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SCHEDULE OF THE REPUBLIC OF EL SALVADOR

ANNEX I: NON-CONFORMING MEASURES

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Sector: All Sectors Obligations Concerned: National Treatment (Article 10.03) Most-Favored-Nation Treatment (Article 10.04) Measures: Constitución de la República de El Salvador, Articles 95 and

109 Description: Investment

Rural land may not be owned by a foreign person, including a branch of a foreign person, if the person is a national of a country or is organized under the law of a country that does not permit Salvadoran persons to own rural land, except in the case of land to be used for industrial plants.

An enterprise organized under Salvadoran law, a majority of whose capital is owned by foreign persons, or a majority of whose partners are foreign persons, is subject to the preceding paragraph.



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Sector: All Sectors Obligations Concerned: National Treatment (Article 10.03) Most-Favored-Nation Treatment (Article 10.04) Measures: Constitución de la República de El Salvador, Articles 95 and

115 Ley de Inversiones, Legislative Decree No. 732, Article 7 Código de Comercio, Article 6 Description: Investment

The commerce, industry, and the supply of services in small scale, can be engaged exclusively by Salvadoran nationals born in El Salvador; and nationals of Central American Parties, in consequence, foreign investors can not engage such activities.

An enterprise organized under Salvadoran law, a majority of whose capital is owned by foreign persons, or a majority of whose partners are foreign persons, may not establish a small scale enterprise to engage in small scale commerce, industry, and the supply of services.

For purposes of this entry, a small scale enterprise is an enterprise with a capitalization not greater than 200,000 U.S. dollars.



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Sector: All Sectors Obligations Concerned: National Treatment (Article 11.03) Measures: Código de Trabajo, Articles 7 and 10 Description: Cross-border Trade in Services Every employer is obliged to compose its personnel with at

least 90 per cent of Salvadoran employees. Under special circumstances the Ministerio de Trabajo y Previsión Social may authorize the employment of more foreign employees, when these are difficult or impossible to be substituted by Salvadorans. In such circumstance, the employers are obliged to train Salvadoran personnel under the supervision and control of the mentioned Ministry, during a period no longer than five years.



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Sector: Cooperative Production Societies Obligations Concerned: National Treatment (Article 10.03) Measures: Reglamento de la Ley General de Asociaciones

Cooperativas, Title VI, Chapter 1, Article 84 Description: Investment

In cooperative production societies, at least 75 percent of the total number of partners must be Salvadoran persons.

For purposes of this non-conforming measure, a branch of an enterprise that is not organized under Salvadoran law is not a Salvadoran person.



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Sector: Duty-Free Commercial Centers and Establishments Obligations Concerned: National Treatment (Article 10.03) Measures: Constitución de la República de El Salvador, Article 95 Ley para el Establecimiento de Tiendas Libres en los Puertos

Marítimos de El Salvador, Article 5 Description: Investment

Only Salvadoran nationals born in El Salvador and enterprises organized under Salvadoran law may apply for a permit to establish duty-free commercial centers or establishments in El Salvador’s seaports.

However, an enterprise organized under Salvadoran law, a majority of whose capital is owned by foreign persons, or a majority of whose partners are foreign persons, may not establish duty-free commercial centers or establishments in El Salvador’s seaports.



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Sector: Air Services: Specialty Air Services Obligations Concerned: National Treatment (Article 11.03) Most-Favored-Nation Treatment (Article 11.04) Measures: Ley Orgánica de Aviación Civil, Articles 5, 89, and 92 Description: Cross-border Trade in Services

The supply of specialty air services requires prior authorization from the Autoridad de Aviación Civil. Authorization from the Autoridad de Aviación Civil is subject to reciprocity and must take into account national air transport policy.



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Sector: Air Services: Aircraft Repair and Maintenance Services

during which an Aircraft is withdrawn from Service and Pilots of Specialty Air Services

Obligations Concerned: National Treatment (Article 11.03) Most-Favored-Nation Treatment (Article 11.04) Measures: Ley Orgánica de Aviación Civil, Articles 39 and 40 Description: Cross-border Trade in Services

Recognition or validation of licenses, certificates, and permits issued by foreign air transport authorities to technical aeronautic staff on board of an aircraft or on the ground, will be granted on a reciprocity basis.



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Sector: Communications Services: Advertising and Promotional

Services for Radio and Television Obligations Concerned: National Treatment (Article 11.03) Most-Favored-Nation Treatment (Article 11.04) Measures: Decreto de las disposiciones para regular la explotación de

obras de naturaleza intelectual por medios de comunicación pública y la participación de artistas salvadoreños en espectáculos públicos. Legislative Decree No. 239, June 9, 1983, published in Diario Oficial No. 111, Vol. 279, June 15, 1983, Article 4

Decree No. 18, Sustitución de los artículos 1 y 4 del Decreto

Legislativo No. 239, June 9, 1983, published in Diario Oficial No. 7, Vol. 282, January 10, 1984

Description: Cross-border Trade in Services

At least 90 percent of the production and recording of any commercial advertisement for use in El Salvador’s public communications media must be carried out by Salvadorans.

A commercial advertisement produced or recorded by Central American nationals may be used in the Salvadoran media, as long as similar treatment is granted on the country from which they originate to commercial advertisements produced or recorded in El Salvador.

Commercial advertisements that do not fulfill the requirements set out in the prior two paragraphs can only be transmitted in the public communications media if they are advertisements for an international product, brand, or service that has been imported into El Salvador or produced in El Salvador under license subject to a compensatory fee of 5,000 Colones, which will be collected by the Consejo Nacional de la Publicidad of El Salvador, who may evaluate the application of this provision.



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Sector: Communications Services: Television and Radio

Broadcasting Services Obligations Concerned: National Treatment (Article 10.03) Measures: Ley de Telecomunicaciones, Article 123 Description: Investment

Concessions and licenses for free reception broadcasting services shall only be granted to Salvadoran nationals born in El Salvador or enterprises organized under Salvadoran law. In the cases of such enterprises, the equity capital has to be constituted at least by 51% Salvadorans.

This equity capital and its reforms shall be reported to the Superintendencia General de Electricidad y Telcomunicaciones (SIGET).



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Sector: Performing Arts Obligations Concerned: National Treatment (Article 11.03) Measures: Ley de Migración, Articles. 62-A and 62-B Legislative Decree No. 382, May 29, 1970, published in

Diario Oficial No. 64, Vol. 227, April 10, 1970 Executive Decree No. 16, May 12,1970, published in Diario

Oficial No. 87, Vol. 227, May 18, 1970 Description: Cross-border Trade in Services

No foreign artist may give paid performances of any kind without the prior express authorization of the Ministerio de Gobernación, which shall first seek, within 15 days, the advisory opinion of the legally established craft union of the artistic field in which the artist is involved. Foreign artists shall pay, to the relevant union, a performance fee deposit of 10 percent of the gross income to be earned in the country. Where it is not possible to make the advance payment, the artist shall pay an adequate amount as a security deposit to the relevant union.

No foreign artist or group of artists may perform in the country for more than 30 days consecutively or intermittently within a year from the date of the first performance.

An artist is any person acting in El Salvador, individually or in a company consisting of one or more persons, to give performances in music, song, dance or readings, or to present shows, whether in person (i.e., live) or before a large or small audience or on radio or television.



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Sector: Circuses Obligations Concerned: National Treatment (Article 11.03) Measures: Ley de Migración, Article 62-C Decree No. 122, November 4,1988, published in Diario

Oficial No. 219, Vol. 301, November 25, 1988, Article 3 Legislative Decree No. 382, May 29, 1970, published in

Diario Oficial No. 64, Vol. 227, April 10,1970 Decree No. 193, March 8, 1989, published in Diario Oficial

No. 54, Vol. 302, March 17, 1989, Articles 1 and 2 Reglamento para la Aplicación de los Decretos Legislativos

122 and 193 Relativos a Empresas Circenses, Articles 1 and 2


Foreign circuses or other similar shows must pay to the relevant circus union a performance fee equal to 2.5 percent of the gross income to be earned daily from ticket sales. The fee must be paid in full through the withholding system.

All foreign circuses must be authorized by the appropriate Ministry and once authorized, notify the Asociación Salvadoreña de Empresarios Circenses (ASEC) and pay ASEC 3 percent of the gross income earned from ticket sales for each performance, as well as 10 percent of total earnings from sales to the audience, inside the circus, of flags, caps, tee shirts, balloons, photographs and other paraphernalia. The foreign circus shall pay an adequate amount as a security deposit to ASEC.

A foreign circus entering El Salvador may only work in the city of San Salvador for 15 days, which may be extended only once for a further 15 days.

A foreign circus that has performed in El Salvador can only return to the country after at least one year has elapsed since the date on which the circus left the country.



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Sector: Performing Arts Obligations Concerned: National Treatment (Article 11.03) Measures: Decreto de las disposiciones para regular la explotación de

obras de naturaleza intelectual por medios de comunicación pública y la participación de artistas salvadoreños en espectáculos públicos, Legislative Decree No. 239, June 9, 1983, published in Diario Oficial No. 111, Vol. 279, June 15, 1983

Decree No. 18, Sustitución de los artículos 1 y 4 del Decreto

Legislativo No. 239, June 9, 1983, published in Diario Oficial No. 7, Vol. 282, January 10, 1984


In the case of public performances involving the live participation of artists of any kind, the participation of Salvadoran nationals shall be equivalent to 20 percent of the number of participating foreigners.



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Sector: Transport Services: Road Transport Services Obligations Concerned: National Treatment (Articles 10.03 and 11.03) Measures: Constitución de la República de El Salvador, Article 95 Ley de Transporte Terrestre, Tránsito y Seguridad Vial,

Articles 38-A and 38-B

Reglamento General de Transporte Terrestre, Articles 1 and 2

Description: Investment and Cross-border Trade in Services

Permits for the supply of services in passenger transport, regular and non-regular, within El Salvador may only be granted to Salvadoran nationals or their partners.

Only vehicles with Salvadoran license plates may transport goods from points in El Salvador to other points in El Salvador.

At least 51 percent of the equity capital of an enterprise engaged in such goods transport in El Salvador must be owned by Salvadoran persons. If such capital is owned by an enterprise, at least 51 percent of the stock of that enterprise must be owned by Salvadoran nationals.



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Sector: Construction and Related Engineering Services Obligations Concerned: National Treatment (Articles 10.03 and 11.03) Most-Favored-Nation Treatment (Articles 10.04 and 11.04) Local Presence (Article 11.05) Measures: Ley de Incentivos a las Empresas Nacionales de la Industria

de la Construcción, Legislative Decree No. 504, published in Diario Oficial No. 167, Vol. 308, July 9, 1990, as amended by Legislative Decree No. 733, published in Diario Oficial No. 80, Vol. 311, April 23, 1991


To participate in design activities, consulting, consulting and management of engineering or architectural projects, or any type of work or study relating to such project’s construction, whether before, during, or after construction, an enterprise a majority of whose capital is owned by foreign nationals (“foreign enterprise”) must be contractually associated with an enterprise legally established in El Salvador (“Salvadoran enterprise”), that is legally registered and qualified with the Ministerio de Obras Públicas, unless the foreign enterprise determines that such Salvadoran enterprise is not available.

