For Mode 1
EU: Unbound.
For Mode 2
None.
c) Cosmetic treatment, manicuring and pedicuring services
(CPC 97022)
For Mode 1
EU: Unbound.
For Mode 2
None.
d) Other beauty treatment services not elsewhere classified
(CPC 97029)
For Mode 1
EU: Unbound.
For Mode 2
None.
e) Spa services and non therapeutical massages, to the extent that they are provided as relaxation physical well-being services and not for medical or rehabilitation purposes 37
(CPC ver. 1.0 97230)
For Mode 1
EU: Unbound.
For Mode 2
None.
g) Telecommunications connection services
(CPC 7543)
For Modes 1 and 2
None.
ANNEX 10-B. EUROPEAN UNION. LIST OF COMMITMENTS ON ESTABLISHMENT IN CONFORMITY WITH ARTICLES 10.3 AND 10.4
1. The list of commitments in this Annex indicates the economic activities liberalised pursuant to Articles 10.3 and 10.4 and specifies the market access and national treatment limitations that apply to enterprises and investors of MERCOSUR in those activities by means of reservations. The list in this Annex is composed of two columns containing the following elements, respectively:
(a) the sector or subsector in which the commitment is undertaken by the European Union, and the scope of liberalisation to which the reservations apply; and
(b) a description of the applicable reservations.
2. Establishment in sectors or subsectors covered by this Agreement and not mentioned in the list in this Annex is not committed.
3. For the purposes of this Annex, when identifying individual sectors and subsectors:
(a) "CPC" means the Provisional Central Products Classification as defined in Article 1.3(c);
(b) "CPC ver. 1.0" means the Central Products Classification as set out in Statistical Office of the United Nations, Statistical Papers, Series M, N° 77, CPC ver 1.0, 1998; and
(c) "ISIC rev 3.1" means the International Standard Industrial Classification of all Economic Activities as set out in Statistical Office of the United Nations, Statistical Papers, Series M, N° 4, ISIC REV 3.1, 2002.
4. The list in this Annex does not include measures relating to qualification requirements and procedures, technical standards and licensing requirements and procedures if they do not constitute a market access or a national treatment limitation within the meaning of Article 10.3 or Article 10.4 respectively. Those measures (for example, need to obtain a licence, universal service obligations, need to obtain recognition of qualifications in regulated sectors, need to pass specific examinations, including language examinations, and non-discriminatory requirement that certain activities may not be carried out in environmental protected zones or areas of particular historic and artistic interest), even if not listed, apply in any case to enterprises and investors of a Signatory MERCOSUR State.
5. The European Union takes commitments with respect to market access commitments as set out in Article 10.3(1), differentiated by its Member States, if applicable.
6. For greater certainty, for the European Union, the obligation to grant national treatment does not entail the requirement to extend to natural or juridical persons of a Signatory MERCOSUR State the treatment granted in a Member State of the European Union, pursuant to the Treaty on the Functioning of the European Union, or to any measure adopted pursuant to that Treaty, including the implementation of that Treaty or measures in the Member States of the European Union, to:
(a) natural persons or residents of a Member State of the European Union; or
(b) juridical persons constituted or organised under the law of another Member State of the European Union or that of the European Union and having their registered office, central administration or principal place of business in a Member State of the European Union.
Such national treatment is granted to juridical persons which are constituted or organised under the law of a Member State of the European Union or that of the European Union and have their registered office, central administration or principal place of business in a Member State of the European Union, including those which are owned or controlled by natural or juridical persons of a Signatory MERCOSUR State.
7. The following abbreviations are used in the list in this Annex:
– EU European Union, including all its Member States
– EEA European Economic Area
– AT Austria
– BE Belgium
– BG Bulgaria
– CY Cyprus
– CZ Czechia
– DE Germany
– DK Denmark
– EE Estonia
– EL Greece
– ES Spain
– FI Finland
– FR France
– HR Croatia
– HU Hungary
– IE Ireland
– IT Italy
– LV Latvia
– LT Lithuania
– LU Luxembourg
– MT Malta
– NL The Netherlands
– PL Poland
– PT Portugal
– RO Romania
– SK Slovak Republic
– SI Slovenia
– SE Sweden
Sector or subsector
Description of reservations
ALL SECTORS
Real estate
In all Member States of the European Union except AT, BG, CY, CZ, DE, DK, EE, EL, FI, HU, IE, IT, LV, LT, MT, PL, RO, SI, SK, ES: None.
In AT: The acquisition, purchase as well as rent or lease of real estate by foreign natural persons and juridical persons requires an authorisation by the competent regional authorities ("Länder") which will consider whether important economic, social or cultural interests are affected or not.
