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(iv)   by a service supplier of one Party, through presence
                                            of natural persons of a Party in the territory of any
                                            other Party; and

                              (s)    traffic  rights  means  the  rights  for  scheduled  and  non-
                                     scheduled services to operate or carry passengers, cargo,
                                     and mail for remuneration or hire from, to, within, or over
                                     the territory of a Party, including points to be served, routes
                                     to be operated, types of traffic to be carried, capacity to be
                                     provided, tariffs to be charged, and their conditions, and
                                     criteria for designation of airlines, including such criteria as
                                     number, ownership, and control.


                       Article 8.2: Scope

                       1.     This Chapter shall apply to measures by a Party affecting trade in
                              services.

                       2.     For the purposes of this Chapter, “measures by a Party” means
                              measures taken by:

                              (a)    central, regional, or local governments and authorities of
                                     that Party; and

                              (b)    non-governmental  bodies  in  the  exercise  of  powers
                                     delegated  by  central,  regional,  or  local  governments  or
                                     authorities of that Party.

                              In fulfilling its obligations and commitments under this Chapter,
                              each  Party  shall  take  such  reasonable  measures  as  may  be
                              available to it to ensure their observance by regional and local
                              governments and authorities and non-governmental bodies within
                              its territory.

                       3.     This Chapter shall not apply to:

                              (a)    government procurement;

                              (b)    subsidies  or  grants,  including  government-supported
                                     loans, guarantees, and insurance, provided by a Party or
                                     to  any  conditions  attached  to  the  receipt  or  continued
                                     receipt of such subsidies or grants, whether or not such
                                     subsidies  or  grants  are  offered  exclusively  to  domestic
                                     services, service consumers, or service suppliers;





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