MULTILATERAL TRADE NEGOTIATIONS THE URUGUAY ROUND RESTRICTED 14 February 1992 Special Distribution Trade Negotiations Committee Original: English COMMUNICATION FROM FINLAND Conditional Offer By Finland Concerning Initial Commitments Revision The following communication is circulated at the request of the permanent delegation of Finland to the members of the Group of Negotiations on Services. 1. Finland presented its revised Conditional Offer concerning Initial Commitments on 12 March 1991 in the document MTN.TNC/W/62/Rev.1. The attached second revision is based on the draft final text of the General Agreement on Trade in Services and its attached texts of 20 December 1991 (document MTN.TNC/W/FA). The offer is subject to revision to take account of any amendments to these texts. It reflects the bilateral negotiations on initial commitments which Finland has conducted after the issuance of the previous offer. It also incorporates some technical changes reflecting the content of the relevant articles in the framework agreement and the sectoral annexes and attachment. 2. Progressive liberalization of trade in services in its widest possible scope is an essential goal for Finland in the Uruguay Round negotiations. Comprehensive initial commitments on market access and national treatment by all participating countries in the Uruguay Round as part of the General Agreement on Trade in Services are thus of relevance for the assessment of the overall results of the Uruguay Round negotiations. To this end Finland is prepared to continue actively bilateral negotiations with other trading partners on the basis of the offers for additional commitments in market access and national treatment as outlined in the work programme by the Chairman of the Group of Negotiations in Services. GATT SECRETARIAT UR-92-0030
Page 2 3. This revised offer is presented in the expectation of corresponding offers with widest possible sectoral coverage by other participants in the Uruguay Round negotiations. A balanced outcome of the negotiations would require that other parties are ready to bind their regulatory measures in the areas of interest to Finland. 4. This offer is conditional and Finland reserves its right to modify, reduce or withdraw this offer based on the following criteria: - The quality and number of offers by other participants in order to foster the progressive liberalization of all services sectors; - The scope and economic value of the m.f.n.-derogations sought for by the other participants; - The final contents of the framework agreement and the sectoral annexes. 5. The initial commitments in this offer and any additional commitments resulting from the initial commitment negotiations would be bound in the Finnish national schedule as a part of the balanced outcome and on the basis of the above defined criteria in the expectation that other parties would make corresponding initial commitments and further additional commitments of special interest to Finland.
Page3 Sector/sub-sector 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. Sometrades 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 a 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 when a partnership with one or more foreign partners acquires real estate Conditions of Nationality *) It is understood that the regulations "all sectors" and the offer on movement of personnel are applicable to each sector and sub-sector excluded Banking and Insurance in cases when sector specific regulations prevail and are Indicated accordingly
Sector/sub-sector Page 4 Capital Movement No Limitation Movement of Personnel Entry into and residence in the national territory o Entry into and residence in the national territory are regulated by the Finnish immigration law, according to which work permit is required for nonresident natural persons if the purpose of entry Into Finnish territory is to undertake work. Permit will be issued according to Finnish labour market tests and practices, of which natural persons as intra-corporate transferees with managerial positions and temporary assignments, are exempt. Finland does not contemplate any changes in these regulations as a result of this offer including legislation regarding collective agreements UN Temporarv entry of service providers Finland shall permit, without requiring compliance with labour market tests, the temporary entry of following service providers as intracorporate transferees: executives - persons who primarily direct the management of the organization, establish it's goals and generally have a wide decision making authority. Executives would not necessarily perform tasks related to the actual provision of the service managers - persons who direct the organization or it's department and are in a senior level responsible of the service providing functions of the organization by supervising and controlling and having also authority to hire and fire personnel or recommend such and other personnel actions
Page5 Sector/sub-sector Movement of personnel (continued) Work permit will be issued in compliance with the labour mrket tests to those intra-corporate specialists - persons within the organization, who possess knowledge at an advanced level of expertise or otherwise essential or proprietal to the organizations service, research equipment, techniques or management Servicesellers are allowed to enter Into country without requiring work permit when their residence does not exceed 90 days service sellers are defined as representatives of a service provider who are seeking temporary entry in purposesof negotiation for the sale of services or entering into agreements to sell services for that service provider, where this setting activity is not directed to the general public
