppro

ach,

det

ails

of e

xisti

ng la

ws a

nd

regu

latio

ns w

hich

are

re

serv

ed u

nder

the

stan

dstil

l obl

igat

ions

ar

e sp

ecifi

ed in

the

anne

x (L

ist o

f Re

serv

atio

ns).

supp

lier o

f the

cou

nter

party

co

untry

thro

ugh

its c

onta

ct

poin

t.

not c

onfo

rmin

g to

co

mm

itmen

ts of

mar

ket

acce

ss an

d na

tiona

l tre

atm

ent

acco

rded

und

er th

e ag

reem

ent (

trans

pare

ncy

list)

(dut

y to

end

eavo

r pr

ovisi

ons)

. Sa

id li

st sh

all

be e

xcha

nged

with

oth

er

party

. It

is al

so p

rovi

ded

that

a

cont

ract

ing

party

cou

ntry

m

ust r

espo

nd to

and

pro

vide

in

form

atio

n in

resp

onse

to

ques

tions

from

a se

rvic

e su

pplie

r of t

he c

ount

erpa

rty

coun

try th

roug

h its

con

tact

po

int.

ava i

labl

e.

Whe

re a

ny fo

rm o

f au

thor

izat

ion

is re

quire

d fo

r the

supp

ly o

f a se

rvic

e,

the

party

shal

l ens

ure

that

it

will

whe

re p

ract

icab

le,

in th

e ca

se o

f an

inco

mpl

ete a

pplic

atio

n, o

n re

ques

t of a

n ap

plic

ant,

iden

tify

all t

he a

dditi

onal

in

form

atio

n th

at is

re

quire

d to

com

plet

e th

e ap

plic

atio

n;

entry

into

forc

e of

this

agre

emen

t. W

here

ne

cess

ary

or a

s agr

eed

betw

een

the

parti

es, t

he

list s

hall

be su

bjec

t to

futu

re re

view

and

re

visio

n.

Stan

dstil

l O

blig

atio

n ○

T his

oblig

atio

n is

prov

ided

onl

y fo

r se

ctor

s or s

ub-s

ecto

rs

indi

cate

d by

the

“SS”

m

ark

in th

e Sc

hedu

le o

f Sp

ecifi

c Co

mm

itmen

ts.

This

mar

k m

eans

sp

ecifi

c co

mm

itmen

ts

mad

e in

such

sect

ors o

r su

b-se

ctor

s are

lim

ited

to th

ose

base

d on

re

leva

nt e

xisti

ng

mea

sure

s whi

ch a

re

non-

conf

orm

ing

to N

T or

mar

ket a

cces

s ob

ligat

ion.

○Thi

s obl

igat

ion

is pr

ovid

ed fo

r any

ex

istin

g m

easu

res

whi

ch a

re

non-

conf

orm

ing

to

NT,

MFN

, or m

arke

t ac

cess

obl

igat

ion,

an

d w

hich

are

m

aint

aine

d by

a

cont

ract

ing

party

co

untry

at a

ll le

vels

of th

e gov

ernm

ent (

at

cent

ral,

regi

onal

, or

mun

icip

al le

vel).

Th

ese

mea

sure

s are

se

t out

in th

e an

nex

(Sch

edul

e of

Re

serv

atio

ns).

No

prov

ision

in th

e ag

reem

ent.

No

prov

ision

in th

e ag

reem

ent.

(How

ever

, the

re is

a

stan

dstil

l obl

igat

ion

rega

rdin

g ap

plic

atio

n of

FD

I po

licy)

○ T h

is ob

ligat

ion

is pr

ovid

ed fo

r any

exi

sting

m

easu

res w

hich

are

no

n-co

nfor

min

g to

NT

oblig

atio

n, e

tc.,

and

whi

ch

are

mai

ntai

ned

by th

e ce

ntra

l or l

ocal

go

vern

men

t. Th

ese

mea

sure

s are

set o

ut in

the

anne

x (S

ched

ule

of

Rese

rvat

ions

).

