U.S. Schedule of Commitments under the General Agreement on Trade … · The General Agreement on...

U.S. Schedule of Commitmentsunder the General Agreement

on Trade in Services

With explanatory materials prepared by theU.S. International Trade Commission

Includes supplemental commitments and MFN exemptionson basic telecommunication services, finalized on February 15,1997, and

on financial services, finalized on December 13,1997

Investigation No. 332-354

August 1998

United States International Trade Commission

Service industries appear in the U.S. Schedule of Commitments in the same order that they are delineated in1

the GATT Secretariat’s Services Sectoral Classification List. The table of contents lists all industries for which theUnited States scheduled commitments, constituting a subset of the GATT List. For this reason, there are omissions andinconsistencies with respect to lettering and numbering.

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CONTENTS1

Page

Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . vii

Concordance of industry classifications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . x

The United States of America: Schedule of specific commitmentsHorizontal commitments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

Temporary entry and stay of natural persons . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1Acquisition of land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7Taxation measures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9Subsidies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Sector-specific commitments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 151. Business services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

A. Professional services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15a) Legal services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

1) Practice as or through a qualified U.S. lawyer . . . . . . . . . . . . . . . . . . . . . . . . . . . 152) Consultancy on law of jurisdiction where service

supplier is qualified as a lawyer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17b) Accounting, auditing and bookkeeping services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35c) Taxation services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35d) Architectural services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36e) Engineering services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36f) Integrated engineering services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36g) Urban planning and landscape services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37

B. Computer and related services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37D. Real estate services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37E. Rental/leasing services without operators . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38

c) Relating to other transport equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38d) Relating to other machinery and equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38e) Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38

F. Other business services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38a) Advertising . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38b) Market research and public opinion polling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38c) Management consulting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39d) Services related to management consulting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39f) Services incidental to agriculture, hunting and forestry . . . . . . . . . . . . . . . . . . . . . . . 39g) Services incidental to fishing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40h) Services incidental to mining . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40j) Services incidental to energy distribution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40k) Placement and supply services of personnel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41

F. Other business services (continued)

Contents (continued) Page

iii

l) Investigation and security services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41m) Related scientific and technical consulting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42n) Maintenance and repair of equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42o) Building-cleaning services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42p) Photographic services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43q) Packaging services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43r) Publishing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43s) Convention services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44

2. Communication services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44B. Land-based courier services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44C. Telecommunications: Enhanced telecommunications services . . . . . . . . . . . . . . . . . . . . . 45

h) Electronic mail . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46i) Voice mail . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46j) On-line information and data base retrieval . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46k) Electronic data interchange . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46l) Enhanced/value-added facsimile services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46m) Code and protocol conversion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46n) On-line information and/or data processing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46o) Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46

D. Audiovisual services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46a) Motion picture and video tape production and distribution services . . . . . . . . . . . . . 46b) Motion picture projection service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47c) Radio and television services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47d) Radio and television transmission services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47e) Sound recording . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48f) Other audiovisual services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49

3. Construction and related engineering services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49

4. Distribution services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49A. Commission agents' services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49B. Wholesale trade . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50B. Wholesale trade of alcoholic beverages . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50C. Retailing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50D. Franchising . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51

5. Educational services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51D. Adult education . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51E. Other education services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51

6. Environmental services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52A. Sewage services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52B. Refuse disposal services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52C. Sanitation and similar services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53D. Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53


The financial services commitments appearing in the initial U.S. Schedule, finalized in April 1994, are2

superseded by commitments found in “Supplement 3: U.S. Schedule of Specific Commitments,” finalized by the WorldTrade Organization (WTO) in December 1997. See Appendix C.

iv

7. Financial services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 542

A. Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54a) Life, accident and health insurance services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54b) Non-life insurance services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54c) Reinsurance and retrocession . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58d) Services auxiliary to insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60

i) Brokerage services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60ii) Agency services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61iii) Consultancy, actuarial, risk assessment and claim settlement services . . . . . . . . 62

B. Financial services (Limited to banking and other financialservices and excluding insurance) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63

All subsectors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63Trading of securities and derivative products and services related thereto;

Participation in securities issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68Participation in issues of government debt securities . . . . . . . . . . . . . . . . . . . . . . 69

8. Health related and social services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69A. Hospital and other health care facilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69

9. Tourism and travel related services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70A. Hotels and restaurants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70B. Travel agencies and tour operators . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70C. Tour guide services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71D. Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71

10. Recreational, cultural, and sporting services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71A. Entertainment services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71B. News agency services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72C. Libraries, archives, museums, and other cultural services . . . . . . . . . . . . . . . . . . . . . . . . . 72D. Other recreational services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72

11. Transport services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73C. Air transport services: Aircraft repair and maintenance. . . . . . . . . . . . . . . . . . . . . . . . . . 73E. Rail transport . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73

a) Passenger transportation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73b) Freight transportation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73d) Maintenance and repair of rail transport equipment . . . . . . . . . . . . . . . . . . . . . . . . . . 74

F. Road transport . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74a) Passenger transport: Interurban regular transport . . . . . . . . . . . . . . . . . . . . . . . . . . . 74b) Freight transport . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75d) Maintenance and repair of road transport equipment . . . . . . . . . . . . . . . . . . . . . . . . . 75

H. Services auxiliary to all modes of transport . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76


Most-Favored-Nation (MFN) Exemptions pertaining to financial services are superseded by exemptions3

specified in “Supplement 3: U.S. List of Article II (MFN) Exemptions,” finalized by the WTO in December 1997. SeeAppendix D.

v

d) Other supporting and auxiliary transport services: Customs house brokers . . . . . . . 76

United States of America: Final List of Article II (MFN) ExemptionsMovement of persons . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78All sectors: Taxation measures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79All sectors: Land use . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88All sectors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88Banking and other financial services (excluding insurance) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 893

Transport services: Air transport services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90Transport services: Road transport . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92Transport services: Pipeline transport . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92Transport services: Space transportation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 94

Appendices A. Supplement 2: The U.S. Schedule of specific commitments

2.C. Telecommunication services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A-1a) Voice services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A-1b) Packet-switched data transmission services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A-1c) Circuit-switched data transmission services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A-1d) Telex services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A-1e) Telegraph services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A-1f) Facsimile services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A-1g) Private leased circuit services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A-1o) Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A-2Reference paper . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A-3

B. Supplement 2: The U.S. list of Article II (MFN) exemptionsTelecommunication services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B-1

C. Supplement 3: The U.S. Schedule of specific commitments 7. Financial services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . C-1

A. Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . C-1Direct insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . C-2a) Life, accident, and health insurance services (except workers

compensation insurance) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . C-2b) Non-life insurance services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . C-2c) Reinsurance and retrocession . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . C-7d) Services auxiliary to insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . C-11

i) Brokerage services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . C-12ii) Agency services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . C-13iii) Consultancy, Actuarial, Risk Assessment, and Claim Settlement services . . . C-14

B. Financial services (Limited to banking and other financial servicesand excluding insurance) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . C-16


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All Subsectors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . C-17Trading of securities and derivative products and services related thereto;

Participation in securities issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . C-26Participation in issues of government debt securities . . . . . . . . . . . . . . . . . . . . . . . . . C-27

Additional commitment paper I . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . C-28Additional commitment paper II . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . C-29

D. Supplement 3: The U.S. List of Article II (MFN) ExemptionsInsurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . D-1Banking and other financial services (excluding insurance): Canada . . . . . . . . . . . . . . . . . . . D-1Banking and other financial services (excluding insurance): All countries . . . . . . . . . . . . . . . D-2

E. Glossary of selected technical terms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . E-1

MFN treatment accords to each trading partner terms and conditions of trade that are no less favorable than4

those accorded to any other trading partner. See appendix E for a glossary of selected technical terms. National treatment generally accords to foreign firms the same rights and obligations accorded to domestic5

firms. The USTR requested that the USITC undertake responsibility for maintaining the U.S. Schedule in a letter6

dated April 18, 1994. The USITC instituted Inv. No. 332-354, Program to Maintain U.S. Schedule of ServicesCommitments, on May 13, 1994.

Supplement 3 supercedes supplement 1, eliminating the need to present it in this document.7

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INTRODUCTION

The General Agreement on Trade in Services (GATS) was concluded during the Uruguay Round, andconstitutes an integral part of the Uruguay Round Agreements that entered into force on January 1, 1995. TheGATS comprises: (1) a framework of rules and obligations (e.g., most-favored-nation (MFN) treatment and4

regulatory transparency) intended to facilitate international trade and investment in services; (2) nationalschedules, wherein countries list commitments to accord market access and national treatment to foreign5

service providers on an industry-by-industry basis, subject to explicit exceptions; and (3) a series of annexesand ministerial decisions that augment rules found in the framework and provide for follow-up activities andadditional negotiations. Most of the detail of the final agreement resides in the national schedules ofcommitments. To date, 132 countries have submitted national schedules. About two-thirds of these have alsosubmitted MFN Exemption Lists, which identify the nature and duration of preferences accorded to servicesuppliers from certain foreign countries.

At the request of the Office of the United States Trade Representative, the United States InternationalTrade Commission (USITC) assumed responsibility for maintaining and updating, as necessary, the UnitedStates’ Schedule of Commitments (U.S. Schedule) and List of Article II (MFN) Exemptions. To date, the6

USITC has updated these documents three times: first, to incorporate financial service commitments andexemptions following from the interim agreement concluded July 28, 1995 (supplement 1); second, toincorporate basic telecommunication service commitments and exemptions following from the agreementconcluded February 15, 1997 (supplement 2); and third, to incorporate final financial service commitments andexemptions following from the agreement concluded December 12, 1997 (supplement 3).

In light of the follow-on agreements, this document presents the U.S. Schedule and List of Article II(MFN) Exemptions in three parts. The U.S. Schedule and List of Article II (MFN) Exemptions finalized inApril 1994 appear first. Thereafter, supplement 2 of these documents, comprising commitments and7

exemptions pertaining to basic telecommunication services, appears in appendices A and B, respectively. Supplement 3, comprising final commitments and exemptions pertaining to financial services, follows inappendices C and D, respectively. Appendix E provides a glossary of technical terms.

Concordance of Industry Classifications

To facilitate comparison of the U.S. Schedule with foreign schedules, the USITC has developed aconcordance that demonstrates the relationships between sectors found in the U.S. Schedule, sectors identifiedin the GATT Secretariat's Services Sectoral Classification List, and sectors defined and numbered in the UnitedNations' Provisional Central Product Classification (CPC) System. In preparing national schedules, countrieswere requested to identify and define sectors and subsectors in accordance with the GATT Secretariat's list,which lists sectors and their respective CPC numbers. Accordingly, foreign schedules frequently make explicitreferences to the CPC numbers. The U.S. Schedule makes no explicit references to CPC numbers, but itcorresponds closely with the GATT Secretariat's list.

The concordance developed by the USITC clarifies how the service sectors referenced in the GATTSecretariat's list, the CPC System, and the U.S. Schedule correspond. The first column of the concordance

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identifies the service sectors listed by the GATT Secretariat. The second column identifies the CPCclassifications that correspond to the GATT Secretariat's list. The third column identifies the sectors addressedin the U.S. Schedule, and the fourth column provides more detailed information regarding the structure andcoverage of the U.S. Schedule.

The U.S. Schedule

The format of the U.S. Schedule conforms to the structure specified by the GATT. Accordingly, theU.S. Schedule first presents horizontal commitments, which apply to all service sectors for which the UnitedStates has scheduled sector-specific commitments. Afterward, beginning on page 15, the U.S. Schedulepresents sector-specific commitments, which apply to individual service sectors.

The U.S. Schedule is configured as a matrix, with horizontal issues and individual service sectors listedalong the vertical axis and commitments to provide market access, national treatment, and additionalcommitments along the horizontal axis. Additional commitments pertain to issues such as the recognition ofprofessional qualifications, compliance with technical standards, and licensing requirements or procedures.

The U.S. Schedule records the existence or absence of commitments in each cell of the matrix.Limitations are specific to mode of supply, which is the means of providing services to foreign consumers. Modes of supply include:

C cross-border supply, whereby the service is transported beyond the country of the service supplier tothe foreign consumer (the service supplier is not present within the territory of the consumer);

C consumption abroad, whereby the consumer, or the consumer's property, receives a service outside theterritory of the consumer's country;

C commercial presence, whereby a service supplier establishes a type of business or professionalestablishment in the foreign market; and

C presence of natural persons, whereby one individual, acting alone or as an employee of a serviceprovider, provides a service while present in a foreign market.

Inside each cell of the matrix, the four modes of supply are represented by numbers one through four. Information regarding limitations on cross-border supply appear beside number one; consumption abroad,number two; commercial presence, number three; and presence of natural persons, number four. Wherecommitments exist, details regarding the limitations appear after the appropriate number, in the appropriate cell. For instance, details regarding the U.S. market access limitations on the cross-border supply of legal servicesappear in the row pertaining to legal services, in the column pertaining to limitations on market access, after thenumber one.

The words "Unbound" and "None" also appear in cells of the U.S. Schedule. The word "Unbound"conveys that a measure inconsistent with market access or national treatment may be introduced in the sectorfor a specific mode of supply without penalty. Unbound measures may grow more restrictive in the future. Theword "None" conveys that no sector-specific limitations apply for a specific mode of supply. Where all modesof supply are "Unbound" and no additional commitments have been undertaken for a given service sector, thesector does not appear in the schedule. For instance, the United States scheduled no commitments with respectto medical and dental services. As a result, medical and dental services do not appear in the U.S. Schedule. Finally, in cases where a particular mode of supply is not technically feasible (e.g., cross-border supply ofcleaning services), the term "Unbound" followed by an asterisk (Unbound*) is used.

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List of MFN Exemptions

Article II of the GATS states that Members shall accord MFN treatment to all other Members. Sinceseveral Members expressed concern about free-ridership, the agreement permits some exceptions to MFNobligations. These exceptions are listed in the "Article II (MFN) Exemptions." The United States' List of MFNExemptions is presented in a table with five columns. The first column identifies the sector(s) in question; thesecond column describes the measure that is inconsistent with MFN treatment; the third column identifies thecountries to which the MFN exemption applies; the fourth column indicates the expected duration of themeasure; and the fifth column provides an explanation of the conditions that create the need for such anexemption.

Concordance of Industry Classifications

GATT Secretariat's Services Sectoral United Nations' Provisional Central Product U.S. Schedule of Services Commitments NotesClassification List Classification System

Sectors and Subsectors Sections, Divisions, Groups, Classes Sector-Specific Commitments

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1. BUSINESS SERVICES 1. BUSINESS SERVICES

A. Professional services A. Professional services

a) Legal services Group 861: Legal services a) Legal services

b) Accounting, auditing and Group 862: Accounting, auditing and bookkeeping b) Accounting, auditing and bookkeepingbookkeeping services services services

c) Taxation services Group 863: Taxation services c) Taxation services

d) Architectural services Class 8671: Architectural services d) Architectural services

e) Engineering services Class 8672: Engineering services e) Engineering services

f) Integrated engineering services Class 8673: Integrated engineering services f) Integrated engineering services

g) Urban planning and landscape Class 8674: Urban planning and landscape g) Urban planning and landscape servicesarchitectural services architectural services

h) Medical and dental services 9312: Medical and dental services

i) Veterinary services Group 932: Veterinary services

j) Services provided by midwives, Subclass 93191: Deliveries and related services,nurses, physiotherapists and para- nursing services, physiotherapeutic and para-medical personnel medical services

1) Practice as or through a qualifiedU.S. lawyer

2) Consultancy on law of jurisdictionwhere service supplier is qualifiedas a lawyer

h) No U.S. commitment

i) No U.S. commitment

j) No U.S. commitment

k) No U.S. commitment

U.S. commitments for legalservices are recorded on astate-by-state basis.

Concordance of Industry Classifications (continued)

GATT Secretariat's Services Sectoral United Nations' Provisional Central Product U.S. Schedule of Services Commitments NotesClassification List Classification System


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B. Computer and related services B. Computer and related services

a) Consultancy services related to the Group 841: Consultancy services related to theinstallation of computer hardware installation of computer hardware

b) Software implementation services Group 842: Software implementation services

c) Data processing services Group 843: Data processing services

d) Database services Group 844: Database services

e) Other Group 845: Maintenance and repair services of

C. Research and development services

a) R&D services on natural sciences Group 851: Research and experimental

b) R&D services on social sciences and Group 852: Research and experimentalhumanities development services on social sciences and

c) Interdisciplinary R&D services Group 853: Interdisciplinary research and

D. Real estate services

a) Involving own or leased property Group 821: Real estate services involving own or

office machinery and equipment includingcomputersGroup 849: Other computer services

development services on natural sciences andengineering

humanities

experimental development services

leased property

C. No U.S. commitment

D. Real estate services

U.S. sector "1B: Computerand related services"corresponds to all GATTsectors listed under"Computer and relatedservices" with the exception ofairline reservation systems.


GATT Secretariat's Services Sectoral United Nations' Provisional Central U.S. Schedule of Services Commitments NotesClassification List Product Classification System


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E. Rental/leasing services without operators E. Rental/leasing services without operators

a) Relating to ships

b) Relating to aircraft

c) Relating to other transport equipment

d) Relating to other machinery and concerning other land transport equipment equipment

e) Other

Subclass 83103: Leasing or rental servicesconcerning vessels

Subclass 83104: Leasing or rental servicesconcerning aircraft

Subclass 83101: Leasing or rental servicesconcerning private carsSubclass 83102: Leasing or rental servicesconcerning goods transport vehiclesSubclass 83105: Leasing or rental services

Subclass 83106: Leasing or rental servicesconcerning agricultural machinery and equipment Subclass 83107: Leasing or rental servicesconcerning construction machinery and equipment Subclass 83108: Leasing or rental servicesconcerning office machinery and equipment(including computers) Subclass 83109: Leasing or rental servicesconcerning other machinery equipment

Group 832: Leasing or rental services concerningpersonal and household goods

a) No U.S. commitment

b) No U.S. commitment

c) Relating to other transport equipment

d) Relating to other machinery andequipment

e) Other (except harbour dredges)




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F. Other business services F. Other business services

a) Advertising services Group 871: Advertising services a) Advertising

b) Market research and public opinion Group 864: Market research and public opinion b) Market research and public opinionpolling services polling services polling

c) Management consulting service Group 865: Management consulting service c) Management consulting

d) Services related to management Group 866: Services related to management d) Services related to managementconsulting consulting consulting

e) Technical testing and analysis Class 8676: Technical testing and analysis servicesservices

f) Services incidental to agriculture, hunting and forestryhunting and forestry

g) Services incidental to fishing

h) Services incidental to mining Class 5115: Site preparation work for mining

Group 881: Services incidental to agriculture,

Group 882: Services incidental to fishing

Group 883: Services incidental to mining

e) No U.S. commitment

f) Services incidental to agriculture,hunting and forestry

g) Services incidental to fishing

h) Services incidental to mining

U.S. subsector "1F(a):Advertising" excludes aerialadvertising and skywriting.

U.S. subsector "1F(f): Services incidental toagriculture, hunting andforestry" excludes agriculturalmachinery with drivers andcrew, harvesting and relatedservices, services of farmlabor contractors and aerialfire fighting.