The foreign enterprise must have a resident representative in El Salvador.

Further, an engineering or architectural project is subject to the following requirements:

(a) enterprises organized under Salvadoran law must have an investment in the project equal to at least 40 percent of the value of the project; and

(b) such enterprises must supply at least 30 percent of the technical staff and 90 percent of the administrative staff on the project.



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The requirements of subparagraph (b) do not apply if the foreign enterprise determines that Salvadoran enterprises are not able to provide the necessary resources.

The requirements of subparagraphs (a) and (b) do not apply:

(i) when the funds for the project come partially or entirely from foreign governments or international organizations; or

(ii) to specific projects or grants for specialized technical cooperation.



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Sector: Road Transportation

Obligations Concerned: Market Access (Article 11.06)

Measures: Reglamento General de Transporte Terrestre, Title III, Article 11, Title V, Articles 29 and 30


Concessions for public road transportation of passenger for a specific route will be limited, subject to technical studies of the existing demand. A concession for free offer public road transportation of passenger services is limited for one vehicle.



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Sector: Distribution Services

Construction Services


Measures: Reglamento para la Aplicación de la Ley Reguladora del Depósito, Transporte y Distribución de Productos de Petróleo. Executive Decree No. 46, June 19, 2003. Diario Oficial No. 125, Volume 360, July 16, 2003


The construction of supply warehouses for petroleum products (petroleum product’s storage warehouses and decanting equipment that is essential for the distribution or wholesale sale of such products, whose tanks have a capacity bigger than thirty thousand American gallons) will be authorized by the Ministry of Economy, through an executive agreement, prior to the presentation of a formal request addressed to the Dirección of Hidrocarburos y Minas, of the Ministry of Economy, annexing the documents indicated in article 12 of the Ley Reguladora del Deposito, Transporte y Distribución de Productos de Pétroleo; 1 and 3 of its Ruling, and once verified that the information is complete, an inspection will be carried out at the warehouse. Supply warehouses may not be established at a distance shorter than one (1) kilometer from barracks, gun, ammo, or explosive warehouses; all tanks, equipment and pipes must be new. The construction of supply warehouses with pressured tanks (petroleum product’s storage warehouses and decanting equipment that is essential for the distribution or wholesale sale of such products, whose tanks have a capacity bigger than thirty thousand American gallons) will be authorized by the Ministry of Economy, through an executive agreement, prior to the presentation of a formal request addressed to the Dirección of Hidrocarburos y Minas, of the Ministry of Economy, annexing the documents indicated in article 12 of the Ley Reguladora del Deposito, Transporte y Distribución de Productos de



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Pétroleo; 1, 3, 23 of its Ruling, and once verified that the information is complete, an inspection will be carried out at the warehouse. Supply warehouses may not be established at a distance shorter than one (1) kilometer from barracks, gun, ammo or explosive warehouses; all tanks, equipment and pipes must be new. The construction of service stations (storage warehouses and decanting equipment that is essential for the storage, handling, distribution or retail of petroleum products) will be authorized by the Ministry of Economy, through an executive agreement, prior to the presentation of a formal request addressed to the Dirección of Hidrocarburos y Minas, of the Ministry of Economy, annexing the documents indicated in article 12 of the Ley Reguladora del Deposito, Transporte y Distribución de Productos de Pétroleo and articles 9, 10 of its regulations, and once verified that the information is complete, an inspection will be carried out at the place. The nominal capacity required for each storage tank will be of up to 30,000 American gallons; all tanks, equipment and pipes must be new.

The construction of tanks for private consumption (warehouses with decanting equipment for the storage and usage of gasoline and oils of any type, fuel or lubricants, for the exclusive consumption of enterprises involved in agriculture, industry, construction works, commercial, industry and services, that consume considerable quantities of such products in their operations) must be authorized by Executive Agreement of the Ministry of Economy, prior to the presentation of a formal request addressed to the Dirección of Hidrocarburos y Minas, of the Ministry of Economy, annexing the documents indicated in article 12 of the Ley Reguladora del Deposito, Transporte y Distribución de Productos de Pétroleo and articles 9, 10, 16 of its regulations, and once verified that the information is complete, an inspection will be carried out at the warehouse. The nominal capacity required of each storage tank will be of up to 30,000 American gallons; all tanks, equipment, and pipes must be new; the selling of fuel to the public is strictly prohibited.



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Sector: Professional Services: Legal Services (Notary Public) Obligations Concerned: National Treatment (Article 11.03)

Most-Favored-Nation Treatment (Article 11.04)

Local Presence (Article 11.05) Measures: Ley de Notariado, Article 4 Description: Cross-border Trade in Services

The profession of Notary Public can only be exercised by persons authorized according to the law by the Supreme Court of Justice. To obtain that authorization, it is required to be a Salvadoran national. Central American nationals who have been authorized to practice law in El Salvador and who have resided in the country for at least two years may also obtain such authorization, provided that they have not been barred from practicing the profession of notary public in their own country, and Salvadoran nationals may practice the same profession in their country without any additional requirements than those laid down in Salvadoran law.



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Sector: Public Accounting and Public Auditing Obligations Concerned: National Treatment (Articles 10.03 and 11.03)

Most-Favored-Nation Treatment (Articles 10.04 and 11.04) Local Presence (Article 11.05)

Measures: Ley Reguladora del Ejercicio de la Contaduría, Articles 2,

3, and 4 Description: Investment and Cross-border Trade in Services

Only a Salvadoran national may be authorized as a public accountant. Only a person authorized as a public accountant may be authorized as an external auditor. For an enterprise to be authorized to supply public accounting services, the principal partners, shareholders, or associates must be Salvadoran nationals, and at least one person among the partners, shareholders, associates, or administrators must be authorized as a public accountant in El Salvador.



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Sector: Professional Services: Health Services

(Including but not limited to: General and Specialist Medical Services, Dental Services, Veterinary Services, Paramedical Services, Services rendered by Psychologists, Midwives, Nurses, Physiotherapists, Chemists and Qualified Clinical Laboratory Technicians, and Technical and Auxiliary Staff)

Obligations Concerned: National Treatment (Article 11.03)

Most-Favored-Nation Treatment (Article 11.04) Local Presence (Article 11.05)

Measures: Código de Salud, Arts. 4, 5, 17, 23, 30, 31, 32, and 306 Description: Cross-border Trade in Services

A permit is necessary for the exercise of the health services professions and their specialized, technical, and auxiliary activities. Permits are issued by the appropriate Junta de Vigilancia. The Junta de Vigilancia may grant permanent, temporary, or provisional permits. A permanent permit is available only for private professional activity. Other permits are subject to restrictions and limitations in accordance with the law for specified reasons. To grant a permanent permit the corresponding Junta de Vigilancia shall require that persons be Salvadoran nationals by birth or authorized to permanently reside in the country. In addition to fulfilling the requirements under the law, foreigners must provide proof that in the country in which they earned their qualification allows Salvadoran nationals or graduates to practice their profession in analogous circumstances.



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Sector: Professional Services: Customs Agents Obligations Concerned: National Treatment (Articles 10.03 and 11.03)

Most-Favored-Nation Treatment (Articles 10.04 and 11.04) Measures: Reglamento del Código Aduanero Uniforme

Centroamericano, Article 18 Description: Investment and Cross-border Trade in Services

Only Central American Nationals may work as customs agents.



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Sector: Professional Services – Teachers Obligations Concerned: National Treatment (Article 11.03) Measures: Constitución de la República, Article 60 Description: Cross-border Trade in Services

Only Salvadoran nationals may teach national history and the Constitution.



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Sector: Professional Services: Architectural Services, Engineering

Services, Integrated Engineering Services, Urban Planning and Landscaping Services


Local Presence (Article 11.05) Measures: Ley de Urbanismo y Construcción, Articles 4 and 8

Executive Decree No. 34, published in Diario Oficial No. 4, Vol. 306, January 8, 1990, Registro Nacional de Arquitectos, Ingenieros, Proyectistas y Constructores

Executive Decree No. 75, published in Diario Oficial No. 11, Vol. 310, January 17, 1991, Reglamento Interno del Consejo Nacional de Arquitectos, Ingenieros, Proyectistas y Constructores, Articles 25, 26, and 27


Only architects and engineers who are registered in the Registro Nacional de Arquitectos, Ingenieros, Proyectistas y Constructores (“Registro Nacional”) may supervise architectural and engineering work on construction projects and sign and seal architectural or engineering plans for such projects. An architect or engineer must be a resident in El Salvador to be registered in the Registro Nacional. Draftsmen, builders, and electrical installation technicians must be Salvadoran nationals in order to be registered in the Registro Nacional.


ANNEX II: FUTURE MEASURES

Sector: Postal Services Obligations Concerned: National Treatment (Articles 10.03 and 11.03) Most-Favored-Nation Treatment (Articles 10.04 and

11.04) Description: Investment and Cross-border Trade in Services

El Salvador reserves the right to adopt or maintain any measure with respect to the provision of postal services.

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Sector: Social Services Obligations Concerned: National Treatment (Articles 10.03 and 11.03) Most-Favored-Nation Treatment (Articles 10.04 and

11.04) Local Presence (Article 11.05) Market Access (Article 11.06) Performance Requirements (Article 10.07) Senior Management and Boards of Directors (Article


El Salvador reserves the right to adopt or maintain any measure with respect to the provision of law enforcement and correctional services, and the following services to the extent they are social services established or maintained for a public purpose: income security or insurance, social security services, water supply, social welfare, public education, public training, health, and child care.

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Sector: Minority Affairs Obligations Concerned: National Treatment (Articles 10.03 and 11.03) Local Presence (Article 11.05) Performance Requirements (Article 10.07) Senior Management and Boards of Directors (Article


El Salvador reserves the right to adopt or maintain any measure according rights or preferences to socially or economically disadvantaged minorities.

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SCHEDULE FOR THE REPUBLIC OF EL SALVADOR


Sector: Transport Services: Road Transport Services Obligations Concerned: National Treatment (Article 11.03) Most-Favored-Nation Treatment (Article 11.04) Local Presence (Article 11.05) Description: Cross-border Trade in Services

El Salvador reserves the right to adopt or maintain any measure restricting the transportation of goods by road.

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Sector: Business Services: Professional Services Obligations Concerned: National Treatment (Articles 10.03 and 11.03) Most-Favored-Nation Treatment (Articles 10.04 and

11.04) Local Presence (Article 11.05) Description: Investment and Cross-border Trade in Services

El Salvador reserves the right to adopt or maintain any measure regarding professional services that is not inconsistent with its obligations under Article XVI of the General Agreement on Trade in Services.

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Sector: Construction Services Obligations Concerned: National Treatment (Article 11.03) Most-Favored-Nation Treatment (Article 11.04) Local Presence (Article 11.05) Description: Cross-border Trade in Services

El Salvador reserves the right to adopt or maintain any measure regarding cross-border trade of construction services.

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ANNEX III: MOST-FAVORED-NATION

Sector: All Sectors Obligations Concerned: Most-Favored-Nation Treatment (Articles 10.04 and


El Salvador excludes from the application of Articles 10.04 and 11.04 (Most-Favored-Nation Treatment) any measure that accords differential treatment to countries under any bilateral or multilateral international agreement in force or signed prior to the date of entry into force of this Treaty1.

