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Schedules of Commitments – some basic suggestions

This document outlines essential suggestions for structuring schedules of commitments in trade services. It emphasizes the importance of clarity and systematic classification based on the Secretariat's Services Sectoral Classification List. Limitations on market access and national treatment are primary duties that must be clearly stated. Common problems in scheduling, such as sector coverage mismatches and regulatory inconsistencies, are discussed. Additionally, it addresses how policy intentions translate into commitments, focusing on autonomous policymaking space in trade practices.

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Schedules of Commitments – some basic suggestions

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  1. Schedules of Commitments – some basic suggestions

  2. Structure of a schedule 2

  3. First Column: How to describe service sectors? ▪ There is no compulsory system However, according to Scheduling Guidelines (S/L/92), (a) schedules “require the greatest possible degree of clarity” (b) “in general, the classification ... should be based on the Secretariat’s Services Sectoral Classification List” ▪ Reference instruments: - Services Sectoral Classification List (W/120) - UN Central Product Classification List (CPC) 3

  4. Basic Obligation (1): Where commitments are undertaken, each schedule shall specify: limitations on market access and national treatment“ (para 21 NG) Note: Focus is on measures limiting market access rather than on implementation mechanisms (e.g. licensing requirements) or relevant laws and regulations. 4

  5. How policy intentions translate into specific commitments Current restriction in Sector A: Foreign equity ceiling of 49%

  6. Structure of a schedule 6

  7. Horizontal commitments Apply to trade in services in all scheduled sectors unless otherwise specified; Aims at avoiding repetition Takes the form of a limitation (M1-3) or of a positive undertaking (M4) 7

  8. Role of Horizontal Limitations (Example) 8

  9. Horizontal Section Botswana (excerpt) 9

  10. SCHEDULING PROBLEMS (I) • No clearspecification of sectorcoverage • Mismatchbetweensectorname and CPC number • Inconsistenciesbetweensectoral and horizontal entries • Non-exclusion of public sector segments, where • necessary (e.g. health and education) 10

  11. SCHEDULING PROBLEMS (II) Inscription of • Laws and regulationsratherthanmeasures • Minimum requirementsratherthanceilings (MA) • Unspecifiedlicensing and authorizationrequirements 11

  12. SCHEDULING PROBLEMS (III) Inscription of • Measures falling under Article VI (DOMESTIC REG) • Departures from general obligations (Part II), including • MFN-inconsistent measures (reciprocity etc.) • Foreign exchange restrictions • Measures covered by GENERAL EXEMPTIONS 12

  13. Case A. 13

  14. Case E. 14

  15. Some examples from Botswana 15

  16. Some examples from Botswana 16

  17. Some examples from Botswana 17

  18. SCOPE FOR AUTONOMOUSPOLICY MAKING 18

  19. Measures/policies not affected by Specific Commitments Non-discriminatorydomestic regulation (standards, licensing requirements, etc.) Government procurement (exempt from MFN, MA & NT) Non-discriminatorysubsidies Non-discriminatory measures promoting or restricting exports Requirement of a visa etc. Barriers not associated with Government measures (e.g. private decisions or natural resource limitations (non-availability of space, etc.)) 19

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