RESTRICTED
WORLD TRADE S/C/N/6
10November 1995
ORGANIZATION
(95-3522)
Original: English Council forTrade inServices
NOTIFICATION PURSUANT TOARTICLE V:7(a) OFTHE
GENERAL AGREEMENT ONTRADE INSERVICES
Thefollowing notification hasbeenreceived fromtheEuropean Communities andtheirMember
States.
____________
PursuanttoArticleVparagraph7(a)oftheGATS,theEuropeanCommunitiesandtheirMember
States hereby notify the"economic integration agreement" asinstituted bytheTreaty ofRome,
subsequently enlarged, andmodified mostrecently bytheTreaty ontheEuropean Union. Theformal
notification, made inaccordance withthe"Guidelines fornotifications under theGeneral Agreement
onTrade inServices ",asadopted bytheCouncil forTrade inServices, isattached tothis
communication.
Tofacilitate theexamination bytheMembers, therelevant provisions ontrade inservices in
thesetreaties havebeenidentified inthenotification. ThefulltextsoftheTreaties where theseprovisions
canbefound, intheiroriginal version, arealready available attheWTO Secretariat. Aconsolidated
versionoftheseTreatiesispublishedintheOfficialJournaloftheEuropeanCommunities(C224,volume
35,of31August 1992).
Thisnotification reflects thestateofplayprior tothelatest enlargement toAustria, Finland
andSweden which issubject toaseparate review procedure. S/C/N/6
Page4
- itprovides fortheabsence orelimination ofsubstantially alldiscrimination
through elimination ofexisting discriminatory measures andprohibition ofnew
ormorediscriminatory measures (see,interalia,Articles 6,48.2, 52paragraph
2,53,54,59firstindent, 62,63,65,76,79paragraph 1,80paragraph 1,
85,86, and92).Providing fortheelimination ofsubstantially alldiscrimination
according totheECTreaty, bytheCommunity assuchand/or bytheMember
States onthebasis ofnational legislation, mayresult inmore favourable
treatment toservice suppliers ofallmembers oftheEuropean Community as
compared tonon-member service suppliers;
- thedegree ofliberalization oftrade inservices goesbeyond therequirements
anddisciplines oftheGATS inmany respects: dejureanddefacto
discrimination isforbidden notonlyonthebasisoftheTreaty provisions but
alsoonthebasisofthejurisprudence oftheEuropean Court ofJustice which
condemns allmeasures which arediscriminatory orhaving suchaneffect on
trade between theMember States. Toachieve suchfullnational treatment,
additional disciplines andmeans ofliberalisation areinplace suchas:mutual
recognition andapproximation oflaws, behaviour ofmonopolies andexclusive
service providers, restrictive business practices, payments, transfers, andfree
movement ofcapital, right ofestablishment, movement ofnatural persons,
etc.
(c) Consideration should alsobegiven, pursuant toArticle Vparagraph 2ofGATS, to
therelationship ofthisagreement tothewider process ofeconomic integration among
theMember States, provided forunder theEuropean Community Treaty. Economic
integration among theMember States isnotonlytaken place inthefieldofservices,
butalsoinrespect oftradeingoods andineconomic andmonetary relations ingeneral.
6. Members specifically affected, ifany:None. Theagreement entered intoforce prior to
theconclusion oftheUruguay Round, andtheEuropean Communities andtheirMember States
havenegotiated theirSchedule ofSpecific Commitments andlistofMFN exemptions onthe
basis ofthelevelofintegration achieved atthedateofthatconclusion. Since theentry into
force oftheWTO, nosubstantial modification oramendment hasintervened. Theenlargement
oftheEuropean Communities of12to15Member States bytheaccession ofAustria, Finland
andSweden issubject toaseparate review procedure.
7. Thefulltexts ofthetreaties areavailable from:
- WTO Secretariat
- European Commission