El Salvador excludes from the application of Articles 10.04 and 11.04 (Most Favored Nation Treatment) any measure that accords differential treatment to countries under any bilateral or multilateral international agreement in force or signed after the date of entry into force of this Agreement involving:2 (a) aviation; (b) fisheries; (c) maritime matters, including salvage; (d) cross border supply of telecommunications; or (e) financial services.

1 For greater certainty, El Salvador may adopt or maintain any measure derived from a community law norm resulting of a community law instrument, or adopted by an organ of the Sistema de Integración Centroamericana or its successor. 2 For greater certainty, the exclusion of Most-Favored-Nation treatment in the cross-border supply of telecommunications and financial services does not nullify or impair the commitments of the Parties to meet their respective obligations under Article XVI of the General Agreement on Trade in Services.

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ANNEX I

Explanatory Notes 1. The Schedule of a Party to this Annex sets out, pursuant to Articles 10.09 (Non-

Conforming Measures) and 11.08 (Non-Conforming Measures), a Party’s existing measures that are not subject to some or all of the obligations imposed by:

(a) Articles 10.03 (National Treatment) or 11.03 (National Treatment);

(b) Articles 10.04 (Most-Favored-Nation Treatment) or 11.04 (Most-Favored-Nation Treatment);

(c) Article 10.07 (Performance Requirements);

(d) Article 10.08 (Senior Management and Boards of Directors);

(e) Article 11.05 (Local Presence); or

(f) Article 11.06 (Market Access).

2. Each Schedule entry sets out the following elements:

(a) Sector refers to the sector for which the entry is made;

(b) Obligations Concerned specifies the obligation(s) referred to in paragraph 1 that, pursuant to Articles 10.09 (Non-Conforming Measures) and 11.08 (Non-Conforming Measures), do not apply to the listed measure(s);

(c) Measures 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 liberalization on the date of entry into force of the Agreement, and the remaining non-conforming aspects of the existing measures for which the entry is made.

3. In the interpretation of a Schedule entry, all elements of the entry shall be considered. An entry shall be interpreted in light of the relevant provisions of the Chapters against which the entry is made. To the extent that:

(a) the Measures element is qualified by a liberalization commitment from the Description element, the Measures element as so qualified shall prevail over all other elements; and

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(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 Article 10.09 (Non-Conforming Measures) and 11.08 (Non-Conforming Measures), the articles of this Agreement specified in the Obligations Concerned element of an entry do not apply to the law, regulation, or other measure identified in the Measures element of that entry.

5. Where a Party maintains a measure that requires that a service provider be a citizen, 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 11.03 (National Treatment), 11.04 (Most-Favored-Nation Treatment), or 11.05 (Local Presence) shall operate as a Schedule entry with respect to Article 10.03 (National Treatment), 10.04 (Most-Favored-Nation Treatment), or 10.07 (Performance Requirements) to the extent of that measure.

6. For greater certainty, Article 11.06 (Market Access) refers to non-discriminatory measures.

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ANNEX II

Explanatory Notes 1. The Schedule of a Party to this Annex sets out, pursuant to Articles 10.09 (Non-Conforming Measures) and 11.08 (Non-Conforming Measures), the specific sectors, subsectors, or activities for which that Party may maintain existing, or adopt new or more restrictive, measures that do not conform with obligations imposed by:





(e) Article 11.05 (Local Presence);or




(b) Obligations Concerned specifies the obligation(s) referred to in paragraph 1 that, pursuant to Articles 10.09 (Non-Conforming Measures) and 11.08 (Non-Conforming Measures), do not apply to the sectors, subsectors, or activities listed in the entry; and

(c) Description sets out the scope of the sectors, subsectors, or activities covered by the entry.

3. In accordance with Article 10.09 (Non-Conforming Measures) and 11.08 (Non-Conforming Measures), the articles of this Agreement specified in the Obligations Concerned element of an entry do not apply to the sectors, subsectors, and activities identified in the Description element of that entry.

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SCHEDULE OF THE REPUBLIC OF HONDURAS


Sector:

All Sectors

Obligations Concerned:

National Treatment (Article 10.03)

Measures:

Decree N. 131, Constitución de la República, Title III, Chapter II, Article 107 Decree N° 90-1990, Ley para la Adquisición de Bienes Urbanos en las Áreas que delimita el Article 107 of the Constitución de la República. Articles 1 and 4 Decree No 968, Ley para la Declaratoria, Planeamiento y Desarrollo de las Zonas de Turismo, Title V, Chapter V, Article 16

Description:

Investment The state lands, ejidales, communal or private property located in the bordering zone to the neighboring states, or in the coast of both seas, an extension of forty (40) kilometers towards the rear area and those of the islands, keys, coral reefs, breakwaters, rocks, and sand shoals in Honduras, can only be acquired , can only be acquired, possessed, or held under any title by Honduran nationals by birth, by enterprises fully owned by Honduran nationals, and by state institutions, under invalidity of the respective act or contract. Notwithstanding the preceding paragraph, any person may acquire, possess, hold, or lease for up to forty 40 years (which may be renewed) urban lands in such areas provided that it is certified and approved for tourist purposes, economic or social development, or for the public interest qualified and approved by the Secretaría de Estado en el Despacho de Turismo. Any person that acquires, possesses, or holds the graspings of the urban land may transfer that land only after prior authorization by the Secretaría de Estado en el Despacho de Turismo.

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Sector:

All Sectors


Local Presence (Article 11.05)

Measures:

Decree No. 255-2002 Ley de Simplificación Administrativa Artículo 8 Reformas al Código de Comercio Articles 308 and 310

Description:

Cross-border Trade in Services In order for a society constituted in accordance with the foreign laws can dedicate itself to the exercise of the commerce in the Republic of Honduras must permanently have in the Republic at least a representative with ample faculties to realize all the legal acts and businesses that there are to be celebrated and to have effect in the national territory. It will be considerer societies constituted in accordance with the foreign laws those that do not have their legal address in Honduras.

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Sector:

All Sectors



Measures:

Decree No. 131 Constitución de la República de Honduras, Title VI, Chapter I, Article 337 Agreement No. 345-92 Reglamento de la Ley de Inversiones, Chapter I y VI, Articles 3 and 49

Description:

Investment Small-scale industry and trade constitute patrimony of the Hondurans. Foreign investors cannot engage in small-scale industry and trade, except in those cases they have acquired the naturalization paper as Hondurans, having to present the documentation that credits the respective naturalization, as long as in its country of origin grants reciprocity. In small-scale industry and trade, the investment excluding, lands, buildings and vehicles will not be greater to the equivalent of one thousand fifty (Lps. 150,000.00) lempiras.

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Sector:

All Sectors

Obligations Concerned: Most Favored Nation Treatment (Article 10.04) Local Presence (Article 11.05)

Measures:

Decree No. 65-87 Ley de Cooperativas de Honduras, Title II, Chapter I, Article 19, May 20, of 1987 Agreement No. 191-88, may 30, 1988, Reglamento de la Ley de Cooperativas de Honduras, Article 34(c) and (b)

Description:

Investment and Cross-border Trade in Services Non-Honduran cooperatives may establish in Honduras if they receive authorization from the Instituto Hondureño de Cooperativas de Honduras, the authorization will be granted if:

(a) Reciprocity exists in the country of origin with respect to the treatment that the law of Honduras offers to foreign cooperatives. (b) The non-Honduran cooperative has at least one permanent legal representative in Honduras with extended faculties to fulfill all the legal acts and businesses there are to be celebrated and to take effects in the national territory.

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Sector:

Agricultural


Measures:

Agreement No. 2124-92, Reglamento de Adjudicación de Tierras en la Reforma Agraria, Articles 1 and 2

Description:

Investment Agrarian reform beneficiaries must be Honduran nationals by birth, individually or organized in peasant cooperatives or other peasant enterprises.

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Sector:

Fisheries


Measures:

Decree No 154, Ley de Pesca, Chapter I, Articles 20, 26, and 29

Description:

Investment When it is with exploitation or profit purposes, only Honduran resident in Honduras and enterprises organized under Honduran law at least 51 percent owned by Honduran nationals can fish freely in the public territorial waters, rivers, and lakes in Honduras. Only Honduran by birth can be skipper or captains of fishing vessels of any sort. Only Honduran flag vessels can perform fishing activities in territorial waters.

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Sector:

Comunication Services - Telecommunications


National Treatment (Articles 10.03 and 11.03)

Measures:

Decree No 185-95 Ley Marco del Sector Telecomunicaciones Chapter I, Article No. 26 Agreement No. 141-2002 Reglamento General de la Ley Marco del Sector de Telecomunicaciones, December 26, of 2002, Article 93, Title III, Chapter I

Description:

Investment and Cross-border Trade in Services Foreign governments may not directly participate in the provision of public telecommunications services.

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Sector: Comunication Services - Radio, Telecommunications

Obligation Concerned: Market Access (Article 11.06)

Measures:

Decree No 185-95, Decembre 3 of 1995, Ley Marco del Subsector de Telecomunicaciones, Article 4

Description:

Cross-border Trade in Services The services of aerial, marine, military and publicsecurity telecommunications will be subject to the dispositions of the Ley del Subsector de Telecomunicaciones, regarding the use and control of the radio electrical spectrum and to the fulfillment of the technical characteristics for each service.

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Sector:

Communication Services- Radio, Television, and Newspaper


National Treatment (Articles 10.03 and 11.03) Senior Management and Boards of Directors (Article 10.08)

Measures:

Decree No 131, Constitución de la República de Honduras, Chapter II, Article 73, párrafo tercero Decree No. 6, Ley de Emisión del Pensamiento, Chapter IV, Artícle 30. Decree No 759, Ley del Colegio de Periodistas de Honduras, Artícle 8, reformado por Decree No 79 January, 1, of 1981

Description:

Investment and Cross-border Trade in Services The management of printed newspapers, radial or televised and the intellectual, political and administrative orientation of such will be exerted exclusively by Honduran by birth. The foreigners will not be able to manage journalistic, written or spoken publications.

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Sector:

Distribution Services- Representatives, distributors and agents of national and foreign companies



Measures:

Decree No 549 Chapter I, Artícle 4. Reformado for Decree No 804 Ley de Representantes, Distribuidores y Agentes de Empresas Nacionales y Extranjeras Agreement No 669-79, Reglamento de la Ley de Representantes, Distribuidores y Agentes de Empresas Nacionales y Extranjeras, Article 2

Description:

Investment In order to be concessionary it is require to be Honduran or Honduran mercantile society; In order to dedicate to the representation, agency or distribution, the natural persons must be constituted as individual retailer. It will be understood Honduran society that in whose share capital Honduran investment predominates in a non inferior proportion to the fifty and one percent (51%).

