Title
Agreement between the Government of the Republic of Belarus and the Government of the United Arab Emirates on Trade in Services and Investment
Preamble
The Government of the Republic of Belarus (hereinafter referred to as “Belarus”) and the Government of the United Arab Emirates (hereinafter referred to as “the UAE”), hereinafter referred to individually as “a Party” and collectively as “the Parties”;
RECOGNIZING the strong economic and political ties between Belarus and the UAE;
NOTING the mutual desire of the Parties to conclude an agreement covering trade in services and investment;
AFFIRMING the intention to strengthen mutual cooperation in areas of mutual interest between the Eurasian Economic Union and its member states, on the one hand, and the United Arab Emirates, on the other hand;
RECOGNIZING the dynamic and rapidly changing global environment, influenced by globalization and technological progress, which presents various economic and strategic opportunities for the Parties;
CONVINCED that the establishment of a free trade area covering services and an investment facilitation mechanism will provide a more favorable climate for the promotion and development of economic and trade relations between the Parties;
SEEKING to establish a clear, transparent, and predictable legal and commercial framework conducive to the further expansion of trade in services and investment;
DETERMINED to reduce or eliminate barriers to trade in services and investment between the Parties, reduce the costs of doing business, enhance economic efficiency, and create favorable conditions for the expansion of economic cooperation and mutual benefit;
BEING COMMITTED to promoting technology transfer, the expansion of trade in services, and the flow of investment;
BASED ON the principles and rules of the World Trade Organization regarding the liberalization and facilitation of international trade and investment;
AFFIRMING their inherent right to regulate and fully committed to preserving the flexibility of the Parties in determining legislative and regulatory priorities and protecting the legitimate national interests of the Parties in accordance with the rights and obligations set forth in this Agreement;
HAVE AGREED as follows:
Body
Chapter 1. INTRODUCTORY PROVISIONS AND GENERAL DEFINITIONS
Article 1.1. General Definitions
For the purposes of this Agreement:
“days” means calendar days, including weekends and holidays;
GATS means the General Agreement on Trade in Services, contained in Annex 1B to the WTO Agreement;
Joint Committee means the Joint Committee established pursuant to Chapter 6 (Administration of the Agreement) of this Agreement;
“measure” means any measure in the form of a law, other regulation, rule, procedure, decision, practice, administrative action, or in any other form;
“territory” means:
(a) with respect to Belarus, the territory under the sovereignty of the Republic of Belarus, over which the Republic of Belarus exercises sovereign rights or jurisdiction in accordance with national legislation and international law; and
(b) with respect to the UAE – land, internal waters, including free zones, territorial waters, including the seabed and subsoil thereunder, the airspace above such territories and waters, as well as adjacent zones, the continental shelf, and exclusive economic zones over which the UAE exercises sovereignty, sovereign rights, or jurisdiction in accordance with its laws and international law;
WTO means the World Trade Organization; and
The WTO Agreement means the Marrakesh Agreement Establishing the World Trade Organization, concluded in Marrakesh on April 15, 1994.
Article 1.2. Establishment of a Free Trade Area
The Parties hereby establish a free trade area in accordance with Article V of the General Agreement on Trade in Services (hereinafter referred to as “GATS”).
Article 1.3. Objectives
The objectives of this Agreement are:
(a) to establish fundamental principles and rules for trade in services and investment;
(b) to liberalize and facilitate trade in services;
(c) to create a favorable environment for investors and to promote investment; and
(d) to promote the expansion and diversification of trade between the Parties.
Article 1.4. Relationship to other Agreements
1. The Parties shall ensure the implementation this Agreement in a manner consistent with the WTO Agreement.
2. The Parties reaffirm their existing rights and obligations toward each other under other existing agreements to which both Parties are parties.
3. In the event of any inconsistency between this Agreement and the other agreements referred to in paragraph 2 of this Article, the Parties shall immediately enter into consultations with each other to reach a mutually acceptable solution.
