MULTILATERAL TRADE NEGOTIATIONS THE URUGUAY ROUND
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1 ULTILATERAL TRADE NEGOTIATIONS TE URUGUAY ROUND RESTRICTED TN.TNC/W/62/Rev.l 12 arch 1991 Special Distribution \ Trade Negotiations Committee Original: English COUNICATION FRO FINLAND Conditional Offer by Finland Concerning Initial Commitments Revision 1. Finland presented its Conditional Offer concerning Initial Commitments on 17 January 1991 in the document TN.TNC/W/62. Finland's offer contained a commitment to conditionally bind present market access and national treatment conditions in all services sectors to be covered by the Agreement on Trade in Services. The attached explains more in detail the content of the above-mentioned Offer. The Offer includes measures concerning the authorization to work within the national territory in conjunction with the delivery of the service. 2. Progressive liberalization on trade in services is for Finland an essential part of the Uruguay Round negotiations on services. To this effect, and to ensure predictable and stable trading conditions, parties should enter into negotiations to bind their commitments. 3. This offer is presented as a basis for negotiations on initial commitments. Finland expects corresponding offers from other parties that participate in the services negotiations. A balanced outcome of the negotiations would require commitments from other parties to bind their regulatory measures in areas of interest to Finland. 4. This offer is conditional. Finland reserves its right to modify, reduce or withdraw this offer according to the following criteria: The quality and number of offers by other parties in order to foster the progressive liberalization of all services sectors. The contents and quality of the framework agreement including sectoral annexes. Particular consideration shall be given to the most-favoured-nation clause in order to secure an economically meaningful agreement. GATT SECRETARIAT UR
2 TN.TNC/W/62/Rev.l Page 2 5. Finland further reserves its right to correct possible technical errors or inaccuracies in its Offer. 6. Finland is prepared to enter into negotiations with other parties on additional market access and national treatment concessions. Any such additional commitments would be bound in the Finnish national schedule as part of a balanced outcome where other parties made corresponding commitments of interest to Finland.
3 FINLAND OFFER 6 arch 1991 Sector/sub-sector ALL SECTORS* Capital movement ovement of.personnel Entry into and residence in the national territory. A foreigner carrying on a trade as a private entrepreneur needs a trade permit and has to be permanently resident in Finland. In addition, in the case of a regulated trade a licence is required for both Finnish and foreign citizens. Some trades are reserved for Finnish citizens or Finnish registered organizations. A permission to act as a founder of a limited company is required of a foreign organization or a private person, who is not a citizen of Finland or another Nordic country resident in Finland, or when the articles of Association do not restrict the right of non-citizens to own shares of a company, foreign ownership is limited to 20 per cent without permission. Prior approval is needed when a foreigner establishes or joins a Finnish partnership. If a foreigner or an organization which is not registered in Finland (a foreign organization) acquires or, under a lease concluded for a period exceeding two years, has possession of real estate, the permission is needed. The permission is required in the case of a limited liability company if the foreign ownership is not restricted to a maximum of 20 per cent of the share capital, as well as when a partnership with one or more foreign partners acquires real estate. Foreign-exchange regulations, except those regarding the raising of loans abroad by private individuals and comparable corporate entities, are rescinded, as from 1 January 1991 Entry into and residence in the national territory are regulated by the Finnish Immigration Law. Finland does not contemplate any changes in these regulations as a result of this offer. UN Conditions of nationality Not applicable It is understood that the regulations "all sectors" and the offer on movement of personnel are applicable to each sector and sub-sector excluding banking and insurance in cases when sector specific regulations prevail and are indicated accordingly.
4 O) OO Z (D O Z O Authorization to work within the national territory. Work permit is required for non-resident natural persons if the purpose of entry into Finnish territory is to undertake work. Permit will be issued according to the Finnish labour market tests and practises. Work permit requirement is applicable to all holders of non-nordic passports. OFFER: Finland is prepared to make a commitment for the temporary entry of the managers, executives and specialists essential to the delivery of the traded service. The exact scope and content of the essential personnel and conditions related to the movement of personnel are to be defined more precisely in further negotiations. Full compliance with the Finnish labour laws and labour market practises is required. Ï3 a> BUSINESS SERVICES Rental/leasing of equipment without crew transports cars, trucks aircraft, ships, etc. * non-transport: computers, construction/démolition * Reale state services (not including rental of land) involving own or leased property on a fee or contract basis (e.g. property evaluation, estate management, etc.) Licence of the County Government required for a commercial presence (real estate dealing)* Permission of the inistry of the Interior is needed for foreigners and foreign organizations when acquiring real estate Conditions of nationality; licence for real estate dealing granted only for Finnish citizens and Finnish registered organizations
5 Sector/sub-aector Installation and aaaambly (other than conatruction) work * aintenanc» and repair of equipment (excluding aircraft and fixed structure) lsâ. i o n a 1 _a rv i ce1 * * * Legal services Legal advica activities * Conditions of nationality when practising legal services as a member of the General Bar Association in Finland Accountancy * Auditing sarvicaa At least one of the auditors of a Finnish liability company must be a Finnish citizen resident in Finland or a Finnish CPA audit company* Conditions of nationality Architects Personal health doctors dentists nursing rvicas * Registration and competence requirements to practise* 3 s 0) 0O 2 T> i-3 O The supply of Professional Services are in general subject to certain regulations and qualifications (including e.g. work permit regulations ind mutual educational qualifications.!