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Sector:

Distribution Services- Petroleum Products (Liquid Fuel, Automotive Oil, Diesel, Kerosene, and LPG)



Measures:

Decree No 549 Ley de Representantes, Distribuidores y Agentes de Empresas Nacionales y Extranjeras, Chapter I and VI, Artícle 4 and 25 Decree No. 804 reforma el Article 4 of the Ley de Representantes, Distribuidores y Agentes de Empresas Nacionales y Extranjeras

Description:

Investment Only Honduran nationals and mercantile societies under Honduran law may be authorized to sell petroleum products. It will be understood as Honduran societies those whose share capital predominates a Honduran investment, in a non inferior proportion to the fifty and one (51%) percent of Honduran capital

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Sector:

Services of Construction - Construction or Consulting Services and Related Engineering, Services – Civil Engineering


National Treatment (Articles 10.03 and 11.03) Market Access (Article 11.06)

Measures: Decree No 47- 1987, Ley Orgánica del Colegio de Ingenieros Civiles de Honduras

Agreement de la Ley Orgánica del Colegio de Ingenieros Civiles de Honduras, Artícles 100 (A)- (D) and 101

Decree No 753, Ley Orgánica del Colegio de Arquitectos de Honduras, Artícles 37 (b), (c), (d), (g), and (h)

Agreement de la Ley Orgánica del Colegio de Arquitectos de Honduras, Artícles 4(h), 7(a), (c ), (d) and (h), 13, 68 and 69

Decree No 902, Ley Orgánica del Colegio de Ingenieros Mecánicos, Electricistas y Químicos de Honduras, Artícle 40 ( c), (d) and (h)

Description:

Investment and Cross-border Trade in Services

Consulting and construction enterprises must be organized under Honduran law in order to be members of the Colegio de Ingenieros Civiles de Honduras (CICH) and to perform civil engineering projects in Honduras. For greater certainty, consulting and construction enterprises organized under foreign law may register provisionally with the CICH to perform specific civil engineering projects. Higher membership fees apply to foreign-owned enterprises. In addition, foreign workers must be authorized by the CICH in order to work on such projects.

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Sector:

Education- Private Preschool, Primary, and Secondary Educational Services Private superior education services (Universities) and Special Programs

Obligations Concerned: National Treatment (Article 11.03) Most Favored Nation Treatment (Article 11.04) Local Presence (Article 11.05) Market Access (Article 11.06) Senior Management and Boards of Directors (Article 10.08)

Measures:

Decree No 131 Constitución de la República, Título III, Chapter VIII, Articles 34, 166 and 168 Decree No 79, Ley Orgánica de Educación, Artícles 64 and 65 Decree No. 136-97, Ley del Estatuto del Docente, Artícles 7 and 8 Agreement Ejecutivo No.0760-5E-99, Reglamento General del Estatuto del Docente, Artícle 6 Ley de Educación Superior, Decreto No 142-89, Sección A y B, Chapter V, Artícles 15 c) and ch); 20 ch) and 32 Reglamento de Educación Media, Acuerdo No 4118EP, Artícle 502, 503, 504, 505 and 506 Agreement No 1299-176-2004, of date 30 of april of 2005, Reformas de las Normas Académicas del Nivel de Educación Superior en su Artícles 79 and 80, (9.2 and 10.1)

Description:

Investment and Cross-border Trade in Services The positions of Direction and Supervision in the educational establishments might be carried out by Honduran teachers by birth. Teachers at all levels of the education system must be Honduran nationals by birth. Foreign nationals may,

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however, teach particular subjects at the middle or high school levels if there are no such Honduran nationals available to teach such subjects. Notwithstanding the preceding sentence, foreign nationals may teach the Constitution, civic education, geography, and the history of Honduras only if there is reciprocity for Honduran nationals in their country of origin. Private schools at all levels must be organized under Honduran law. For greater certainty, there are no restrictions on foreign ownership of such schools. It is recognized the Honduran legal people, created specially for it, the initiative to promote the foundation of centers or universities particulars under the respect to the Constitution and the laws. The creation and operation of public or private centers of superior education, require the approval of the Consejo de Educación Superior prior ruling of the Consejo Técnico Ejecutivo. For the presentation of request for the creation, organization and operation of state or public centers it will have to accredited the Constitution and legal organization of the applicant The private centers for the creation of superior education centers must submit certificate of deposit at least 25% of the budget of expenses of initial operation; this deposit will be withdraw at the beginning of its operation or after agree the denial for its operation. The credit reliability of the organization that at least support five (5) years the operation of the center. As minimum all the teaching must have the title and academic degree of the level and area that will teach, in addition 25% must have postgraduate and 50% with educational experience in three years in the level of superior education to put under a program of educational qualification.

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Sector:

Entertainment Services- Musical Artists

Obligations Concerned: Performance Requirements (Article 10.07) National Treatment (Article 11.03)

Measures: Decree No 123 Ley de Protección a los Artistas Musicales, Artícles 1 and 2.

Description:

Investment and Cross-border Trade in Services

Notwithstanding the measure listed above, Honduras agrees that foreign music artists who wish to perform individually or as a group in Honduras must pay five percent of the contracted fee to the Sindicato de Artistas de Honduras and the manager or leaser shall, if possible, contract local artists to perform during the same performance. For greater certainty, foreign music artists must register with the Sindicato de Artistas de Honduras for each performance in Honduras.

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Sector::

Recreational, cultural and sporting services-Championships and Soccer Games Services

Obligations Concerned: National Treatment (Article 11.03) Local Presence (Article 11.05)

Measures:

Reglamento de Registro de Jugadores, Liga Nacional de Fútbol Profesional de Primera División, Artícles 9 and 10

Description:

Cross-border Trade in Services For the inscription of foreign players will be demanded a certificate extended by the Ministro de Gobernación y Justicia expressing that the residence document is in process. Each affiliated club will be able to register a maximum of four (4) foreign players.

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Sector:

Amusement, Cultural, and Sports Services - Casinos and Gambling (Encompasses Roulette, Cards, Punter, Baccarat, Slot Machines, and the Like)


National Treatment (Article 10.03) Market Access (Article 11.06)

Measures:

Decree No 488-1997 Ley de Casinos de Juegos de Envite o Azar, Artícle 3 (a) Agreement No 520, Reglamento Ley de Casinos de Juegos de Envite o Azar

Description:

Investment Only Honduran by birth and the constituted legal people in accordance to the laws of the country will be able to request to the Executive Power licenses to operate casinos and gambling. A casino must operate in a first class establishment of tourism, whose fix investment is superior to a million of lempiras.

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Sector:

Services Provide To Enterprises - Customs Agents and Customs Agencies



Measures:

Decree No 212-87, Ley de Aduanas, Títle IX, Chapter I, Sección Primera y Tercera, Artícles 177 and 182

Description:

Cross-border Trade in Services In order to obtain the license of customs agent it is required to be Honduran by birth. The auxiliary employees whom the customs agent designates to manage in his name and representation proceedings in the presence of the administrations of customs and rents must be Honduran by birth.

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Sector:

Services Provide To Enterprises - Investigation and Security Services, Preventive Monitoring Services, Private investigation Services and services of qualification of its members


National Treatment (Article 10.03) Senior Management and Boards of Directors (Article 10.08) Local Presence (Article 11.05)

Measures:

Decree No. 156-98, Ley Orgánica de la Policía Nacional, Artícle 91 Agreement Número 0771-2005 de fecha 18 de junio de 2005, Articles 5 and 15, letras t), u) and v)

Description:

Investment and Cross-border Trade in Services The foreign companies that will ask for permission to provide private security services must partner with Honduran enterprises working in the same field and appoint a Honduran national by birth as manager. In order to obtain authorization of operation of a private security company, foreigners must enclose the following documents.

• For foreign employees photocopy of permit of Migración y Extranjería, and Ministerio de Trabajo, to develop specific functions in security matter.

• Foreign partners original of police and penal record

of their country of origin and residence permit authenticated by the competent authority.

• Original of police and criminal records of the

foreigners who provide services to the Company of their country of origin as well as residence properly authenticated.

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Sector:

Transport - Air transportation services (limited to inscription of airships, specialized air services, and aeronautical technical personnel)


National Treatment (Article 10.03) Senior Management and Boards of Directors (Article 10.08)

Measures:

Decree No 55-2004 may 19 of 2004, Ley de Aeronáutica Civil, Title VIII Chapter I, Artícles 106 and 149

Description:

Investment The air public services of transport between two (2) places whichever the national territory, are reserved for Honduran companies. It will be understood by Honduran companies those that fulfill the following requirements: 1) The fifty and one percent (51 %) of their capital, at

least must belong to Honduran natural or legal people; and

2) The effective control of the company and the direction

of the same must be under the power of Honduran. In order to perform private specialty air services for remuneration, it is required the authorization of the Dirección General de Aeronáutica Civil and to be natural or legal person of Honduran nationality.

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Sector:

Air Transportation- Air transportation services (limited tospecialized air services, and aeronautical technical personnel)


National Treatment (Article 11.03) Most Favored Nation Treatment (Article 11.04)

Measures:

Decree No 55-2004, may 19, of 2004, Ley de Aeronáutica Civil, Capítulo I, Artícles 71,72 and 73

Description:

Cross-border Trade in Services Only the Honduran aeronautical technical personnel, will be able to exercise in Honduras remunerated activities of national aeronautics. When Honduran personnel are not available the Dirección General de Aeronáutica Civil, may allowed foreign pilots or other technical personnel to perform such activities with preference given to personnel from any other country of the Central American Isthmus, without prejudice of the effective labor norms. The Authorization in order to foreign technical personnel can exercise remunerated aeronautical activities in Honduran aerial companies, will be conditional to the suitable staff training to national personnel. This authorization will be for a period of three (3) months, extendable only when its continuity is justified and its training is verified. In order the Dirección General de Aeronáutica Civil can allow foreign personnel the exercise of aeronautical activities remunerated, it will be necessary that this one verifies that has licenses or certificates of aptitude extended in Honduras according to the Law and in absence of it, they have them legally extent by a foreign country that grants reciprocity to the licenses or certificates extended in Honduras. In any case, the interested will be put under the tests and exams required for those licenses and certificate renewal.

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Sector:

Transportation- Railways


National Treatment (Article 10.03) Senior Management and Boards of Directors (Article 10.08)

Measures:

Decree No. 48, Ley Constitutiva del Ferrocarril Nacional de Honduras, Chapters I and VIII, Articles 1, 32 and 34, Article 12 reformado mediante Decree No. 54

Description: Investment The Ferrocarril Nacional de Honduras will be able to sell its subsidiary companies to particular companies of Honduran nationality and to companies organized under the Honduran law. The manager of the Ferrocarril Nacional must be a Honduran national by birth. The auditor, who will be an authorized public accountant, must be Honduran by birth.

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Sector:

Transportation- Maritime - Coastal Navigation


National Treatment (Articles 10.03 and 11.03) Most Favored Nation Treatment (Articles 10.04 and 11.04) Local Presence (Article 11.05)

Measures:

Decree No 167-94, January 2 of 1995, Ley Orgánica de la Marina Mercante Nacional, Títle III, Chapters I, II and VII, Article 40 Agreement No. 000764, Reglamento de Transporte Marítimo, December 13 of 1997, Articles 5 and 6

Description:

Investment and Cross-border Trade in Services Coastal navigation for commercial purposes is reserved forHonduran merchant vessels. If there are no Honduran merchant vessels, or if they are not available, and for the time period that such circumstances exist, the Dirección General de la Marina Mercante may authorize foreign merchant vessels, in particular preferences shall be given to Central American nationals, to provide coastalnavigation in Honduras. The national shipping company must be organized under Honduran law, at least 51 percent of its subscribed and paid-in share capital must be owned by Hondurannationals and the company must be domiciled in the country.

