To strengthen economic and trade relations across the Taiwan Strait and promote liberalization of service trade, pursuant to the “Cross-Strait Economic Cooperation Framework Agreement” and the World Trade Organization’s “General Agreement on Trade in Services,” the Straits Exchange Foundation and the Association for Relations Across the Taiwan Strait, through equal consultation, have reached the following agreement (this agreement awaits completion of relevant procedures to take effect):
- Chapter I: General Provisions
- Article 1: Objectives
- Article 2: Definitions
- Article 3: Scope
- Chapter II: Obligations and Standards
- Article 4: Fair Treatment
- Article 5: Information Disclosure and Provision
- Article 6: Administrative Standards
- Article 7: Business Conduct
- Article 8: Consultation on Emergency Situations
- Article 9: Payment and Transfer
- Article 10: Restrictions to Ensure Balanced External Payments
- Article 11: Exceptions
- Article 12: Cooperation
- Chapter III: Specific Commitments
- Article 13: Market Access
- Article 14: Other Commitments
- Article 15: Specific Commitments Schedule
- Article 16: Gradual Reduction of Service Trade Restrictions
- Article 17: Modifications to Commitments Schedule
- Chapter IV: Other Provisions
- Article 18: Liaison Mechanism
- Article 19: Review of Issues
- Article 20: Dispute Settlement
- Article 21: Document Format
- Article 22: Annexes
- Article 23: Amendments
- Article 24: Entry into Force
Chapter I: General Provisions
Article 1: Objectives
This Agreement seeks to:
First, gradually reduce or eliminate restrictive measures on service trade between the two sides covering numerous sectors, promoting further liberalization and facilitation of service trade between the two sides;
Second, continue to expand the breadth and depth of service trade;
Third, increase cooperation between the two sides in the field of service trade.
Article 2: Definitions
For purposes of this Agreement:
First, “service trade” means: (a) the supply of a service from the territory of one side into the territory of the other side; (b) the supply of a service in the territory of one side to the consumer of the other side; (c) the supply of a service by a service supplier of one side through commercial presence in the other side; (d) the supply of a service by a service supplier of one side through presence in the other
Second, “service sector” means: (a) for a particular commitment, the service sector specified in a side’s schedule of commitments as one, some, or all subsectors of that service; (b) in other contexts, the entire service sector, including all its subsectors.
Third, “person” means a natural person or a juridical person.
Fourth, “juridical person” means an entity established in accordance with applicable law of either side and established in that side.
Fifth, “service supplier” means any person of either side engaged in the supply of a service. Where the service is not supplied directly by a juridical person but through other forms of commercial presence such as a branch or office established in the territory where the service is supplied, that service supplier (namely, the juridical person) shall be entitled to the treatment accorded under this Agreement through such commercial presence. Such treatment shall extend to the manner in which the service is supplied, but shall not extend to any other part of the service supplier that is located outside the territory where the service is supplied.
Sixth, “service consumer” means any person that receives or uses a service.
Seventh, “measure” means any regulation, rule, procedure, decision, or any other form of measure of either side.
Eighth, “measures affecting service trade” of one side include measures regarding: (a) the purchase, payment, or use of a service; (b) the access and use of a service related to the supply of which that side requires public availability; (c) the presence of a person of the other side for the purpose of supplying a service in that side, including commercial presence.
Ninth, “commercial presence” means any type of business or professional establishment, including the supply of a service in one side by: (a) the establishment, acquisition, or maintenance of a juridical person, or (b) the establishment or maintenance of a branch or office.
Article 3: Scope
First, this Agreement applies to measures affecting service trade of either side.
Second, this Agreement does not apply to: (a) government procurement; (b) services supplied in the exercise of governmental authority by a side; (c) subsidies or grants provided by a side, or any condition attached to the receipt or continued receipt of such subsidies or grants. However, if such subsidies significantly affect the specific commitments made by a side under this Agreement, the other side may request consultations with a view to finding a mutually satisfactory solution. Upon request by the other side, a side shall provide information relating to specific commitments made under this Agreement to the maximum extent possible regarding subsidies; (d) arrangements between the two sides on air transport, namely the “Cross-Strait Air Transport Agreement” and “Cross-Strait Air Transport Supplementary Agreement” and subsequent amendments thereto and within the scope of their content; (e) services directly related to the exercise of rights and obligations arising from such arrangements on air transport between the two sides, but not including service trade market access commitments in the schedule under the “Cross-Strait Economic Cooperation Framework Agreement” and subsequent agreements; (f) measures related to maritime agreements between the two sides, but not including service trade market access commitments in the schedule under the “Cross-Strait Economic Cooperation Framework Agreement” and subsequent agreements; (g) other services or measures as agreed by the two sides.
Third, the Annex on Movement of Natural Persons under the World Trade Organization’s “General Agreement on Trade in Services” shall be applicable to this Agreement.
Fourth, relevant authorities at all levels and their authorized organs of both sides shall perform obligations and commitments under this Agreement.
Chapter II: Obligations and Standards
Article 4: Fair Treatment
First, with respect to service sectors listed in that side’s schedule of specific commitments for service trade in the World Trade Organization, the “Annex IV: Early Harvest Sectors and Liberalization Measures of the Cross-Strait Economic Cooperation Framework Agreement,” and Annex I “Specific Commitments Schedule on Service Trade” of this Agreement, a side shall accord to services and service suppliers of the other side treatment no less favorable than that it accords to like services and service suppliers of the same side with respect to all measures affecting the supply of services, provided the commitments and conditions set forth in such schedule or liberalization measures are complied with.
Second, the provisions of the first paragraph of this Article shall not apply to existing non-conforming measures of a side and their modifications; however, that side shall progressively eliminate or reduce such non-conforming measures, and any modification or change to such non-conforming measures shall not increase restrictions on services and service suppliers of the other side.
Third, specific commitments made pursuant to the first paragraph of this Article shall not be construed as requiring a side to compensate for any inherent competitive disadvantages that result from the foreign character of the relevant services or service suppliers.
Fourth, a side may accord treatment that is formally identical or different to services and service suppliers of the other side compared to like services and service suppliers of the same side in order to meet the requirements of the first paragraph of this Article. Where such formally identical or different treatment modifies the conditions of competition in favor of services or service suppliers of the same side compared to like services or service suppliers of the other side, it shall be considered treatment less favorable.
Fifth, with respect to measures affecting service trade of a side, except as exempted under the provisions of Article II, paragraph 2 of the World Trade Organization’s “General Agreement on Trade in Services,” that side shall accord to services and service suppliers of the other side treatment no less favorable than that it accords to like services and service suppliers of any other World Trade Organization member generally applied.