○ T h

is ob

ligat

ion

is pr

ovid

ed fo

r any

exi

sting

m

easu

res w

hich

are

no

n-co

nfor

min

g to

NT

oblig

atio

n, e

tc.,

and

whi

ch

are

mai

ntai

ned

by th

e ce

ntra

l or l

ocal

go

vern

men

t. Th

ese

mea

sure

s are

set o

ut in

the

anne

x (S

ched

ule

of

Rese

rvat

ions

).

○ Th

is ob

ligat

ion

is pr

ovid

ed o

nly

for

sect

ors o

r sub

-sec

tors

in

dica

ted

by th

e “S

S”

mar

k in

the

Sche

dule

of

Spec

ific

Com

mitm

ents.

Th

is m

ark

mea

ns

spec

ific

com

mitm

ents

m

ade

in su

ch se

ctor

s or

sub-

sect

ors a

re li

mite

d to

thos

e ba

sed

on

rele

vant

exi

sting

m

easu

res w

hich

are

no

n-co

nfor

min

g to

NT

or m

arke

t acc

ess

oblig

atio

n.

○ Th

is ob

ligat

ion

is pr

ovid

ed

for

any

exist

ing

mea

sure

s w

hich

ar

e no

n-co

nfor

min

g to

N

T ob

ligat

ion,

etc

., an

d w

hich

ar

e m

aint

aine

d by

th

e ce

ntra

l or l

ocal

gov

ernm

ent.

Thes

e m

easu

res

are

set

out

in t

he a

nnex

(Sc

hedu

le o

f Re

serv

atio

ns).

Proh

ibiti

on o

n Re

stric

tions

on

Paym

ents

and

Tr

ansf

ers

○ T h

ere

is a

pro

visio

n pr

ohib

iting

restr

ictio

ns

of in

tern

atio

nal

trans

fers

and

pay

men

ts fo

r cur

rent

tran

sact

ions

re

latin

g to

trad

e in

se

rvic

es o

f all

sect

ors

and

sub-

sect

ors;

not

limite

d to

just

thos

e in

scrib

ed in

the

Sche

dule

of S

peci

fic

Com

mitm

ents.

○ T h

ere

is a

prov

ision

pro

hibi

ting

restr

ictio

ns o

f in

tern

atio

nal

trans

fers

and

pa

ymen

ts fo

r cur

rent

tra

nsac

tions

rela

ting

to tr

ade

in se

rvic

es o

f al

l sec

tors

and

su

b-se

ctor

s.

△Sam

e pr

ovisi

on a

s GAT

S,

whe

re su

ch p

rohi

bitio

n is

only

ap

plie

d to

restr

ictio

ns o

f in

tern

atio

nal t

rans

fers

and

pa

ymen

ts fo

r cur

rent

tra

nsac

tions

rela

ting

to sp

ecifi

c co

mm

itmen

ts.

△Sam

e pr

ovisi

on a

s GAT

S,

whe

re su

ch p

rohi

bitio

n is

only

appl

ied

to re

stric

tions

of

inte

rnat

iona

l tra

nsfe

rs a

nd

paym

ents

for c

urre

nt

trans

actio

ns re

latin

g to

sp

ecifi

c co

mm

itmen

ts.

○ T h

ere

is a

pro

visio

n pr

ohib

iting

restr

ictio

ns o

f in

tern

atio

nal t

rans

fers

and

pa

ymen

ts fo

r cur

rent

tra

nsac

tions

rela

ting

to

trade

in se

rvic

es o

f all

sect

ors a

nd su

b-se

ctor

s.

○ T h

ere

is a

pro

visio

n pr

ohib

iting

restr

ictio

ns o

f in

tern

atio

nal t

rans

fers

and

pa

ymen

ts fo

r cur

rent

tra

nsac

tions

rela

ting

to

trade

in se

rvic

es o

f all

sect

ors a

nd su

b-se

ctor

s.

○ Th

ere

is a

pro

visio

n pr

ohib

iting

restr

ictio

ns

of in

tern

atio

nal

trans

fers

and

pay

men

ts fo

r cur

rent

tran

sact

ions

re

latin

g to

trad

e in

se

rvic

es o

f all

sect

ors

and

sub-

sect

ors.