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Sector:

Transportation- Land


National Treatment (Articles 10.03 and 11.03) Most Favored Nation Treatment (Articles 10.04 and 11.04) Local Presence (Article 11.05) Market Access (Article 11.06)

Measures:

Decree No 319-1976, Ley de Transporte Terrestres, Articles 3, 5, 17, 18 and 33 Agreement No. 200, Reglamento de la Ley de Transporte Terrestre, Artícles 7 and 34 Decree No 205-2005, Ley de Transito del 3 de enero de 2006, Article 46

Description:

Investment and Cross-border Trade in Services Public domestic land passenger and cargo transportation services may be supplied only by Honduran nationals and enterprises that are organized under Honduran law and at least 51 percent owned by Honduran nationals. Public international land passenger and cargo transportation services may be supplied by foreign nationals and enterprises organized under foreign law based on reciprocity, but authorization for particular routes will be granted on a preferential basis to Honduran nationals and to enterprises organized under Honduran law. The requests for the granting of operation certificates will include furthermore the data requested in the form of the Secretaría de Obras Públicas , Transporte y Vivienda an economic study. The foreigners who enter the national territory will be able to drive with the valid license that they carry and will be subject to the principle of reciprocity.

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Sector:

Services Provide To Enterprises- Professional Services


National Treatment (Article 11.03) Most Favored Nation Treatment (Article 11.04) Local Presence (Article 11.05)

Measures: Decree No 131, Constitución de la República de Honduras, Chapter VIII, Article No 177 Decree No 73, may 17 of 1962, Ley de Colegiación Profesional Obligatoria, Articles 1 and 2 Reglamento para el Reconocimiento de Estudios Universitarios e Incorporación de Profesionales, aprobado por el Consejo Universitario de la Universidad Nacional Autónoma de Honduras Decree No. 177-94, March, 1 of 1995 Reglamento de la Ley Orgánica del Colegio de Administradores de Empresas de Honduras, Article 4, letra c) Decree 753, Decembre 6 of 1972, Article 3 inciso c) Ley Orgánica del Colegio de Arquitectos de Honduras Reglamento de la Ley Orgánica del Colegio de Arquitectos de Honduras Article 3 inciso c) Decree 13-1997, Ley Orgánica del Colegio de Profesionales de la Enfermería Reglamento de la Ley Orgánica del Colegio de Ingenieros Mecanismos, Electricistas y Químicos de Honduras, Articles 3, letra c) and d) and Article 5, letra c Decree 113-88, Chapter II, Article 4, numeral 3, inciso i) Ley Orgánica del Colegio de Cirujanos Dentistas de Honduras Reglamento de la Ley Orgánica del Colegio de Cirujanos Dentistas de Honduras, Article 1, letra b) Reglamento Colegiación Provisional, del Colegio de

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Cirujanos Dentistas de Honduras, Article 1, letra f) Decree 19-93 Ley Orgánica del Colegio Hondureño de Profesiones Universitarios de Contaduría Pública, Article 4, letra c) Reglamento de la Asociación de Periodistas Deportivos de Honduras, Article 8 Reglamento Interno de los Miembros del Colegio de Periodistas de Honduras, Acuerdo Único, Article 19, letras e), f) and g) Reglamento de la Asociación de Periodistas Deportivos de Honduras, Article 8 Estatuto del Colegio de Pedagogos de Honduras, Article 8 Decree 129, november of 1982, Ley Orgánica del Colegio de Psicólogos de Honduras Reglamento de la Ley Orgánica del Colegio de Médicos Veterinarios de Honduras, Article 7, letras j) and k) Reglamento General del Colegio de Profesionales en Ciencias Agrícolas de Honduras, Article 7 Decree Nº 69- 89, may 18 of 1962, Ley Orgánica del Colegio de Ingenieros Forestales de Honduras y Article 112 del Reglamento Decree Nº 30-1964, Article 4 letra d), Ley Orgánica del Colegio de Ingenieros Civiles de Honduras, reformado mediante Decree 47-87 and Decree 133-1971


For the incorporation in the Universidad Nacional Autónoma de Honduras (UNAH) of non Central American foreigners it is required to accredit legal residence in the country. It is established the obligatory professional school registration to exercise the professions. For the school registration it is required among other

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requirements:

• Agreement of incorporation in Universidad Nacional Autónoma de Honduras (UNAH)

• Legal residence in Honduras

In order to provide the professional services in Honduras in the professions of: Business Administration, Architects, Nurses, Mechanical, electricians and chemistries engineers, surgeons dentists, Public Accountants, journalists and pedagogists, the professional practices will be authorized in a basis of strictly reciprocity. In order to provide the professional services in Honduras in the professions of: Business Administration, mechanical, electrical and chemical engineers, civil engineer of Honduras, Forestry Engineers, surgeons dentists, Public Accountants, Psychologists, Veterinarians, Journalists and professionals of Agricultural Sciences it is require the residence in Honduras. In order to provide the professional services in Honduras it is required to accredit the card of work in the professions of: Psychology, Veterinarians, Journalism and Sport Journalism.

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Sector:

Professional Services- Business Administration Consulting Services


National Treatment (Article 11.03) Market Access (Article 11.06)

Measures:

Decree No 900, Ley Orgánica del Colegio de Administradores de Empresas de Hondura, Articles 61-E and 61 F Decree No 23-88, Article 3, February 23 of 1988 Reglamento de la Ley Orgánica del Colegio de Administradores de Empresas de Honduras, Articles 96, 111, 113 and 114

Description: Cross-border Trade in Services Foreigners may execute contracts to provide business administration consulting services after the authorization of the contract by the Colegio de Administradores de Empresas de Honduras. Enterprises organized under foreign law may execute contracts to provide business administration consulting services after the authorization of the contract by the Colegio de Administradores de Empresas de Honduras if such services are not otherwise available in Honduras or due contractual needs. In order to provide such services, such enterprises must form a partnership with Honduran firms that are duly registered with the Colegio de Administradores de Empresas de Honduras. Foreigners and enterprises organized under foreign law must pay higher registration fees than those imposed on Honduran nationals and enterprises organized under Honduran law.

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Sector:

Professional Services- Economic Consulting Services



Measures:

Decree No. 1002, Ley Orgánica del colegio Hondureño de Economistas, Article 58

Description: Cross-border Trade in Services In order to provide public or private economic consulting services issues into the territory of Honduras, the economic consulting enterprises organized under foreign law must be represented by a member of the Colegio Hondureño de Economistas

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Sector:

Public Accountants


Market Access (Article 11.06)

Measures:

Decree No 19-93, Ley Orgánica del Colegio de Profesionales Universitarios en Contaduría Pública, Article 23


Any person wishing to establish and supply public accountancy services in the territory of Honduras must be organized under Honduran law.

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Sector:

Professional Services- Agricultural Engineering and Agronomy


National Treatment ( Article 11.03)

Measures:

Decree No. 148-95, Ley Orgánica del Colegio de Profesionales en Ciencias Agrícolas de Honduras, Article 5 Reglamento de la Ley Orgánica del Colegio de Profesionales en Ciencias Agrícolas de Honduras, Article 9 y tabla de Pagos del COLPROCAH

Description: Cross-border Trade in Services Foreign agricultural engineers and agronomists will be subject to professional association higher registration fees than those imposed on Honduran agricultural engineers and agronomists.

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Sector:

Professional Services- Forestry Engineers



Measures:

Decree 69-1989, Ley Orgánica del Colegio de Ingenieros Forestales de Honduras, Article 66 Reglamento de la Ley Orgánica del Colegio de Ingenieros Forestales de Honduras, Article 112

Description: Cross-border Trade in Services Forestry engineering consulting enterprises organized under foreign law must hire Honduran nationals that are members of the Colegio de Ingenieros Forestales de Honduras in a proportion meaningful to the size of the project.

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Sector:

Professional Services- Veterinarians


National Treatment (Article 11.03) Most Favored Nation Treatment (Article 11.04) Market Access (Article 11.06)

Measures:

Ley Orgánica del Colegio de Veterinarios de Honduras, Article 12 Reglamento de la Ley Orgánica del Colegio del Colegio de Médicos Veterinarios de Honduras, Article 5, 7 letras (k) (n) and 9

Description: Cross-border Trade in Services Foreign enterprises wishing to supply veterinary services in Honduras must be organized under Honduran law. Foreign veterinarians may be subject to professional association higher fees than those imposed on Central American veterinarians. The foreign veterinarians must be submit to an admission exam

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Sector:

Professional Services- Microbiologists and Clinicians



Measures:

Reglamento de Inscripción del Colegio de Microbiólogos y Químicos Clínicos. Articles 5, 6 and 8

Description: Cross-border Trade in Services Foreign microbiologists and clinicians must pay a higher registration fee than those paid by Honduran microbiologists and clinicians.

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Sector:

Professional Services- Notaries


Measures: Decree No 353-2005, January 17 of 2006, Código del Notariado, Aricle 7


To be Notary it is required to be Honduran by birth and to obtain the exequatur of Notary.

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Sector:

Professional Services- Nurses

Obligations Concerned: National Treatment (Article 11.03) Market Access (Article 11.06)

Measures: Decree No 90-99, Ley del Estatuto del Personal Profesional de Enfermería de Honduras, July 21 of 1999, Article 12


The employer must not be able to contract more of a five percent (5%) of the foreign personnel.

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Sector:

Professional Services- Doctors


Measures: Decree No 167-95 Ley del Estatuto del Médico Empleado, October 9 of 1985, Article 10

Description: Cross-border Trade in Services It is prohibited to the patrons or employers: 1. To hire or to name less of a 90% of Honduran doctors by birth, percentage that will be calculate on the base of the total number of doctors to be hire, to name or to contract. 2. To pay the Honduran employee doctors by birth, less of 85% of the total of the wages accrued the medical personnel in the respective company, establishment or institution.

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Sector:

Professional Services- Medical and dental services


Measures: Decree No. 203-1993 November 4 of 1993, Ley del Estatuto Laboral Del Cirujano Dentista, Chapter VI Sección II, Article 7


It is prohibited the hiring or the appointment less than the eighty percent (80%) of surgeons Honduran dentists in the personnel of odontology that uses, except in those cases in which that a professional of such specialization does not exist in Honduras.

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Sector:

Services of Electrical Energy


National Treatment (Articles10.03 and 11.03) Market Access (Article 11.06)

Measures:

Decree No 158-94, November 26 of 1994, Ley Marco del Sub Sector Eléctrico, Capítulo V, Article 15

Description: Investment and Cross-border Trade in Services Only the Honduran Government, through the Empresa Nacional de Energía Eléctrica, may transmit electricity or operate the electricity transmission system and dispatch center.

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Sector:

Communications Services- Post Office


National treatment (Articles 10.03 and 11.03) Market Access (Article 11.06)

Measures:

Decree No 120-93, Ley Orgánica de la Empresa Hondureña de Correos, Articles 3 and 4

Description: Investment and Cross-border Trade in Services The operation of the mail system in Honduras, is reserved exclusively to the Empresa Hondureña de Correos (HONDUCOR).