In BG: Foreign natural and juridical persons (including branches thereof) cannot acquire ownership of land. Bulgarian juridical persons with foreign participation cannot acquire ownership of agricultural land. Foreign juridical persons and foreign citizens with permanent residence abroad can acquire ownership of buildings and limited property rights 38 of real estate, subject to the permission of the Ministry of Finance. The permission requirement does not apply to persons who have made investments in Bulgaria. Foreign citizens with permanent residence abroad, foreign juridical persons and enterprises in which foreign participation ensures a majority in adopting decisions or blocks the adoption of decisions, can acquire real estate property rights in specific geographic regions designated by the Council of Ministers, subject to permission.
In CY: Unbound.
In CZ: Agricultural and forest land can be acquired by foreign natural and juridical persons with permanent residence in Czechia. Specific rules apply to the agricultural and forest land in state ownership.
In DE: Certain conditions of reciprocity may apply.
In DK: Limitations on real estate purchase by non‑resident physical and legal entities. Limitations on agricultural estate purchased by foreign physical and legal entities.
In EE: Unbound for acquisition of agricultural and forest land 39 .
In EL: According to Law No. 1892/90, permission from the Minister of Defence is needed for a citizen to acquire land in areas near borders.
In FI: (Åland Islands): Restrictions on the right of natural persons who do not enjoy regional citizenship in Åland, and of juridical persons, to acquire and hold real property on the Åland Islands without permission by the competent authorities of the islands. Restrictions on the right of establishment and the right to provide services by natural persons who do not enjoy regional citizenship in Åland, or by any juridical person, without permission by the competent authorities of the Åland Islands.
In HR: Unbound for acquisition of real estate by service suppliers not established and incorporated in Croatia. Acquisition of real estate necessary for the supply of services by companies established and incorporated in Croatia as legal persons is allowed. Acquisition of real estate necessary for the supply of services by branches requires the approval of the Ministry of Justice. Agricultural land cannot be acquired by foreigners.
In HU: Limitations on acquisition of land and real estate by foreign investors 40 .
In IE: Prior written consent of the Land Commission is necessary for the acquisition of any interest in Irish land by domestic or foreign companies or foreign nationals. Where such land is for industrial use (other than agricultural industry), this requirement is waived subject to certification to this effect from the Minister for Enterprise, Trade and Employment. This law does not apply to land within the boundaries of cities and towns.
In IT: The purchase of real estate by foreign natural and juridical persons is subject to a condition of reciprocity.
In LV: Acquisition of land is unbound; land lease not exceeding 99 (ninety-nine) years is permitted.
In LT: Acquisition of land is unbound 41 .
In MT: The requirements of Maltese laws and regulations regarding acquisition of real property shall continue to apply.
In PL: Acquisition of real estate, direct or indirect, by foreigners (a natural or foreign legal person) requires permission. Acquisition of state-owned property is unbound (for example the regulations governing the privatisation process).
In RO: Natural persons not having Romanian citizenship and residence in Romania, as well as legal persons not having Romanian nationality and their headquarters in Romania, cannot acquire ownership over any kind of land plots, through inter vivos acts.
In SI: Juridical persons, established Slovenia with foreign capital participation, may acquire real estate in the territory of Slovenia. Branches 42 established in Slovenia by foreign persons may only acquire real estate, except land, necessary for the conduct of the economic activities for which they are established.
In SK: Limitations on real estate acquisition by foreign physical and legal entities. Foreign entities may acquire real property through establishment of Slovak legal entities or participation in joint ventures. Unbound for land, including for example natural resources, lakes, rivers, public roads.
In ES: foreign investment in activities directly related to real estate investments of diplomatic missions by States that are not members of the EU require an administrative authorisation from the Spanish Council of Ministers, unless there is a reciprocal liberalisation agreement in place.
ALL SECTORS
Public utilities
EU: Services considered as public utilities at a national or local level may be subject to public monopolies or to exclusive rights granted to private operators 43 44 .
ALL SECTORS
Types of establishment
EU: Treatment accorded to subsidiaries (of juridical persons of a Signatory MERCOSUR State) formed in accordance with the law of the Member States of the European Union and having their registered office, central administration or principal place of business within the Union is not extended to branches or agencies established in the Member States of the European Union by juridical persons of a Signatory MERCOSUR State 45 .
In BG: The establishment of foreign service suppliers, including joint ventures, may only take the form of limited liability company or joint stock company with at least two shareholders. Establishment of branches is subject to authorisation. Unbound for representative offices. Representative offices may not engage in economic activity. In enterprises where the public (state or municipal) share in the equity capital exceeds 30 % (thirty per cent), the transfer of these shares to third parties needs authorisation.