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I) Services incidental to manufacturing Group 884: Services incidental to manufacturing,

j) Services incidental to energy Group 887: Services incidental to energydistribution distribution

k) Placement and supply services of Group 872: Placement and supply services ofpersonnel personnel

l) Investigation and security Group 873: Investigation and security

m) Related scientific and technical Class 8675: Related scientific and technicalconsulting services consulting services

except to the manufacture of metal products,machinery and equipmentGroup 885: Services incidental to the manufactureof metal products, machinery and equipment

i) No U.S. commitment GATT subsector "1F(i):

j) Services incidental to energy distribution

k) Placement and supply services ofpersonnel

l) Investigation and security services

m) Related scientific and technicalconsulting services

Services incidental tomanufacturing" excludes UNsubclass "88442: Publishingand printing, on a fee orcontract basis." Instead, see"1F(r): Printing, publishing."

U.S. subsector "1F(m): Related scientific andtechnical consulting services"excludes land surveying forthe purpose of establishinglegal boundaries, aerialsurveying and aerial map-making.




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n) Maintenance and repair of equipment Group 633: Repair services of personal and n) Maintenance and repair of equipment

o) Building-cleaning services

p) Photographic services

q) Packaging services

r) Printing, publishing

s) Convention services

household goodsClass 8861: Repair services incidental to fabricatedmetal products, except machinery and equipment,on a fee or contract basisClass 8862: Repair services incidental tomachinery and equipment n.e.c., on a fee or contractbasisClass 8863: Repair services incidental to office,accounting and computing machinery n.e.c., on a feeor contract basisClass 8864: Repair services incidental to electricalmachinery and apparatus n.e.c., on a fee or contractbasisClass 8865: Repair services incidental to radio,television and communication equipment andapparatus, on a fee or contract basisClass 8866: Repair services of medical, precision,and optical instruments, watches and clocks, on afee or contract basis

Group 874: Building cleaning services o) Building-cleaning services

Group 875: Photographic services p) Photographic services

Group 876: Packing services

Subclass 88442: Publishing and printing, on a feeor contract basis

Subclass 87909: Other business services, n.e.c.

q) Packaging services

r) Publishing

s) Convention services

GATT and U.S. subsector"1F(n): Maintenance andrepair of equipment" excludesmaritime vessels, aircraft andother transport equipment.

U.S. subsector "1F(p):Photographic services"excludes aerial photographicservices.

U.S. subsector "1F(r): Publishing" excludes printing.




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2. COMMUNICATION SERVICES 2. COMMUNICATION SERVICES

A. Postal services Class 7511: Postal services

B. Courier services Class 7512: Courier services

C. Telecommunication services

a) Voice telephone services Class 7521: Public local telephone services

b) Packet-switched data transmissionservices

c) Circuit-switched data transmissionservices

d) Telex services

e) Telegraph services

f) Facsimile services

g) Private leased circuit services

h) Electronic mail

Class 7523: Data and message transmissionservices

Class 7523: Data and message transmission c) No U.S. commitmentservices

Class 7523: Data and message transmissionservices

Class 7522: Business network services

Class 7521: Public local telephone services f) No U.S. commitmentClass 7529: Other telecommunication services

Class 7522: Business network servicesClass 7523: Data and message transmissionservices

Class 7523: Data and message transmission h) Electronic mail

A. No U.S. commitment

B. Land-based courier services

C. Telecommunications



d) No U.S. commitment


g) No U.S. commitment

Enhanced telecommunication services

U.S. sector "2B: Land-basedcourier services" excludescourier services involving anyprior or subsequent movementby air.

U.S. commitments fortelecommunication services donot extend to basictelecommunication services asrepresented by GATTsubsectors 2C(a) through2C(g).




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j) On-line information and data base Class 7523: Data and message transmission j) On-line information and data baseretrieval services retrieval

k) Electronic data interchange Class 7523: Data and message transmission k) Electronic data interchange (EDI)

l) Enhanced/value-added facsimile Class 7523: Data and message transmission l) Enhanced/value-added facsimileservices (including store and services services, including store and forward,forward, store and retrieve) store and retrieve

m) Code and protocol conversion (Nocorresponding CPC)

n) On-line information and/or dataprocessing (including transactionprocessing)

o) Other (No corresponding CPC)

D. Audiovisual services

a) Motion picture and video tapeproduction and distribution services

b) Motion picture projection service

c) Radio and television services

d) Radio and television transmissionservices

e) Sound recording (No correspondingCPC)

services

Group 843: Data processing services n) On-line information and/or data

Class 9611: Motion picture and video tape a) Motion picture and video tapeproduction and distribution services production and distribution services

Class 9612: Motion picture projection services b) Motion picture projection service

Class 9613: Radio and television services c) Radio and television services

Class 7524: Programme transmission services d) Radio and television transmission

m) Code and protocol conversion

processing (including transactionprocessing)

o) Other

D. Audiovisual services

services

e) Sound recording




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3. CONSTRUCTION AND RELATED 3. CONSTRUCTION AND RELATEDENGINEERING SERVICES ENGINEERING SERVICES

A. General construction work for buildings Group 512: Construction work for buildings

B. General construction work for civilengineering Group 513: General construction work for civil

C. Installation and assembly work

D. Building completion/finishing work

E. Other

4. DISTRIBUTION SERVICES

A. Commission agents' services

B. Wholesale trade services

C. Retailing services

engineering

Group 514: Assembly and erection of prefabricatedconstructionsGroup 516: Installation work

Group 517: Building completion/finishing work

Group 511: Preerection work at construction siteGroup 515: Special trade construction workGroup 518: Renting services related to equipmentfor construction or demolition of building or civilengineering work, with operator

Group 621: Commission agents' services A. Commission agents' services

Group 622: Wholesale trade services B. Wholesale trade (except wholesale trade of

Group 631: Food retailing services C. Retailing Group 632: Non-food retailing servicesClass 6111: Sales of motor vehiclesClass 6113: Sales of parts and accessories of motor


alcoholic beverages, firearms and militaryequipment)

B. Wholesale trade of alcoholic beverages

U.S. section "3: Constructionand Related EngineeringServices" corresponds to allGATT sectors listed under"Construction and RelatedEngineering Services."

U.S. section "3: Constructionand Related EngineeringServices" excludes Marinedredging.

U.S. subsector "4C: Retailing"excludes retail sale ofalcoholic beverages, firearmsand military equipment.




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(DISTRIBUTION SERVICES, cont'd) (DISTRIBUTION SERVICES, cont'd)

D. Franchising D. Franchising

E. Other (No corresponding CPC) E. No U.S. commitment

5. EDUCATIONAL SERVICES 5. EDUCATIONAL SERVICES

A. Primary education services B. Secondary education services C. Higher education services D. Adult education

E. Other education services

6. ENVIRONMENTAL SERVICES

A. Sewage services B. Refuse disposal services

C. Sanitation and similar services

D. Other (No corresponding CPC)

Class 8929: Other non-financial intangible assets

Group 921: Primary education servicesGroup 922: Secondary education servicesGroup 923: Higher education servicesGroup 924: Adult education services, n.e.c.

Group 929: Other education services

Class 9401: Sewage services Class 9402: Refuse disposal services

Class 9403: Sanitation and similar services

A. No U.S. commitmentB. No U.S. commitmentC. No U.S. commitmentD. Adult education

E. Other education services

6. ENVIRONMENTAL SERVICES

A. Sewage services B. Refuse disposal services

C. Sanitation and similar services

D. Other

U.S. subsector "5D: Adulteducation" excludes flyinginstruction.

U.S. subsectors "6A: Sewageservices" and "6B: Refusedisposal services" include onlythose services contracted byprivate industry.

U.S. subsector "6D: Other"includes exhaust gases, noiseabatement, nature andlandscape protection, andother environmental services,




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7. FINANCIAL SERVICES

A. All insurance and insurance-related Group 812: Insurance (including reinsurance) andservices pension fund services, except compulsory social

a) Life, accident and health insurance Class 8121: Life insurance and pension fundservices services

b) Non-life insurance services Class 8129: Non-life insurance services

c) Reinsurance and retrocession Subclass 81299: Other insurance services, n.e.c.

d) Services auxiliary to insurance Class 8140: Services auxiliary to insurance and(including brokering and agency pension fundingservices)

B. Banking and other financial services

a) Acceptance of deposits and other Subclass 81115: Wholesale deposit servicesrepayable funds from the public Subclass 81116: Other bank deposit services

security services

Subclass 81117: Non-central bank currency issue

7. FINANCIAL SERVICES U.S. commitments in Financial

A. Insurance

a) Life, accident and health insuranceservices

b) Non-life insurance services

c) Reinsurance and retrocession

d) Services auxiliary to insurance(includes brokering, agency,consultancy, actuarial, risk assessmentand claim settlement services)

B. Financial services

Services are undertakenpursuant to the alternativeapproach to schedulingcommitments set forth in theUnderstanding onCommitments in FinancialServices and therefore maynot be consistent with theGATT classification system.

U.S. subsector "7A(a): Life,accident and health insuranceservices" excludes workerscompensation insurance.

Supplemental commitments oninsurance and banking andother financial services,submitted at the conclusion ofextended negotiations onFinancial services, follow thesame system for classifyingsectors and subsectors asoutlined in the following threepages.

U.S. sector "7B: Financialservices" is limited to bankingand other financial servicesand does not includeinsurance.




xxi

(FINANCIAL SERVICES, cont'd) (FINANCIAL SERVICES, cont'd)

b) Lending of all types including, interalia, consumer credit, mortgage credit,factoring and financing of commercialtransactions

c) Financial leasing

d) All payment and money transmissionservices

e) Guarantees and commitments f) Trading for own account or for

account of customers, whether on anexchange, in an over-the-countermarket or otherwise, the following:

* money market instruments(cheques, bills, certificate ofdeposits, etc.)

* foreign exchange

* derivative products including butnot limited to, futures and options

* Transferable securities

* exchange rate and interest rateinstruments, including productssuch as swaps, forward rateagreements, etc.

Class 8113: Central bank currency issue

Class 8112: Central bank supervisory services

Subclass 81339: Other services auxiliary tofinancial intermediation, n.e.c.

Subclass 81199: Intermediation services, n.e.c.


Subclass 81333: Foreign exchange services


Subclass 81321: Securities, brokering services





xxii

(BANKING, cont'd) (BANKING, cont'd)

g) Participation in issues of all kinds of Trading of Securities and Derivativesecurities, including underwriting Products and Services Related Thereto;and placement as agent (whether Participation in Securities Issuespublicly or privately) and provisionof service related to such issues Participation in Issues of Government

h) Money brokering

i) Asset management, such as cash orportfolio management, all forms ofcollective investment management,pension fund management, custodialdepository and trust services

j) Settlement and clearing services forfinancial assets including securities,derivative products and othernegotiable instruments

k) Advisory and other auxiliaryfinancial services on all the activitieslisted in Article 1B of MTN.TNC/W/50, including credit reference andanalysis, investment and portfolioresearch and advice, advice onacquisitions, corporate restructuringand strategy

Class 8132: Services related to securities markets


Class 8119: Other financial intermediation servicesother than insurance and pension fund servicesSubclass 81323: Portfolio management services

Subclass 81339: Other services auxiliary tofinancial intermediation, n.e.c.Subclass 81319: Other financial marketadministration services

Class 8131: Services auxiliary to the administrationof financial marketsClass 8133: Other services auxiliary to financialintermediation

Class 8131: Services auxiliary to the administrationof financial markets

Debt Securities




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8.. HEALTH RELATED AND SOCIAL 8. HEALTH RELATED AND SOCIALSERVICES SERVICES

A. Hospital services Class 9311: Hospital services A. Hospital and other health care facilities

B. Other human health services Class 9319: Other human health services

C. Social services


Group 933: Social services

B. No U.S. commitment

C. No U.S. commitment

D. No U.S. commitment

GATT section "8: Healthrelated and social services"excludes those subsectorslisted in section 1A(h-j), underBusiness ProfessionalServices. (see page 1 of thisconcordance)

U.S. sector "8A: Hospital andother health care facilities"pertains to direct ownershipand management andoperation by contract of suchfacilities on a "for fee" basis.

GATT sector "8B: Otherhuman health services"excludes UN subclass "93191:Deliveries and relatedservices, nursing services,physiotherapeutic and para-medical services."




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9. TOURISM AND TRAVEL 9. TOURISM AND TRAVELRELATED SERVICES RELATED SERVICES

A. Hotels and restaurants

B. Travel agencies and tour operatorsservices

C. Tourist guides services


10. RECREATIONAL, CULTURAL ANDSPORTING SERVICES

A. Entertainment services

B. News agency services

C. Libraries, archives, museums and othercultural services

D. Sporting and other recreational services

Group 641: Hotel and other lodging services Group A. Hotels and restaurants 642: Food serving servicesGroup 643: Beverage serving services forconsumption on the premises

Class 7471: Travel agency and tour operator B. Travel agencies and tour operators

Class 7472: Tourist guide services C. Tour guide services

Class 9619: Other entertainment services A. Entertainment services

Group 962: News agency services B. News agency services

Group 963: Library, archive, museum and other C. Libraries, archives, museums and othercultural services cultural services

Group 964: Sporting and other recreational D. Other recreational services services

D. Other

10. RECREATIONAL, CULTURAL ANDSPORTING SERVICES

GATT and U.S. sector "9A:Hotels and restaurants"includes catering services.

GATT and U.S. section 10excludes audiovisual services.

GATT and U.S. sector "10A: Entertainment services"includes theatre, live bandsand circus services.

U.S. sector "10D: Otherrecreational services"excludes sporting.




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11. TRANSPORT SERVICES 11. TRANSPORT SERVICES

A. Maritime transport service

a) Passenger transportation Class 7211: Passenger transportation

b) Freight transportation Class 7212: Freight transportation

c) Rental of vessels with crew Class 7213: Rental services of seagoing vessels

d) Maintenance and repair of vessels Class 8868: Repair services of other transport

e) Pushing and towing services Class 7214: Towing and pushing services

f) Supporting services for maritime Group 745: Supporting services for watertransport transport

B. Internal waterways transport

a) Passenger transportation Class 7221: Passenger transportation

b) Freight transportation Class 7222: Freight transportation

c) Rental of vessels with crew Class 7223: Rental services of non-sea-going

d) Maintenance and repair of vessels Class 8868: Repair services of other transport

e) Pushing and towing services Class 7224: Towing and pushing services

f) Supporting services for internal Group 745: Supporting services for water

with operator

equipment, on a fee or contract basis

vessels with operator

equipment, on a fee or contract basis

A. No U.S. commitment

B. No U.S. commitment




xxvi

(TRANSPORT SERVICES, cont'd) (TRANSPORT SERVICES, cont'd)

C. Air transport services C. Air transport services: Aircraft repair and

a) Passenger transportation

b) Freight transportation

c) Rental of aircraft with crew

d) Maintenance/repair of aircraft

e) Supporting services for air transport

D. Space transport

E. Rail transport



c) Pushing and towing services

d) Maintenance and repair of railtransport equipment

Group 731: Passenger transportation by air

Group 732: Freight transportation by air

Group 734: Rental services of aircraft withoperator

Class 8868: Repair services of other transportequipment, on a fee or contract basis

Group 746: Supporting services for air transport

Group 733: Transportation via space

Class 7111: Passenger transportation

Class 7112: Freight transportation

Class 7113: Pushing or towing services

Class 8868: Repair services of other transport

maintenance

D. No U.S. commitment

E. Rail transport



c) No U.S. commitment

d) Maintenance and repair of rail transport

U.S. sector "11C: Airtransport services: Aircraftrepair and maintenance"corresponds to all GATTsectors listed under "Airtransport services."

U.S. sector "11C: Airtransport services: Aircraftrepair and maintenance"pertains to repair andmaintenance activities whilethe aircraft is withdrawn fromservice. It excludes linemaintenance or other repairor maintenance activitiesundertaken by an air carrieron aircraft it owns, leases oroperates.

U.S. subsector "11E(a): Passenger transportation"excludes high speed rail.




xxvii


F. Road transport F. Road transport

a) Passenger transportation a) Passenger transport: Interurban regular

b) Freight transportation b) Freight transport

c) Rental of commercial vehicles withoperator

d) Maintenance and repair of roadtransport equipment

e) Supporting services for road transportservices

G. Pipeline transport

a) Transportation of fuels

b) Transportation of other goods

Class 7121: Other scheduled passengertransportationClass 7122: Other non-scheduled passengertransportation

Class 7123: Freight transportation

Class 7124: Rental services of commercial freightvehicles with operator

Class 6112: Maintenance and repair services ofmotor vehiclesClass 8867: Repair services n.e.c. of motorvehicles, trailers and semi-trailers, on a fee orcontract basis

Group 744: Supporting services for road transport

Class 7131: Transportation of petroleum andnatural gas

Class 7139: Transportation of other goods

transport


d) Maintenance and repair of roadtransport equipment


G. No U.S. commitment

U.S. subsector "11F(b): Freight transport" is limited totransportation of cargo thathas either an origin or adestination outside the UnitedStates.

xxviii


H. Services auxiliary to all modes of H. Services auxiliary to all modes of transporttransport

a) Cargo-handling services

b) Storage and warehouse services

c) Freight transport agency services

d) Other

I. Other transport services (Nocorresponding CPC)

12. Other services not included elsewhere

Group 741: Cargo handling services

Group 742: Storage and warehousing services

Group 748: Freight transport agency services

Group 749: Other supporting and auxiliarytransport services

Division 95: Services of membership organizationsDivision 97: Other servicesDivision 98: Private households with employedpersonsDivision 99: Services provided by extraterritorialorganizations and bodies




d) Other supporting and auxiliary transportservices: Customs house brokers

I. No U.S. commitment

12. No U.S. commitment

GENERAL AGREEMENT GATS/SC/90April 1994

ON TRADE IN SERVICES

THE UNITED STATES OF AMERICA

Schedule of Specific Commitments

(This is authentic in English only)

____________________

"Temporary entry" means entry without intent to establish permanent residence under immigration laws of the US and confers no rights with respect1

to citizenship. US commitments regarding entry and temporary stay in the US do not apply in cases of labour/management disputes.

GATS/SC/90Page 1

THE UNITED STATES OF AMERICA - SCHEDULE OF SPECIFIC COMMITMENTS

Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons

Sector or subsector Limitations on market access Limitations on national treatment Additional commitments

I. HORIZONTAL COMMITMENTS

ALL SECTORS COVERED BY THIS SCHEDULE: For the purpose of this schedule the "United States" is defined as encompassing the 50 states of the United States, plusthe District of Columbia.

All Sectors: Temporary 4) Unbound, except for measures concerning 4) UnboundEntry And Stay of Natural temporary entry and stay of nationals ofPersons another member who fall into the categories1

listed below:

Services Salespersons - persons not based in theterritory of the United States and receiving noremuneration from a source located within theUnited States, who are engaged in activities relatedto representing a services supplier for the purposeof negotiating for the sale of the services of thatsupplier where: a) such sales are not directly madeto the general public and b) the salesperson is notengaged in supplying the service. Entry for personsnamed in this section is limited to a ninety-dayperiod.

GATS/SC/90Page 2

THE UNITED STATES OF AMERICA (continued)



Intra-corporate Transferees - managers, executivesand specialists, as defined below, who areemployees of firms that provide services within theUnited States through a branch, subsidiary, oraffiliate established in the United States and whohave been in the prior employ of their firm outsidethe United States for a period of not less than oneyear immediately preceding the date of theirapplication for admission and who are one of thefollowing:

a) Managers - persons within an organizationwho primarily direct the organization, or adepartment or sub-division of theorganization, supervise and control the workof other supervisory, professional ormanagerial employees, have the authority tohire and fire or recommend hiring, firing, orother personnel actions (such as promotion orleave authorization), and exercisediscretionary authority over day-to-dayoperations. Does not include first-linesupervisors, unless the employees supervisedare professionals, nor does it includeemployees who primarily perform tasksnecessary for the provision of the service.