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Sector:

Amusement, Cultural, and Sports Services



Measures:

Decree No. 438, April 23 of 1977, Article 5 (c) Ley Orgánica del Patronato Nacional de la Infancia

Description: Investment and Cross-border Trade in Services Corresponds to the Patronato Nacional de la Infancia (PANI) the administration of the National Lottery.

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Sector:

Air Transportation- Exploitation of Airport Services



Measures:

Decree No. 55-2004, Ley de Aeronáutica Civil, Chapter III, Article 95

Description: Investment and Cross-border Trade in Services It is attribution of the State the control and provision of the auxiliary services of airplane navigation.

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Sector:

Distribution- Wholesale and Retail – Weapons, Munitions, and Other Related ítems

Obligations Concerned: National Treatment (Articles 10.03 and 11.03) Market Access (Article 11.04)

Measures: Decree No 131, Constitución de la República, Títle V, Chapter X, Article 292

Decree No 80-92, Ley de Inversiones, Chapter VI, Article 16


The wholesale and retail distribution of the following items are reserved solely for the Fuerzas Armadas de Honduras:

− munitions; − warplanes, − military rifles, − all classes of pistols and revolvers, 41 caliber or higher; − Honduran Army standard-issue pistols; − silencers for all classes of firearms; − firearms; − accessories and munitions; − cartridges for firearms; − apparatus and other accessories required to load cartridges; − gunpowder, explosives, caps, and fuses; − gas masks; and − air rifles.

For greater certainty, use of explosives for commercial purposes may be permitted by the appropriate Honduran authority.

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Sector:

Services Related to Mining

Obligations Concerned: Nacional Treatment (Articles 10.03 and 11.03) Market Access (Article 11.06)

Measures: Decree No. 292-98 February 6 of 1999, Ley General de Minería, Articulo 2

Description: Investment and Cross-border Trade in Services The State of Honduras exerts eminent, inalienable and imprescriptible dominion on all the mines and quarries that are in national territory, continental platform, exclusive economic zone and continuous zone.

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Sector:

Electrical Energy Services


Level of Government: Central

Measures: Decree No 158-94, Ley Marco del Sub-sector Eléctrico, Article 23

Description: Cross-border Trade in Services In order to be established in Honduras and supply electrical energy distribution services, an enterprise must be organized as a commercial corporation with nominative stock.

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Sector: Other Business Services – Warehousing


Market Access (Article 11.06)

Measures: Agreement No 1055, Reglamento de los Almacenes Generales de Depósitos, Article 3

Description: Cross-border Trade in Services Only the companies constituted in accordance with the laws of Honduras with fixed capital and the only intention to provide de services of storage are authorized to provide such services

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SCHEDULE OF THE REPUBLIC OF CHINA (TAIWAN)


Sector: All sectors



Measures: Article 17, 18 and 19 of Land Law of October 31, 2001

Description: Investment Land used for forests reserves, aquaculture, hunting reserves, desalination fields, mineral deposits areas, water resources, military purposes, and land adjacent to the national frontiers shall not be leased to and transferred to foreigners, or used as collateral by the Republic of China (Taiwan) nationals to foreigners. El Salvadoran and Honduran nationals (natural and legal persons) shall have the same rights to acquire land in the Republic of China (Taiwan) as those accorded under treaties and El Salvadoran and Honduran laws to the Republic of China (Taiwan) nationals acquiring land in the Republic of El Salvador and the Republic of Honduras, provided that such acquisition of land in the Republic of China (Taiwan) by El Salvadoran and Honduran nationals is consistent with the purposes and uses specified in Article 19 of the Republic of China (Taiwan) Land Law and not subject to the restrictions of Article 17 of the same law.

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Sector: Business services - Placement and supply services of personnel

Obligations Concerned: Local Presence (Article 11.05) Measures: Articles 16 and 17 of Regulations for Authorization and

Administration of Private Employment Service Agencies of January 13, 2004


Foreign employment service agencies have to apply for recognition from the competent authorities to refer foreign people to work in the Republic of China (Taiwan), or people living in Hong Kong, Macau, and Mainland China to work in the Republic of China (Taiwan) according to relevant regulations, provided such employment service agencies shall not engage in employment services within the Republic of China (Taiwan). The competent authorities may authorize foreign employment service agencies to set up commercial presence to provide full employment services in the Republic of China (Taiwan) according to the situation of domestic economy and employment market.

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Sector: Business services - Professional services Obligations Concerned: Local Presence (Article 11.05) Measures: CPA certification and taxation services:

Articles 10, 27 and 47 of the Certified Public Accountant Law of May 29, 2002 Article 102 of Income Tax Act of January 15, 2003 CPB bookkeeping and taxation services: Articles 5, 7, 10, 13,19 and 36 of the Certified Public Bookkeepers Act of June 2, 2004 Architectural services: Article 34 of Law of Architecture of January 20, 2004 Articles 1, 6 and 54 of Architects Act of June 15, 2005 Professional engineering services: Paragraph 1 of Article 6 and Article 24 of Professional Engineers Act of June 26, 2002 Article 5, Article 6 and 7 of Act Governing the Administration of Professional Engineering Consulting Firms of July 2, 2003 Veterinary services: Article 17 of Law Governing Veterinarian of January 30, 2002 Real estate services: Articles 5, 7, 13 and 38 of Real Estate Brokerage Management Act of October 31, 2001 Articles 4,12 and 33 of Land Registration Agents Law of October 24, 2001 Articles 9, 22 and 42 of Real Estate Appraiser Law of December 11, 2002


To practice CPA certification services and taxation services, CPB bookkeeping and taxation services, architectural services, professional engineering services, veterinary services and real estate professional services, local presence is required, and no corporation type of

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commercial presence is allowed except for real estate broking services and professional engineering services, where professional engineering consulting firm is applicable.

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Sector: Business services - Professional services Obligations Concerned: National Treatment (Article 11.03) Measures: Notary services:

Articles 24 and 25 of Notary Public Law, April 21, 1999 Description: Cross-border Trade in Services

The profession of Notary can only be exercised by person authorized according to the Notary Public Law. To obtain that authorization, it is required to be a national of the Republic of China (Taiwan).

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Sector: Fisheries and Aquaculture Obligations Concerned: National Treatment (Articles 10.03 and 11.03) Measures: Article 5 of the Fisheries Law of December 18, 2002 Description: Investment

Only citizens of the Republic of China (Taiwan) shall be qualified as fishery persons (including those engaging in aquaculture business) hereunder unless the particular foreigner has obtained the approval of the competent authority to operate fishery in cooperation with the fishermen of the Republic of China (Taiwan).

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Sector: Agriculture, animal husbandry, forestry and loggings Obligations Concerned: National Treatment (Article 10.03) Measures: Article 7 of the Statute for Investment by Foreign

Nationals of November 19, 1997 Negative List for Investment by Overseas Chinese and Foreign Nationals of May 13, 2004

Description: Investment

Foreign investment is not allowed in forestry and loggings industries. The agriculture and animal husbandry industries in which foreign investment is restricted are: (1) Agriculture: production on paddy rice, dryland food

crops, special crops, vegetables, fruits, mushrooms, sugar-cane, flowers and other agricultural and horticultural products;

(2) Animal husbandry: raising of cattle, hogs, chickens,

ducks and other animal husbandry.

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Sector: Public utilities Obligations Concerned: National Treatment (Article 10.03) Measures: Article 16 of the Statute for Regulating Privately-owned

Utilities of April 26, 2000 Description: Investment

Privately-owned utilities companies shall not have foreign stockholders or mortgage their property to foreigners for funds unless having been approved by the Executive Yuan. Foreign investment in public gas utilities must be less than 50% in total.

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Sector: Water Obligations Concerned: National Treatment (Article 10.03) Measures: Articles 15, 16 and 42 of the Water Act of February 6,


Foreigners are not allowed to acquire water rights; provided that this shall not apply to the case, which is granted by the Executive Yuan upon request by the competent authorities. The following waters are exempt from water rights registration: (1) domestic use and livestock water consumption; (2) pond digging on private land; (3) well drilled on private land, provided that its water

output yield is less than 100 liters per minute; (4) water drawn by means of human power, animal power,

or other simple means. The competent authorities may impose restrictions upon, or order a registration of, the exempted use of the above waters if such use has interfered with public water business or benefits from water use of others.

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Sector: Communications-Telecommunication services Obligation Concerned: National Treatment (Article 10.03)

Senior Management and Boards of Directors (Article 10.08) Local Presence (Article 11.05)

Measures: Article 12 of Telecommunications Act of February 2, 2005 Article 5 of Satellite Communications Services Regulations of

September 14, 2004 Description: Investment and Cross-border Trade in Services

The chairman of the Board of a Type I telecommunications enterprise shall be a national of the Republic of China (Taiwan). A Type I Telecommunications enterprise refers to an enterprise that installs telecommunications machinery and line facilities to provide telecommunications services. The above facilities refer to network transmission facilities connecting the sending and receiving terminals, switching facilities installed as part of the network transmission facilities and the auxiliary facilities thereof. For the Type I Telecommunications enterprise, the total direct shareholding by foreigners may not exceed forty-nine percent, and the sum of direct and indirect shareholding by foreigners may not exceed sixty percent. The percentage of indirect shareholding by foreigners shall be calculated by multiplying the percentage of shareholding by domestic juristic persons in the Type I telecommunications enterprise by the percentage of shareholding or capital paid by foreigners in the said domestic juristic persons.

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The percentage of shareholding by foreigners in Chunghwa Telecom Co., Ltd. cannot exceed twenty percent.

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Sector: Communication services - Radio and television Obligations Concerned: National Treatment (Article 10.03)

Performance Requirements (Article 10.07) Senior Management and Boards of Directors (Article 10.08) Local Presence (Article 11.05)

Measures: Articles 5 and 19 of Broadcasting and Television Act of

December 24, 2003

Articles 19, 20 and 43 of Cable Radio and Television Act of December 24, 2003 Articles 10 and 15 of Satellite Broadcasting Act of December 24, 2003


1. Foreign capital restriction: (1) Foreign investment in radio broadcasting and television stations is not allowed. (2) Foreign investment in cable radio and television systems shall be less than the following thresholds:

-total shares directly held by foreign shareholders: 20% -total direct and indirect foreign investment: 60%

(3) Foreign investment in satellite broadcasting business shall be less than 50% of total shares issued. 2. Domestically-produced programs shall not be less than the following thresholds:

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-Wireless radio and television: 70% -Cable radio and television: 20%

The above-mentioned percentages shall be calculated on the basis of the total number of hours of program transmission on the activated channels of a system operator. 3. The chairman and at least 2/3 of the board of directors and supervisors of a company operating a cable radio and/or television system shall be the Republic of China (Taiwan) nationals.

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Sector: Education services Obligations Concerned: National Treatment (Article 10.03)

Senior Management and Boards of Directors (Article 10.08)

Measures: Articles 15 and 78 of Private School Law of February 6,


Foreign investment is not allowed in primary schools and junior high schools. The chairman and at least 2/3 of the board of trustees, and the president/principal of the institution providing senior high school education, higher education, adult education and other education and training services (CPC 929) should be the Republic of China (Taiwan) nationals.