Page 6 Sector/sub-sector Professional Services 1) Legal services (861) - International and home country law Conditions of Nationality when practising legal services as a member of the General Bar Association in Finland AccontIng services (862) Auditing Services (862) 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 Architectural services (5671) SOUND Engeringservices (8472) Integratedegineering services (8673) wtan planing and landscape architectural service (8674) Medical andental services (312) Registration and competence requirements to practise * Conditions of Nationality 1) The supplyof Professional Services are andnutual educational qualifications) in general subject to certain regulations and qualifications (including e.g. work permit regulations
7Page Sector/sub-sector Professional services (continued) Veterinary services (932) services provided by nurse (93191) Computer and relate services Registration and competence requirements to practise * Registration and coapetence requirements to practise * Conditions of Nationality Consultancy services related to the inatallation of computerhardware (841) Softwarelamplementation services (842) Date pressing services (843) Reserch and developmentservice Research services sciences Research and development on r.4ural (851) SOUND Resarch sevices sciencesand (852) and development on social and humanities
Page8 Uctor/ath-5ector Research and developmentservices (continued) interdisciplinary research anddevelopment services (853) (nat including rentalof land) Involving own or leased property (821) and on a fee or contract basi (822) enstl/iafira services without operators bslating to ships 44OS Retiringto aircraft (03104) License of the County Government required for a commercial presence (real estate dealing) * Permission of the Ministry of the interior is needed for foreigners and foreign organizations when acquiring real estate Conditions of Nationality; calating to other 16,0tt qu.went 0l11014i102.3105) e444stit to other WhIrwy and ow1rawt6 lpt0-319
Page 9 Sector/sub-sector otherbusinessservices Advertising services (871) Market research and public opinion polling services (864) Management consulting servicss (865) Services related to management consulting (866) Services Incidnetal to agriculture, forestry andmishing(881+882) services incidental to nt( (883+5115) Inwatiation and Ity (873) No Limitation * License of the County Government required for a commercial presence * License can be granted only for Finnish citizens and Finnish registered organizations
Page10 MTN.TNC/W/Rev.2 Sector/sub-sector otherbusiness services (continued) Maintenance ond repair of equipment (not incl. maritime vessels, aircraft, or other transport equpiment) (633+861-8886) Building-clesning services (874) Photoorsiidc services (875) No Limitation BOUID Printirg, publishing (88442) Nationality or residence requirement * 1tYi'leIon andinterpretation services (87905) Certified translators: authorization requirement. Other translation services: no limitation * Ijbion management servlces (87909) 04b414 relation services (87909)
Page 11 Sector/sib-sector RMIICATIONSERVICES Courier services (7512), except as authorization for air transport operations is required *,,coomunicationservices 2) public telecommunications, transportservices and rszorks other telecommunications services (VAS) 2) Concession and No Limitation estabishment requirement * 2) This offer l based on the draft annex, dated on 20 December 1991 (MTN.TNC/W/FA)
Page 12 Sector/sub-sector COMMUNICATION SERVICES (continued) Audiovisual 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 license License for cable transmission may be granted only to Finnish citizens and Finnish registered organizations Cultural specifity requirements may be imposed on programs SERVICES RELATED ENGINEERING General construction work for buildings (512) General construction work for civil engineering (513) Installation and assembly work (514+516) SOUND DISTRIBUTIONS SERVICES Comission agents' services (621) Wholesale trade services (622) SOUND
Page13 Sector/sub-sector DISTRIBUTIONSERVICES (continued) Retailing services (631+632+6111+6113+ 6121) Franchising(8929) ENVIRONMENTALSERVICES Refuge disposal services (9402) - Hazardous waste Permission requirements for hazardous waste processing * AMIllG AND OTHER FINANCIAL SERVICES 3) (excluding insurance) Cross-border trade: Professional intermediation of securities and derivatives requires authorization of the Ministry of Finance and a permanent place of business in form of a limited liability company or a deposit bank Movement of consumers: sound Cross-border trade: Movement of consumers: 3) This offer is based on the understanding on commitments in Financial Services (MTN.TNC/W/FA) 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 considerations
Page14 MTN/TNC/W/62/Rev.2 Sector/sub-sector BANKING AND OTHERFINACIAL SERVICES (continued) Credit institutions including Banks and other kinds of financial institutions 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 and in Finnish credit institutions with greater than 20 per cent participation With the authorization of the Ministry of Finance foreign banks or other foreign credit institutions engaged in banking business may establish a branch or a representative office Financial and investment institutions are subject to the general regulations concerning establishment and foreign ownership in Finland Commercial presence: Establishment is subject to conditions of Nationality and the place of residence. Exceptions can be granted by the Ministry 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 Management as well as the chief general manager and auditors Stock Exchange Commercial Presence: Authorization and establishment requirement to operate as a stock exchange The Helsinki Stock Exchange: foreign nationals may be members only with the authorization of the Council of State Comercial Presence: Conditions of Nationality