GATS/SC/90Page 3

b) Executives - persons within the organizationwho primarily direct the management of theorganization, establish the goals and policiesof the organization, exercise wide latitude indecision-making, and receive only generalsupervision or direction from higher-levelexecutives, the board of directors, orstockholders of the business. Executiveswould not directly perform tasks related to theactual provision of a service or services of theorganization.

c) Specialists - persons within an organizationwho possess knowledge at an advanced levelof continued expertise and who possessproprietary knowledge of the organization'sservices, research equipment, techniques, ormanagement. (Specialists may include, butare not limited to, members of licencedprofessions.)

Entry for persons named in this section is limited toa three-year period that may be extended for up totwo additional years for a total term not to exceedfive years.

GATS/SC/90Page 4




Personnel Engaged in Establishment - A personwho has been employed in the immediatelypreceding year by an entity described in Section II,receiving remuneration from that source, whooccupies a managerial or executive position withthat entity and is entering the territory of the UnitedStates for the purpose of establishing an entitydescribed in Section II that will supportemployment of persons named in paragraphs a), b),and c) therein. The subject persons shall presentproof of acquisition of physical premises for theentity that shall commence its business operationswithin one year of the date of entry of that person.




GATS/SC/90Page 5

Fashion Models and Specialty Occupations - Up to65,000 persons annually on a worldwide basis inoccupations as set out in 8 USC. § 1101 (a) (15)(H) (i) (b), consisting of (i) fashion models who areof distinguished merit and ability; and (ii) personsengaged in a specialty occupation, requiring (a)theoretical and practical application of a body ofhighly specialized knowledge; and (b) attainment ofa bachelor's or higher degree in the specialty (or itsequivalent) as a minimum for entry into theoccupation in the United States. Persons seekingadmission under (ii) above shall possess thefollowing qualifications: (a) full licensure in a USstate to practice in the occupation, if such licensureis required to practice in the occupation in thatstate; and (b) completion of the required degree, orexperience in the specialty equivalent to thecompletion of the required degree and recognitionof expertise in the specialty through progressivelyresponsible positions relating to the specialty. Entry for persons named in this section is limited tothree years.

GATS/SC/90Page 6




Specialty occupation aliens and their employersmust be in compliance with all labour conditionapplication requirements that are attested to by theestablished employer. These requirements are: a)wages paid to the person are the greater of: 1) theactual wage paid by the employer to individuals inthat place of employment with similarqualifications and experience, or 2) the prevailingwage for that occupational classification in the areaof employment; b) conditions of work are such thatthey will not adversely affect working conditionsfor those similarly employed; c) there is no strike orlockout in the course of a labour/managementdispute in progress at the place of employmentaffecting the subject occupation;labour/management dispute in progress at the placeof employment;




GATS/SC/90Page 7

d) the employer has not laid off or otherwisedisplaced workers in the subject occupationin the previous six months and will not lay offor displace any US worker during the 90-dayperiod following the filing of an applicationor the 90-day periods preceding andfollowing the filing of any visa petitionsupported by the application; e) the employerhas taken and is taking timely and significantsteps to recruit and retain sufficient USworkers in the specialty occupation; and f)notice is given at the time of application bythe employer to employees or theirrepresentatives at the place of employment.

All Sectors: Acquisition of 3) None 3) The federal government restricts initial sale ofLand federally-owned lands to US citizens.

(Preceding restriction does not apply toforeign-owned companies formed under thelaws of any state of the United States.)

Acquisition of land reclaimed with federalfunds and reclamation of desert land isrestricted to individual US citizens

GATS/SC/90Page 8




Ownership of land by non-US citizens islimited in: Kentucky (restrictions apply onlyto individuals, not to foreign-ownedcompanies incorporated within the UnitedStates) and South Carolina (applies toindividuals and foreign-owned corporations).

Purchase of land by non-US citizens notresident within the state is restricted in: Oklahoma, Florida, and Wyoming. InMississippi, non-US citizens may notpurchase more than 5 acres for residentialproperty, or more than 320 acres forindustrial development.

Non-US citizens may not purchase or bid onsales of public lands in: Hawaii, Idaho,Mississippi, Montana, and Oregon




GATS/SC/90Page 9

All Sectors: Taxation 1) None 1), 2), 3) At the federal level, with respect toMeasures direct taxes:

2) None

3) None between trusts created or organized in theDifferential tax treatment may be provided

United States to provide employee benefitsand trusts not created or organized in theUnited States and their respectivebeneficiaries. Such provisions affect thetaxation of the income of the trust or thebeneficiary, the availability of deductions totaxpayers for contributions to the trust, andtax administration requirements; theseprovisions include different rules for allowingdeductions to, and determining the earningsof, foreign employee benefit plans.

An increase in the rate or a widening of thebase of a federal income tax may be imposedon a national, resident or corporation of aforeign country where a national, resident orcorporation of the United States is beingsubjected to discriminatory or extraterritorialtaxes (as described in section 891 or section896 of the Internal Revenue Code).

At the federal level, with respect to taxes other thandirect taxes:

GATS/SC/90Page 10




An excise tax may be imposed in connectionwith transfers of any property by a citizen orresident of the United States, or by a domesticentity (corporations, partnership, estate ortrust) to a foreign entity (corporationpartnership, estate or trust).

An excise tax may be imposed on US sourcegross investment income of foreignorganizations that are private foundations.

4) Unbound, except as indicated in the 4) Nonehorizontal section

All Sectors: Subsidies 1) Unbound 1) Unbound

2) Unbound 2) Unbound

3) None 3) The Federal Overseas Private InvestmentCorporation (OPIC) insurance and loanguarantees are not available to certain aliens,foreign enterprises, and foreign-controlledenterprises established in the United States

Trade and Development Agency financing islimited to:




GATS/SC/90Page 11

I. individuals 1) who are either US citizensor non-US citizens lawfully admitted forpermanent residence in the UnitedStates and 2) whose principal places ofbusiness are in the United States, or

II. privately-owned commercialcorporations or partnerships that areincorporated or legally organized underthe laws of the United States and whoseprincipal places of business are in theUnited States and (1) that are more than50 per cent beneficially owned byindividuals who are US citizens or (2)that have been incorporated or legallyorganized in the United States for morethan 3 years, have performed similarservices in each of the prior 3 years, andemploy US citizens in more than half oftheir permanent full-time positions in theUnited States and have the existingcapability in the United States toperform the contract

Unbound for measures at the federal, state orlocal levels that accord rights or preferencesto members of socially or economicallydisadvantaged groups in the United States,including:

GATS/SC/90Page 12




Federal Small Business Administration -loans are restricted to US citizens orcompanies that are 100 per cent owned byUS citizens and whose directors are all UScitizens

Maine - The Maine Veterans Small BusinessLoan Guarantee Program provides guaranteesto eligible resident veterans for businessloans from local lending institutions. Aqualifying business is one that isindependently owned and operated in Maine,and the applicant must be a war veteran. TheSmall Business Loan Guarantee Program inMaine provides guarantees of loans made byprivate lenders to eligible residents of Mainefor business purposes.




GATS/SC/90Page 13

Maryland - The Maryland Small BusinessDevelopment Financing Authority makesdirect loans to socially or economicallydisadvantaged business persons. Applicantsmust be US citizens and have a business thatis 70 per cent owned by socially oreconomically disadvantaged persons. Applicants for the Maryland Small BusinessSurety Bond Guarantee Program must be UScitizens and, if entities, must have theirprincipal places of business in Maryland.

Minnesota - Community DevelopmentCorporations are only eligible to receivegrants if 60 per cent of their directors areresidents of the specific geographiccommunity in Minnesota within which theywill operate.

Oregon - Oregon law requires that theEconomic Development Corporation (EDC)give preference in OBDF loans to businessesowned in whole or in part by dislocatedtimber workers.

Pennsylvania - Minority BusinessDevelopment Authority provides long-termlow interest loans to minority-ownedbusinesses. Applicants must be Blacks,Aleuts, Eskimos, Hispanics or AmericanIndians who are residents of Pennsylvania.

GATS/SC/90Page 14




Unbound for research and developmentsubsidies

4) Unbound, except as indicated in the 4) Nonehorizontal section


GATS/SC/90Page 15



II. SECTOR-SPECIFIC COMMITMENTS

1. BUSINESS SERVICES

A. PROFESSIONALSERVICES

a) 1) Legal Services: practice For the following jurisdiction, the followingas or through a qualified US commitments apply: in (all states)lawyer

1) Services must be supplied by a natural person 1) In-state or US residency is required for

An in-state office must be maintained for Massachusetts, Michigan, Minnesota (orlicensure in: District of Columbia, Indiana (or maintain an office in Minnesota),an affiliate with an office and with other Mississippi, Nebraska, New Jersey, Newattorneys in the state), Michigan, Minnesota (or Hampshire, Oklahoma, Rhode Island, Southmaintain individual residency in Minnesota), Dakota, Vermont, Virginia, Wyoming.Mississippi, New Jersey, Ohio, South Dakotaand Tennessee.

licensure in: Hawaii, Iowa, Kansas,




GATS/SC/90Page 16




3) Services must be supplied by a natural person 3) None

Partnership in law firms is limited to personslicenced as lawyers

US citizenship is required to practice before theUS Patent and Trademark Office



US Citizenship is required to practice before theUS Patent and Trademark Office





The following information is provided for transparency purposes only. A supplier regularly providing services in the jurisdiction is required to be licenced2

as a foreign legal consultant (FLC) in Alaska. Licensure is subject to meeting requirements of registration, an experience requirement (5 of the 7 yearspreceding registration must have been spent practising law), certification of registration and good standing with home-country bar, meeting the professionalliability insurance requirement, and agreement to be bound by the Rules of Disciplinary Enforcement, Ethics Opinions adopted by the Board of Governorsof the Alaska Bar Association, and the Code of Professional Responsibility. Professional privileges apply to all foreign lawyers.

GATS/SC/90Page 17

a) 2) Legal Services: For the following jurisdiction, the following a) Practice of international law:consultancy on law of commitments apply: Alaska permitted, provided foreignjurisdiction where service legal consultant (FLC) issupplier is qualified as a 1) None 1) None competent.lawyer (such consultancy b) Practice of 3rd-country law:excludes the following: 2) None 2) None permitted provided that FLCi) appearing for a person obtains written legal adviceother than himself or herself 3) None 3) None from an attorney licenced inas attorney in any court, or that jurisdiction.before any magistrate or 4) Unbound, except as indicated in the horizontal 4) None c) Practice of host-country law:other judicial officer, in this section permitted provided that FLCstate (other than upon obtains written legal adviceadmission pro haec vice); from an attorney licenced toii) preparing any instrument practice in that jurisdiction. effecting the transfer or d) Association with localregistration of title to real lawyers: partnerships withestate located in the United local lawyers permitted.States of America; e) Employment of localiii) preparing any will or trust lawyers: permitted.instrument effecting the f) Use of firm name: permitted.disposition on death of any g) Other: n/a. property located in theUnited States of America andowned by a resident thereof,or any instrument relating tothe administration of adecedent's

2

GATS/SC/90Page 18




The following information is provided for transparency purposes only. A supplier regularly providing services is required to be licenced as a foreign legal3

consultant in California. Licensure is subject to meeting requirements of registration, an experience requirement (4 of the 6 years preceding registrationmust have been spent practising law), certification of registration and good standing with home-country bar, meeting the professional liability insurancerequirement, and agreement to be bound by the requirements of the State Bar of California. Professional privileges apply to all foreign lawyers.

estate in the United States ofAmerica; and iv) preparingany instrument in respect ofthe marital or parentalrelations, rights or duties of aresident of the United Statesof America, or the custody orcare of the children of such aresident.)

For the following jurisdiction, the followingcommitments apply: California3

1) None 1) None a) Practice of international law:

2) None 2) None incorporated in

3) None 3) None b) Practice of 3rd-country law:

4) Unbound, except as indicated in the horizontal 4) None c) Practice of host-country law:section not permitted.

permitted to the extent

home-country law.

not permitted.

d) Association with locallawyers: partnership withlocal lawyers permitted.




The following information is provided for transparency purposes only. A supplier regularly providing services is required to be licenced as a foreign legal4

consultant in Connecticut. Licensure is subject to meeting requirements of registration, a minimum age of 26 years, an experience requirement (5 of the7 years preceding registration must have been spent practising law), certification of registration, meeting the professional liability insurance requirement,an overdraft notification, good standing with home-country bar, and a written commitment to observe the Connecticut Rules of Professional Conduct.Professional privileges apply to all foreign lawyers.

GATS/SC/90Page 19

e) Employment of locallawyers: permitted.

f) Use of firm name: permitted.g) Other: n/a.

For the following jurisdiction, the followingcommitments apply: Connecticut4




4) Unbound, except as indicated in the horizontal 4) None obtains advice from ansection attorney licenced in that


home-country law.

permitted provided FLC first

jurisdiction.c) Practice of host-country law:

not permitted. d) Association with local

lawyers: partnership withlocal attorneys permitted.



GATS/SC/90Page 20




The following information is provided for transparency purposes only. A supplier regularly providing services in the jurisdiction is required to be5

licenced as a foreign legal consultant in the District of Columbia. Licensure is subject to meeting requirements of registration, a minimum age of 26years, an experience requirement (5 of the 8 years preceding registration must have been spent practising law), certification of registration and goodstanding with home-country bar, meeting the professional liability insurance requirement, and a written commitment to be bound by the Code ofProfessional Responsibility of the American Bar Association. Professional privileges apply to all foreign lawyers.

For the following jurisdiction, the followingcommitments apply: District of Columbia5


2) None 2) None competent.

3) In-state office required 3) None permitted, provided FLC is

4) Unbound, except as indicated in the horizontal 4) None c) Practice of host-country law:section. Additionally, an in-state office is permitted provided FLC firstrequired. obtains advice from an

permitted, provided FLC is

b) Practice of 3rd-country law:

competent.

attorney licenced in thatjurisdiction and identifies theperson to the client.








as a foreign legal consultant in Florida. Licensure is subject to meeting requirements of registration, a minimum age of 26 years, an experience requirement(5 of the 7 years preceding registration must have been spent practising law), certification of registration and good standing with home-country bar, anda sworn statement to abide by the Rules of Professional Conduct. Professional privileges apply to all foreign lawyers.

GATS/SC/90Page 21

For the following jurisdiction, the followingcommitments apply: Florida6






home-country law.

not permitted.

d) Association with locallawyers: partnerships withlocal lawyers permitted.



GATS/SC/90Page 22





licenced as a foreign legal consultant in Georgia. Licensure is subject to meeting requirements of registration, an experience requirement (5 of the 7 yearspreceding registration must have been spent practising law), certification of registration and good standing with home-country bar, and a commitment toobserve the Rules of Professional Responsibility and Disciplinary Rules applicable to members of the State Bar of Georgia. Professional privileges applyto all foreign lawyers.

For the following jurisdiction, the followingcommitments apply: Georgia7






home-country law.

not permitted.



f) Use of firm name: permitted.g) Other: n/a





as a foreign legal consultant in Hawaii. Licensure is subject to meeting requirements of registration, a minimum age of 26 years, an experiencerequirement (5 of the 7 years preceding registration must have been spent practising law), and certification of registration and good standing with home-country bar. Professional privileges apply to all foreign lawyers.

GATS/SC/90Page 23

For the following jurisdiction, the followingcommitments apply: Hawaii8



3) None 3) None permitted provided FLC

4) Unbound, except as indicated in the horizontal 4) None attorney licenced in thatsection jurisdiction and identifies



obtains advice from an

that person to the client.c) Practice of host-country law:

permitted provided FLCobtains advice from anattorney licenced in thatjurisdiction and identifiesthat person to the client.




GATS/SC/90Page 24





as a foreign legal consultant in Illinois. Licensure is subject to meeting requirements of registration, an experience requirement (5 of the 7 years precedingregistration must have been spent practising law), meeting the professional liability insurance requirement, a written commitment to observe the Rules ofProfessional Conduct, and certification of registration and good standing with home-country bar. Professional privileges apply to all foreign lawyers.

For the following jurisdiction, the followingcommitments apply: Illinois9






home-country law.

not permitted.



f) Use of firm name: permitted.g) Other: n/a





licenced as a foreign legal consultant in Michigan. Licensure is subject to meeting requirements of registration, a minimum age of 18 years, anexperience requirement (3 of the 5 years preceding registration must have been spent practising law), and certification of registration and good standingwith home-country bar. Professional privileges apply to all foreign lawyers.


licenced as a foreign legal consultant in Minnesota. Licensure is subject to meeting requirements of registration, a minimum age of 26 years, anexperience requirement (5 of the 7 years preceding registration must have been spent practising law), certification of registration and good standingwith home-country bar, and are subject to the Minnesota Rules of Professional Conduct. Professional privileges apply to all foreign lawyers.

GATS/SC/90Page 25

For the following jurisdiction, the followingcommitments apply: Michigan10



3) None 3) In-state residency required b) Practice of 3rd-country law:

4) Unbound, except as indicated in the horizontal 4) In-state residency required c) Practice of host-country law:section not permitted.


home-country law.

not permitted.




For the following jurisdiction, the followingcommitments apply: Minnesota11

GATS/SC/90Page 26





licenced as a foreign legal consultant in New Jersey. Licensure is subject to meeting requirements of registration, an experience requirement (5 of the 7years preceding registration must have been spent practising law), meeting the professional liability insurance requirement, certification of registrationand good standing with home-country bar, and shall observe the Rules of Professional Conduct of the American Bar Association. Professionalprivileges apply to all foreign lawyers.



3) In-state office required 3) None b) Practice of 3rd-country law:

4) Unbound, except as indicated in the horizontal 4) None c) Practice of host-country law:section. Additionally, an in-state office is not permitted.required. d) Association with local


home-country law.

not permitted.

lawyers: partnership withlocal lawyers permitted.



For the following jurisdiction, the followingcommitments apply: New Jersey12




GATS/SC/90Page 27



3) In-state office required 3) None b) Practice of 3rd-country law:

4) Unbound, except as indicated in the horizontal 4) None obtains advice from ansection. Additionally, an in-state office is attorney licenced in thatrequired. jurisdiction and identifies


home-country law.

permitted provided FLC

that person to the client.c) Practice of host-country law:

permitted provided FLCobtains advice from anattorney licenced in thatjurisdiction and identifiesthat person to the client.




GATS/SC/90Page 28





licenced as a foreign legal consultant in New York. Licensure is subject to meeting requirements of registration, a minimum age of 26 years, anexperience requirement (3 of the 5 years preceding registration must have been spent practising law), certification of registration and good standingwith home-country bar, meeting the professional liability insurance requirement, and agreement to be bound by the New York Bar Code of Ethics. Professional privileges apply to all foreign lawyers.

For the following jurisdiction, the followingcommitments apply: New York13



3) In-state office required 3) None permitted, provided FLC is

4) Unbound, except as indicated in the horizontal 4) None c) Practice of host-country law:section. Additionally, an in-state office is permitted to practice NYrequired. and federal law provided



competent.