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Sector: Health related and social services - Hospital services Obligations Concerned: Senior Management and Boards of Directors (Article

10.08) Measures: Article 4 and 31 of Medical Law of April 28, 2004 Description: Investment

A hospital should be established only by a non-profit institution, and at least 2/3 of the board of trustees should be the Republic of China (Taiwan) nationals.

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Sector: Transport services - Internal waterway transport, cabotage, and pilotage

Obligations Concerned: National Treatment (Articles 10.03 and 11.03)


Measures: Article 4 of Shipping Law of January 30, 2002

Article 13 of Pilotage Law of January 30, 2002 Articles 2 and 5 of the Law of Ships of January 30, 2002

Description: Investment

Foreign investment in a company providing the above services shall not exceed the following thresholds: - Zero percent for unlimited companies; - 1/3 of the equity for a limited company or a company limited by shares. The representative director/chairman and at least 2/3 of the board of directors of the company shall be the Republic of China (Taiwan) nationals.

Cross-border Trade in Services Any non-Republic of China (Taiwan) vessel may not navigate between the Republic of China (Taiwan) ports to transport passengers and cargos unless a franchise is granted. No person shall be registered as a pilot if he/she loses the Republic of China (Taiwan) nationality. Unless otherwise specially approved by the Republic of China (Taiwan) government or for seeking shelter, any

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non-Republic of China (Taiwan) flag ship shall not stay in any harbor or port other than those announced by the Republic of China (Taiwan) government as international port.

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Sector: Transport services - International maritime transport

services Obligations Concerned: National Treatment (Article 10.03)


Measures: Article 2 of the Law of Ships of January 30, 2002 Description: Investment

Foreign investment in a company providing the above services shall not exceed the following thresholds: - Zero percent for unlimited companies; - 1/2 of the equity for a limited company or a company limited by shares. The representative director of the limited company shall be the Republic of China (Taiwan) national. The chairman and at least 1/2 of the board of directors of the company limited by shares shall be the Republic of China (Taiwan) nationals.

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Sector: Transport services - Road transport services Obligations Concerned: National Treatment (Article 10.03) Measures: Article 35 of Highway Law of July 2, 2003 Description: Investment

Foreigners or unincorporated legal entities of the Republic of China (Taiwan) may not invest in automobile transportation services providers within the boundaries of the Republic of China (Taiwan), but those approved by the central highway authority may apply to invest in car rental transportation services and freight transportation services.

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Sector: Transport services - Air transport services General aviation services: business engaging in aerial tourism, survey, photographing, fire-fighting and searching, paramedic, hauling and lifting, spraying and dusting, as well as those authorized and other than air transport of passengers, cargo and mail flight operations for compensation or hire. Airport ground handling services Catering services



Measures: Articles 49, 65 (referring to 49), 74-1, 77 (referring to 74-1)

and 81 of Civil Aviation Law of June 9, 2004 Description: Investment

Foreign investment in a Civil Air Transport Enterprises or a specialty air service company shall not exceed the following thresholds: - Zero percent for an unlimited company; - 1/3 of the equity for a limited company or company limited by shares. The chairman/representative director, and at least 2/3 of the board of directors of a limited company or a company limited by shares providing the above services shall be the Republic of China (Taiwan) nationals. Foreign investment in an airport ground handling services or a catering service company shall not exceed the following thresholds: - Zero percent for an unlimited company; - 1/2 of the equity for a limited company or company limited by shares.

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The chairman/representative director, and at least 1/2 of the board of directors of a limited company or a company limited by shares providing the above services shall be the Republic of China (Taiwan) nationals. Cross-border Trade in Services Only the Republic of China (Taiwan) aircrafts are allowed to provide general domestic aviation services.

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Sector: Transport services - Airfield management and operation Obligations Concerned: National Treatment (Article 10.03) Measures: Articles 10 and 29 of Civil Aviation Law of June 9, 2004 Description: Investment

The airfield may be established by legal persons in which foreign investment shall not exceed the following thresholds: - Zero percent for an unlimited company; - 1/3 of the equity for a limited company or company limited by shares. The chairman/representative director, and at least 2/3 of the board of directors of a limited company or a company limited by shares providing the above services shall be the Republic of China (Taiwan) nationals. And the managers and operators of the airfield shall be the Republic of China (Taiwan) nationals.

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Sector: Transport services - Air transport auxiliary services Obligations Concerned: National Treatment (Article 11.03) Measures: Article 24 of Civil Aviation Law of June 9, 2004 Description: Cross-border Trade in Services

The aircraft pilot and other aeronautical technical personnel, such as flight mechanic, ground mechanic, air traffic controller, technicians employed by an aircraft maintenance facility and aircraft dispatcher shall be the Republic of China (Taiwan) nationals, unless exclusively permitted by Ministry of Transportation and Communication (MOTC) in accordance with relevant regulations.

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Sector: Mining Obligations Concerned: National Treatment (Article 10.03) Measures: Article 2 and 6 of Mining Law of December 31, 2003 Description: Investment

Mining concessions are granted only to the natural or legal persons of the Republic of China (Taiwan).

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Sector: Postal and Courier Services Obligations Concerned: National Treatment (Articles 10.03 and 11.03) Measures: Article 6 of the Postal Law of July 10, 2002 Description: Investment and Cross-border Trade in Services

Business of forwarding letters, postal cards or other papers having the nature of correspondence is reserved to the Chunghwa Post Company Limited.

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Sector: Airport operation and management Obligations Concerned: National Treatment (Articles 10.03 and 11.03) Measures: Article 28 of Civil Aviation Law of June 9, 2004 Description: Investment and Cross-border Trade in Services

According to the Civil Aviation Law, only state, county and city governments are allowed to establish and operate airports, including the air traffic control services.

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Sector: Public Welfare Lottery Obligations Concerned: National Treatment (Article 11.03)

Market Access (Article 11.06) Measures: Article 4 of Public Welfare Lottery Issue Act of June 28,

1999 Description: Cross-border Trade in Services

The Issuing Institute of the Public Welfare Lottery shall be appointed by the Competent Authority.

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ANNEX II: FUTURE MEASURES Sector: Issues related to native populations Obligations Concerned: National Treatment (Articles 10.03 and 11.03)

Most-Favored-Nation Treatment (Articles 10.04 and 11.04) Local Presence (Article 11.05) Performance Requirements (Article 10.07) Senior Management and Boards of Directors (Article 10.08)

Description: Investment and Cross-border Trade in Services The Republic of China (Taiwan) reserves the right to adopt or maintain any measure denying to foreign investors and their investments or to foreign services suppliers any rights or preferences granted to native populations.

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ANNEX II: FUTURE MEASURES Sector: Issues related to minorities Obligations Concerned: National Treatment (Articles 10.03 and 11.03)


Description: Investment and Cross-border Trade in Services The Republic of China (Taiwan) reserves the right to adopt or maintain any measure with respect to the rights or preferences granted to minorities with social or economical disadvantages.

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ANNEX II: FUTURE MEASURES Sector: Business services - Legal services Obligations Concerned: National Treatment (Articles 10.03 and 11.03)


Local Presence (Article 11.05) Description: Investment and Cross-border Trade in Services

The Republic of China (Taiwan) reserves the right to adopt or maintain any measures relating to investment in, or provision of legal services, except investment in or services provided by attorney of foreign legal affairs (AFLA) and foreign legal assistants or consultants according to the following terms: 1. Scope of the services: (1) Legal services provided by AFLA: - AFLA practicing the law of his/her home jurisdiction(s) or international law independently. - AFLA cooperating with the licensed lawyer in the Republic of China (Taiwan) or acquiring the latter’s written opinions in the matters concerning marriage, parental or inheritance cases in which the Republic of China (Taiwan) national is a party or the estates is located in the Republic of China (Taiwan). (2) Foreign legal assistant or consultant: assisting the Republic of China (Taiwan) lawyers or AFLAs but not conducting litigation or providing other legal services under the assistant/consultant’s own name. 2. The following qualifications are required for the

recognition of AFLA by the Republic of China (Taiwan): (1) the service provider is qualified as a lawyer in his/her home jurisdiction(s), and

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ANNEX II: FUTURE MEASURES (2) the service provider has practiced as a qualified lawyer for at least 5 years in his/her home jurisdiction(s). However, should a foreign lawyer be employed by a lawyer of the Republic of China (Taiwan) as an assistant or consultant or have practiced his/her home jurisdiction laws elsewhere, the term, up to a maximum of two years of employment or practice may be accredited to the said five year term.

(3) any foreign lawyer who is already employed by a Republic of China (Taiwan) lawyer by 1 January 2002 in accordance with the Regulation Concerning Republic of China (Taiwan)’s Lawyers’ Employment of Foreigners and Administration Thereof, may apply to become an AFLA after the completion of the two years’ employment period. 3. The Republic of China (Taiwan) allows AFLAs to establish partnership with or employ licensed lawyer of the Republic of China (Taiwan). 4. Foreigners who are college graduates majoring in law-related subjects or have law-related working experience for at least two years, or who have passed the lawyer’s examination in any foreign country and may be employed by the Republic of China (Taiwan) lawyers or AFLAs to work as assistants or consultants. 5. Registration shall be made with the Bar Association in the locality in the Republic of China (Taiwan) where the law office is located after the person is recognized by the Republic of China (Taiwan) as AFLA.

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ANNEX II: FUTURE MEASURES Sector: Communication services - Audiovisual services - Television

broadcast transmission services and Radio broadcast transmission services




The Republic of China (Taiwan) reserves the right to adopt or maintain any measure relating to investment in, or the provision of, television and radio broadcast transmission services.

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ANNEX II: FUTURE MEASURES Sector: Games of luck and chance Obligations Concerned: National Treatment (Articles 10.03 and 11.03) Description: Investment and Cross-border Trade in Services

The Republic of China (Taiwan) reserves the right to adopt or maintain any measure relating to the operation of games of luck and chance, and of activities involving bets.

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ANNEX II: FUTURE MEASURES Sector: Private Security Services Obligations Concerned: National Treatment (Articles 10.03 and 11.03)


An enterprise must be incorporated in the Republic of China (Taiwan) to operate a private security guard company. Natural persons serving as armed guards must be the Republic of China (Taiwan) nationals who reside in Republic of China (Taiwan).

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ANNEX II: FUTURE MEASURES Sector: Social Services Obligations Concerned: National Treatment (Articles 10.03 and 11.03) Most-Favored-Nation Treatment (Articles 10.04 and 11.04)

Local Presence (Article 11.05) Market Access (Article 10.07) Senior Management and Boards of Directors (Article 10.08)


The Republic of China (Taiwan) reserves the right to adopt or maintain any measure with respect to the provision of law enforcement and correctional services, and the following services to the extent they are social services established or maintained for a public purpose: income security or insurance, social security or insurance, social welfare, public education, public training, health, child care and water supply.

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ANNEX II: FUTURE MEASURES Sector: Construction services Obligations Concerned: National Treatment (Article 10.03 and 11.03) Local Presence (Article 11.05) Description: Investment and Cross-border Trade in Services

The Republic of China (Taiwan) reserves the right to maintain or adopt any measure regarding cross-border services of construction services.

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ANNEX II: FUTURE MEASURES Sector: Professional Services Obligations Concerned: National Treatment (Article 11.03) Most-Favored-Nation Treatment (Article 11.04) Local Presence (Article 11.05) Market Access (Article 11.06) Description: Cross-border Trade in Services

The Republic of China (Taiwan) reserves the right to adopt or maintain any measure that is not inconsistent with The Republic of China (Taiwan)’s obligations under Article XVI of the General Agreement on Trade in Services.