This

oblig

atio

n is

prov

ided

so

tha

t al

l fu

nds

rela

ted

to

cros

s-bo

rder

pr

ovisi

on

of

serv

ices

can

be

trans

ferre

d or

pai

d fre

ely

and

with

out

dela

y to

and

from

the a

rea o

f th

at c

ount

ry

557


726

5. SUBSTANCE OF AGREEMENTS ON SERVICES IN OTHER COUNTRIES

If a member of the WTO enters into an FTA regarding trade in services, it must notify the WTO under Article V of GATS.

Prior to 1993, there were only two regional economic integrations that included integration in the services sector. They were the European Economic Community, which entered into force in 1958, and the Australia New Zealand Closer Economic Relations Trade Agreement (ANZCERTA), which entered into force in 1989. In addition, from 1994 (after the conclusion of NAFTA) to 2000, there were only 10 regional economic integration agreements which included integration in the services sectors that entered into force. There were seven such cases in 2001, four in 2002; thereafter, EPAs/FTAs regarding trade in services have entered into force at a rate of three to seven per year. Most economic integrations include trade in services. For analysis of nine characteristic FTAs (NAFTA, Australia-Singapore FTA, US-Singapore FTA, US-Australia FTA, US-ROK FTA, EFTA-Singapore FTA, Australia-Thailand FTA, India-Singapore FTA, and ESTA-ROK FTA), see page 735 of the 2017 Report on Compliance by Major Trading Partners with Trade Agreements - WTO, EPA/FTA and IIA -.

Chapter 3: Movement of Natural Persons

747

CHAPTER 3

MOVEMENT OF NATURAL PERSONS

1. OVERVIEW OF THE RULES

(See Part II, Chapter 12 “Trade in Services” for Mode Four movement of natural persons under GATS)

Chapters on the “movement of natural persons” in EPAs/FTAs address the issue of how, within the scope of trade in services, a contracting party country can satisfy the demands of another contracting party with respect to GATS (as well as other items). A chapter in the EU-Swiss FTA addresses another issue -- immigration policy outside the scope of trade in services.

Mode Four of GATS covers a wide range of persons, from high-level engineers to unskilled workers, in its commitment to liberalization. However, many Member countries, including Japan, have only made “horizontal commitments” to date, and their Schedules of Commitments generally indicate, with regard to market access regarding specific service sectors, “unbound except for measures concerning the categories of natural persons referred to in the market access column.” In other words, such commitments made by Members under GATS are generally extremely restricted in nature. This is also the case with Japan, which has made horizontal commitments only in three areas: intra-corporate transferees, professional services and temporary stays (see Chapter 2).

The extent to which liberalization of trade in services provided for in an EPA/FTA will go beyond the market access commitments made on the movement of natural persons under GATS will generally become a point of negotiation. Each EPA/FTA can provide for a different level of commitment depending on the relationships of the contracting parties. For example, an EPA/FTA may go beyond the liberalization of GATS by including a broader range of professional services or lowering the required expertise level of covered workers. Reflecting the progress of the request-offer process in the Doha Round service negotiations, in some of the EPAs entered into by Japan, Japan made commitments in five areas (the three areas mentioned above plus contractual service suppliers and investors). Japan liberalized these areas as required by commitments made under the EPAs, but on an MFN basis rather than only in relation to the relevant EPA partners.

The immigration control system of Japan is operated according to the government policy of proactively accepting professionals and engineers, and accordingly, is vested with the discretion to allow non-Japan nationals to enter and stay in excess of its liberalization commitment under GATS. Therefore, if Japan extends preferential treatment, including at the practice level, to certain countries on a bilateral basis, the issue at negotiation would be setting the scope and conditions for entry of acceptable professionals within the extent of the aforesaid discretion (e.g. nurses and care workers), in order to improve the level of commitment and/or to work out more favorable conditions for permitted entry and stay only with certain countries. On the other hand, it is important to set flexible conditions so as to establish long-term win-win relationships between Japan and counterpart countries, while taking into consideration the future impact of the continuous proactive acceptance of professionals (e.g., degradation of services due to decrease in the number of nurses).

558

Documents

Chapter 2: Services CHAPTER 2 SERVICES · Chapter 2: Services 707 CHAPTER 2 SERVICES 1. BACKGROUND OF THE RULES The purpose of the disciplines regarding trade in services under EPAs/FTAs