FLC relies on advice from aperson duly qualified andentitled to renderprofessional legal advice onNY or US law. Permitted topractice law of other USstates, provided FLC iscompetent.






licenced as a foreign legal consultant in Ohio. Licensure is subject to meeting requirements of registration, a minimum age of 21 years, an experiencerequirement (4 of the 6 years preceding registration must have been spent practising law), certification of registration and good standing with home-country bar, meeting the professional liability insurance requirement, and being subject to the Ohio Code of Professional Responsibility and thedisciplinary procedural rules set forth in Gov. Bar R.V. Professional privileges apply to all foreign lawyers.

GATS/SC/90Page 29


f) Use of firm name:unrestricted.

g) Other: n/a.

For the following jurisdiction, the followingcommitments apply: Ohio14



3) In-state office required 3) None advice from an attorney

4) Unbound, except as indicated in the horizontal 4) None and identifies that person tosection. Additionally, an in-state office is the client.required. c) Practice of host-country law:

permitted.

permitted if FLC obtains

licenced in that jurisdiction

permitted if FLC obtainsadvice from an attorneylicenced in that jurisdictionand identifies that person tothe client.

d) Association with locallawyers: partnership withlocal lawyers not permitted.

GATS/SC/90Page 30





licenced as a foreign legal consultant in Oregon. Licensure is subject to meeting requirements of registration, a minimum age of 18 years, an experiencerequirement (5 of the 7 years preceding registration must have been spent practising law), and certification of registration and good standing with home-country bar, meeting the professional liability insurance requirement, and agreement to comply with ORS Chapter 9, the Oregon Code of ProfessionalResponsibility and the Oregon State Bar's Rules of Procedure. Professional privileges apply to all foreign lawyers.



For the following jurisdiction, the followingcommitments apply: Oregon15




4) Unbound, except as indicated in the horizontal 4) None advice from an attorneysection licenced in that jurisdiction


home-country law.

permitted if FLC obtains

and identifies that person tothe client.

c) Practice of host-country law:permitted if FLC obtainsadvice from an attorneylicenced in that jurisdictionand identifies that person tothe client.




GATS/SC/90Page 31

d) Association with locallawyers: partnership withlocal lawyer permitted.

e) Employment of locallawyers: permitted


GATS/SC/90Page 32





licenced as a foreign legal consultant in Texas. Licensure is subject to meeting requirements of registration, a minimum age of 26 years, an experiencerequirement (5 of the 7 years preceding registration must have been spent practising law), meeting the professional liability insurance requirement,certification of registration and good standing with home-country bar, and taking an oath to abide by the State Bar Act, the State Bar Rules, and theTexas Disciplinary Rules of Professional Conduct. Professional privileges apply to all foreign lawyers.

For the following jurisdiction, the followingcommitments apply: Texas16



3) None 3) In-state residency required b) Practice of 3rd-country law:

4) Unbound, except as indicated in the horizontal 4) In-state residency required c) Practice of host-country law:section not permitted.


home-country law.

not permitted.








licenced as a foreign legal consultant in Washington. Licensure is subject to meeting requirements of registration, an experience requirement (5 of the 7years preceding registration must have been spent practising law), and certification of registration and good standing with home-country bar, andagreement to be bound by the Discipline Rules for Lawyers and the Rules of Professional Conduct. Professional privileges apply to all foreign lawyers.

GATS/SC/90Page 33

For the following jurisdiction, the followingcommitments apply: Washington17



3) None 3) In-state residency required at time admitted b) Practice of 3rd-country law:

4) Unbound, except as indicated in the horizontal 4) In-state residency required at time admitted c) Practice of host-country law:section not permitted.


home-country law.

not permitted.

d) Association with locallawyers: partnerships withlocal lawyers permitted.



GATS/SC/90Page 34




For the following jurisdiction, the followingcommitments apply: Other States

1) None 1) None

2) None 2) None

3) Unbound for Alabama, Arizona, Arkansas, 3) NoneColorado, Delaware, Idaho, Indiana, Iowa,Kansas, Kentucky, Louisiana, Maine, Maryland,Massachusetts, Mississippi, Missouri, Montana,Nebraska, Nevada, New Hampshire, NewMexico, North Carolina, North Dakota,Oklahoma, Pennsylvania, Rhode Island, SouthCarolina, South Dakota, Tennessee, Utah,Vermont, Virginia, West Virginia, Wisconsin,Wyoming.

4) Unbound for Alabama, Arizona, Arkansas, 4) NoneColorado, Delaware, Idaho, Indiana, Iowa,Kansas, Kentucky, Louisiana, Maine, Maryland,Massachusetts, Mississippi, Missouri, Montana,Nebraska, Nevada, New Hampshire, NewMexico, North Carolina, North Dakota,Oklahoma, Pennsylvania, Rhode Island, SouthCarolina, South Dakota, Tennessee, Utah,Vermont, Virginia, West Virginia, Wisconsin,Wyoming.




GATS/SC/90Page 35

b) Accounting, Auditing and 1) None 1) NoneBookkeeping Services

2) None 2) None

3) Sole proprietorships or partnerships are limited 3) Noneto persons licenced as accountants, except inIowa where accounting firms must incorporate

4) Unbound, except as indicated in the horizontal 4) In-state residency is required for licensuresection. In addition, an in-state office must be in: Arizona, Arkansas, Connecticut, Districtmaintained for licensure in: Arkansas, of Columbia, Idaho, Indiana, Iowa, Kansas,Connecticut, Iowa, Kansas, Kentucky, Michigan, Kentucky, Louisiana, Maine, Michigan,Minnesota, Nebraska, New Hampshire, New Minnesota, Mississippi, Missouri, Nebraska,Mexico, Ohio, Vermont, and Wyoming. New Hampshire, New Mexico, North

US citizenship is required for licensure in North Rhode Island, South Carolina, Tennessee,Carolina. and West Virginia.

Carolina, North Dakota, Ohio, Oklahoma,

c) Taxation Services 1) None 1) None

2) None 2) None

3) None 3) None

4) Unbound, except as indicated in the horizontal 4) Nonesection

GATS/SC/90Page 36




d) Architectural Services 1) None 1) None

2) None 2) None

3) Two-thirds of the officers, partners, and/or 3) Nonedirectors of an architectural firm in Michiganmust be licenced in Michigan as architects,professional engineers and/or land surveyors.


e) Engineering Services 1) None 1) None

f) Integrated Engineering 3) None 3) NoneServices

2) None 2) None

4) Unbound, except as indicated in the horizontal 4) In-state residency is required for licensuresection. In addition, US citizenship is required in: Idaho, Iowa, Kansas, Maine, Mississippi,for licensure in the District of Columbia. Nevada, Oklahoma, South Carolina, South

Dakota, Tennessee, Texas, and WestVirginia.




GATS/SC/90Page 37

g) Urban Planning & Landscape 1) None 1) NoneServices

2) None 2) None

3) Two-thirds of the officers, partners, and/or 3) Nonedirectors of an architectural firm in Michiganmust be licenced in Michigan as architects,professional engineers and/or land surveyors

4) Unbound, except as indicated in the horizontal 4) Nonesection.

B. COMPUTER AND 1) None 1) NoneRELATED SERVICES(MTN.GNS/W/120 a) - e), 2) None 2) Noneexcept airline computerreservation systems) 3) None 3) None


D. REAL ESTATE SERVICES 1) None 1) Corporations that own real estate in Florida

2) None 2) None

3) None 3) None

4) Unbound, except as indicated in the horizontal 4) In-state residency or US citizenship issection. In addition, US citizenship is required required for licensure as a real estate brokerfor licensure as a real estate broker in: in South DakotaMississippi and New York.

must maintain an office and registered agentin Florida

GATS/SC/90Page 38




E. RENTAL/LEASINGSERVICES WITHOUTOPERATORS:

c) Relating to Other Transport 1) None 1) NoneEquipment

d) Relating to Other Machineryand Equipment 3) None 3) None

e) Other (except Harbour 4) Unbound, except as indicated in the horizontal 4) NoneDredges) section

2) None 2) None

F. OTHER BUSINESSSERVICES

a) Advertising (except aerial 1) None 1) Noneadvertising and skywriting)

2) None 2) None

3) None 3) None


b) Market Research and Public 1) None 1) NoneOpinion Polling

2) None 2) None

3) None 3) None





GATS/SC/90Page 39

c) Management Consulting 1) None 1) None

2) None 2) None

3) None 3) None


d) Services Related to 1) None 1) NoneManagement Consulting

2) None 2) None

3) None 3) None


f) Services Incidental to 1) None 1) NoneAgriculture, Hunting andForestry (except provision of 2) None 2) Noneagricultural machinery withdrivers and crew, harvesting 3) None 3) Noneand related services, servicesof farm labour contractors, 4) Unbound, except as indicated in the horizontal 4) Noneand aerial fire fighting) section

GATS/SC/90Page 40




g) Services Incidental to Fishing 1) None 1) None

2) None 2) None

3) None 3) None


h) Services Incidental to Mining 1) None 1) None

2) None 2) None

3) None 3) None


j) Services Incidental to Energy 1) None 1) NoneDistribution

2) None 2) None

3) None 3) None





GATS/SC/90Page 41

k) Placement and Supply 1) None 1) NoneServices of Personnel

2) None 2) None

3) US citizenship is required for ownership of 3) Noneemployment agencies in Arkansas.

4) Unbound, except as indicated in the horizontal 4) Nonesection. In addition, US citizenship is requiredfor licensure as an employment agent,employment agency counsellor and employmentagency manager in Arkansas.

l) Investigation and Security 1) None 1) NoneServices

2) None 2) None

3) Permanent resident alien status or US 3) Nonecitizenship is required to own contract securitycompanies in Maine

4) Unbound, except as indicated in the horizontal 4) In-state residency is required for privatesection. In addition, permanent resident alien detectives in Michiganstatus or US citizenship is required for privateinvestigators and security guards in: Maine andNew York.

GATS/SC/90Page 42




For those functions where an engineering degree is required, the US limitations on engineering also apply.18

m) Related Scientific & 1) None 1) NoneTechnical Consulting (exceptland surveying for the 2) None 2) Nonepurpose of establishing legalboundaries, aerial surveying 3) None 3) Noneand aerial map-making)


18

18

18

n) Maintenance & Repair of 1) None 1) NoneEquipment (except maritimevessels, aircraft, and other 2) None 2) Nonetransport equipment)

3) None 3) None


o) Building-Cleaning Services 1) Unbound* 1) Unbound*

2) None 2) None

3) None 3) None





GATS/SC/90Page 43

p) Photographic Services 1) None 1) None(except aerial photographicservices) 2) None 2) None

3) None 3) None


q) Packaging Services 1) None 1) None

2) None 2) None

3) None 3) None


r) Publishing (Only part of 1) None 1) NoneMTN.GNS/W/120 category: "r) Printing, Publishing") 2) None 2) None

3) A single company or firm is not permitted to 3) Noneown a combination of newspaper, radio and/orTV broadcast stations serving the same localmarket


GATS/SC/90Page 44




s) Convention Services 1) None 1) None

2) None 2) Unbound with respect to tax deductions

3) None 3) None


2. COMMUNICATIONSERVICES

B. LAND-BASED COURIER 1) None 1) NoneSERVICES (except courierservices involving any prior 2) None 2) Noneor subsequent movement byair) 3) None 3) None





GATS/SC/90Page 45

C. TELECOMMUNICATIONS

Enhanced 1) None 1) NoneTelecommunications Services,as defined by the US Federal 2) None 2) NoneCommunications Commissionin Section 64.702 of the 3) None 3) NoneCommission's Rules andRegulations: services, offered 4) Unbound, except as indicated in the horizontal 4) Noneover common carrier sectiontransmission facilities (i.e.,public telecommunicationstransport services) whichemploy computer processingapplications that:

i) act on the format, contentcode, protocol or similaraspects of the subscriber'stransmitted information; or

ii) provide the subscriberadditional, different, orrestructured information; or

iii) involve subscriber interactionwith stored information.

GATS/SC/90Page 46




Includes the following:h) Electronic Maili) Voice Mailj) On-line Information and Data

Base Retrievalk) Electronic Data Interchangel) Enhanced/Value-added

Facsimile Services (includingstore and forward, store andretrieve)

m) Code and Protocol Conversionn) On-line Information and/or

Data Processing (includingtransaction processing)

o) Other

D. AUDIOVISUAL SERVICES

a) Motion Picture & Video Tape Arts are only available for: individuals withProduction & Distribution US citizenship or permanent resident alienServices status, and non-profit companies.

1) None 1) Grants from the National Endowment for the

2) None

3) None Arts are only available for: individuals with

4) None4) Unbound, except as indicated in the horizontal

section

2) None

3) Grants from the National Endowment for the

US citizenship or permanent resident alienstatus, and non-profit companies.




GATS/SC/90Page 47

b) Motion Picture Projection 1) None 1) NoneService

2) None 2) None

3) None 3) None


c) Radio & Television Services 1) None 1) None

2) None 2) None

3) None 3) None


d) Radio and Television 1) None 1) NoneTransmission Services

2) None 2) None

3) A single company or firm is prohibited from 3) Noneowning a combination of newspapers, radioand/or TV broadcast stations serving the samelocal market.

GATS/SC/90Page 48




Radio and television licences may not be held by:a foreign government; a corporation charteredunder the law of a foreign country or which has anon-US citizen as an officer or director or morethan 20 per cent of the capital stock of which isowned or voted by non-US citizens; a corporationchartered under the laws of the United States thatis directly or indirectly controlled by acorporation more than 25 per cent of whosecapital stock is owned by non-US citizens or aforeign government or a corporation of which anyofficer or more than 25 per cent of the directorsare non-US citizens.

4) Unbound, except as indicated in the horizontal 4) Nonesection. In addition, US citizenship is required toobtain radio and television licences.

e) Sound Recording 1) None 1) None

2) None 2) None

3) None 3) None





GATS/SC/90Page 49

f) Other Audiovisual Services 1) None 1) None

2) None 2) None

3) None 3) None


3. CONSTRUCTION & 1) Unbound* 1) Unbound*RELATED ENGINEERINGSERVICES - (except Marine 2) None 2) NoneDredging)

3) None 3) None

4) Unbound, except as indicated in the horizontal 4) Nonesection. In addition, an in-state office must bemaintained by all contractors in Michigan.


A. COMMISSION AGENTS' 1) None 1) NoneSERVICES

2) None 2) None

3) None 3) None


GATS/SC/90Page 50




B. WHOLESALE TRADE 1) None 1) None(except wholesale trade ofalcoholic beverages, firearms 2) None 2) Noneand military equipment)

3) None 3) None


B. WHOLESALE TRADE of 1) Unbound 1) Nonealcoholic beverages

2) Unbound 2) None

3) Unbound 3) None


C. RETAILING (except retail 1) None 1) Nonesale of alcoholic beverages,firearms and military 2) None 2) Noneequipment)

3) None 3) None





GATS/SC/90Page 51

D. FRANCHISING 1) None 1) None

2) None 2) None

3) None 3) None


5. EDUCATIONAL SERVICES

D. Adult Education (except flyinginstruction) 1) None 1), 2), 3), 4) Scholarships and grants may be

2) None particular states and may, in some cases, only

3) The number of licences for cosmetology schools certain US jurisdictions.in Kentucky is limited to 48 total licences, with atotal of 8 licences allowed for operation of suchschools per congressional district

4) Unbound, except as indicated in the horizontalsection

limited to US citizens and/or residents of

be used at certain states institutions or within

E. Other Education Services 1) None 1), 2), 3), 4) Scholarships and grants may be

2) None particular states and may, in some cases, only

3) None certain US jurisdictions.


limited to US citizens and/or residents of

be used at certain states institutions or within

GATS/SC/90Page 52




In each of the following subsectors, US commitments are limited to the following activities: implementation and installation of new or existing systems19

for environmental cleanup, remediation, prevention and monitoring; implementation of environmental quality control and pollution reduction services; maintenance and repair of environment-related systems and facilities not already covered by the US commitments on maintenance and repair ofequipment; on-site environmental investigation, evaluation, monitoring; sample collection services; training on site or at the facility; consultingrelated to these areas.

Nothing in this offer related to transportation should be construed to supersede the existing US commitments on transportation or related MFN20

exemptions.

6. ENVIRONMENTALSERVICES19,20

A. Sewage Services (contracted 1) None 1) Noneby private industry)

2) None 2) None

3) None 3) None


B. Refuse Disposal Services 1) None 1) None(contracted by privateindustry) 2) None 2) None

3) None 3) None





GATS/SC/90Page 53

C. Sanitation and Similar 1) None 1) NoneServices

2) None 2) None

3) None 3) None


D. Other (Cleaning services of 1) None 1) Noneexhaust gases; Noiseabatement services; Nature 2) None 2) Noneand landscape protectionservices; Other environmental 3) None 3) Noneservices, n.e.c.)


GATS/SC/90Page 54




7. FINANCIAL SERVICES

A. INSURANCE: (Limited to Insurance): Commitments in this subsector are undertaken pursuant to the alternative approach to scheduling commitments set forth in theUnderstanding on Commitments in Financial Services.

Direct Insurance

a) Life, Accident, and Health 1) None 1) A one per cent federal excise tax is imposedInsurance Services (except on all life insurance premiums and a four perworkers compensation cent federal excise tax is imposed on allinsurance) non-life insurance premiums covering US

b) Non-Life Insurance Services incorporated under US law, except forrisks that are paid to companies not

premiums that are earned by such companiesthrough an office or dependent agent in theUnited States.

Some states and some municipalities imposepremium taxes on insurance policies coveringrisks located within the jurisdiction.

When more than 50 per cent of the value of amaritime vessel whose hull was built underfederally guaranteed mortgage funds isinsured by a non-US insurer, the insured mustdemonstrate that the risk was substantiallyfirst offered in the US market.

2) None 2) Unbound




GATS/SC/90Page 55

3) Government-owned or government-controlled 3) Noneinsurance companies, whether US or foreign, arenot authorized to conduct business in: Alabama,Alaska, Arkansas, Colorado, Connecticut,Delaware, Georgia, Hawaii, Idaho, Kansas,Kentucky, Maryland, Nevada, New York(non-life companies are authorized; life andhealth companies are not), North Carolina, NorthDakota, Oklahoma, Oregon, Pennsylvania, RhodeIsland, South Dakota, Tennessee, Washington,West Virginia, Wyoming.

Insurance companies owned or controlled bygovernments outside the United States are notauthorized to conduct business in: NorthCarolina, North Dakota and Tennessee.

Branches are not permitted to provide suretybonds for US federal government contracts.

The following states have no mechanism forlicensing initial entry of a non-US insurancecompany as a subsidiary, unless that company isalready licenced in some other US state:Minnesota, Mississippi, and Tennessee.

GATS/SC/90Page 56




The following states have no mechanism forlicensing initial entry of a non-US insurancecompany as a branch, unless that company isalready licenced in some other US state: Arkansas, Arizona, Georgia, Hawaii, Kansas,Minnesota, Nebraska, New Jersey, NorthCarolina, Oregon, Pennsylvania, Tennessee,Utah, Vermont, Wisconsin, Wyoming, WestVirginia.