Page 15 Sector/sub-sector BANKING AND OTHER FINANCIALSERVICES (continued) Derivatives Intermediary Security Dealing Firms and Dealers Professional Intermediation of securities and derivatives (options and futures) requires authorization of the Ministry of Finance and a permanent place of business in the form of a limited liability company or a deposit bank A Brokerage Firm trading on the Helsinki Stock Exchange: authorization and membership requirement Authorization is required to act as a stock exchange broker in the Helsinki Stock Exchange Requirements concerning nationality and place of residence apply to the Board of Directors and Managing Director of A Brokerage Firm SOUND Conditions of Nationality Market makers on derivatives exchange Collective investments in securities -management companies Commercial Presence: The right to act as market makers on a 'derivatives' exchange, is restricted to nationals of Finland and nationals of other Nordic countries resident in Finland unless the Ministry of Finance grants an exception Commercial Presence: Conditions of Nationality
Page16 Sector/sub-sector Insurance Services (including services auxiliary to insupgance)4) Direct insurance and reinsurance Cross-border trade: Foreign insurers may without license offer only reinsurances in Finland Movement 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 Cross-border trade: Movement of consumers: Direct insurance and reinsurance Commercial presence: Foreigners may without permission issued by the Council of State own not more than 40 X of the shares In an insurance company founded in Finland (i.e. Finnish company) and on the the bases of the shares owned by them, hold not more than 20 X of the voting rights Commercial Dresence: Requirements concerning nationality or place of residence, from which an exception can be granted in some cases, apply to the founder, managing director, auditors and members of the board of directors and the supervisory board of an insurance company 4) This offer is conditioned on the satisfactory outcome in the negotiations on a Financial Services Annex based on the document MTH.TNC/H/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 considerations
Page17 Sector/sub-sector INSURANCE (continued) Branches of foreign Insurance companies cannot get a license in Finland to carry on statutory insurances 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 license is granted The general agent of the foreign insurance company shall reside in Finland. The general agent will be approved by the Ministry of Social Affairs and Health Commercial Presence An insurance company that has been granted a license in Finland shall have an actuary fulfilling the requirements determined by the Ministry of Social Affairs and Health as regards the competence of the actuary Insurance intermediation and services auxiliary to insurance TOURISMAND TRAVEL RELATED SERVICES Hotels and restaurants (inci, catering) (641-643)
Page 18 MTN/TNC/W/62/Rev.2 Sector/sub-sector TOURISM ANDTRAVEL RELATEDSERVICES (continued) Travel agencies and tour operators services (7421) License required; National Consumer Administration * License can be granted only for Finnish citizens and Finnish registered organizations Tourist guides (7472) RECRETIONAL, CULTURAL AND SPORTING SERVICES News agencyservices (962) Libraries, archives. museums and other cultural services (963) Sporting and other recreational services (964), except as regards i.a. gambling, coin machines and like activities * Maritime transport (7211+7212+ 7213+745) - Transport (cargo ard passengers) between Finland and other countries s on cross border trade and use of foreign maritime transport services In international shipping Condition of Nationality for the Master of a Finnish ship
Sector/sub-sector TRANSPORT SERVICES (continued) Haritimetransport (continued) - Service auxiliary to transport A ship is regarded as Finnish and may be registered in the Finnish shipping register if more than 60 X of the ship is owned by Finnish citizens or by Finnish companies. Exceptions from the general rule are possible The Master of a Finnish ship must be Finnish national - 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 Air transport 5) (freight and passengers; including auxiliary services) (731+732+734+8868+746) - Ground handling (subject to infrastructure capacities) Page 20 5) Conditional on the final content of the Air Transport Annex
Page 20 Sector/sub-sector Air transport (continued) - Sales and marketing - Computer reservations system - Maintenance and repair of aircraft Railtransport (7111+7112+743) Road transport (freight and passengers, including services auxiliary to trasport) (7121+7122+7123+ 7124) Permission required * Permission can be granted only to a Finnish citizen permanently resident in Finland, a Finnish commune or a Finnish liability company - Cross-border road transport Authorization required for regular traffic with vehicles with non-finnish registration. Bilateral agreements regulate traffic volume and procedures Limitations as set out in bilateral agreements
Page 21 Sector/sub-sector services (continued) - Road cabotage - Commercial presence Combined transportservices (leasing of vessels with crew; sea, road and air) Authorization required, not extended to foreign registered vehicles, excepts as regulations applicable to specific transport subsectors also apply to the corresponding portion of a combined transport *, except as regulations applicable to specific transport subsectors also apply to the corresponding charter service * Not applicable, excepts as regulations applicable to specific transport subsectors also apply to the corresponding portion of a combined transport except as regulations applicable to specific transport subsectors also apply to the corresponding charter service