Common use of Monopolies Clause in Contracts

Monopolies. The GATS does not forbid the existence of monopolies or exclusive service suppliers per se (Article VIII) but, as noted above, subjects them to the unconditional MFN obligation. Moreover, under Article VIII:2, Members are held to prevent such suppliers, if these are also active in sectors that are beyond the scope of their monopoly rights and covered by specific commitments, from abusing their position and act inconsistently with these commitments. In addition, Article VIII:4 requires Members to report the formation of new monopolies to the Council for Trade in Services if the relevant sector is subject to specific commitments. The provisions of Article XXI (Modification of Schedules, see following section) apply. GATS Article XI requires that Members allow international transfers and payments for current transactions relating to specific commitments. It also provides that the rights and obligations of IMF Members, under the Articles of Agreement of the Fund, shall not be affected. This is subject to the proviso that capital transactions are not restricted inconsistently with specific commitments, except under Article XII (see below) or at the request of the Fund. Footnote 8 to Article XVI further circumscribes Members' ability to restrict capital movements in sectors where they have undertaken specific commitments on cross-border trade and commercial presence.

Monopolies. The GATS does not forbid the existence of monopolies or exclusive service suppliers per se (Article VIII) but). However, as noted above, subjects them government-mandated monopolies or exclusivity arrangements are subject to the unconditional MFN obligation. Moreover, under Article VIII:2, Members are held required to prevent such suppliers, if these are also active in sectors that are beyond the scope of their monopoly rights and covered by specific commitments, from abusing their position and act inconsistently with these commitments. In addition, Article VIII:4 requires Members to report the formation of new monopolies to the Council for Trade in Services if the relevant sector is subject to specific commitments. The provisions of Article XXI (Modification of Schedules, see following section) apply. GATS Article XI requires that Members allow international transfers and payments for current transactions relating to specific commitments. It also provides that the rights and obligations of IMF Members, under the Articles of Agreement of the Fund, shall not be affected. This is subject to the proviso that capital transactions are not restricted inconsistently with specific commitments, except under Article XII (see below) or at the request of the Fund. Footnote 8 to Article XVI further circumscribes Members' ability to restrict capital movements in sectors where they have undertaken specific commitments on cross-border trade and commercial presence.