US citizenship is required for members of theboard of directors of locally established andlicenced companies in the following states and inthe following shares or numbers: 100 per centrequired in Louisiana; three-quarters inWashington (for mutual life companies);two-thirds required in Oklahoma (for stock andmutual companies) and Pennsylvania; a majorityrequired in California (for insurers operating asauthorized insurers only in the state ofCalifornia), Florida (for stock and mutualinsurers), Georgia (for stock and mutualinsurers), Idaho (for stock and mutual insurers),Indiana, Kansas (for stock insurers), Kentucky,Mississippi, Ohio (for legal reserve life insurers),South Dakota (except if more than 1000 personsare entitled to vote for the board of directors anda majority of the voters reside.




GATS/SC/90Page 57

outside the state, or less than one per cent of theshares are owned by state residents), Wyoming(for an insurer operating as an authorized insureronly in Wyoming); seven in Tennessee (formutual life insurance companies; three in Illinois(for stock, mutual, or legal reserve insurers) andMissouri (life and accident).

US citizenship for incorporators of insurancecompanies is required in the following states andin the following per centages or numbers: 100per cent in Hawaii, Idaho (for stock or mutualinsurer), South Dakota and Washington;two-thirds in Arizona (for stock and mutualinsurers), Georgia (for stock and mutualinsurers); a majority in Alaska, Florida (for stockand mutual insurers), Kansas (all life insurancecompanies and mutual insurers other than life),Kentucky (for mutual or stock insurers); Montana(stock or mutual insurers), Wyoming (for reservestock and mutual insurers).


GATS/SC/90Page 58




c) Reinsurance & Retrocession 1) Insurance companies incorporated in Nevada 1) A one per cent federal excise tax is imposedmay purchase reinsurance only from an insurer on all premiums covering US risks that areadmitted to Nevada. Unbound for Maine for the paid to companies not incorporated under USprovision of reinsurance for workers' law, except for premiums that are earned bycompensation. such companies through an office or

dependent agent in the United States.

Some states and some municipalities imposepremium taxes on insurance policies coveringrisks located within the jurisdiction.

2) Insurance companies incorporated in Nevada 2) Unboundmay purchase reinsurance only from an insureradmitted to Nevada. Unbound for Maine for theprovision of reinsurance for workers'compensation.

3) Government-owned or government-controlled 3) Noneinsurance companies, whether US or foreign, arenot authorized to conduct business in: Alabama,Alaska, Arkansas, Colorado, Connecticut,Delaware, Georgia, Hawaii, Idaho, Kansas,Kentucky, Maryland, Nevada, New York(non-life companies are authorized; life andhealth companies are not), North Carolina, NorthDakota, Oklahoma, Oregon, Pennsylvania, RhodeIsland, South Dakota, Tennessee, Washington,West Virginia, Wyoming.




GATS/SC/90Page 59

The following states have no mechanism forlicensing initial entry of a non-US insurancecompany as a subsidiary, unless that company isalready licenced in some other US state:Minnesota, Mississippi, and Tennessee. After alicence is obtained in some other US state,licensing and entry into the states listed above ispermitted.

The following states have no mechanism forlicensing initial entry of a non-US insurancecompany as a branch, unless that company isalready licenced in some other US state: Arkansas, Arizona, Georgia, Kansas, Minnesota,Nebraska, New Jersey, North Carolina, Oregon,Pennsylvania, Tennessee, Utah, Vermont,Wisconsin, Wyoming, West Virginia. After alicence is obtained in some other US state,licensing and entry into the states listed above ispermitted.


GATS/SC/90Page 60




d) Services Auxiliary toInsurance:

i) Brokerage Services 1) None 1) None

2) None 2) Unbound

3) Generally, brokerage firms can offer services in 3) Nonemost states by obtaining licences as "brokers" andin other states by obtaining licences to operate as"agents". Brokerage licences are not issued in: Florida, Iowa, Kentucky, Michigan, Minnesota,Mississippi, Oregon, Tennessee, Texas, Virginia,West Virginia, Wisconsin.

4) Unbound, except as indicated in the horizontal 4) Brokerage licences are not issued tosection. In addition, generally, brokerage firms non-residents in: South Dakota, Wyoming.can offer services in most states by obtaininglicences as "brokers" and in other states by Brokerage licences are issued toobtaining licences to operate as "agents". non-residents for only certain lines ofBrokerage licences are not issued in: Florida, insurance in: Alabama (all except life,Iowa, Kentucky, Michigan, Minnesota, accident & health), Arkansas (property,Mississippi, Oregon, Tennessee, Texas, Virginia, casualty, surety & marine), LouisianaWest Virginia, Wisconsin. (property & casualty), New Mexico (property

& casualty).

Higher licence fees for non-residents may becharged in: Alaska, Arizona, Arkansas,California, Georgia, Hawaii, Indiana, Kansas,Louisiana, Maine, Maryland, Massachusetts,Montana, Nebraska, Nevada, NewHampshire, New Jersey, New Mexico,




GATS/SC/90Page 61

ii) Agency Services 1) None 1) None

2) None 2) Unbound

3) None 3) Agency licences are issued to non-residents

North Carolina, North Dakota, Ohio,Oklahoma, Pennsylvania, Rhode Island, SouthCarolina, Utah, Vermont.

for only certain lines of insurance in: Florida(general lines, life & health), Hawaii(property & operations), Kentucky (generallines, life & health), Louisiana (life & health),New Mexico (life & health), Ohio (all exceptlife & casualty), Rhode Island (all exceptgeneral lines).

Higher licence fees for non-residents may becharged in: Alaska, Arizona, Arkansas,California, Florida, Georgia, Hawaii, Indiana,Iowa, Kansas, Kentucky, Louisiana, Maine,Maryland, Massachusetts, Mississippi,Montana, Nebraska, Nevada, NewHampshire, New Jersey, New Mexico, NorthDakota, Oklahoma, Pennsylvania, RhodeIsland, South Carolina, South Dakota,Tennessee, Utah, Vermont, Wisconsin,Wyoming.

4) None

GATS/SC/90Page 62





iii) Consultancy, Actuarial, Risk 1) None 1) NoneAssessment, and ClaimSettlement Services 2) None 2) Unbound

3) None 3) None

4) Unbound, except as indicated in the horizontal 4) In-state residency is required for licensure in: section California (for adjusters; and for life and

disability insurance analysts), Georgia (forinspection when not accompanied by alicenced resident adjuster), Illinois (fornon-resident public adjusters who arelicenced in a state which does not permitequal treatment to Illinois residents),Mississippi (for independent adjusters), andNevada (for appraisers and adjusters).




Foreign banking organizations are generally subject to geographic limitations in the United States on a national treatment basis. Where geographic21

limits do not conform to national treatment, they have been reserved as market access restrictions. For purposes of illustration, under this approach thefollowing situations do not accord national treatment and are therefore scheduled as limitations: 1) where a foreign bank from a particular home State isaccorded less favourable treatment than that accorded to a domestic bank from that State with respect to expansion by branching, and 2) where a foreignbank is treated less favourably than a domestic bank holding company from the foreign bank's home State with respect to expansion through acquisitionor establishment of a bank subsidiary.

GATS/SC/90Page 63

B. FINANCIAL SERVICES (LIMITED TO BANKING AND OTHER FINANCIAL SERVICES AND EXCLUDING INSURANCE): Commitments in these subsectors areundertaken in accordance with the Understanding on Commitments in Financial Services (the Understanding), which is incorporated by reference into this schedule, and underArticle XVII of the General Agreement on Trade in Services (GATS). These subsectors are unbound with respect to Article XVI of the GATS.

In addition, 1) this subsector shall be unbound with respect to market access through modes 1 and 3 for the expansion of existing operations, the establishment of a newcommercial presence (in mode 3 only) or the conduct of new activities, and 2) service suppliers choosing to supply a service through a juridical person constituted under the lawsof the United States are subject to non-discriminatory limitations on juridical form.

National treatment commitments are subject to the following limitation:National treatment will be provided according to the foreign bank's "home State" in the United States, as that term is defined under the International Banking Act.21

All Subsectors 1) None 1) None

2) None 2) Unbound

GATS/SC/90Page 64




3) All directors of a national bank must be citizens 3) Foreign banks are required to register underunless a national bank is an affiliate or subsidiary the Investment Advisers Act of 1940 toof a foreign bank, in which case only a majority engage in securities advisory and investmentof the board need be citizens. management services in the United States,

Foreign ownership of Edge corporations is registration. The registration requirementlimited to foreign banks and US subsidiaries of involves record maintenance, inspections,foreign banks, while domestic non-bank firms submission of reports and payment of a fee.may own such corporations.

Federal and state law do not permit a credit Federal Reserve System, and thus may notunion, savings bank, home loan or thrift business vote for directors of a Federal Reserve Bank. in the United States to be provided through Foreign-owned bank subsidiaries are notbranches of corporations organized under a subject to this measure.foreign country's law.

In order to accept or maintain domestic retail foreign banks are required to be charged fordeposits of less than $100,000, a foreign bank the cost of Federal Reserve examinations.must establish an insured banking subsidiary. This prohibition does not apply to a foreign bankbranch that was engaged in insureddeposit-taking activities on December 19, 1991.

while domestic banks are exempt from

Foreign banks cannot be members of the

Branch, agency and representative offices of




GATS/SC/90Page 65

Initial entry or expansion by a foreign person (butnot a domestic person) through acquisition orestablishment of a commercial bank subsidiary isprohibited or otherwise limited in the followingstates: Alabama; Arkansas; California (limit onforeign non-bank ownership of internationalbanking corporation); Colorado; Indiana; Kansas;Louisiana; Minnesota; Mississippi; Montana;Nebraska; New Jersey; North Carolina; NorthDakota; Oregon; Tennessee; Vermont; Virginia;Washington; West Virginia; Wisconsin. Thelimitations in this paragraph do not apply toestablishment or acquisition of a national banksubsidiary by a foreign person that does notalready have a banking presence in the UnitedStates.

The boards of directors of depository institutionsorganized under the following states' laws aresubject to citizenship requirements of up to thespecified proportions: Alabama (all); Colorado(majority); District of Columbia (all); Florida(majority); Georgia (all); Indiana (3/4); Iowa(all); Kentucky (all); Louisiana (3/5);

GATS/SC/90Page 66




Massachusetts (all); Mississippi (all); Missouri(all); New Hampshire (majority); New Mexico(3/4); New York (all); North Carolina (3/4);North Dakota (majority); Ohio (majority);Oklahoma (3/4); Oregon (majority);Pennsylvania (all); South Dakota (3/4);Tennessee (3/4); Virginia (majority). Citizenshipis also required for the incorporators ororganizers of depository institutions organizedunder state law.

Establishment of a direct branch or agency by aforeign bank is limited as specified in thefollowing states:

! State branch licence subject to specifiedlimitations -- California (no trust/fiduciarypowers); Illinois (limited trust/fiduciary powersand restricted to Chicago business district);Massachusetts; Oregon; Pennsylvania,Washington (limited trust/fiduciary powers and toone office per bank). These limitations do notapply to Federal branches.

! State branch licence not available, but stateagency licence is in Idaho.




GATS/SC/90Page 67

! No state branch or agency licence available --Arizona; Arkansas; Colorado; Indiana; Iowa;Maine; Maryland; Minnesota; Montana;Nebraska; Nevada; New Hampshire; NewMexico; North Dakota; Ohio; Oklahoma; RhodeIsland; South Carolina; South Dakota; Tennessee;Utah; Vermont. These limitations do not apply toFederal offices.

! Branch licence not available but agency licence The following states require direct branchesis, subject to any specified limitations -- or agencies of foreign banks to register underDelaware (state licence limited to one office per securities broker-dealer or investment adviserbank and cannot operate in a manner likely to measures, while bank subsidiaries are exemptresult in a substantial detriment to existing bank); from such registration: Alabama; California;Florida (available only to a foreign bank with at District of Columbia; Idaho; Illinois;least $25 million in capital or that is one of five Louisiana; Missouri; Nebraska; Newlargest banks in its home country); Mississippi; Hampshire; Texas; Vermont. TheseMissouri; Georgia (available only to foreign bank limitations do not apply to Federally licencedwith at least $50 million in capital); Hawaii branches or agencies.(foreign bank must have $10 billion in assets andbe at least 10 years old); Louisiana (limited to Texas allows pre-judgement seizure remediesparishes with more than 350,000 residents); and civil discovery requests to be appliedMichigan (Federal branch licences available); against foreign bank agencies, whileTexas (limited to counties with at least 1.5 subsidiaries are exempt. Texas also prohibitsmillion residents). agencies from acting as fiduciaries in Texas.

! No branch or state agency licence available --Wyoming.

! No branch or agency licence available --Alabama; Connecticut; Kansas; New Jersey;North Dakota; Virginia.

GATS/SC/90Page 68




Representative offices of foreign banks are notpermitted in the following states: Arizona;Arkansas; Colorado; Connecticut; Kansas;Kentucky; Mississippi; Montana; Nevada; NewHampshire; New Jersey; North Dakota;Oklahoma; Oregon; Rhode Island; SouthCarolina; South Dakota; Tennessee; Vermont;Virginia; West Virginia; Wisconsin; Wyoming. Other states require incorporation ofrepresentative offices.

4) Unbound, except as indicated in the horizontal 4) Nonesection.

Trading of Securities and 1), 2), 3) Federal law prohibits the offer or sale of 1), 3)None (except as noted in the headnoteDerivative Products and Services futures contracts on onions, options contracts on above)Related Thereto; Participation in onions, and options on futures contracts on onions in Unbound with respect to mode 2Securities Issues the United States, and services related thereto

Unbound for the authority to act as a sole trusteeof an indenture for a bond offering in the UnitedStates

Unbound with respect to the use of simplifiedregistration and periodic reporting forms forsecurities issued by small business corporations


4) None




GATS/SC/90Page 69

Participation in Issues of 1), 2) None 1), 2) NoneGovernment Debt Securities

3) Unbound for the granting or continuation of 3) None (except as noted in the headnote above)Federal Reserve designation as a primary dealerin US government debt


8. HEALTH RELATED &SOCIAL SERVICES

A. HOSPITAL AND OTHERHEALTH CAREFACILITIES - Directownership and managementand operation by contract ofsuch facilities on a "for fee"basis

1) Unbound* 1) Unbound*

2) None 2) Federal or state government reimbursement of

3) Establishment of hospitals or other health care 3) Nonefacilities, procurement of specific types ofmedical equipment, or provision of specific typesof medical procedures may be subject toneeds-based quantitative limits.

medical expenses is limited to licensed,certified facilities in the United States or in aspecific US state

In New York, corporate ownership of anoperating corporation for, and limitedpartnerships as operators of, hospitals, nursinghomes (including long term health care centres)or diagnostic and treatment centres is prohibited. If the operator has any members which are notnatural persons or is a corporation whose sharesof stock are owned by another corporation, aNew York corporation must be established as theoperator of a licenced home care services agencyand a certified home health agency.

GATS/SC/90Page 70




In Michigan and New York Health MaintenanceOrganizations must be incorporated in thosestates.

4) Unbound except as indicated in the horizontal 4) Nonesection

9. TOURISM AND TRAVELRELATED SERVICES

A. HOTELS AND 1) None 1) NoneRESTAURANTS(INCLUDING CATERING) 2) None 2) None

3) None 3) None


B. TRAVEL AGENCIES AND 1) None 1) NoneTOUR OPERATORS

2) None 2) None

3) Official tourism offices with diplomatic or official 3) Nonestatus are not permitted to operate on acommercial basis in the United States or to act asagents or principals in commercial transactions





GATS/SC/90Page 71

C. TOUR GUIDE SERVICES 1) None 1) None

2) None 2) None

3) The number of concessions available for 3) Nonecommercial operations in federal, state and localfacilities is limited


D. OTHER 1) None 1) None

2) None 2) None

3) None 3) None


10. RECREATIONAL,CULTURAL, & SPORTINGSERVICES

A. ENTERTAINMENT 1) None 1) NoneSERVICES (INCLUDINGTHEATER, LIVE BANDS 2) None 2) NoneAND CIRCUS SERVICES)

3) None 3) None


GATS/SC/90Page 72




B. NEWS AGENCY SERVICES 1) None 1) None

2) None 2) None

3) None 3) None


C. LIBRARIES, ARCHIVES, 1) None 1) NoneMUSEUMS AND OTHERCULTURAL SERVICES 2) None 2) None

3) None 3) None


D. OTHER RECREATIONAL 1) None 1) NoneSERVICES (except sporting)

2) None 2) None

3) The number of concessions available for 3) Nonecommercial operations in federal, state and localfacilities is limited





GATS/SC/90Page 73

11. TRANSPORT SERVICES

C. AIR TRANSPORT 1) Unbound* 1) Unbound*SERVICES: Aircraft repairand maintenance. (Aircraft 2) None 2) Nonerepair and maintenanceactivities, when undertaken on 3) None 3) Nonean aircraft or a part thereof,while it is withdrawn from 4) Unbound, except as indicated in the horizontal 4) Noneservice. Does not include line sectionmaintenance or other repair ormaintenance activitiesundertaken by an air carrier(includes its agents orcontractors) on aircraft itowns, leases, or operates.)

E. RAIL TRANSPORT

a) Passenger Transportation, 1) None 1) Noneexcluding high speed rail

b) Freight Transportation2) None 2) None

3) Foreign railroads must incorporate in Vermont or 3) Nonein an adjacent state in order to own directly orindirectly the stock of a railroad companyincorporated in Vermont


GATS/SC/90Page 74




d) Maintenance and Repair of 1) None 1) NoneRail Transport Equipment

2) None 2) None

3) None 3) None


F. ROAD TRANSPORT

a) Passenger transport: 1) Unbound until January 1, 1997. No limitations 1) Unbound until January 1, 1997. NoInterurban regular transport after that date. limitations after that date.

2) None 2) None

3) Unbound until January 1, 2001. No limitations 3) Unbound until January 1, 2001. Noafter that date. limitations after that date.





GATS/SC/90Page 75

b) Freight transport 1) Unbound until December 17, 1995. After 1) None(Commitment limited to December 17, 1995, unbound except to or fromtransportation of cargo that California, Arizona, New Mexico and Texashas either an origin or a through different ports of entry. No limitationsdestination outside the United after January 1, 2000.States)

2) None 2) None

3) Unbound until December 17, 1995. After 3) NoneDecember 17, 1995, no limitations


d) Maintenance and Repair of 1) Unbound* 1) Unbound*Road Transport Equipment

2) None 2) None

3) None 3) None


GATS/SC/90Page 76




H. SERVICES AUXILIARY TO ALL MODES OF TRANSPORT

d) Other Supporting and 1) Unbound* 1) Unbound*Auxiliary Transport Services:Customs House Brokers 2) None 2) None

3) Services must be supplied by a corporation, 3) Noneassociation or partnership. One officer of acorporation or association or one of the membersof a partnership must hold a valid customsbroker's licence in order for the entity to engagein such business. A customs broker's licence mayonly be obtained by a US citizen.


