Common use of Specific Commitments Clause in Contracts

Specific Commitments. In addition to respecting the general obligations referred to above, each Member is required to assume specific commitments relating to market access (Article XVI) and national treatment (Article XVII) in designated sectors. The relevant sectors as well as any departures from the relevant obligations of Articles XVI and XVII are to be specified in the country's Schedule of Commitments. Article XVI (Market Access) and XVII (National Treatment) commit Members to giving no less favourable treatment to foreign services and service suppliers than provided for in the relevant columns of their Schedule. Commitments thus guarantee minimum levels of treatment, but do not prevent Members from being more open (or less discriminatory) in practice. At first sight, it may be difficult to understand why the national treatment principle under the GATS is far more limited in scope - confined to scheduled services and subject to possible limitations – than under the GATT where it applies across the board. The reason lies in the particular nature of services trade. Universal national treatment for goods does not necessarily imply free trade. Imports can still be controlled by tariffs which, in turn, may be bound in the country's tariff schedule. By contrast, given the impossibility of operating tariff-type measures across large segments of services trade, the general extension of national treatment in services could in practice be tantamount to guaranteeing free access. Members may also undertake additional commitments with respect to measures not falling under the market access and national treatment provisions of the Agreement. Such commitments may relate to the use of standards, qualifications or licenses (Article XVIII). Additional commitments are particularly frequent in the telecommunications sector where they have been used by some 60 Members to incorporate into their schedules certain competition and regulatory (self-)disciplines. These disciplines are laid out in a so-called Reference Paper, which an informal grouping of Members had developed during the extended negotiations in this sector.

Specific Commitments. In addition to respecting the general obligations referred to above, each Member is required to assume specific commitments relating to market access (Article XVI) and national treatment (Article XVII) in designated sectors. The relevant sectors as well as any departures from the relevant obligations of Articles XVI and XVII are to be specified in the countryMember's Schedule of Commitments. Article XVI (Market Access) and XVII (National Treatment) commit Members to giving no less favourable treatment to foreign services and service suppliers than provided for in the relevant columns of their Schedule. Commitments thus guarantee minimum levels of treatment, but do not prevent Members from being more open (or less discriminatory) in practice; the MFN requirement must be respected, of course. At first sight, it may be difficult to understand why the national treatment principle under the GATS is far more limited in scope - confined to scheduled services and subject to possible limitations – than under the GATT where it applies across the board. The reason lies in the particular nature of services trade. Universal national treatment for goods does not necessarily imply free trade. Imports can still be controlled by tariffs which, in turn, may be bound in the country's tariff schedule. By contrast, given the impossibility of operating tariff-type measures across large segments of services trade, the general extension of national treatment in services could in practice be tantamount to guaranteeing providing free access. And virtually no Member may be ready to fully liberalize services trade across all sectors and modes of supply. Members may also undertake additional commitments with respect to measures not falling under the market access and national treatment provisions of the Agreement. Such commitments may relate to the use of standards, qualifications or licenses (Article XVIII). Additional commitments are particularly frequent in the telecommunications sector where they have been used by some 60 70 Members to incorporate into their schedules certain competition and regulatory (self-)disciplines. These disciplines are laid out in a so-called Reference Paper, which an informal grouping of Members had developed during the extended negotiations in this sector.