Article 1.5. Regional and Local Authorities
1. In fulfilling its obligations under this Agreement, each Party shall take reasonable and available measures to ensure compliance with such obligations by regional and local governments and authorities and non-governmental bodies within its territory.
2. These provisions shall be interpreted and applied in accordance with the principles setforth in paragraph 3 of Article I of the GATS.
Article 1.6. Transparency
1. Each Party shall endeavor to publish or otherwise make publicly available its laws, other regulations, and relevant international agreements that may affect the subject matter of this Agreement.
2. Without prejudice to measures taken in accordance with Article 1.7, each Party shall, within a reasonable time, respond to specific requests and, upon request, provide information on the matters specified in paragraph 1 of this Article.
Article 1.7. Confidential Information
1. Each Party shall, in accordance with its laws and other regulations, maintain the confidentiality of information designated by the other Party as confidential.
2. Nothing in this Agreement shall require a Party to disclose confidential information, the disclosure of which would impede the Party’s law enforcement practices, or would otherwise be contrary to the public interest, or would harm the legitimate commercial interests of any business entity.
Chapter 2. TRADE IN SERVICES
Article 2.1. Definitions
For the purposes of this Chapter:
a service provided in the exercise of governmental authority means any service that is supplied on a non-commercial basis and not on a competitive basis with one or more service suppliers;
aircraft repair and maintenance services mean activities performed on an aircraft or part thereof when it is out of service, and do not include so-called line maintenance;
airport operation and management services means the provision of services for the operation of terminal complexes, airfields, and other airport infrastructure on a fee-for-service or contractual basis. Airport operation and management services do not include air navigation services;
“commercial presence” means any form of business or professional establishment, including through:
(i) the establishment, acquisition, or maintenance of a legal entity, or
(ii) the establishment or maintenance of a branch or representative office in the territory of a Party for the purpose of providing a service;
computer reservation system services means services provided by computerized systems, containing information on air carriers’ schedules, seat availability, fares, and fare rules, through which reservations or tickets may be made;
Ground handling services refer to the provision of the following types of services at an airport on a fee-for-service or contractual basis: representation of the airline, management, and supervision; passenger services; baggage handling; services provided at the aircraft parking area; catering services (excluding food preparation); air cargo and mail handling; aircraft refueling; aircraft maintenance and cleaning; ground transportation; as well as flight operations, crew management, and flight planning. Ground handling services do not include cargo handling by the aircraft crew; security ; routine technical maintenance; repair and maintenance of aircraft; management or operation of necessary centralized airport infrastructure, such as de-icing facilities, fuel distribution systems, baggage handling systems, and fixed intraairport transport systems;
“legal entity” means any entity having legal status, established or otherwise organized under applicable law for profit or other purposes, whether privately or publicly owned, including any corporation, trust, partnership, joint venture, sole proprietorship, or association;
“legal entity of the other Party” means a legal entity that is:
(a) or established or otherwise organized in accordance with the laws of such other Party and conducting substantial business operations in the territory of that Party, or
(b) in the case of the supply of a service through a commercial presence owned or controlled by:
(i) natural persons of such other Party; or
(ii) legal entities of such other Party referred to in subparagraph (a).
