SATIS
SATIS
SATIS
Preamble
Noting that the Agreement on South Asian Free Trade Area (SAFTA)
provides for trade liberalization on a preferentialbasis in trade in goods;
Definitions
t
Where the service is not supplied directly by a juridical person but through other forms of
commercial presencesuch as a branch or a representativeoffice, the service supplier (i.e.
the juridical person) shall, nonetheless,through such presencebe accorded the ireatment
provided for service suppliers under this Agreement. Such treatment shall be extendedto
the presencethrough which the service is supplied and need not be extende{ to any other
parts of the supplier located outsidethe territory where the service is supplied.
222 in the territory of a Contracting State to the service
consumer of the other Contracting State (consumption
abroad);
Article 2
Article 3
Scope
(a) governmentprocurement;
(b) servicessuppliedin the exerciseof governmental
authority;and
Article 4
MFN Treatment
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The Contracting Statesunderstandthat ground handling services are partofrelated
servicesin supportof air services.
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The sole fact of requiring visa for natural personsof certain Contracting State and not
for those of other Contracting States shall not be regarded as nullifuing or impairing
benefitsunder a specificcommitment.
State, it shall give considerationto a request by the other
ContractingStatefor the incorporationhereinof treatmentno less
favourablethan that providedunderthe aforesaidagreement.Any
such incorporation should maintain the overall balance of
commitmentsundertakenby each ContractingState under this
Agreement.
Article 5
National Treatment
Article 6
Market Access
o
Specific commitments assumedunder this Article shall not be construed to require any
Contracting State to compensatefor any inherent competitive disadvantageswhith resuit
from the foreign characterofthe relevant servicesor service suppliers.
'
If a Contracting State undertakesa market-accesscommitment in relation to the supply of
a service through the mode of supply referred to in Article | (22) and,if the cross-boider
movement of capital is an essential part of the service itself that Contracting State is
thereby committed to allow such movement of capital. If a Contracting State undertakesa
market-accesscommitment in relation to the supply of a service through the mode of
supply referred to in Article l(22) (iii), it is thereby committed to allow related transfersof
capital into its territory.
2. In sectors where market accesscommitments are undertaken, the
measures which a Contracting State shall not maintain or adopt
either on the basis of a regional subdivision or on the basis of its
entireterritory, unlessotherwisespecifiedin its Scheduleof specific
commitments, are defined as:
Article 7
Additional Commitments
Article 8
u
This paragraph2(c) does not cover measuresof a Contracting State which limit inputs for
the supply ofservices.
a. terms, limitations and conditions on market access;
b. conditions and qualifications on national treatment;
c. undertakingsrelating to additional commitments;
d. where appropriatethe time-frame for implementation
of suchcommitments;and
e. the date of entry into force of such commitments
a
The Contracting States' schedulesof specific commitments shall be
annexedto this Agreement upon completion of the negotiationsand
shall form an integral part thereof.
Article 9
Modification of Schedules
ProgressiveLiberalisation
Article 11
Domestic Regulations
l0
incorporation into this Agreement.The Contracting Statesnote that
such disciplines aim to ensurethat such requirements areinter alia:
Article 12
Recognition
l. For the purposesof the fulfilment of its standardsor criteria for the
authorisation, licensing or certification of services suppliers, a
contracting state may recognise the education or experience
obtained, requirementsmet, or licenses or certifications granted in
the other Contracting State.
2. After the entry into force of this Agreement, upon a request being
made in writing by a contracting State to any other contracting
State(s) in any regulated service sector, the contracting State shall
ensure that their respective professional bodies negotiate and
'
The term "relevant international organizations"refers to international bodies whose
membershipis open to the relevant bodies of all Contractine States.
1l
conclude, within a reasonabletime, in that service sector for mutual
recognition of education,or experienceobtained, requirementsmet,
or licenses or certifications granted in that service sector, with a
view to the achievementof early outcomes.Such recognition, which
may be achievedthrough harmonizationor otherwise, may be based
upon an agreementor anangement among the Contracting States.
Any delay or failure by these professional bodies to reach and
conclude agreement on the details of such agreement or
arrangementsshall not be regarded as a breach of a Contracting
State's obligations under this paragraphand shall not be subject to
Article 26 relating to dispute settlementin this Agreement. Progress
in this regard will be continually reviewed by the Parties in the
courseof the review of this Agreementpursuantto Article 10.
a
J. Where a Contracting State recognizes, by agreement or
arrangement, the education or experience obtained, requirements
met or licensesor certifications granted in the territory of a country
that is not a Contracting State to this Agreement, that Contracting
State shall accord the other Contracting State, upon request,
adequateopportunity to negotiateits accessionto such an agreement
or arrangementor to negotiate comparable ones with it. Where a
Contracting State accordsrecognition autonomously, it shall afford
adequateopportunity for the other Contracting State to demonstrate
that the education or experience obtained, requirements met or
licenses or certifications granted in the territory of that other
ContractingStateshouldalso be recognized.