6 Professional services (cont'd) Veterinary surgeons Registration and competence requirements to practise* "0 w OQ IB Oï r j 2 i-3 2 O i! Oï pd 0 Agriculture, forestry and fishing * ining services * anagement and administrative services (including management consultancy) * Advertising * arket research and opinion polling * Surveying and exploration services * Advisory and consultative engineering services * Construction and related * Engineering design *
7 S»ctor/sub-»«ctor Prof»»»lon»,l services (cont'd) Industrial «ngineering * Urban planning servie»» * Interior d»«ign servie»» * Comput»r-r»lated Servie»» (including hardw«r»-r»lated consulting, installation, data processing) * Softwar» development (including software implementation) * Trav»l agencies Licence required; National Consumer Administration* Licence can be granted only for Finnish State and citizens or Finnish registered organizations Tourist guides Economic»nd behavioural rearch Labour recruitment and provision of personnel Franchiaing * * Governmental responsibility >u PI OQ n ^J s Z Z o c*?o
8 Professional services (cont'd) Investigation and security activities Licence of the County Government required for a commercial presence* Licence can be granted only for Finnish citizens and Finnish organizations m» 00 re CO r z z n «i en P3 n Public relations services * Photographic services * Business services not included elsewhere Cleaning of buildings and similar activities * Waste disposal and processing * azardous waste Permission requirements for hazardous waste processing* Translation services Certified translators; authorization requirement. Other translation services; no limitation* Exhibition management services * Printing and publishing Nationality or residence requirements* Ç0UN1ÇATI0N_SERVIÇES Courier services, except as authorization for air transport operations is required*
9 Sector/eub-sector Telecommunication»*** Public telecommunications, transport services and networks Concession and establishment requirement* Other telecommunications services (VAS) * Audio-visual services on cross-border transmission into or reception within national territory. Broadcasting and cable transmission (retransmission of broadcasts by cable excluded) are subject to authorization and obligations as specified in the licence. Licence forcible transmission may be granted only to a Finnish citizen or a Finnish organization. Cultural specificity requirements may be imposed on programmes. Other communication services News and press agency services * DISTRIBUTION SERVICES (excluding arms, alcoholic beverages and pharmaceutical products) erchanting (wholesale trade) - Retail trade Agent fees and commissions related to distribution Countertrading services * EDUCATIONAL SERVICES Primary, secondary, vocational and university level education is public service function, free of charge and subject to authorization. Degrees and recognized qualifications are regulated by legislation. Specialized courses may be offered without authorization* x) U3 (]Q a VD S z n 5". O This offer is based on the draft annex, dated on 19 November n
10 B> 1-3 OQ Z (C >-3 55 O O EALT RELATED SERVICES (not including personal care) uman health services (including hospital and sanitary services) Authorization requirement* (D Veterinary services Notification requirement* (competence requirements for a person in charge of activities ) OTELS AND RESTAURANTS (including catering) Licence required; The County Government* Licence can be granted only for Finnish citizens and Finnish organizations PERSONAL SERVICES (not included elsewhere) ouse cleaning and maintenance services * RECREATIONAL AND CULTURAL SERVICES Sporting and other recretional services (non-cultural) Cultural services (other than audio-visual services or publishing), except as regards l.n. gambling, coin machine: and like activities* *
11 BANKING AND OTER FINANCIAL SERVICES I excluding Insurance)* * * Credit institution* including banks and other kinds of financial institutions Cross-border trade : A carrying on of professional broker activities requires a licence and a permanent place of business in Finland. ovement_of_consurners : Commercial presence : General authorization required. With the authorization of the Council of State, foreign banks or other credit institutions may establish wholly-owned banking subsidiaries and acquire shares in a Finnish commercial bank, mortgage bank or a credit company with greater than 20 per cent participation. With the authorization of the inistry of Finance foreign banks or other foreign credit institutions engaged in banking business may establish a branch or a representative office. Other kinds of financial institutions are subject to the general regulations concerning foreign ownership in Finland, for example financial and investment companies and credit card companies* Cross-border trade : ovement of consumers: Commercial presence: Establishment is subject to conditions of nationality and the place of residence. Exceptions can be granted by the inistry of Finance. Requirements concerning the nationality and the place of residence, from which exceptions can be granted, apply to the Supervisory Board and the Board of anagement as well as the Chief General anager and auditors. Stock exchange Commercial presence : Authorization and establishment requirement to operate as a stock exchange. The elsinki Stock Exchange: foreign nationals may be members only with the authorization of the Council of State. Commercial presence : Conditions of nationality This offer is conditioned on the satisfactory outcome in the negotiations on a Financial Services Annex based on the document TN.TNC/W/50, 3 December 1990 and is subject to the assumption on mutually acceptable offers made by the other parties. Establishment, cross-border provision of financial services and operating conditions are understood to be subject to normal prudential consideration.