In CY: full admission to the Bar is required for the practice of legal services in respect of domestic (EU and Member States of the European Union) law, including representation before courts. Residency (commercial presence) and EU nationality is required in order to obtain full admission to the Bar. Only advocates enrolled in the Bar may be partners or shareholders or members of the Board of Directors in a law company in Cyprus.
In EE: At least half of the members of the management board shall have their residence in the EU.
In FI: A national of a Signatory MERCOSUR State carrying out trade as a partner in a Finnish limited or general partnership needs a trade permit and has to be permanently resident in the EU. For all sectors except telecommunications services, nationality and residency are required for at least half of the ordinary and deputy members of the board of directors and for the managing director; however, exemptions may be granted to certain companies. For telecommunications services, permanent residency is required for half of the founders and half of the members of the board of directors and for the managing director. If the founder is a juridical person, that juridical person is also subject to a residency requirement. If an organisation of a Signtory MECOSUR State intends to carry on business or trade by establishing a branch in Finland, a trade permit is required. A permission to act as a founder of a limited company is required for an organisation of a Signatory MERCOSUR State or a natural person who is not a citizen of the EU.
In FR: The managing director of an industrial, commercial or artisanal activity, if not a holder of a residency permit, needs a specific authorisation.
In HU: Commercial presence should take the form of limited liability company, joint‑stock company or representative office. Initial entry as branch is not permitted, except for financial services.
In IT: Access to industrial, commercial and artisanal activities is subject to a residence permit and specific authorisation to pursue the activities.
In BG, PL: The scope of operations of a representative office may only encompass advertising and promotion of the foreign parent company represented by the office.
In PL: With the exception of financial services, unbound for branches. Investors of a Signatory MERCOSUR State can undertake and conduct economic activity only in the form of a limited partnership, limited joint-stock partnership, limited liability company and joint-stock company (in the case of legal services, only in the form of registered partnership and limited partnership). Foreign service suppliers may set up representative offices with their seat in Poland. The scope of action of a representative office may only encompass carrying out activity to advertise and promote the foreign service suppliers.
In RO: The sole administrator or the chairman of the board of administration as well as half of the total number of administrators of the commercial companies shall be Romanian citizens unless otherwise stipulated in the company contract or its statutes. The majority of the commercial companies' auditors and their deputies shall be Romanian citizens.
In SE: A foreign company, which has not established a legal entity in Sweden or is conducting its business through a commercial agent, shall conduct its commercial operations through a branch, registered in Sweden, with independent management and separate accounts. The managing director and the vice-managing director, of the branch, must reside in the EEA. A natural person not resident in the EEA, who conducts commercial operations in Sweden, shall appoint and register a resident representative responsible for the operations in Sweden. Separate accounts shall be kept for the operations in Sweden. The competent authority may in individual cases grant exemptions from the branch and residency requirements. Building projects with duration of less than 1 (one) year, conducted by a company located or a natural person residing outside the EEA, are exempted from the requirements of establishing a branch or appointing a resident representative. A limited liability company may be established in Sweden by a natural person resident within the EEA, by a Swedish legal person or by a legal person that has been formed according to the law in a state within the EEA and that has its registered office, headquarters or principal place of business within the EEA. A partnership may be a founder only if all owners with unlimited personal liability are resident within the EEA. Founders outside the EEA may apply for permission from the competent authority. For limited liability companies and co-operative economic associations, at least 50 % (fifty per cent) of the members of the board of directors, at least 50 % (fifty per cent) of the deputy board members, the managing director, the vice-managing director, and at least one of the persons authorised to sign for the company, if any, must reside within the EEA. The competent authority may grant exemptions from this requirement. If none of the company's or society's representatives reside in Sweden, the board must appoint and register a person resident in Sweden, who has been authorised to act as an address for service on behalf of the company or society. Corresponding conditions apply to the establishment of all other types of legal entities.
In SK: A natural person of a Signatory MERCOSUR State whose name is to be registered in the Commercial Register as a person authorised to act on behalf of the entrepreneur is required to submit residence permit for the Slovak Republic.
ALL SECTORS
Investment
EU: Unbound with respect to activities or services forming part of a public retirement plan or statutory system of social security.