Article 13
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2. Where a Contracting State's monopoly supplier competes, either
directly or through an affrliated company, in the supply of a service
outside the scopeof its monopoly rights and which is subject to that
Contracting State's Schedule of specific commitments, the
Contracting Stateshall ensurethat such a supplier does not abuseits
monopoly position to act in its tenitory in a manner inconsistent
with such commitments.
Article 14
BusinessPractices
Article 15
SafeguardMeasures
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conclusion of such multilateral negotiations,the Contracting States
shall conduct a review for the purpose of discussing appropriate
amendmentsto this Agreement so as to incorporate the results of
such multilateral negotiations.
Article 16
Subsidies
Paymentsand Transfers
t4
transfers and paymentsfor current transactionsrelating to its
specificcommitments.
Article 18
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Article 19
Transparency
a
J. Each Contracting Stateshall respondpromptly to all requestsby the
other Contracting State for specific information on any of its
measuresof general application or international agreementswithin
the meaning of paragraph 1. Each Contracting State shall also
establishone or more enquiry points to provide specific information
to other Contracting State, upon request, on all such matters.
Enquiry Points neednot be depositoriesof laws and regulations.
Article 20
Disclosureof ConfidentialInformation
Article 21
Areasfor Cooperation
l6
(ii) Cooperation for collection and exchange of statistics and
regulations: A Working Group under the SAARCSTAT
comprising central bank officials and others concerned
would be constituted. They would also develop a
compendium of domestic regulations and seek to improve
collectionoftrade statisticsin services.
Article22
Article 23
General Exceptions
t7
discrimination against any Contracting State, or a disguised
restrictionon tradein services,nothingin this Agreementshall be
construed to prevent the adoption or enforcementby either
ContractingStateof measures:
8
The public order exception may be invoked by a Contracting State, including its
legislative, governmental, regulatory or judicial bodies, only where a genuine and
sufficiently seriousthreatis posedto one of the fundamentalinterestsof society.
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Measuresthat are aimed at ensuringthe equitableor effective imposition or collectionof
direct taxes include measures taken by a Contracting State under its taxation system
which:
(i) apply to non-resident service suppliers in recognition ofthe fact that the tax obligation
of non-residents is determined with respect to taxable items sourced or located in the
Contracting State'sterritory; or
(ii) apply to non-residentsin order to ensurethe imposition or collection of taxes in the
Contracting State'sterritory; or
(iii) apply to non-residents or residents in order to prevent the avoidance or evasion of
taxes,including compliance measures;or
(iv) apply to consumers of services supplied in or from the territory of the other
Contracting State in order to ensure the imposition or collection of taxes on such
consumersderived from sourcesin the Contracting State'sterritory; or
(v) distinguish service suppliers subject to tax on world-wide taxable items from other
service suppliers, in recognition of the difference in the nature of the tax base between
theml or
(vi) determine, allocate or apportion income, profit, gain, loss, deduction or credit
of
residentpersonsor branches,or betweenrelated personsor branchesofthe sameperson, in
order to safeguardthe Contracting State'stax base.
Tax terms or conceptsin paragraph l(d) of this Article and in this footnote are determined
accordingto tax definitionsand concepts,or equivalentor similar definitionsand concepts,
under the domestic law of the Contracting Statetaking the measure.
l8
Article24
Security Exceptions
Article 25
Denial of Benefits
l9
(b) in the caseof the supply of a maritime transport service, if it
establishesthat the serviceis supplied:
Article 26
Article 27
Institutional Mechanism
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any task assignedto it by the SMC. The SAFTA COE shall submitthis
reportto SMC everysix months.
Article 28
Withdrawal
Article 29
Article 30
Annexes
Article 31
Amendments
Article 32
Depository
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IN WITNESS WHEREO!- the undersignedbeing duly authorizedtheretcr
by their respectiveGovernmentshave signedthis Agreement'
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Khandu Wangchuk
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S.l\1.Krishna
of ForcignAlfair:; I\4inister of Ertr:rrralA ftairs
Iv{irristcr'-in-Charge
Kingdomof Bhutan l{cpublicol'lndtu
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MakhdoomShanMlnmood Quieshi i Lakshman Peiris
Ministerfor ForeignAtfbirs Ministerof Foreign At{birs
IslamicRepublicof Pakistan SocialistRepublicof Sri l'anka
Democratic
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Annex-I
GENERAL UNDERSIANDING ON
PRINCIPLES AND GUIDELINES FOR THE NEGOTIATIONS
ON
SAARC AGREEMENT ON TRADE IN SERVICES (SATIS)
23