Type of Reservation:
National Treatment (Article 8.3)
Senior Management and Boards of Directors (Article 8.7)
Measures:
Telecommunications Act, S.C. 1993, c. 38
Canadian Telecommunications Common Carrier Ownership and Control Regulations, SOR/94-667
Radiocommunication Act, R.S.C., 1985, c. R-2
Radiocommunication Regulations, SOR/96-484
Description: Investment
1. Canada reserves the right to adopt or maintain a measure:
(a) limiting foreign investment in facilities-based telecommunications service suppliers, provided that the measure adopted or maintained by Canada does not limit foreign investment to less than a cumulative total of 46.7 percent of voting interest, based on 20 percent direct investment and 33.3 percent indirect investment;
b) requiring that facilities-based telecommunications service suppliers be controlled in fact by a Canadian;
(c) requiring that at least 80 percent of the members of the board of directors of facilities-based telecommunications service suppliers be Canadian; and
2. The following exceptions apply to this reservation:
(a) foreign investment is allowed up to 100 percent for suppliers conducting operations under an international submarine cable licence;
(b) mobile satellite systems of a foreign service supplier may be used by a Canadian service provider to provide services in Canada;
(c) fixed satellite systems of a foreign service supplier may be used to provide services between points in Canada and all points outside Canada;
(d) foreign investment is allowed up to 100 percent for suppliers conducting operations under a satellite authorisation; and
(e) foreign investment is allowed up to 100 percent for facilities-based telecommunications service suppliers that have revenues, including those of its affiliates, from the provision of telecommunications services in Canada representing less than 10 percent of the total telecommunications services annual revenues in Canada.
Sector: All Sectors
Sub-sector:
Industry Classification:
Type of Reservation:
National Treatment (Articles 8.3 and 9.2)
Most-Favoured Nation Treatment (Articles 8.4 and 9.3)
Local Presence (Article 9.5)
Senior Management and Boards of Directors (Article 8.7)
Performance Requirements (Article 8.8)
Measure: All existing non-conforming measures of all provinces and territories.
Description: Cross-Border Trade in Services and Investment
For purposes of transparency only, Appendix I-A sets out an illustrative, non-binding list of non-conforming measures maintained at the sub-national level of government.
Appendix I-A. Illustrative List of Canada’s Sub-National Non-conforming Measures (2)
Illustrative List of Canada’s Sub-National Non-conforming Measures
| Sector | Non-conforming measure by jurisdiction |
| Accounting, auditing and bookkeeping services | Residency: Saskatchewan, British Columbia, Ontario, Nova Scotia, Quebec, Prince Edward Island, Newfoundland & Labrador, Manitoba, Alberta. |
| Local Presence: Saskatchewan, Newfoundland & Labrador, Manitoba, Ontario | |
| Architectural services | Residency: Nova Scotia, Newfoundland & Labrador |
| Corporate Form: Prince Edward Island requires non-resident firms to maintain a higher percentage of practitioners in a partnership | |
| Engineering services and integrated engineering services | Residency: Saskatchewan, British Columbia, Ontario, New Brunswick, Alberta |
| Urban planning and landscape architecture services | Residency: Newfoundland & Labrador, Saskatchewan |
| Real estate services | Residency: Alberta, Quebec, Yukon, Manitoba, British Columbia, Nova Scotia, Prince Edward Island, Newfoundland & Labrador. |
| Local Presence: Saskatchewan, Ontario, Nova Scotia, Prince Edward Island, Newfoundland & Labrador, Alberta | |
| Management consulting services | Residency: Newfoundland & Labrador |
| Toll refining | Performance Requirement: Ontario requires treatment or refinement of base metals in Canada |
| Placement and supply services of personnel | Local Presence: Ontario |
| Investigation and security services | Senior Managers and Board of Directors: Newfoundland & Labrador |
| Local Presence: Ontario | |
| Related scientific and technical consulting services | Residency: Ontario, British Columbia, Newfoundland & Labrador |
| Citizenship: British Columbia, Manitoba | |
| Local Presence: Saskatchewan | |
| Training Requirement: Ontario requires training to be completed in province for accreditation for land surveyors | |
