RESTRICTEDWORLD TRADE
ORGANIZATIONWT/REG51/2/Add.4
19 February 2001
(01-0802)
Committee on Regional Trade Agreements Original:  English
EUROPEAN COMMUNITIES-POLAND EUROPE AGREEMENT, SERVICES
Joint Communication from the Parties
Addendum
This document reproduces additional questions addressed to the Parties and the joint
responses provided by them.
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Note by the Parties: In answering the questions, we have focussed on the liberalisation provisions
of the Europe Agreement. WTO Members should, however, be aware of the relationship of this
Agreement to the wider process of economic integration and law approximation between the
European Communities (EC) and its Member States and Poland in view of preparing Poland for EUmembership.  This process is in itself liberalising.
1. Please provide more information on how movement of workers is addressed under the
Agreement.  Chapter I (Movement of Workers) of Title IV indicates that during the second
stage of the agreement or earlier, the Associ ation [Council] shall examine further ways of
improving the movement of workers.  Has this work begun?  How does this commitment relate
to Chapter III, Article 55 which addresses liberalisation of temporary entry of key personnel?
What time period is envisaged for liberalisation?
Chapter I of the Title IV of the Europe Agreemen t provides for, in particular, an application
of the national treatment principle in respect to the workers who are legally employed on the territoryof the other Party, as well it addresses the issues related to access to the labour market.
Chapter III deals with movement of persons connected with cross-border supply of services
and refers to the right of the temporary movement of natural persons providing services and key
personnel of the service supplier, including persons responsible for negotiating the sale of services orfor entering into agreements to sell services for that service supplier.  Article 55(1) stipulates that
“The parties undertake in accordance with the provisions of this Chapter to take the necessary steps to
allow progressively the supply of services by Community or Polish companies or nationals who are
established in a Party other than that of the person for the services are intended taking into account the
development of the services sectors in the Parties.”  Article 6 which lays down a transition period of amaximum duration of ten years is a horizontal provision applicable to Article 55.  It is therefore the
objective of both Parties to achieve the undertaking under Article 55 within the transition period.  As
far as the liberalisation of temporary entry of key personnel is concerned, Article 55(2) stipulates that
the liberalisation should take place “in step with the liberalisation process mentioned in paragraph 1.”WT/REG51/2/Add.4
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2. Article 45:5 of Chapter II (Establishment) in Title IV seems to provide flexibility to
introduce  transition periods on top of the existing v ery long 10-year transition periods.  How do
the EU and Poland see this as meeting the requirements under Article V to eliminate
discrimination between the Parties?
The scope of this Article is limited as this provision only applies to Poland and can only be
granted with the EC’s agreement within the As sociation Council.  This could only be done in
exceptional circumstances and for a limited period of time.
Such a very limited flexibility to extend the duration of a transition period for one of the two
Parties is justified given the asymmetric nature of the EC and Poland economies and in relation with
the overall framework of integration of Poland within the EC.
3. Earlier documentation states that mode 1 (cross-border) and mode 2 (consumption
abroad) are "covered" by the Agreement in Chapte rs 55-58.  Unfortunately, in reviewing these
provisions, it is not entirely clear how these modes are covered.  For example, Article 55 of
Chapter III seems to address cross-border services but the commitment is limited to progressiveliberalisation taking into account the developmen t of the particular services sector.  Please
clarify.
Article 55(1) covers the “supply of services by Community or Polish companies or nationals
who are established in a Party other than that of  the person for whom the services are intended.”
Despite the difference of wording which is due to the fact that the Europe Agreements were
negotiated before GATS was concluded, this must be understood as covering consumption abroad and
cross-border supply of services.
As indicated above, Article 6 which lays down a transition period of a maximum duration of
ten years is a horizontal provision applicable to Article 55.  It is therefore the objective of both Parties
to achieve the undertaking under Article 55 within the transition period.
For the purpose of implementing Article 56 of the Europe Agreement, the EC, on the one
hand and other countries (including Poland), on the other hand, signed the Agreement Interbus in the
year 2000.  Another example of the implementation of this provision is an agreement signed in 1998
between the EC and other countries (including Poland) on passenger inland waterway transport.
Furthermore, the EC and other countries (including Poland) are conducting negotiations on European
Common Aviation area.
4. What constitutes “contractual services” and how are they covered under the
Agreement?
The Europe Agreement between the EC and its Member States and Poland functions on the
basis of negative listing.  The agreement covers all services sectors.  Only those services which are
excluded or for which specific transition periods are given, or special rules apply, are mentioned,
either in the text of the Agreement itself or in Anne xes XII:b to XII:e.  As contractual services are not
specifically excluded and as no specific transition periods are given in the Europe Agreement, these
services are covered by the general provisions of the Europe Agreement.WT/REG51/2/Add.4
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5. The general information provided in WT/REG51/2/Add.3, including the charts,
indicates that several sectors are "covered" by the EU-Poland Agreement.  Could the Parties
provide a deeper analysis of whether financial s ervices and telecommunication services will be
fully liberalised at the end of the transitional period?
Telecommunication Services
Telecommunication services are covered by the liberalisation process which principles are
determined in the Europe Agreement.
As regards establishment (equivalent to mode 3 and part of mode 4), the EC grants full
national treatment for the establishment and operation of Polish firms and nationals in the EC fromthe date of entry into force of the Agreement.  Fr om the entry into force of the Agreement Poland has
granted national treatment for the operation of Community nationals and companies established in
Poland. Poland must grant right of establishment and full national treatment to EC firms and nationals
at the latest by the end of the first stage of the transitional period.  The right of establishment includes
the right of employ key personnel.
As regards supply of services (equivalent to modes 1, 2 and part of mode 4),
telecommunication services are not excluded from the sc ope of Article 55(1) and 55(2).  It is therefore
the objective of both Parties to achieve the undertaking under Article 55 within the transition period.
As regards movement of workers, telecommunication services are not excluded from the
provisions of Article 37, 41 and 42 (application of national treatment in respect of legally employed
workers).
Financial Services
Financial services are covered by the liberalisation process which principles are determined in
the Europe Agreement.
Financial services are defined in Annex XII:c of the Agreement (see Article 49).As regards establishment (equivalent to mode 3 and part of mode 4), the EC grants full
national treatment for the establishment and operation of Polish firms and nationals in the EC from
the date of entry into force of the Agreement.  Fr om the entry into force of the Agreement Poland has
granted national treatment for the operation of Community nationals and companies established in
Poland.  Poland must grant right of establishment and full national treatment to EC firms and
nationals at the latest at the end of the ten-year transitional period (Article 44(1)).  The right ofestablishment includes the right to employ key personnel.
As regards supply of services (equivalent to modes 1, 2 and part of mode 4), Financial
services are not excluded from the scope of Article 55(1) and 55(2).  It is therefore the objective of
both Parties to achieve the undertaking under Article 55 within the transition period.
As regards movement of workers, financial services are not excluded from the provisions of
Article 37, 41 and 42 (application of national treatme nt in respect of legally employed workers).
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