a legal entity:
(a) is owned by persons of one of the Parties if more than 50 percent of the equity interest in it is actually owned by persons of that Party;
(b) is controlled by persons of one of the Parties if such persons have the power to appoint a majority of its directors or otherwise lawfully direct its actions; or
(c) is related to another person if it controls that other person or is controlled by that other person, or if it and that other person are controlled by the same person;
“measures of the Parties” means measures adopted or applied by:
(a) by central, regional, or local governments and authorities; and
(b) non-governmental bodies in the exercise of powers delegated by central, regional, or local governments or authorities;
measures of the Parties affecting trade in services include measures relating to:
(a) the acquisition, payment for, or use of a service;
(b) access to and use of a service or services that, at the request of a Party, must be offered to the general public; and
(c) the presence, including commercial presence, of persons of one Party for the purpose of supplying services in the territory of the other Party;
a monopoly provider of a service means any person, whether public or private, that in the relevant market of a Party’s territory is either officially authorized or de facto established by that Party as the sole provider of that service;
“natural person of a Party” means a citizen or a person permanently residing in the territory (1) of a Party in accordance with its laws and other regulations;
“person” means a natural or legal person;
“service sector” means:
(a) with respect to a specific commitment, one, several, or all subsectors of that service, as specified in the Party’s Schedule; or
(b) in other cases, the entire sector of that service, including all its subsectors;
the sale and marketing of air transport services means the ability of the relevant air carrier to freely sell and market its air transport services, including all aspects of marketing such as market research, advertising, and distribution. These activities do not include pricing of air transport services and the applicable conditions of carriage;
“consumer of a service” means any person who receives or uses a service;
“service of the other Party” means a service that is supplied:
(a) from or within the territory of such other Party, or, in the case of maritime transport, by a vessel registered under the laws of such other Party, or by a person of such other Party who provides the service through the full or partial operation of the vessel and/or its full or partial use; or
(b) in the case of the supply of a service through a commercial presence or through the presence of natural persons, by a service supplier of such other Party;
“service supplier” means any person who intends to supply or supplies a service (2);
the supply of a service includes the production, distribution, marketing, sale, and delivery of the service;
trade in services means the supply of a service:
(a) from the territory of one Party to the territory of the other Party;
(b) within the territory of one Party to a consumer of services of the other Party;
(c) by a service provider of one Party through a commercial presence in the territory of the other Party;
(d) by a service provider of one Party through the presence of natural persons of one Party in the territory of the other Party;
traffic rights mean the rights to provide scheduled and non-scheduled services and/or to transport passengers, cargo, and mail for remuneration or hire from, to, within, or through the territory of a Member, including served points, operated routes, types of traffic carried, transportation capacities provided, tariffs charged and conditions of their application, and criteria for identifying airlines, such as the airline’s code, ownership, and control.
Article 2.2. Scope and Coverage
1. This Chapter applies to the Parties’ measures relating to trade in services.
2. This Chapter does not apply to:
(a) government procurement;
(b) services supplied in the exercise of governmental authority;
(c) subsidies or grants provided by a Party, including government-backed loans, guarantees, and insurance; and
(d) measures concerning natural persons of a Party seeking access to the labor market of the other Party, or measures concerning citizenship, permanent residence, or permanent employment.
Nothing in this Chapter shall prevent a Party from applying measures to regulate the entry of natural persons into its territory or their temporary stay therein, including measures necessary to protect the integrity of its borders and ensure the orderly movement of natural persons across its border, provided that such measures are not applied in a manner as to nullify or impair the benefits accruing to any Party under the terms of a specific commitment (3).
(e) measures relating to air traffic rights, or measures regarding services directly related to the exercise of air traffic rights, except for measures regarding (4) :
(i) aircraft repair and maintenance services;
(ii) the sale and marketing of air transport services;
(iii) computer reservation system services;
(iv) airport operation and management services; or
(v) ground handling services.
Article 2.3. Schedules of Specific Commitments
1. Each Party shall set forth in its Schedule of Specific Commitments the specific commitments undertaken pursuant to Articles 2.5, 2.6, and 2.7.
2. For sectors in which such commitments are undertaken, each Schedule of Specific Commitments shall specify:
(a) timeframes, limitations, and conditions for market access;
(b) conditions and reservations regarding national treatment;
(c) the acceptance of additional commitments;
(d) if appropriate, temporary timeframes for of the relevant obligations; and
(e) the effective date of such obligations.
3. Measures that are inconsistent with both Article 2.5 and Article 2.6 are listed in the column relating to Article 2.5. In such cases, they are also considered to be a condition or reservation under Article 2.6.
4. The lists of specific commitments of the Parties are set out in Annexes 2A (List of Specific Commitments of Belarus on Trade in Services) and 2B (List of Specific Commitments of the UAE on Trade in Services), referred to in Article 2.17.