| Other business services | Residency: Saskatchewan, Ontario, Nova Scotia |
| Local Presence: Saskatchewan, Newfoundland & Labrador, Nova Scotia, Prince Edward Island | |
| Distribution services | Citizenship: Quebec |
| Local Presence: Quebec, Saskatchewan, Newfoundland & Labrador, Nova Scotia, British Columbia, Ontario | |
| Economic Needs Test: Prince Edward Island | |
| Tourism and travel related services | Residency: Alberta, British Columbia, Ontario |
| Residency/Citizenship: Alberta, Saskatchewan, Nova Scotia, Newfoundland & Labrador, Quebec | |
| Local Presence: Ontario, Quebec | |
| Taxation: Ontario requires non-residents to pay 20 percent land transfer tax | |
| Road transport services (Passenger transportation) | Economic Need Test: British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Quebec, Nova Scotia, Newfoundland & Labrador, Nunavut, Northwest Territories |
| Road transport services (Freight transportation) | Local Presence: Quebec Economic Need Test: Saskatchewan, Newfoundland & Labrador |
Schedule of Korea. Explanatory Notes
1. Korea’s Schedule to this Annex sets out, pursuant to Articles 8.9.1 and 9.6.1, Korea’s existing measures that do not conform with some or all of the obligations imposed by:
(a) Article 8.3 (National Treatment) or 9.2 (National Treatment);
(b) Article 8.4 (Most-Favoured-Nation Treatment) or 9.3 (Most-Favoured-Nation Treatment);
(c) Article 8.7 (Senior Management and Boards of Directors);
(d) Article 8.8 (Performance Requirements);
(e) Article 9.4 (Market Access); or
(f) Article 9.5 (Local Presence).
2. Each entry sets out the following elements:
(a) Sector refers to the sector for which the entry is made;
(b) Obligations Concerned specifies the Articles referred to in paragraph 1 that, pursuant to Articles 8.9.1(a) and 9.6.1(a), do not apply to the non-conforming aspects of the law, regulation, or other measure, as set out in paragraph 3;
(c) Measures (1) identifies the laws, regulations, or other measures for which the entry is made. A measure cited in the Measures element:
(i) means the measure as amended, continued, or renewed as of the date of entry into force of this Agreement; and
(ii) includes any subordinate measure adopted or maintained under the authority of and consistent with the measure; and
(d) Description sets out commitments, if any, for liberalisation on the date of entry into force of this Agreement, and the remaining non-conforming aspects of the measure for which the entry is made.
3. In the interpretation of an entry, all elements of the entry shall be considered. An entry shall be interpreted in light of the relevant Articles of the Chapters against which the entry is made. To the extent that:
(a) the Measures element is qualified by a liberalisation commitment from the Description element, the Measures element as so qualified shall prevail over all other elements; and
(b) the Measures element is not so qualified, the Measures element shall prevail over all other elements, unless any discrepancy between the Measures element and the other elements considered in their totality is so substantial and material that it would be unreasonable to conclude that the Measures element should prevail, in which case the other elements shall prevail to the extent of that discrepancy.
4. In accordance with Articles 8.9.1(a) and 9.6.1(a), and subject to Articles 8.9.1(c) and 9.6.1(c), the Articles of this Agreement specified in the Obligations Concerned element of an entry do not apply to the non-conforming aspects of the law, regulation, or other measure identified in the Measures element of that entry.
5. If Korea maintains a measure that requires that a service provider be a citizen, permanent resident, or resident of its territory as a condition to the provision of a service in its territory, a Schedule entry for that measure taken with respect to Article 9.2 (National Treatment), 9.3 (Most-Favoured-Nation Treatment), or 9.5 (Local Presence) shall operate as a Schedule entry with respect to Article 8.3 (National Treatment), 8.4 (Most-Favoured-Nation Treatment), or 8.8 (Performance Requirements) to the extent of that measure.
6. For greater certainty, National Treatment (Article 9.2) and Local Presence (Article 9.5) are separate disciplines and a measure that is only inconsistent with Local Presence (Article 9.5) need not be reserved against National Treatment (Article 9.2).