In BG: In enterprises where the public (state or municipal) share in the equity capital exceeds 30 % (thirty per cent), the transfer of these shares to third parties needs authorisation. Certain economic activities related to the exploitation or use of state or public property are subject to concessions granted under the provisions of the Concessions Act. Foreign investors cannot participate in privatisation. Foreign investors and Bulgarian juridical persons with controlling foreign participation require permission for: a) prospecting, development or extraction of natural resources from the territorial seas, the continental shelf or the exclusive economic zone; and b) acquisition of a controlling equity interest in companies engaged in any of the activities specified under "a)".
In CY: Entities with foreign participation must have paid up capital commensurate with their finance requirements and non‑residents must finance their contribution through the importation of foreign exchange. If the non-resident participation exceeds 24 % (twenty-four per cent), any additional financing for working capital requirements or otherwise should be raised from local and foreign sources in proportion to the participation of residents and non‑residents in the entity's equity. In the case of branches of foreign companies, all capital for the initial investment must be provided from foreign sources. Borrowing from local sources is only permitted after the initial implementation of the project, for financing working capital requirements.
In FI: Acquisition of shares by foreign owners giving more than one third of the voting rights of a major Finnish company or a major business undertaking (with more than 1 000 (one thousand) employees, with a turnover exceeding 168 (one hundred and sixty eight) million Euros or with a balance sheet total 46 exceeding 168 (one hundred and sixty eight million Euros is subject to confirmation by the Finnish authorities. This confirmation may be denied only if an important national interest would be jeopardised. These limitations do not apply to telecommunications services.
In FR: Pursuant to articles L151-1 and R153-1 sec of the financial and monetary code, foreign investments in France in sectors listed in article R153-2 of the financial and monetary code are subject to prior approval from the Minister for the Economy. France reserves the right to limit foreign participation in newly privatised companies to a variable amount, determined by the government of France on a case by case basis, of the equity offered to the public.
In HU: Unbound for foreign participation in newly privatised companies.
In IT: Exclusive rights may be granted to or maintained in respect of newly privatised companies. Voting rights in newly privatised companies may be restricted in some cases. For a period of 5 (five) years from the date of entry into force of this Agreement, the acquisition of large equity stakes of companies operating in the fields of defence, transport services, telecommunications and energy may be subject to the approval of the competent authorities.
In LT: Enterprises of strategic importance to national security which must belong to the State by the right of ownership (proportion of capital which may be held by private national or foreign persons conforming to national security interests, with respect to investment in enterprises, sectors and facilities of strategic importance to national security and procedures and criteria for determination of conformity of potential national investors and potential enterprise participants, among others).
In MT: Companies with the participation of non-resident juridical or natural persons require a minimum share capital of which 50 % (fifty per cent) has to be paid up. The non-resident percentage of the equity is to be paid for with funds emanating from abroad. In terms of the Section 17 of the Exchange Control Act, non-residents of Malta, wishing to supply any service through commercial presence in Malta, may do so only by registering a local company with the prior permission of the Central Bank of Malta.
In PT: Foreign participation in newly privatised companies may be limited to a variable amount, determined by the Government of Portugal on a case by case basis, of the equity offered to the public.
In SI: For financial services, authorisation is issued by the authorities indicated in sector specific commitments and according to conditions indicated in sector specific commitments. There are no limitations on establishment of a new business establishment ("greenfield" investments).
ALL SECTORS
Geographical zones
In FI: In the Åland Islands, limitations on the right of establishment by natural persons who do not enjoy regional citizenship in Åland or by any juridical person.
1. AGRICULTURE, HUNTING, FORESTRY
A. Agriculture, hunting
(ISIC rev 3.1: 011, 012, 013, 014, 015) excluding advisory and consultancy services 47
EU: Quantitative restrictions apply to the production of agricultural products.
In AT, HR, HU, MT, RO: Unbound for agricultural activities.
In CY: The participation of investors of a Signatory MERCOSUR State is allowed only up to 49 % (forty-nine per cent).
In FI: Only EEA nationals residing in the reindeer herding area may own reindeer and exercise reindeer husbandry. Exclusive rights may be granted.
In FR: The establishment of farms and agricultural co-operatives by non-EU investors is subject to authorisation.
In IE: Establishment by residents of a Signatory MERCOSUR State in flour milling activities is subject to authorisation.
In SE: Only Sami people may own and exercise reindeer husbandry.
B. Forestry and logging
(ISIC rev 3.1: 020) excluding advisory and consultancy services 48
In BG: Unbound for logging activities.
2. FISHING AND AQUACULTURE
(ISIC rev. 3.1: 0501, 0502) excluding advisory and consultancy services 49
EU: Unbound.
3. MINING AND QUARRYING
A. Mining of coal and lignite; extraction of peat
(ISIC rev 3.1: 10)