Article 2.4. Most-Favored-Nation Treatment
1. Except as provided in the List of Exceptions to Most-Favored-Nation Treatment contained in Annexes 2C (List of Exceptions from the Most-Favored-Nation Treatment of Belarus) and 2D (List of Exceptions to the Most-Favored-Nation Treatment of the UAE), each Party shall immediately and unconditionally accord to the services and service suppliers of the other Party, with respect to all measures affecting the supply of services, treatment no less favorable than that accorded to like services and service suppliers of any non-participating Party.
2. The obligations set forth in paragraph 1 of this Article shall not apply to:
(a) Treatment accorded under other existing or future agreements concluded by a Party pursuant to Article V or V bis of the GATS, as well as treatment accorded under Article VII of the GATS, or prudential measures under the GATS Annex on Financial Services.
(b) Treatment accorded by the Republic of Belarus to services and service suppliers of member states of the Eurasian Economic Union in accordance with the Treaty on the Eurasian Economic Union (EAEU).
(c) The treatment accorded by the United Arab Emirates to services and provided by service suppliers of member states of the GCC in accordance with the GCC Economic Agreement, and the treatment accorded by the United Arab Emirates within the framework of the Greater Arab Free Trade Area (GAFTA).
3. The provisions of this Chapter shall not be construed as preventing any Party from granting advantages to neighboring countries for the purpose of facilitating the exchange of services at in border territories, which are produced and consumed within such territories.
4. If, after the entry into force of this Agreement, a Party concludes an agreement of the type referred to in paragraph 2 of this Article, or any agreement on trade in services with a non-participating Party, the other Party may request consultations with that Party regarding the inclusion in this Agreement of a treatment no less favorable than that provided for under such agreement. The Parties shall take into account the circumstances under which a Party concludes any agreement on trade in services with a non-Party.
Article 2.5. Market Access
1. With respect to market access through the modes of supply defined in accordance with Article 2.1, each Party shall accord to the services and service suppliers of the other Party treatment no less favorable than that accorded in accordance with the terms, limitations, and conditions agreed upon and specified in its Schedule of Specific Commitments (5).
2. In sectors where market access commitments have been undertaken, measures that a Party does not adopt or apply within regional administrative units or throughout its territory, unless otherwise specified in its Schedule of Specific Commitments, are defined as:
(a) a limitation on the number of service suppliers, whether in the form of quantitative quotas, monopolies, exclusive service suppliers, or economic feasibility test requirements;
(b) a limitation on the total value of service transactions or assets in the form of quantitative quotas or economic feasibility test requirements;
(c) a limitation on the total number of service transactions or the total volume of service production, expressed in terms of established quantitative units of measurement, in the form of quotas or economic feasibility test requirements (6);
(d) limiting the total number of natural persons who may be employed in a specific service sector, or the number of natural persons a service supplier may employ who are necessary and directly related to the supply of a specific service, in the form of quantitative quotas or requirements for an economic feasibility test;
(e) measures that restrict or require the establishment of specific forms of legal entities and joint ventures through which a service provider may supply a service; and
(f) a limitation on foreign capital participation in the form of a maximum share of foreign participation in the share capital or the total value of individual or aggregate foreign investments.
Article 2.6. National Treatment
1. Each Party, in the sectors set out in its Schedule of Specific Commitments and in accordance with the terms and conditions set forth therein, shall accord to the services and service suppliers of the other Party, with respect to all measures affecting the supply of services, treatment no less favorable than that which it accords to its own like services and service suppliers (7).
2. A Party may fulfill the requirements of paragraph 1 of this Article by granting to the services and service suppliers of the other Party treatment that is formally identical to that which it accords to its own like services and service suppliers, or treatment that is formally different from it.
3. A treatment that is formally identical or formally different shall be considered less favorable if it alters the conditions of competition in favor of that Party’s services or service suppliers compared to similar services or service suppliers of the other Party.
Article 2.7. Additional Commitments
The Parties may agree on commitments regarding measures affecting trade in services, which are not subject to inclusion in the Schedules of commitments pursuant to Articles 2.5 or 2.6, including commitments relating to qualifications, standards, or licensing. Such commitments shall be set out in the Party’s Schedule of Specific Commitments.