12 S«ctor/sub-sector 13 P It Security brokerage firms and brokers Authorization and establishment requirement to operate as a professional Security Brokerage Firm (securities intermediary) A brokerage firm trading on the elsinki Stock Exchange: authorization and membership requirement Requirements concerning nationality and piece of residence apply to the Board of Directors and anaging Director a brokerage firm Security dealing firms and dealers Authorization is required to act in the elsinki Stock Exchange * as a stock exchange broker Conditions of nationality arket makers and intermediaries on derivatives exchange Collective investments in securities : - unit trusts Commercial presence : The right to act as market makers and intermediaries on a "derivatives" exchange, is restricted to nationals of Finland and nationals of other Nordic countries resident in Finland unless the inistry of Finance grants an exception. A foreigner or a foreign institution may not own units of a Finnish unit trust. Commercial presence: Conditions of nationality Conditions of nationality management companies s* INSURANCE Insurance services (including services auxiliary to insurance) **** Direct insurance reinsurance and Cross-border trade : Foreign insurers may without licence offer only in Finland. reinsurances Cross-broder trade: W Tt Tt W W This offer is conditioned on the satisfactory outcome in the negotiations on a Financial Services Annex based on the document TN.TNC/W/50, 3 December 1990 and is subject to the assumption on mutually acceptable offers made by other parties. Establishment, cross-border provision of financial services and operating conditions are understood to be subject to normal prudential considerations.
13 Direct insurance and reinsurance (cont'd) ovement of consumers : Obligatory insurances (the statutory employment pension insurance, the statutory accident insurance, the motor third party liability insurance, the insurance against treatment injury) have to be effected in Finland. ovement of consumers : Commercial presence: Foreigners may without permission issued by the Council of State own not more than 40 per cent of the shares in an insurance company founded in Finland (i.e. Finnish company) and on the bases of the shares owned by them, hold not more than 20 per cent of the voting rights. Branches of foreign insurance companies cannot get a licence in Finland to carry on statutory insurance business (the statutory employment pension insurance, the statutory accident insurance, the motor third party liability insurance, the insurance against treatment injury). Concerning other kinds of insurance there are no other special conditions or limitations than the principle of reciprocity which can be applied when the licence is granted. Commercial presence : Requirements concerning nationality or place of residence, from which an exemption can be granted in some cases, apply to the founder, managing director and members of the board of directors and the supervisory board of an insurance company. The general agent of the foreign insurance company shall reside in Finland. The general agent will be approved by the inistry of Social Affairs and ealth. Commercial presence : An insurance company that has been granted a licence in Finland shall have an actuary fulfilling the requirements determined by the inistry of Social Affairs and ealth t regards the competence of the actuary. Insurance intermediation and services auxiliary to insurance * ha ID 0O u> X z z o K O) N> pa 0> -
14 TRANSPORT Air transport (freight and passengers; including auxiliary services) - Cround handling * (subject to infrastructure capacities) T) l» 00 CD *«S -) z -3 Z n K en pa - Sales and marketing * - Computer reservation system * aintenance and repair of aircraft aritime transport - Transport (cargo and passengers) between Finland and other countries Service auxiliary to transport * s on cross-border trade and use of foreign maritime transport services in international shipping. A ship is regarded as Finnish and may be registered in the Finnish shipping register if more than 60 per cent of the ship is owned by Finnish citizens or by Finnish companies. Exemptions from the general rule are possible. The aster of a Finnish ship must be a Finnish national. * Conditions of nationality for the aster of a Finnish ship. - Cabotage The transports between Finnish ports are reserved for Finnish vessels only. Waivers are possible if there are no Finnish vessels available. The waiver cannot exceed one year.
15 L^Sd transport (freight and passengers, including «ervices auxiliary to transport) Cross-border road transport Authorization required for regular traffic with vehicles with non-finnish registration. Bilateral agreements regulate traffic volume and procedures. Limitations agreements. set out in bilateral - Road cabotage Authorization required, not extended to foreign registered vehicles. - Commercial presence * Not applicable R«j1 transport Permission required* Permission can be granted only to a Finnish citizen permanently resident in Finland, a Finnish commune or a Finnish liability company. Combined transport services, except as regulations applicable to specific transport sub-sectors also apply to the corresponding portion of a combined transport.*, except as regulations applicable to specific transport sub-sectors also apply to the corresponding portion of a combined transport. Charter services (leasing of vessels with crew; sea, road and air), except as regulations applicable to specific transport sub-sectors also apply to the corresponding charter service.* except as regulations applicable to specific transport sub-sectors also apply to the corresponding charter service. ' a» TO Cn x z. -! z Ci ^ a\ N PC
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