Page 293 - Regional Comprehensive Economic Partnership (RCEP)

service suppliers or the requirements of an economic
needs test; (c) in respect of the sectors and subsectors that are not
contained in its Most-Favoured-Nation Treatment Sectoral
(b) limitations on the total value of service transactions or Exemption List Appendix to its Schedule in Annex II
assets in the form of numerical quotas or the requirement (Schedules of Specific Commitments for Services),
of an economic needs test;
and subject to any conditions and qualifications set out therein,
(c) limitations on the total number of service operations or on accord to services and service suppliers of another Party
the total quantity of service output expressed in terms of treatment no less favourable than that it accords to like services
designated numerical units in the form of quotas or the and service suppliers of any other Party or of any non-Party.
requirement of an economic needs test;
8
2. A Party making commitments in accordance with Article 8.8
(d) limitations on the total number of natural persons that may (Schedules of Non-Conforming Measures) shall, subject to its
be employed in a particular service sector or that a service non-conforming measures set out in its Schedule in Annex III
supplier may employ and who are necessary for, and (Schedules of Reservations and Non-Conforming Measures for
directly related to, the supply of a specific service in the Services and Investment), accord to services and service
form of numerical quotas or the requirement of an suppliers of another Party treatment no less favourable than that
economic needs test; it accords to like services and service suppliers of any other Party
or of any non-Party.
(e) measures which restrict or require specific types of legal
entity or joint venture through which a service supplier may 3. Notwithstanding paragraphs 1 and 2, each Party reserves the
supply a service; and right to adopt or maintain any measure that accords differential
treatment to services and service suppliers of any other Party or
(f) limitations on the participation of foreign capital in terms of of any non-Party under any bilateral or multilateral international
maximum percentage limit on foreign shareholding or the agreement in force at, or signed prior to, the date of entry into
total value of individual or aggregate foreign investment. force of this Agreement.

4. Notwithstanding paragraphs 1 and 2, each Party which is a
Article 8.6: Most-Favoured-Nation Treatment Member State of ASEAN reserves the right to adopt or maintain
any measure that accords differential treatment to services and
1. A Party making commitments in accordance with Article 8.7 service suppliers of any other Party which is a Member State of
(Schedules of Specific Commitments) that opts under paragraph ASEAN taken under an agreement on the liberalisation of trade in
2 of Article 8.3 (Scheduling of Commitments) to make goods or services or investment as part of a wider process of
commitments on Most-Favoured-Nation Treatment shall: economic integration among the Parties which are Member
States of ASEAN.
(a) in respect of the sectors and subsectors inscribed in its
Schedule in Annex II (Schedules of Specific Commitments 5. The provisions of this Chapter shall not be construed as to prevent
for Services) that are identified with an “MFN”; any Party from conferring or according advantages to adjacent
countries in order to facilitate exchanges limited to contiguous
(b) in respect of the sectors and subsectors set out in its Most- frontier zones of services that are both locally produced and
Favoured-Nation Treatment Sectoral Coverage Appendix consumed.
to its Schedule in Annex II (Schedules of Specific
Commitments for Services); or

8 This subparagraph does not cover measures of a Party which limit inputs for the
supply of services.

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