Annex I. Schedule of Korea
1. Sector: Construction Services
Obligations Concerned: Local Presence (Article 9.5)
Measures: Framework Act on the Construction Industry (Law No. 12012, 6 August 2013), Articles 9 and 10
Enforcement Decreeof the Framework Act on the Construction Industry (Presidential Decree No. 24616, 17 June 2013), Article 13
Enforcement Regulations of the Framework Act on the Construction Industry (Ordinance of the Ministry of Land, Infrastructure and Transport No.10, 17 June 2013), Articles 2 and 3
Information and Communication Construction Business Act (Law No. 11690, 23 March 2013), Article 14
Fire Fighting System Installation Business Act (Law No. 11782, 22 May 2013), Articles 4 and 5
Enforcement Decree of the Fire Fighting System Installation Business Act (Presidential Decree No. 24417, 23 March 2013), Article 2 (Table 1)
Enforcement Regulations of the Fire Fighting System Installation Business Act (Ordinance of the Ministry of Security and Public Administration No. 3, 23 March 2013), Article 2
Description: Cross-Border Trade in Services
A person that supplies construction services in Korea must, prior to the signing of the first contract related to such services, establish an office in Korea.
2. Sector: Leasing, Rental, Maintenance, Repair, Sales, and Disposal Services Related to Construction Machinery and Equipment
Obligations Concerned: Local Presence (Article 9.5)
Measures: Construction Machinery Management Act (Law No. 11919, 16 July 2013), Article 21
Enforcement Decreeof the Construction Machinery Management Act (Presidential Decree No. 24443, 23 March 2013), Articles 13, 14, 15, and 15-2
Enforcement Regulations of the Construction Machinery Management Act (Ordinance of the Ministry of Land, Infrastructure and Transport No. 1, 23 March 2013), Articles 57 through 63, 65-2, and 65-3
Description: Cross-Border Trade in Services
A person that supplies leasing, rental, maintenance, repair, sales, and disposal services related to construction machinery and equipment must establish an office in Korea.
3. Sector: Transportation Services – Automobile Maintenance, Repair, Sales, Disposal, and Inspection Services; Automobile License Plate Issuing Services
Obligations Concerned: Market Access (Article 9.4)
Local Presence (Article 9.5)
Measures: Automobile Management Act (Law No. 11929, July 16, 2013), Articles 20, 44, 44-2, 45, 45-2 and 53
Enforcement Regulations of the Automobile Management Act (Ordinance of the Ministry of Land, Infrastructure and Transport No. 24, 6 September 2013), Articles 7, 8, 83, 87, and 111
Rule on Enforcement of Comprehensive Inspection of Automobiles, Etc. (Ordinance of the Ministry of Land, Infrastructure and Transport No. 1, 23 March 2013), Article 16
Description: Cross-Border Trade in Services
A person that supplies automobile management services (which includes used car sales, maintenance, auto dismantling, and recycling services) must establish an office in Korea and obtain authorisation from the head of the si/gun/gu (municipal authorities), which is subject to an economic needs test, as appropriate.
A person that supplies automobile inspection services that is designated as a “designated repair facility” must establish an office in Korea.
A person that supplies license plate manufacturing, delivery, and seal services that is designated as a “license plate issuing agency” must establish an office in Korea.
4. Sector: Distribution Services – Wholesale and Retail Distribution of Tobacco and Liquor
Obligations Concerned: Market Access (Article 9.4)
Local Presence (Article 9.5)
Measures: Tobacco Business Act (Law No. 11690, 23 March 2013), Articles 12, 13, and 16
Enforcement Decreeof the Tobacco Business Act (Presidential Decree No. 24519, 26 April 2013), Articles 4 and 5
Enforcement Regulationsof the Tobacco Business Act (Ordinance of the Ministry of Strategy and Finance No. 131, 3 March 2010), Articles 5, 7, and 7-3
Liquors Act (Law No. 11873, 7 June 2013), Articles 8 through 10
Enforcement Decree of the Liquors Act (Presidential Decree No. 24638, 28 June 2013), Article 9
Notice on Sales of Liquor by Telecommunication Means (Notice of the National Tax Service No. 2012-68, 1 October 2012)
Notice on Designation of Zone for Liquor License (Notice of the National Tax Service No. 2013-15, 1 April 2013)
Description: Cross-Border Trade in Services
A person that supplies tobacco wholesale (including importation) or retail distribution services must establish an office in Korea.
Only designated tobacco retailers may sell tobacco to retail buyers. The sale of tobacco to retail buyers by mail or in electronic commerce is prohibited.