GENERAL AGREEMENT GATS/EL/90April 1994

ON TRADE IN SERVICES

UNITED STATES OF AMERICA

Final List of Article II (MFN) Exemptions


____________________

GATS/EL/90Page 78

UNITED STATES OF AMERICA - FINAL LIST OF ARTICLE II (MFN) EXEMPTIONS

Sector or subsector Description of measure Countries to which the Intended duration Conditions creating the needindicating its inconsistency measure applies for the exemption

with Article II

Movement of Government issuance of treaty Countries with whom the United Indefinite To facilitate trade under FCNspersons trader or treaty investor States has a Friendship, and BITs

non-immigrant visas that extend a Commerce and Navigationspecial visa category to nationals Treaty (FCN), a Bilateralof treaty partners in executive and Investment Treaty (BIT), orother personnel categories certain countries as described inengaged Section 204 of the Immigration

Act of 1990

! solely to carry onsubstantial trade, includingtrade in services or trade intechnology, principallybetween the US and theforeign state of which anatural person is a national,or

! solely to develop and directthe operations of anenterprise in which anatural person has investedor is actively in the processof investing a substantialamount of capital

UNITED STATES OF AMERICA (continued)GATS/EL/90Page 79


with Article II

Restrictions on performance of Countries that prohibit longshore Indefinite Reciprocal restrictions onlongshore work when making US work by crew members aboard countries that prohibit longshoreport calls by crews of foreign US vessels work by crew members aboardvessels owned and flagged in US vesselscountries that similarly restrictUS crews on US-flag vesselsfrom longshore work

All Sectors: Differential treatment under All IndefiniteTaxation Measures direct tax measures at the federal

level

Such measures are:

! measures under the US Volume of movements across USInternal Revenue Code borders between Canada and the(IRC) permitting the United States and betweenresidents of countries Mexico and the United States;contiguous to the United efficient administration of taxStates to receive more system.

UNITED STATES OF AMERICA (continued)


with Article II

GATS/EL/90Page 80

favorable treatment andpermitting certain UStaxpayers to receive morefavorable treatment as totheir contiguous countryoperations, and providingany other benefits withrespect to contiguouscountries;

! benefits available under the Coordination of the United StatesUS IRC with respect to US and US possession income taxes;possessions; fiscal arrangements for US

possessions; and facilitation ofeconomic development in USpossessions

! benefits available under the Facilitation of economicUS IRC with respect to development in certainCaribbean Basin Initiative developing countries (CBI) beneficiarycountries;



with Article II

! regarding activities covered Prevention of double taxationby the scope of the General and proper tax administrationAgreement on Trade inServices, reciprocalreduction of taxation onincome derived from theinternational operation ofaircraft or of taxation ofcertain earnings derivedfrom the use of railroadrolling stock;



with Article II

GATS/EL/90Page 82

! tax exemption for earnings Facilitation of satellitederived from the ownership communications and proper taxor operation of a administrationcommunications satellitesystem by a foreign entitydesignated by a foreigngovernment to participatein such ownership if theUnited States, through itsdesignated entity,participates in such systempursuant to theCommunications SatelliteAct of 1962;



with Article II

! denial of statutory reduction Foreign policy considerationsof double taxation ordeferral of US tax onincome earned throughcontrolled foreigncorporations, because thecountry participates in orcooperates with aninternational boycott, or forsimilar foreign policyreasons;

! measures permitting less To foster efficient internationalfavorable taxation for taxation policiescitizens, corporations orproducts of a foreigncountry based ondiscriminatory orextraterritorial taxes, moreburdensome taxation, orother discriminatoryconduct;



with Article II

GATS/EL/90Page 84

! allow the deduction for To encourage the allowance ofexpenses of an advertising expensesadvertisement carried by a internationallyforeign broadcastundertaking and directedprimarily to a US marketonly where the broadcastundertaking is located in aforeign country that allowsa similar deduction for anadvertisement placed with aUS broadcast undertaking;



with Article II

! in connection with the To take into account problemsexclusion of, or deduction created by adverse conditionsrelating to, certain foreign within particular countriesearned income from thegross income ofindividuals, the benefit of awaiver of the requiredperiod of stay in a foreigncountry as determined bythe Secretary of theTreasury. The Secretary isempowered to determinethat individuals wererequired to leave a foreigncountry because of war,civil unrest or similaradverse conditions in suchforeign country whichprecluded the normalconduct of business by suchindividuals; and



with Article II

GATS/EL/90Page 86

Sub-federal tax measures All Indefinite To implement fiscal policies ofaffording differential treatment to sub-central governmentsservice suppliers or to serviceswhen the differential treatment isbased on one of the followingcriteria:

! are performed, consumed,or located within differentsub-federal entities;

! differ based on the size orincome of the servicesupplier or on the scale ormethods (includingenvironmental and healthand safety measures) ofperformance;

! differ in the extent ofownership or participationby minority or otherdisadvantaged groups;



with Article II

! differ as to the eligibility fornon-profit status forpension, profit-sharing orother employee-benefitregimes;

! differ based on federalimmunity to taxation, forexample, exemption fromsub-federal tax on USgovernment obligations orcontracts; differ based onfederal immunity totaxation, for example,exemption from sub-federaltax on US governmentobligations or contracts;

! are performed or located incountries contiguous to theUnited States; or



with Article II

GATS/EL/90Page 88

! are performed or located injurisdictions with whichsub-federal entities havearrangements for taxcooperation and assistance

Sub-federal measures All Indefinite To implement fiscal policies ofsubstantively incorporating sub-central governmentsprovisions of federal law subjectto an MFN exemption under thisagreement

All Sectors: Non-US citizens in Wyoming All Indefinite Lack of reciprocityLand Use may not acquire or inherit land

unless the country of which theyare a citizen extends a reciprocalright to US citizens

All Sectors Canadian small businesses, but Canada Indefinite Maintenance of establishednot small businesses of other preferencecountries, may use simplifiedregistration and periodicreporting forms with respect totheir securities



with Article II

Banking and Other Differential treatment of To be determined before the Pursuant to the Ministerial Need to protect existing activitiesFinancial Services countries due to application of expiry of six months from the Decision on Financial Services, of US service suppliers abroad(excluding reciprocity measures or through entry inot force of the WTO the measures described in this and to ensure substantially fullInsurance) international agreements Agreement exemption will be suspended market access and national

guaranteeing market access or from the entry into force of the treatment in internationalnational treatment WTO Agreement until the end of financial markets

a period six months after entryinto force. No other measuresare subject to this suspension

A broker-dealer registered under Canada Indefinite Maintenance of establishedUS law that has its principal preferenceplace of business in Canada maymaintain its required reserves in abank in Canada subject to thesupervision of Canada

Permission to establish All Indefinite Need to protect existing activitiesstate-licensed branches or of US service suppliers abroadagencies, or to own commercial and to ensure substantiallybank subsidiaries, is based on a market access and nationalreciprocity test in the following treatment in internationalstates: California, Connecticut, financial marketsFlorida, Georgia, Hawaii, Illinois,Kentucky, Louisiana,Massachusetts, Michigan,Oregon, Pennsylvania, Texas,Washington.



with Article II

GATS/EL/90Page 90

Authority to act as a sole trustee All Indefinite Need to ensure US financialof an indenture for a bond service suppliers are permitted tooffering in the United States is provide trustee services insubject to a reciprocity test foreign markets

Designation as a primary dealer All Indefinite Need to ensure US financialin US government debt securities service suppliers are affordedis conditioned on reciprocity national treatment in foreign

government debt markets

Transport Services: Measures which pertain to selling All partners with which the Indefinite The common policy and practiceAir Transport and marketing of air transport United States has active aviation of exchanging rights, settlingServices services (including sales, other relations (approximately disputes, and applying laws and

than by airlines, of passenger 100 countries) covered by other measures pertaining to thecharters and forwarding of air bilateral or other air services operation of civil aircraft and airfreight other than by airlines) and agreements and comity and transportation differentially, withto operation and regulation of reciprocity regimes. Also respect to the activities referredcomputer reservation system concerned are the co-signatories to above, on the basis of mutual(CRS) services, as described in of the Chicago Convention and agreement and balancedthe Annex on Air Transport various other international exchanges of rights andServices. (For transparency aviation agreements, responsibilities.purposes, these measures undertakings, and understandingsinclude, but are not limited to, to which the United States is abilateral and multilateral civil party.aviation agreements,understandings and



with Article II

undertakings and informal comityand reciprocity aviation regimesto which the United States is aparty; US laws and regulations,including the International AirTransportation Fair CompetitivePractices Act of 1974, asamended, the Federal AviationAct of 1958, as amended, theInternational Air TransportationCompetition Act of 1979, theInternational Aviation FacilitiesAct, as amended, and Title 14,Parts 1 - 399, of the Code ofFederal Regulations; andmeasures of US states andterritories and the District ofColumbia, and of their agenciesand subdivisions).



with Article II

GATS/EL/90Page 92

Transport Services: The US government has Mexico, Canada Indefinite Need to have authority to imposeRoad Transport discretion to limit the issuance of a moratorium on the issuance of

trucking licenses to persons from new licenses for domesticcontiguous countries on the basis operations within andof reciprocity. The Bus cross-border operations into theRegulatory Reform Act of 1982 United States on the basis ofpermits the President to remove reciprocityor modify in whole or in part themoratorium on a finding that suchremoval or modification is in thenational interest. Domestic andcross-border trucking operationsare permitted within designatedInterstate CommerceCommission commercial zones. The moratorium was lifted forCanada in October 1982.

Transport Services: Pursuant to the Mineral Lands All Indefinite Lack of reciprocityPipeline Transport Leasing Act of 1920, aliens and

foreign corporations may notacquire rights-of-way for oil orgas pipelines, or pipelinescarrying products refined from oiland gas, across on-shore federallands or acquire leases orinterests in certain minerals onon-shore federal lands, such ascoal or oil.



with Article II

Non-US citizens may own a100 per cent interest in adomestic corporation thatacquires a right-of-way for oil orgas pipelines across on-shorefederal lands, or that acquires alease to develop mineralresources on on-shore federallands, unless the foreigninvestors' home country deniessimilar or like privileges for themineral or access in question toUS citizens or corporations, ascompared with the privileges itaccords to its own citizens orcorporations or to the citizens orcorporations of other countries. Nationalization is not consideredto be denial of similar or likeprivileges. Foreign citizens, orcorporations controlled by them,are restricted from obtainingaccess to federal leases on NavalPetroleum Reserves if the laws,customs or regulations of theircountry deny the privilege ofleasing public lands to UScitizens or corporations.



with Article II

GATS/EL/90Page 94

Transport Services: Quantitative restrictions and All Indefinite Need to prevent disruption ofSpace price disciplines in certain competition in the internationalTransportation bilateral agreements on the space launch market

launch of satellites in theinternational commercial spacelaunch market

Appendix A

Supplement 2:

U.S. Schedule of Specific Commitments

Finalized by the WTO on February 15, 1997

WORLD TRADE GATS/SC/90/Suppl.211 April 1997

ORGANIZATION(97-1457)

Trade in Services



Supplement 2


_______________

This text supplements the entries relating to the Telecommunications section contained on pages 45 to 46 of documentGATS/SC/90.

GATS/EL/90/Suppl.2Page A-1

UNITED STATES - SCHEDULE OF SPECIFIC COMMITMENTS


Sector or Sub-sector Limitations on Market Access Limitations on National Treatment AdditionalCommitments

2.C. TELECOMMUNICA-TIONS SERVICES :*

2.C.a. Voice services (1) None (1) None The United States undertakes the2.C.b. Packet-switched data (2) None (2) None obligations contained

transmission services in the reference paper

2.C.c. Circuit-switched datatransmission services - Comsat has exclusive rights to

2.C.d. Telex services

2.C.e. Telegraph services radio license:

2.C.f. Facsimile services Indirect: None

2.C.g. Private leased circuit Direct: May not be granted to or heldservices by

(3) None, other than (3) None attached hereto.

links with Intelsat and Inmarsat.

- Ownership of a common carrier

(a) foreign government or therepresentative thereof

(b) non-U.S. citizen or therepresentative of any non-U.S.citizen

UNITED STATES - SCHEDULE OF SPECIFIC COMMITMENTS GATS/EL/90/Suppl.2 Page A-2



2.C.o. Other (c) any corporation not organized

Mobile Services States or

Analogue/Digital (d) U.S. corporation of which morecellular than 20% of the capital stock isservices owned or voted by a foreign

PCS (Personal non-U.S. citizens or theirCommunications representatives or a corporationservices) not organized under the laws of

Paging services horizontal commitments.

Mobile data services horizontal commitments

Excluding one-way*

satellite transmissions ofDTH and DBS televisionservices and of digitalaudio services

under the laws of the United

government or its representative,

the United States. (4) Unbound except as indicated by

(4) Unbound except as indicated by

GATS/SC/90/Suppl.2 Page A-3

Rural local exchange carriers may be exempted by a state regulatory authority for a limited period of time22

from the obligations of section 2.2. with regard to interconnection with competing local exchange carriers.

ATTACHMENT TO THE UNITED STATES SCHEDULE

REFERENCE PAPER

Scope

The following are definitions and principles on the regulatory framework for the basic telecommunications services.

Definitions

Users mean service consumers and service suppliers.

Essential facilities mean facilities of a public telecommunications transport network or service that

(a) are exclusively or predominantly provided by a single or limited number of suppliers; and

(b) cannot feasibly be economically or technically substituted in order to provide a service.

A major supplier is a supplier which has the ability to materially affect the terms of participation (having regard to priceand supply) in the relevant market for basic telecommunications services as a result of:

(a) control over essential facilities; or

(b) use of its position in the market.

1. Competitive safeguards

1.1 Prevention of anti-competitive practices in telecommunications

Appropriate measures shall be maintained for the purpose of preventing suppliers who, alone or together, are amajor supplier from engaging in or continuing anti-competitive practices.

1.2 Safeguards

The anti-competitive practices referred to above shall include in particular:

(a) engaging in anti-competitive cross-subsidization;

(b) using information obtained from competitors with anti-competitive results; and

(c) not making available to other services suppliers on a timely basis technical information about essentialfacilities and commercially relevant information which are necessary for them to provide services.

2. Interconnection

2.1 This section applies to linking with suppliers providing public telecommunications transport networks or servicesin order to allow the users of one supplier to communicate with users of another supplier and to access services providedby another supplier, where specific commitments are undertaken.

2.2 Interconnection to be ensured22

GATS/SC/90/Suppl.2Page A-4

Rural telephone companies do not have to provide interconnection to competing local exchange carriers in themanner specified in section 2.2. until ordered to do so by a state regulatory authority.

Interconnection with a major supplier will be ensured at any technically feasible point in the network. Suchinterconnection is provided.

(a) under non-discriminatory terms, conditions (including technical standards and specifications) and ratesand of a quality no less favourable than that provided for its own like services or for like services of non-affiliated service suppliers or for its subsidiaries or other affiliates;

(b) in a timely fashion, on terms, conditions (including technical standards and specifications) and cost-oriented rates that are transparent, reasonable, having regard to economic feasibility, and sufficientlyunbundled so that the supplier need not pay for network components or facilities that it does not requirefor the service to be provided; and

(c) upon request, at points in addition to the network termination points offered to the majority of users,subject to charges that reflect the cost of construction of necessary additional facilities.

2.3 Public availability of the procedures for interconnection negotiations

The procedures applicable for interconnection to a major supplier will be made publicly available.

2.4 Transparency of interconnection arrangements

It is ensured that a major supplier will make publicly available either its interconnection agreements or a referenceinterconnection offer.

2.5 Interconnection: dispute settlement

A service supplier requesting interconnection with a major supplier will have recourse, either:

(a) at any time or

(b) after a reasonable period of time which has been made publicly known

to an independent domestic body, which may be a regulatory body as referred to in paragraph 5 below, to resolve disputesregarding appropriate terms, conditions and rates for interconnection within a reasonable period of time, to the extent thatthese have not been established previously.

3. Universal service

Any Member has the right to define the kind of universal service obligation it wishes to maintain. Suchobligations will not be regarded as anti-competitive per se, provided they are administered in a transparent, non-discriminatory and competitively neutral manner and are not more burdensome than necessary for the kind of universalservice defined by the Member.

4. Public availability of licensing criteria

Where a licence is required, the following will be made publicly available:

(a) all the licensing criteria and the period of time normally required to reach a decision concerning anapplication for a licence and

(b) the terms and conditions of individual licences.

The reasons for the denial of a licence will be made known to the applicant upon request.

GATS/SC/90/Suppl.2 Page A-3

5. Independent regulators

The regulatory body is separate from, and not accountable to, any supplier of basic telecommunications services.The decisions of and the procedures used by regulators shall be impartial with respect to all market participants.

6. Allocation and use of scarce resources

Any procedures for the allocation and use of scarce resources, including frequencies, numbers and rights of way,will be carried out in an objective, timely, transparent and non-discriminatory manner. The current state of allocatedfrequency bands will be made publicly available, but detailed identification of frequencies allocated for specific governmentuses is not required.

Appendix B

List of Article II (MFN) Exemptions

Finalized by the WTO on February 15,1997

WORLD TRADE GATS/EL/90/Suppl.211 April 1997


Trade in Services



Supplement 2


____________

This text is inserted in document GATS/EL/90.

GATS/EL/90/Suppl.2 Page B-1

THE UNITED STATES - LIST OF ARTICLE II (MFN) EXEMPTIONS


with Article II

Telecommunication Differential treatment of All Indefinite Need to ensure substantially fullservices: One-way countries due to application of market access and nationalsatellite transmission of reciprocity measures or through treatment in certain markets.DTH and DBS television international agreementsservices and of digital guaranteeing market access oraudio services national treatment

Appendix C

Supplement 3:

U.S. Schedule of Specific Commitments

Finalized by the WTO on December 12, 1997

WORLD TRADE GATS/SC/90/Suppl.3

26 February 1998


Trade in Services



Supplement 3


____________________

This text replaces the Financial Services section contained in document GATS/SC/90/Suppl.1.

GATS/SC/90/Suppl.3 Page C-1

THE UNITED STATES OF AMERICA - SCHEDULE OF SPECIFIC COMMITMENTS



7. FINANCIAL SERVICESA. INSURANCE:

1. Commitments in this subsector are undertaken in accordance with the Understanding on Commitments in Financial Services (the “Understanding”), subject tothe limitations and conditions set forth in these headnotes and the schedule below.

2. The market access commitments in this subsector in respect of mode (1), as described in paragraph 2(a) of Article I of the Agreement, are limited to theservices indicated in paragraphs B.3(a) and B.3(b) of the market access section of the Understanding. The market access commitments in this subsector inrespect of mode (2), as described in paragraph 2(b) of Article I of the Agreement, are limited to the services indicated in paragraphs B.4(a) and B.4(b) of themarket access section of the Understanding. It is understood that paragraph B.4 of the Understanding does not require that non-resident financial servicesuppliers be permitted to solicit business, and no commitment to such solicitation is undertaken.

3. National treatment commitments in this subsector are subject to the following limitation: national treatment with respect to services and service suppliers willbe provided according to a non-U.S. service supplier’s state of domicile, where applicable, in the United States. State of domicile is defined by individualstates, and is generally the state in which an insurer either is incorporated, is organized or maintains its principal office in the United States.

4. Commitments in this sector do not cover measures set out in the entry applicable to “Insurance” in the United States list of exemptions from Article II.

