Australia-Republic of Korea Free Trade Agreement negotiations

Annex II: Explanatory notes

  1. The Schedule of a Party to this Annex sets out, pursuant to Articles 7.6 (Non-Conforming Measures - Cross-Border Trade in Services) and 11.12 (Non-Conforming Measures - Investment), the specific sectors, sub-sectors or activities for which that Party may maintain existing, or adopt new or more restrictive, measures that do not conform with obligations imposed by:
    1. Article 7.2 (National Treatment - Cross-Border Trade in Services) or 11.3 (National Treatment - Investment);
    2. Article 7.3 (Most-Favoured-Nation Treatment - Cross-Border Trade in Services) or 11.4 (Most-Favoured-Nation Treatment - Investment);
    3. Article 7.4 (Market Access- Cross-Border Trade in Services);
    4. Article 7.5 (Local Presence- Cross-Border Trade in Services);
    5. Article 11.9 (Performance Requirements- Investment); or
    6. Article 11.10 (Senior Management and Boards of Directors- Investment).
  2. Each Schedule entry sets out the following elements:
    1. Sector refers to the sector for which the entry is made;
    2. Obligations Concerned specifies the obligation(s) referred to in paragraph 1 that, pursuant to Articles 7.6.2 and Article 11.12.2, do not apply to the sectors, sub-sectors or activities listed in the entry;
    3. Description sets out the scope of the sector, sub-sector or activities covered by the entry; and
    4. Existing Measures identifies, for transparency purposes, existing measures that apply to the sector, sub-sector or activities covered by the entry.
  3. In accordance with Articles 7.6.2 and 11.12.2, the articles of this Agreement specified in the Obligations Concerned element of an entry do not apply to the sectors, sub-sectors and activities identified in the Description element of that entry.
  4. For Korea, a "foreign person" means a foreign national or an enterprise organised under the laws of another country.