The distance between places of business of tobacco retailers must be at least 50 meters.
A person that supplies liquor wholesale distribution services must establish an office in Korea and obtain authorisation from the head of the relevant tax office, which is subject to an economic needs test.
The sale of liquor by telephone or in electronic commerce is prohibited.
5. Sector: Agriculture and Livestock
Obligations Concerned: National Treatment (Article 8.3)
Measures: Foreign Investment Promotion Act (Law No. 11535, 11 December 2012), Article 4
Enforcement Decree of the Foreign Investment Promotion Act (Presidential Decree No. 24638, 28 June 2013), Article 5
Regulations on Foreign Investment and Introduction of Technology (Notice of the Ministry of Trade, Industry and Energy, No. 2013-37, 30 May 2013), Attached table 2
Description: Investment
Foreign persons shall not:
(i) invest in an enterprise engaged in rice or barley farming; or
(ii) hold 50 percent or more of the equity interest in an enterprise engaged in beef cattle farming.
6. Sector: Business Services – An-gyung-sa (Optician and Optometry) Services
Obligations Concerned: Market Access (Article 9.4)
Local Presence (Article 9.5)
Measures: Medical Technicians Act (Law No. 11860, 4 June 2013), Article 12
Enforcement Regulationsof the Medical Technicians Act (Ordinance of the Ministry of Health and Welfare No. 193, 17 April 2013), Article 15
Description: Cross-Border Trade in Services
Only a natural person that is a licensed an-gyung-sa(optician or optometrist) that has established an office in Korea may engage in optician or optometry services.
An an-gyung-sa (optician or optometrist) shall not establish more than one office in Korea.
7. Sector: Wholesale and Retail Distribution Services
Obligations Concerned: Market Access (Article 9.4)
Local Presence (Article 9.5)
Measures: Pharmaceutical Affairs Act (Law No.12074, 13 August 2013), Articles 42 and 45
Enforcement Decree on the Pharmaceutical Affairs Acts (Presidential Decree No. 24479, 23 March 2013), Article 31-2
Enforcement Decree on the Standards of Facilities of Manufacturer and Importers of Medicinal Products, Etc. (Presidential Decree No. 24479, 23 March 2013), Articles 6
Supply and Demand of Oriental Medicinal Herbs Regulations (Notice of the Ministry of Health and Welfare No. 2013-63, 18 April 2013), Articles 4 and 12
Medical Devices Act (Law No. 12107, 13 August 2013), Article 15
Enforcement Regulations of the Medical Devices Act (Ordinance of the Prime Minister No. 1016, 23 March 2013), Article 20
Health Functional Foods Act (Law No. 11508, 22 October 2012), Article 6
Enforcement Regulations of the Health Functional Foods Act (Ordinance of the Prime Minister No. 1010, 23 March 2013), Articles 2 and 5
Food Sanitation Act (Law No. 11819, 22 May 2013), Articles 24, 36 and 37
Enforcement Decree of the Food Sanitation Act (Presidential Decree No. 24800, 16 October 2013), Articles 23 and 24
Enforcement Regulations of the Food Sanitation Act (Ordinance of the Prime Minister No. 1041, 25 October 2013), Articles 23 and 36 (attached table 14)
Act on the Control of Narcotics, Etc. (Law No. 11984, 30 July 2013), Articles 6 and 6-2
Description: Cross-Border Trade in Services
A person that supplies wholesale trade services must establish an office in Korea in order to receive an import business license to supply such services with respect to:
(a) pharmaceuticals and related items;
(b) medical devices; or
(c) health functional foods (including dietary supplements).
To supply the following services a person must establish an office in Korea:
(a) transportation, sales, and preservation (cold storage) of food and food additives;
(b) food supply services;
(c) food inspection services; or
(d) narcotic drug wholesale and retail distribution services.
The Minister of Health and Welfare controls the supply and demand of the wholesale distribution of imported designated han-yak-jae (Asian medicinal herbs).
Certain liquor-selling bars and the wholesale and retail distribution of narcotics require authorisation by the relevant authority.
8. Sector: Retail Distribution of Pharmaceuticals
Obligations Concerned: Market Access (Article 9.4)
Local Presence (Article 9.5)
Measures: Pharmaceutical Affairs Act (Law No. 12074, 13 August 2013), Articles 20 and 21