THE UNITED STATES OF AMERICA--SCHEDULE OF SPECIFIC COMMITMENTS (continued) GATS/SC/90/Suppl.3 Page C-2



Direct Insurance 1) Government-owned or government- 1) A one per cent federal excise tax is The United States

a) Life, Accident, and or foreign, are not authorized to conduct premiums and a four per cent federal contained in AdditionalHealth Insurance business in: Alabama, Alaska, Arkansas, excise tax is imposed on all non-life Commitments Paper IServices (except workers California, Colorado, Connecticut, Delaware, insurance premiums covering US attached hereto.compensation insurance) Georgia, Hawaii, Idaho, Kansas, Kentucky, risks that are paid to companies not

b) Non-Life Insurance Jersey (only with respect to surplus lines), for premiums that are earned by suchServices New York (non-life companies are companies through an office or

controlled insurance companies, whether US imposed on all life insurance undertakes the obligations

Maine, Maryland, Montana, Nevada, New incorporated under US law, except

authorized; life and health companies are dependent agent in the United States.not), North Carolina, North Dakota,Oklahoma, Oregon, Pennsylvania, Rhode When more than 50 per cent of theIsland, South Dakota, Tennessee, value of a maritime vessel whose hullWashington, West Virginia, Wyoming. was built under federally guaranteed

mortgage funds is insured by anon-US insurer, the insured mustdemonstrate that the risk wassubstantially first offered in the USmarket.

2) None 2) None

3) Government-owned or governmentcontrolled 3) Noneinsurance companies, whether US or foreign,are not authorized to conduct business in: Alabama, Alaska, Arkansas, California,Colorado, Connecticut, Delaware, Georgia,Hawaii, Idaho, Kansas, Kentucky, Maine,Maryland, Montana, Nevada, New Jersey(only with respect to surplus lines), NewYork (non-life companies are authorized; lifeand health companies are not authorized),North Carolina, North Dakota, Oklahoma,Oregon, Pennsylvania, Rhode Island, SouthDakota, Tennessee, Washington, WestVirginia, Wyoming.

THE UNITED STATES OF AMERICA--SCHEDULE OF SPECIFIC COMMITMENTS (continued)




Branches are not permitted to provide suretybonds for US federal government contracts.

The following states have no mechanism forlicensing initial entry of a non-US insurancecompany as a subsidiary, unless that companyis already licensed in some other US state:Minnesota, Mississippi, and Tennessee.

The following states have no mechanism forlicensing initial entry of a non-US insurancecompany as a branch, unless that company isalready licensed in some other US state: Arkansas, Arizona, Connecticut, Georgia,Hawaii, Kansas, Maryland, Minnesota,Nebraska, New Jersey, North Carolina,Pennsylvania, Tennessee, Utah, Vermont,Wyoming, West Virginia.




US citizenship is required for members of theboard of directors of locally established andlicensed companies in the following statesand in the following shares or numbers: 100per cent required in Louisiana; three-quartersin Washington (mutual life companies withthe majority of the board being resident in thestate); two-thirds required in Oklahoma (forstock and mutual companies) andPennsylvania; a majority required inCalifornia (for mutual insurers operating asauthorized insurers only in the state ofCalifornia), Florida (for stock and mutualinsurers), Georgia (for stock and mutualinsurers with one fourth resident in the state),Idaho (for stock and mutual insurers),Indiana, Kentucky, Mississippi, Ohio (forlegal reserve life insurers), Oregon, NewYork, South Dakota (except if more than1000 persons are entitled to vote for theboard of directors and a majority of the votersreside outside the state, or less than one percent of the shares are owned by stateresidents), Wyoming (for an insurer operatingas an authorized insurer only in Wyoming);seven in Tennessee (for mutual life insurancecompanies; three resident in Illinois (forstock, mutual, or legal reserve insurers) andMissouri (life and accident).





US citizenship for incorporators of insurancecompanies is required in the following statesand in the following percentages or numbers: 100 per cent in Hawaii, Idaho (for stock ormutual insurer), Indiana, South Dakota andWashington; two-thirds in Arizona (for stockand mutual insurers), two-thirds resident inGeorgia (for stock and mutual insurers); amajority in Alaska, Florida (for stock andmutual insurers), Arkansas (majority formutuals or stock), Kansas (all life insurancecompanies and mutual insurers other thanlife), Kentucky (for mutual or stock insurers);Maine (life, health, and accident and mutualaid assoc with state residency for mutuals),Missouri (minimum 13 with overall majorityresident in the state), Montana (stock ormutual insurers), Texas (life, health, accidentand mutual aid assoc with state residency formutuals), Wyoming (for reserve stock andmutual insurers).




State residency is required in the followingstates for the organizing members of thefollowing types of mutual insurancecompanies: Arkansas (mutuals and farmmutual insurers), California (county mutualfire insurer); Idaho (all mutuals); Kansas (allmutuals); North Dakota (all mutuals),Minnesota (township mutuals, farmersmutual fire insurance companies);Mississippi (all mutuals); Montana (farmmutual insurer); Vermont (fire cooperatives);Wyoming (farm mutual insurer).

Seven or more US citizens, a majority ofwhom are residents of the state, may organizea fraternal benefit society in the followingstates: Alaska, Arizona (requires 10 or moreUS citizens, a majority of whom are citizensof the state), Arkansas, California, Delaware,Florida, Hawaii, Idaho, Illinois, Indiana,Iowa, Kansas, Kentucky, Maine, Maryland,Michigan, Minnesota, Mississippi, Missouri,Montana, Nebraska, New Jersey, NorthDakota, Oklahoma (requires 10 or more UScitizens, a majority of whom are residents ofthe state), Oregon, Pennsylvania, SouthDakota, Virginia, Vermont, Washington,West Virginia and Wyoming.





Twenty-five or more persons domiciled in thestate may organize a domestic reciprocalinsurer in: Arizona, Arkansas, California,Delaware, Georgia, Idaho, Indiana, Kentucky,Maine, Maryland, Mississippi, Montana,Pennsylvania, South Dakota, Tennessee,Vermont, Virginia, Washington andWyoming.

4) Unbound, except as indicated in the 4) Unbound, except as indicated in thehorizontal section horizontal section

c) Reinsurance and 1) Government-owned or government- 1) A one per cent federal excise tax isretrocession controlled insurance companies, whether US imposed on all premiums covering

or foreign, are not authorized to conduct US risks that are paid to companiesbusiness in: Alabama, Alaska, Arkansas, not incorporated under US law,Colorado, Connecticut, Delaware, Georgia, except for premiums that are earnedHawaii, Idaho, Kansas, Kentucky, Maine, by such companies through an officeMaryland, Montana, Nevada, New York or dependent agent in the United(non-life companies are authorized; life and States.health companies are not), North Carolina,North Dakota, Oklahoma, Oregon, In Texas, total direct reinsurance ofPennsylvania, Rhode Island, South Dakota, mutual life insurance companies mayTennessee, Washington, West Virginia, not be entered into with non-USWyoming. companies.




Insurance companies incorporated in Nevadamay purchase reinsurance only from aninsurer admitted to Nevada. All insurerswriting workers’ compensation insurance inMinnesota must purchase reinsurance fromthe Minnesota Workers’ CompensationReinsurance Authority. Unbound for Mainefor the provision of reinsurance for workers'compensation.

2) Insurance companies incorporated in Nevada 2) Nonemay purchase reinsurance only from aninsurer admitted to Nevada. All insurerswriting workers’ compensation insurance inMinnesota must purchase reinsurance fromthe Minnesota Workers’ CompensationReinsurance Authority. Unbound for Mainefor the provision of reinsurance for workers'compensation.





3) Government-owned or government- 3) Nonecontrolled insurance companies, whether USor foreign, are not authorized to conductbusiness in: Alabama, Alaska, Arkansas,Colorado, Connecticut, Delaware, Georgia,Hawaii, Idaho, Kansas, Kentucky, Maine,Maryland, Montana, Nevada, New York(non-life companies are authorized; life andhealth companies are not), North Carolina,North Dakota, Oklahoma, Oregon,Pennsylvania, Rhode Island, South Dakota,Tennessee, Washington, West Virginia,Wyoming.

The following states have no mechanism forlicensing initial entry of a non-US insurancecompany as a subsidiary, unless that companyis already licensed in some other US state:Maryland, Minnesota, Mississippi, andTennessee. After a license is obtained insome other US state, licensing and entry intothe states listed above is permitted.




The following states have no mechanism forlicensing initial entry of a non-US insurancecompany as a branch, unless that company isalready licensed in some other US state: Arkansas, Arizona, Connecticut, Georgia,Kansas, Maryland, Minnesota, Nebraska,New Jersey, North Carolina, Pennsylvania,Tennessee, Utah, Vermont, Wyoming, WestVirginia. After a license is obtained in someother US state, licensing and entry into thestates listed above is permitted.

4) Unbound, except as indicated in thehorizontal section. 4) Unbound, except as indicated in the

horizontal section.





d) Services Auxiliary to 1), 3) Nonresident licenses are not issued toInsurance: individuals not licensed in another US state in

(applicable to consultants), Connecticutsub-sectors i), ii) and iii) (producers/adjusters/appraisers/ consultants/below) brokers/reinsurance intermediary), Colorado

Arkansas (agents, brokers, adjusters,

(producer, adjuster and reinsuranceintermediary), California (agents/brokers),Delaware (broker/agent/reinsuranceintermediary), Georgia (counsellor/adjuster),Florida (agent/broker), Hawaii, Illinois(producers/ adjusters/reinsuranceintermediaries), Indiana (agent/broker),Kansas (agent/ broker), Kentucky(agent/broker), Louisiana (agent/broker),Maine (agent/ broker), Maryland(agent/broker/ reinsurance agent/reinsurancebroker), Mississippi (agent/broker), Missouri(brokers), Montana (producer'slicense/agent/broker), Nevada (solicitor/adjuster/property bondsman/bail solicitor),New Jersey (producer’s agent/broker), NewMexico (bailbondsmen/solicitors/brokeragent), North Dakota (agents/brokers) Nebraska (producer's license/agent/ broker),New York (reinsurance intermediary), NorthCarolina (reinsurance intermediary),




For transparency purposes, it should be noted that brokerage firms can generally offer services in most states by obtaining licenses as "brokers" and in other23

states by obtaining licenses to operate as "agents". Brokerage licenses are not issued in Florida, Iowa, Kentucky, Michigan, Minnesota, Mississippi, Oregon,Tennessee, Texas, Virginia, West Virginia, Wisconsin.

Oregon (agent/adjuster/consultant/reinsurance intermediary), Pennsylvania(adjuster/solicitor), South Dakota (agent),Virginia (agents/brokers/consultants), WestVirginia (broker/reinsurance intermediary)and Texas (agent/broker), Washington(agent/broker).

i) Brokerage Services 1), 3) Brokerage licenses are not issued to 1), 3) Higher license fees for non-residents23

non-residents in: South Dakota, Wyoming. may be charged in: Alaska, Arizona,

Brokerage licenses are issued to Indiana, Louisiana, Maine, Massachusetts,non-residents for only certain lines of Montana, Nebraska, Nevada, Newinsurance in: Alabama (all except life, Hampshire, New Mexico, North Carolina,accident & health), Arkansas (property, North Dakota, Ohio, Oklahoma,casualty, surety & marine), California, Pennsylvania, Rhode Island, SouthLouisiana (property & casualty), New Carolina, Utah, Vermont.Mexico (property & casualty).

All states require in-state residency forsurplus lines brokers.

2) None


Arkansas, California, Colorado, Georgia,

2) None

horizontal section.





ii) Agency Services 1), 3) Agency licenses are issued to non-residents 1), 3) Higher license fees for non-residentsfor all or only certain lines of insurance in: may be charged in: Alaska, Arkansas,California, Florida (general lines, life & health), California, Colorado, Florida, Indiana,Kansas, Kentucky (general lines, life & health), Iowa, Kansas, Kentucky, Louisiana, Maine,Louisiana (life & health), New Mexico (life & Massachusetts, Mississippi, Montana,health), Ohio (life & casualty), Oregon, Rhode Nebraska, Nevada, New Hampshire, NewIsland (all except general lines), Texas. Jersey, New Mexico, North Dakota,

All states require in-state residency for South Carolina, South Dakota, Tennessee,surplus lines agents. Utah, Vermont, Wisconsin, Wyoming.

2) None


Oklahoma, Pennsylvania, Rhode Island,

2) None

horizontal section.




iii) Consultancy, Actuarial, 1), 3) Licenses are not issued to 1), 3) NoneRisk Assessment, and nonresidents in: Alabama (adjuster, solicitor,Claim Settlement service representative), California (adjuster,Services insurance analyst, motor club agents, bail

bondsman), Florida (customerrepresentative), Georgia (counsellor,adjuster), Hawaii (adjuster, solicitor), Idaho(solicitor), Indiana (bail bondsmen),Kentucky (adjuster), Maryland (adjuster),Michigan (adjuster), Montana (adjuster),Nevada (solicitor, adjuster, propertybondsman), New Mexico (solicitor), NorthCarolina (limited representatives, adjusters,motor vehicle damage appraisers,professional bondsmen, runners), Oklahoma(bail license), Oregon, Pennsylvania (motorvehicle damage appraiser), Washington(solicitor, adjuster), West Virginia (adjuster,solicitor), and Wyoming (adjuster, solicitor).

In-state residency is required for licensure in: California (for adjusters; and for life anddisability insurance analysts), Georgia (forinspection when not accompanied by alicensed resident adjuster), Illinois (fornon-resident public adjusters who arelicensed in a state which does not permitequal treatment to Illinois residents),Maryland, Mississippi (for independentadjusters), and Nevada (for appraisers andadjusters).





US citizenship is required for licensure in: Alabama (for agents, brokers, solicitors,managing general agents and servicerepresentatives), Idaho (for agents, brokers,solicitors and surplus lines brokers), Missouri(for brokers), Nebraska (for brokers), NewMexico (for solicitors and bailbondsmen),Ohio (for surplus lines brokers) andOklahoma (for bail license).

2) None


2) None

horizontal section.




Foreign banking organizations are generally subject to geographic and other limitations in the United States on a national treatment basis. Where such limitations1

do not conform to national treatment, they have been reserved as market access restrictions. For purposes of illustration, under this approach, the following situationdoes not accord national treatment and would therefore be scheduled as a limitation: a foreign bank from a particular home state is accorded less favourable treatmentthan that accorded to a domestic bank from that state with respect to expansion by branching. For example, partnerships and sole proprietorships are generally not acceptable juridical forms for depository financial institutions in the United States.2

B. FINANCIAL SERVICES (LIMITED TO BANKING AND OTHER FINANCIAL SERVICES AND EXCLUDING INSURANCE):

1. Commitments in these subsectors are undertaken in accordance with the Understanding on Commitments in Financial Services (the “Understanding”), subject tothe limitations and conditions set forth in these headnotes and the schedule below.

2. The market access commitments in these subsectors in respect of modes (1) and (2), as described in paragraphs 2(a) and (b) of Article I of the Agreement, arelimited to the services indicated in paragraphs B.3(c) and B.4(c) of the market access section of the Understanding, respectively. It is understood that paragraphB.4 of the Understanding does not require that non-resident financial service suppliers be permitted to solicit business, and no commitment to such solicitation isundertaken.

3. National treatment commitments in these subsectors are subject to the following limitation: National treatment will be provided based upon the foreign bank’s“home state” in the United States, as that term is defined under the International Banking Act, where that Act is applicable. A domestic bank subsidiary of aforeign firm will have its own “home state” and national treatment will be provided based upon the subsidiary’s home state, as determined under applicable law.1

4. Service suppliers choosing to supply a service through a juridical person constituted under the laws of the United States are subject to non-discriminatorylimitations on juridical form.2

5. The offer of new financial services or products is subject, on a non-discriminatory basis, to relevant institutional and juridical form requirements.





All Subsectors, except as 1),2),3) Michigan limits, according to the country 1) None The United Statesspecifically provided below of their home charters, the banks in which undertakes the obligations

corporate credit unions may place deposits. 2) None contained in AdditionalCommitments Paper IIattached hereto.

3) All directors of a national bank must be U.S. 3) Foreign banks are required to registercitizens unless a national bank is an affiliate under the Investment Advisers Act ofor subsidiary of a foreign bank, in which case 1940 to engage in securities advisoryonly a majority of the board need be U.S. and investment management servicescitizens. in the United States, while domestic

Foreign ownership of Edge corporations is The registration requirement involveslimited to foreign banks and US subsidiaries record maintenance, inspections,of foreign banks, while domestic non-bank submission of reports and payment offirms may own such corporations. a fee.

Federal and state law do not permit a credit Foreign banks cannot be members ofunion, savings bank, home loan or thrift the Federal Reserve System, and thusbusiness in the United States to be provided may not vote for directors of athrough branches of corporations organized Federal Reserve Bank. under a foreign country's law. Foreign-owned bank subsidiaries are

In order to accept or maintain domestic retaildeposits of less than $100,000, a foreignbank must establish an insured bankingsubsidiary. This requirement does not applyto a foreign bank branch that was engaged ininsured deposit-taking activities onDecember 19, 1991.

banks are exempt from registration.

not subject to this measure.




Unbound with respect to paragraph 2(e) ofArticle XVI of the Agreement, andparagraphs A, B.5 and B.6 of theUnderstanding in relation to the expansion,via the establishment of a branch or theacquisition of one or more branches of a bankwithout acquisition of the entire bank, by aforeign bank into another state from its“home state,” as that term is defined underapplicable law. Except as specifically setforth elsewhere in this schedule, suchexpansion shall be provided on a nationaltreatment basis in accordance with headnote3.

Interstate expansion by a foreign bankthrough the establishment of branches bymerger with a bank located outside the “homestate,” as that term is defined underapplicable law, of a foreign bank isprohibited where Montana or Texas is thehome state of the foreign bank or is the statewhere the bank is located that is to be mergedinto the foreign bank, resulting in theestablishment of branches. Except asspecifically set forth elsewhere in thisschedule, such expansion shall be providedon a national treatment basis in accordancewith headnote 3.




The limitations in this paragraph reflect state reciprocity measures.1

The limitations in this paragraph reflect state reciprocity measures.2


Unbound for initial entry by establishment oracquisition of state-chartered banks orstate-licensed offices of foreign banks asindicated in the following forms: California(branch; also savings and loan association);Connecticut (bank or holding company; alsocredit union); Georgia (agency); Illinois(branch); Kentucky (subsidiary); Louisiana(agency); Massachusetts (subsidiary orbranch); Michigan (agency); North Carolina(subsidiary, branch, agency, or representativeoffice); Pennsylvania (any deposit-taking orrepresentative bank office); Washington(branch, agency, or representative office). The limitations in this paragraph do not applyto initial establishment or acquisition of anational bank subsidiary by a foreign personor establishment of a federal branch oragency by a foreign bank that does notalready have a banking presence in theUnited States, or generally to interstateexpansion. Such limitations may apply tointerstate expansion through state-licensedlimited branches, agencies, or representativeoffices.1

The following states are unbound for thespecified activities: Indiana (establishment ofservice offices by foreign-owned creditunions); Iowa (activities of foreign-ownedsavings and loan associations; foreign-ownedbank or trust company acting as fiduciary; useof satellite banking terminals).2




Initial entry or expansion by a foreign person(but not a domestic person) throughacquisition or establishment of astate-chartered commercial bank subsidiary isprohibited or otherwise limited in thefollowing states: Alabama; Arizona;Arkansas; California (limit on foreignnon-bank ownership of international bankingcorporation); Colorado; Delaware; Indiana;Kansas; Louisiana; Maryland; Michigan;Minnesota; Mississippi; Montana; Nebraska;Nevada; North Carolina; North Dakota;Oklahoma; Oregon; Pennsylvania; SouthCarolina; Tennessee; Vermont; Virginia;Washington; West Virginia; Wisconsin;Wyoming. The limitations in this paragraphdo not apply to establishment or acquisitionof a national bank subsidiary by a foreignperson that does not already have a bankingpresence in the United States.