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Sector: All Sectors Obligations Concerned: Most-Favored-Nation Treatment (Articles 10.04 and 11.04) Description: Investment and Cross-border Trade in Services

The Republic of China (Taiwan) takes exception to Article 10.04 and 11.04 (Most-Favored-Nation Treatment) for treatment accorded under all bilateral or multilateral international agreements in force or signed prior to the date of entry into force of this Agreement. The Republic of China (Taiwan) makes exemption to the application of Article 10.04 (Most-Favored-Nation Treatment), to the treatment granted under those agreements in force or signed after the date of entry into effect of this Agreement, in the matter of:1 (a) aviation; (b) fisheries; (c) maritime affairs, including salvaging; (d) telecommunication; and (e) financial services. For greater certainty, Article 10.04 and 11.04 are not applied to any present or future program of international cooperation to promote economic development.

1 For greater certainty, the exclusion of Most-Favored-Nation treatment in the cross-border supply of telecommunications and financial services does not nullify or impair the commitments of the Parties to meet their respective obligations under Article XVI of the General Agreement on Trade in Services.

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ANNEX I

Explanatory Notes 1. The Schedule of a Party to this Annex sets out, pursuant to Articles 10.09 (Non-

Conforming Measures) and 11.08 (Non-Conforming Measures), a Party’s existing measures that are not subject to some or all of the obligations imposed by:





(e) Article 11.05 (Local Presence); or




(b) Obligations Concerned specifies the obligation(s) referred to in paragraph 1 that, pursuant to Articles 10.09 (Non-Conforming Measures) and 11.08 (Non-Conforming Measures), do not apply to the listed measure(s);

(c) Measures 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 liberalization on the date of entry into force of the Agreement, and the remaining non-conforming aspects of the existing measures for which the entry is made.

3. In the interpretation of a Schedule entry, all elements of the entry shall be considered. An entry shall be interpreted in light of the relevant provisions of the Chapters against which the entry is made. To the extent that:

(a) the Measures element is qualified by a liberalization commitment from the Description element, the Measures element as so qualified shall prevail over all other elements; and

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(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 Article 10.09 (Non-Conforming Measures) and 11.08 (Non-Conforming Measures), the articles of this Agreement specified in the Obligations Concerned element of an entry do not apply to the law, regulation, or other measure identified in the Measures element of that entry.

5. Where a Party maintains a measure that requires that a service provider be a citizen, 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 11.03 (National Treatment), 11.04 (Most-Favored-Nation Treatment), or 11.05 (Local Presence) shall operate as a Schedule entry with respect to Article 10.03 (National Treatment), 10.04 (Most-Favored-Nation Treatment), or 10.07 (Performance Requirements) to the extent of that measure.

6. For greater certainty, Article 11.06 (Market Access) refers to non-discriminatory measures.

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Sector:

Business and production services - Agronomists

Obligations Concerned: National Treatment (Article 11.03) Most-Favored Nation Treatment (Article 11.04 ) Local Presence (Article 11.05)

Description: Cross-border Trade in Services Honduras reserves the right to adopt or maintain any measure that pertains to obligatory membership in a professional association of agronomists.

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Sector:

Business and production services - Social Workers


Description: Cross-border Trade in Services Honduras reserves the right to adopt or maintain any measure that pertains to obligatory membership in a professional association of social workers.

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Sector:

Business and production services/ Chemists and Pharmacists



Honduras reserves the right to adopt or maintain any measure that pertains to obligatory membership in a professional association of chemists or pharmacists.

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Sector:

Air Transportation Services/ Airport Services

Obligations Concerned: National Treatment (Articles 10.03 and 11.03) Most-Favored Nation Treatment (Article 10.04 and 11.04) Local Presence (Article 11.05) Performance Requirements (Article 10.07) Senior Management and Boards of Directors (Article 10.08)

Description: Investment and Cross-border Trade in Services Honduras reserves the right to adopt or maintain any measure that applies to the supply of the auxiliary services of airplane navigation.

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Sector:

Communications Services / Telecommunications

Obligations Concerned: National Treatment (Articles 10.03 and 11.03) Most-Favored Nation Treatment (Articles10.04 and 11.04) Local Presence (Article 11.05) Performance Requirements (Article 10.07) Senior Management and Boards of Directors (Article 10.08)

Description: Investment and Cross-border Trade in Services Honduras reserves the right to adopt, maintain, or modify the level of participation in the ownership of the Empresa Hondureña de Telecomunicaciones (HONDUTEL), as well as its affiliates or subsidiaries.

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Sector:

Social Services


National Treatment (Articles 10.03 and 11.03) Most-Favored-Nation Treatment (Articles 10.04 and 11.04) Local Presence (Article 11.05) Performance Requirements (Article 10.07) Senior Management and Boards of Directors (Article 10.08)

Description: Investment and Cross-border Trade in Services Honduras reserves the right to adopt or maintain any measure with respect to the provision of law enforcement and correctional services, and the following services to the extent they are social services established or maintained for a public purpose: income security or insurance, social security or insurance, social welfare, water supply, public education, public training, health, and child care.

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Sector:

Minority Affairs

Obligations Concerned: National Treatment (Articles 10.03 and 11.03) Most-Favored-Nation Treatment (Articles 10.04 and 11.04 ) Local Presence (Article 11.05) Performance Requirements (Article 10.07) Senior Management and Boards of Directors (Article 10.08)

Description: Investment and Cross-border Trade in Services Honduras reserves the right to adopt or maintain any measure according rights or preferences to socially or economically disadvantaged minorities.

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Sector: Native Populations Affairs

Obligations Concerned: National Treatment (Articles 10.03 and 11.03) Most-Favored-Nation Treatment (Articles 10.04 and 11.04) Local Presence (Article 11.05) Performance Requirements (Article 10.07) Senior Management and Boards of Directors (Article 10.08)

Description: Investment and Cross-border Trade in Services Honduras reserves the right to adopt or maintain any measure that denies to foreign investors and their investments or suppliers of foreign services, any right or preference granted to native populations

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Sector:

Distribution Services- Petroleum Products (Liquid Fuel, Automotive Oil, Diesel, Kerosene, and LPG)

Obligations Concerned: National Treatment (Articles 10.03 and 11.03) Most-Favored-Nation Treatment (Articles 10.04 and 11.04) Local Presence (Article 11.05) Market Access (Article 11.06)

Description: Investment and Cross-border Trade in Services The Executive Branch through the Comisión Administradora del Petróleo (CAP) is authorized to contract in direct and exclusive form, the purchasing - selling of crude, reaconditioned, refined oil and all its derivatives in the international market

Measures: Decreto Legislativo No 94 del 28 de Abril de 1983, Artículo 2 Decreto PCM-30-2006, Artículo 5, 1 de septiembre de 2006

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Sector:

All Sectors


Most-Favored-Nation Treatment (Articles 10.04 and 11.04)

Description: Investment and Cross-border Trade in Services Honduras, reserves the right to adopt or maintain any measure derived from a community law norm resulting of a community law instrument, or adopted by an organ of the Sistema de Integración Económica Centroamericana or its successor.

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Sector: Postal Services Obligations Concerned: National Treatment (Articles 10.03 and 11.03) Most-Favored-Nation Treatment (Articles 10.04 and


El Salvador reserves the right to adopt or maintain any measure with respect to the provision of postal services.

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Sector: Social Services Obligations Concerned: National Treatment (Articles 10.03 and 11.03) Most-Favored-Nation Treatment (Articles 10.04 and

11.04) Local Presence (Article 11.05) Market Access (Article 11.06) Performance Requirements (Article 10.07) Senior Management and Boards of Directors (Article


El Salvador reserves the right to adopt or maintain any measure with respect to the provision of law enforcement and correctional services, and the following services to the extent they are social services established or maintained for a public purpose: income security or insurance, social security services, water supply, social welfare, public education, public training, health, and child care.

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Sector: Minority Affairs Obligations Concerned: National Treatment (Articles 10.03 and 11.03) Local Presence (Article 11.05) Performance Requirements (Article 10.07) Senior Management and Boards of Directors (Article


El Salvador reserves the right to adopt or maintain any measure according rights or preferences to socially or economically disadvantaged minorities.

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SCHEDULE FOR THE REPUBLIC OF EL SALVADOR


Sector: Transport Services: Road Transport Services Obligations Concerned: National Treatment (Article 11.03) Most-Favored-Nation Treatment (Article 11.04) Local Presence (Article 11.05) Description: Cross-border Trade in Services

El Salvador reserves the right to adopt or maintain any measure restricting the transportation of goods by road.

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Sector: Business Services: Professional Services Obligations Concerned: National Treatment (Articles 10.03 and 11.03) Most-Favored-Nation Treatment (Articles 10.04 and

11.04) Local Presence (Article 11.05) Description: Investment and Cross-border Trade in Services

El Salvador reserves the right to adopt or maintain any measure regarding professional services that is not inconsistent with its obligations under Article XVI of the General Agreement on Trade in Services.

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Sector: Construction Services Obligations Concerned: National Treatment (Article 11.03) Most-Favored-Nation Treatment (Article 11.04) Local Presence (Article 11.05) Description: Cross-border Trade in Services

El Salvador reserves the right to adopt or maintain any measure regarding cross-border trade of construction services.

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ANNEX II: FUTURE MEASURES Sector: Issues related to native populations Obligations Concerned: National Treatment (Articles 10.03 and 11.03)


Description: Investment and Cross-border Trade in Services The Republic of China (Taiwan) reserves the right to adopt or maintain any measure denying to foreign investors and their investments or to foreign services suppliers any rights or preferences granted to native populations.

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ANNEX II: FUTURE MEASURES Sector: Issues related to minorities Obligations Concerned: National Treatment (Articles 10.03 and 11.03)


Description: Investment and Cross-border Trade in Services The Republic of China (Taiwan) reserves the right to adopt or maintain any measure with respect to the rights or preferences granted to minorities with social or economical disadvantages.

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ANNEX II: FUTURE MEASURES Sector: Business services - Legal services Obligations Concerned: National Treatment (Articles 10.03 and 11.03)



The Republic of China (Taiwan) reserves the right to adopt or maintain any measures relating to investment in, or provision of legal services, except investment in or services provided by attorney of foreign legal affairs (AFLA) and foreign legal assistants or consultants according to the following terms: 1. Scope of the services: (1) Legal services provided by AFLA: - AFLA practicing the law of his/her home jurisdiction(s) or international law independently. - AFLA cooperating with the licensed lawyer in the Republic of China (Taiwan) or acquiring the latter’s written opinions in the matters concerning marriage, parental or inheritance cases in which the Republic of China (Taiwan) national is a party or the estates is located in the Republic of China (Taiwan). (2) Foreign legal assistant or consultant: assisting the Republic of China (Taiwan) lawyers or AFLAs but not conducting litigation or providing other legal services under the assistant/consultant’s own name. 2. The following qualifications are required for the

recognition of AFLA by the Republic of China (Taiwan): (1) the service provider is qualified as a lawyer in his/her home jurisdiction(s), and

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