The following states limit initial entry orexpansion by a foreign person throughacquisition or establishment of the followingentities: Delaware (savings and loanassociations; savings banks); Ohio (savingsand loan associations; savings banks; creditunions); Tennessee (savings and loanassociations; savings banks; credit unions;trust companies); Washington (savings andloan associations; savings banks; creditunions; trust companies).





The boards of directors of depository Texas allows pre-judgment seizurefinancial institutions organized under the remedies and civil discovery requests to befollowing states' laws are subject to U.S. applied against foreign bank agencies,citizenship requirements of up to the while subsidiaries are exempt.specified proportions: Alabama (all);Colorado (3/4); District of Columbia (all); The following states require directFlorida (majority); Georgia (all); Indiana branches or agencies of foreign banks to(3/4); Iowa (majority); Kentucky (all); register under securities broker-dealer orLouisiana (majority); Massachusetts investment adviser measures, while bank(majority); Mississippi (all); Missouri (all); subsidiaries of foreign banks are exemptNew Hampshire (majority); New Jersey from such registration to the same extent as(all); New Mexico (3/4); New York (all; domestic banks incorporated in the state: applies also to trustees of mutual savings Alabama; Arizona; Arkansas; California;bank or savings and loan associations, and to Connecticut; Delaware; District ofcommittees of credit unions); North Carolina Columbia; Georgia; Idaho; Iowa; Kansas; (3/4); North Dakota (majority); Pennsylvania Louisiana; Maryland; Mississippi;(all, but may be waived); South Dakota (3/4); Missouri; Nebraska; New Hampshire;Tennessee (all); Vermont (2/3); West New Jersey; New Mexico; New York;Virginia (majority); Wisconsin (2/3). North Carolina; Ohio; Oklahoma;

Pennsylvania; South Dakota; Tennessee;Texas; Vermont; Washington. Theselimitations do not apply to Federallylicensed branches or agencies.




U.S. citizenship is also required for the The following states require directincorporators or organizers of depository branches or agencies of foreignfinancial institutions organized under state banks, but not bank subsidiaries oflaw. Residence within a state may also be foreign banks, to register or obtainrequired for directors, incorporators, licenses in order to engage in theorganizers, or executive committee members following activities: Arkansasof depository financial institutions organized (selling checks; mortgageunder state law. transactions); California (selling

U.S. citizenship is required to engage in or cashing of checks, drafts, moneyspecified activities in the following states: orders; motor vehicle financing;Arizona (collection agency); Indiana transportation of money/valuables);(collection agency); Illinois (safe deposits); Georgia (mortgageNevada (collection agency). lending/brokerage, check

Establishment of a branch or agency by a transmission; loan brokerage);foreign bank is limited as specified in the Kansas (money transmission);following states: Maryland (selling payment

• State branch license subject to certain Massachusetts (check selling/cashing;limitations -- California (no foreign transmittal agencies; motortrust/fiduciary powers); Hawaii (no vehicle financing; insurance premiumtrust/fiduciary powers); Massachusetts; financing; retail instalmentOregon; Pennsylvania; Utah (no sales/servicing; residential real estatetrust/fiduciary powers); Washington mortgage financing -- license(limited trust/fiduciary powers and requirement applies only torestricted to one office per bank). These agencies); North Carolina (sellinglimitations do not apply to Federal checks); Oklahoma (selling checks);branches. Pennsylvania (mortgage

(money transmission; residential

payment instruments); Delaware (sale

selling/cashing); Indiana (money

instruments, traveller's checks);

banking/brokerage); Tennessee

lending/brokerage; industrial loan andthrift activities); Texas (currencyexchange or transmission -- does notapply to Texas agencies; sellingchecks); Virginia (mortgagelending/brokerage; moneytransmission; sale of money orders;check cashing); Wisconsin (selling





• State branch license not available, butstate agency license is available in Idahoand West Virginia.

• No state branch or agency licenseavailable -- Arizona; Arkansas;Colorado; Indiana; Iowa; Minnesota;Montana; Nebraska; New Mexico;North Dakota; Oklahoma; RhodeIsland; South Carolina; South Dakota;Tennessee; Vermont; Virginia;Wisconsin. These limitations do notapply to Federal offices.




• Branch license not available but agency The following states restrict variouslicense is, subject to any specified commodities transactions by foreignlimitations -- Delaware (state license bank branches and agencies, but notlimited to one office per bank and cannot by other depository financialoperate in a manner likely to result in a institutions: Arizona; California;substantial detriment to existing bank; Idaho; Indiana; Iowa; Mississippi;no fiduciary powers); Florida (available Missouri; Nebraska; Newonly to a foreign bank with at least $25 Hampshire; Washington.million in capital or that is one of fivelargest banks in its home country); Offers and sales of securities toGeorgia (available only to foreign bank foreign bank branches and agencieswith at least $50 million in excess of in the following states are subject toliabilities; no fiduciary and limited other registration/disclosure requirementspowers); Louisiana (limited to parishes that do not apply if the transactionwith more than 350,000 residents); involves other financial institutions: Mississippi; Missouri (no fiduciary Illinois; Indiana; Louisiana;powers); Oklahoma (foreign bank must Montana; Nebraska; New Jersey;have at least $25 million in capital or, North Dakota; Tennessee; Texasinter alia, be one of five largest banks in (applies to branches and agencies ofits home country; special asset all foreign financial institutions).maintenance/capital equivalency rulesapply, as do other restrictions); Texas(one office only, limited to metropolitanareas with at least 500,000 residents;limited fiduciary powers). Certainrestrictions on fiduciary powers apply tofederal agencies.





• No branch or state agency licenseavailable -- Wyoming.

• No branch or agency license available --Alabama; Kansas; Maryland; NorthDakota.

Representative offices of foreign banks arenot permitted in the following states, or arelimited as specified: Arizona; Arkansas;Colorado; Kansas; Kentucky; Michigan;Mississippi; Montana; North Dakota;Oklahoma (foreign bank must have at least$10 million in capital or, inter alia, be one ofthe five largest banks in its home country;special asset maintenance/capital equivalencyrequirements may apply); Oregon; RhodeIsland; South Carolina; South Dakota;Tennessee; Vermont; Virginia; Wisconsin;Wyoming. Other states require incorporationof representative offices.

4) Unbound, except as indicated in thehorizontal section.





Trading of Securities and 1), 2), 3) Federal law prohibits the offer or sale of 1), 2), 3) NoneDerivative Products and futures contracts on onions, options contracts onServices Related Thereto; onions, and options on futures contracts on onionsParticipation in Securities in the United States, and services related thereto.Issues

Unbound for the authority to act as a soletrustee of an indenture for a bond offering inthe United States.

Unbound with respect to the use of simplifiedregistration and periodic reporting forms forsecurities issued by small businesscorporations.







Participation in Issues of 1), 2) None 1), 2), 3) NoneGovernment Debt Securities

3) Unbound for the granting or continuation ofFederal Reserve designation as a primarydealer in US government debt.

4) Unbound, except as indicated in the 4) Unbound, except as indicated in thehorizontal section. horizontal section.

GATS/SC/90/Suppl.3Page C-28

ATTACHMENT TO THE UNITED STATES SCHEDULE

ADDITIONAL COMMITMENTS PAPER I

(a) Taking note of principles of federalism under the United States Constitution, recognizing thatinsurance has been regulated at the state government level since the beginning of insuranceregulation in the United States, and further recognizing the provision of the McCarran-FergusonAct that “[t]he business of insurance...shall be subject to the laws of the several States,” theGovernment of the United States welcomes efforts by the National Association of InsuranceCommissioners (“NAIC”) to promote the harmonization of state insurance regulation, through suchsteps as its Accreditation Program and the preparation of model insurance laws.

(b) The Government of the United States notes that under Accreditation Program, the NAIC selects anindependent team of auditors to review the compliance of states with the laws, regulations, andregulatory and organizational practices contained in the NAIC accreditation standards. The teamreports to the NAIC, which determines whether a state qualifies for accreditation under thestandards. As of October 11, 1994, 37 states were accredited by the NAIC through this program.

(c) The Government of the United States notes that NAIC Model Laws are designed to facilitatelegislative and regulatory action on common problems among the states and are intended to saveduplication of effort on the part of the states. Some models are adopted by all or most of the states,so there is a harmonizing effect. Some models serve as guidelines which the states may adopt,utilize or amend to fit their individual needs. Certain models have been identified as being of suchimport that their adoption is necessary for states to be accredited pursuant to NAIC financialregulation standards.

(d) The Government of the United States encourages the NAIC to continue its effort to work with stategovernments on these programs.

(e) Recognizing principles of federalism, the long history of state regulation of insurance in the UnitedStates, and the McCarran-Ferguson Act, and noting the concerns of regulators who seek to furtherincrease internationalization of their insurance markets while addressing prudential concerns, theGovernment of the United States:

(i) welcomes that the NAIC in October 1993 adopted a model law on the initial entry of non-U.S. insurance providers without their prior establishment in another state, and theGovernment of the United States encourages the NAIC to continue and as appropriateintensify its efforts with relevant state authorities with regard to this issue;

(ii) would welcome consideration by the NAIC, if appropriate, of the issue of the time periodfor review of licensing applications of insurance providers, from the perspective thatregulatory authorities should make administrative decisions on completed applications ofinsurance providers within a reasonable time; and

(iii) welcomes efforts by the NAIC to review with the states the question of citizenshiprequirements for the boards of directors of foreign insurance providers, and theGovernment of the United States encourages the NAIC to continue and as appropriateintensify its efforts with relevant state authorities within regard to this issue.

(f) The Government of the United States notes the concern raised by another Member that differentstate regulations for foreign insurance providers on lines of products permitted, trusteed assets


requirements, deposit requirements, remittance ceiling and reinsurance trust funds affect foreigninsurance providers’ ability to enter the insurance market of the United States.

ADDITIONAL COMMITMENTS PAPER II

(1) The Administration has expressed its support for Glass-Steagall reform on a national treatmentbasis and will work with Congress to achieve an appropriate framework to accomplish thisobjective.

(2) The Administration, noting that even before the adoption of the Riegle-Neal banking legislation,many states had taken action to liberalize interstate acquisitions of banks on a basis that providednational treatment to foreign banks, welcomes further initiatives by states to provide additionalaccess on a non-discriminatory basis.

(3) The Government of the United States has taken action to remove impediments to the offering ofsecurities in the United States by foreign and domestic issuers. The National Securities MarketsImprovement Act of 1996 preempts state regulation of offerings of certain securities, includingthose listed on the New York Stock Exchange, the National Association of Securities DealersAutomated Quotation/National Market System, and securities issued by registered investmentcompanies. This legislation eliminates duplicative state and federal securities legislation in the areaof securities registration.

(4) Section 7(d) of the Investment Company Act authorizes the SEC to permit a foreign investmentcompany to register and publicly offer its shares in the United States if the SEC makes thefollowing prudential findings:

1. that it is both legally and practically feasible for the SEC and U.S. investors effectively toenforce the provisions of the Investment Company Act against the investment company, and

2. that it is consistent with the requirements set forth in the Investment Company Act.

(5) The Government of the United States notes that the Federal Reserve, working in cooperation withother domestic supervisory authorities, has established an enhanced framework for the regulation andsupervision of U.S. operations of foreign banks, which endeavors to coordinate annual examinations offoreign banks and provide uniform guidance with respect to examination policies.

Appendix D

Supplement 3:


Finalized by the WTO on December 12, 1997

WORLD TRADE GATS/EL/90/Suppl.3

26 February 1998


Trade in Services



Supplement 3


_______________

This text replaces the Financial Services section contained in document GATS/EL/90/Suppl.1.

GATS/EL/90/Suppl.3Page D-1

UNITED STATES OF AMERICA - LIST OF ARTICLE II (MFN) EXEMPTIONS

Sector or Description of measure Countries to which the Intended duration Conditions creating the need for thesubsector indicating its measure applies exemption

inconsistency withArticle II

Insurance Measures according All countries Indefinite Need to protect existing US ownership

Banking and on 12/12/97. Canada Indefinite Maintenance of established preference.Other FinancialServices A broker-dealer registered(excluding under US law that has itsInsurance) principal place of business

differential treatment in of service suppliers operating in otherregard to the expansion of Members.existing operations, theestablishment of a newcommercial presence orthe conduct of newactivities, in acircumstance in which aMember adopts or appliesa measure that compels, orhas the effect ofcompelling, a person of theUnited States, on the basisof its nationality, to reduceits share of ownership inan insurance servicesprovider operating in theMember’s territory to alevel below that prevailing

in Canada may maintain itsrequired reserves in a bankin Canada subject to thesupervision of Canada.

UNITED STATES OF AMERICA - LIST OF ARTICLE II (MFN) EXEMPTIONS GATS/EL/90/Suppl.3 Page D-2



Banking and Permission to establish All countries Indefinite Need to protect existing activities of USOther Financial state-licensed branches, service suppliers abroad and to ensureServices agencies, or representative substantially full market access and(excluding offices, or to own national treatment in internationalInsurance) commercial bank financial markets.

subsidiaries, is based on areciprocity test in thefollowing States:California (applies also tosavings and loanassociations), Connecticut(applies also to creditunions), Georgia, Illinois,Kentucky, Louisiana,Massachusetts, Michigan,North Carolina,Pennsylvania, Washington. Among the conditions onwhich agency or agencyand representative officelicenses may be granted forthe following States is thatthe foreign bank is one ofthe five largest banks inthe home country: Florida,Oklahoma. Permission fora foreign-owned bank ortrust company to act asfiduciary, and to usesatellite

UNITED STATES OF AMERICA - LIST OF ARTICLE II (MFN) EXEMPTIONS



GATS/EL/90/Suppl.3Page D-3

banking terminals, is basedon a reciprocity test inIowa. Iowa also subjectsthe activities of foreign-owned savings and loanassociations to areciprocity test.

Michigan permits Common Marketcorporate central creditunions to place deposits inbanks chartered in Canadaor the European CommonMarket but not in bankschartered in other foreigncountries. All Indefinite Need to ensure US financial service

Authority to act as a sole services in foreign markets.trustee of an indenture fora bond offering in theUnited States is subject toa reciprocity test. All Indefinite Need to ensure US financial service

Designation as a primary in foreign government debt markets.dealer in US Governmentdebt securities isconditioned on reciprocity.

Canada and European Indefinite Maintenance of established preference.

suppliers are permitted to provide trustee

suppliers are afforded national treatment

Appendix E

Glossary of Selected Technical Terms

E-1

GLOSSARY

Bound commitment: A commitment that cannot be made more restrictive in the future; only furtherliberalization is permitted (unless an agreed penalty is paid).

Commercial presence: One of four possible modes of delivering services to foreign consumers, whereby aservice supplier establishes any type of business or professional establishment in the foreign market for thepurpose of supplying a service. Commercial presence comprises entities such as corporate subsidiaries,trusts, joint ventures, partnerships, sole proprietorships, associations, representative offices, and branches. See modes of supply.

Commitment: A measure, usually regarding market access and national treatment, that affects internationaltrade in services. Commitments are listed in national schedules and identify service sectors and modes ofsupply that are affected. See bound commitment, unbound commitment, full commitment, standstillcommitment, rollback commitment, sector-specific commitment and horizontal commitment. See measure.

Consumption abroad: One of four possible modes of delivering services to foreign consumers, whereby theconsumer, or the consumer's property, receives a service outside the territory of the consumer's country, eitherby moving or being situated abroad. See modes of supply.

Cross-border supply: One of four possible modes of delivering services to foreign consumers, whereby theservice is delivered within the territory of the consumer, from the territory of the service supplier. Cross-border supply may entail transportation by mail, telecommunication, or the physical movement ofmerchandise embodying a service (e.g., a diskette storing information) from one country to another. Theservice supplier is not present within the territory where the service is delivered. See modes of supply.

Horizontal commitment: Commitment that applies to international trade in multiple service sectors. Typically, horizontal commitments constitute limitations on market access or national treatment. In thenational schedules, horizontal commitments appear at the beginning, before the sector-specific commitments.

Juridical person: Any legal entity duly constituted or otherwise organized under applicable law, whether forprofit or otherwise and whether privately- or governmentally-owned. Juridical persons include anycorporation, trust, partnership, joint venture, sole proprietorship, or association. Branches and representativeoffices are not included.

Full commitment: This is recorded in the national schedule of a country that wishes to impose no limit onmarket access or national treatment in a given sector and mode of supply. However, any relevant horizontallimitations still apply. In the national schedules, a full commitment is reflected by the word "none" in therelevant service sector and mode of supply.

Measure: A law, regulation, rule, procedure, decision, or administrative action that affects trade in services. Measures may pertain to: (1) the purchase, payment, or use of a service; (2) a service supplier's access to,and use of, services which are required to be available to the general public; and (3) a service supplier's abilityto establish a presence, including a commercial presence, in a host country.

Modes of supply: Means of delivering services to foreign consumers. Modes of supply are defined on thebasis of the origins of the service supplier and consumer, and the type of territorial presence that both havewhen the service is delivered. There are four modes of supply: (1) cross-border supply; (2) consumptionabroad; (3) commercial presence; and (4) presence of natural persons. See definitions of each for moreinformation.

E-2

Most Favored Nation (MFN): Trading status accorded to a nation wherein the terms and conditions of tradewith that nation are as favorable as those with any other nation. The MFN obligation in Article II of theGATS states that the most favorable treatment actually accorded in all sectors, whether the subject of acommitment or not, must also be accorded to all other Members, unless an MFN exemption has been filed.

Most Favored Nation exemption: Specific exceptions to the MFN obligation are included in eachMember's "List of MFN Exemptions."

National treatment: Treatment of a foreign service supplier that is no less favorable than that accorded todomestic service suppliers.

Natural person: An individual who is a national of a country under the law of that country, or in the case ofa country which does not have nationals (e.g., territories), an individual who has the right of permanentresidence under the law of that country. See juridical person.

Presence of natural persons: One of four possible modes of delivering services to foreign consumers,whereby one individual, acting alone or as an employee of a service supplier, provides a service while presentin a foreign market. For example, a U.S. accounting firm that provides accounting services in Italy by sendingU.S. employees to Italy (to either live or visit temporarily) is delivering its service through the "presence ofnatural persons." See modes of supply.

Rollback commitment: A type of bound commitment wherein a country maintains some, but not all,currently existing regulations that limit market access or national treatment in a given sector and mode ofsupply. In the national schedules, a rollback commitment will describe the remaining measures that areinconsistent with free market access and national treatment.

Supply of a service: The production, distribution, marketing, sale, and delivery of a service.

Standstill commitment: A type of bound commitment wherein a country maintains all existing regulationsthat limit market access or national treatment in a given sector and mode of supply. In the national schedules,a standstill commitment will describe the measures that are currently inconsistent with free market access andnational treatment.

Unbound limitation: A measure inconsistent with market access or national treatment that can be mademore restrictive in the future. In the national schedules, an unbound measure is reflected by the word"unbound" in the relevant service sector and mode of supply. In the event that a service sector or mode ofsupply is unbound, a new measure that is inconsistent with market access and national treatment may beintroduced in the future. The word "unbound" may be accompanied by an asterisk if a particular mode ofsupply is not technically feasible.

Sector-specific commitment: An entry in national schedules that indicates either the absence or theexistence of market access, national treatment, or other limitations with respect to a specific service sector.

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