AGREEMENT OF THE STATE PARTIES OF COMMONWEALTH OF INDEPENDENT STATES

of June 8, 2023

About free trade by services, organization, activities and implementation of investments

The State Parties of the Commonwealth of Independent States which further are referred to as with the Parties

in view of the Agreement on the free trade area of October 18, 2011,

recognizing need of further expansion of scope of economic integration,

considering the growing value of service industry for development of economy,

wishing to create conditions for expansion of mutual trade in services and increases in level of its liberalization,

wishing to create favorable conditions for investment by persons of one Party in the territories of other Parties,

being guided by aspiration to permanent increase in level of living of the population of the states,

being guided by the conventional principles and rules of international law and based on regulations of the General agreement on trade in services of April 15, 1994 (GATS), including Article V GATS,

proceeding from the fact that provisions of this agreement are aimed at the development of trade in services, organization and activities of the companies, and also investment cooperation between the Parties

agreed as follows:

Article 1. Determinations

The concepts used in this agreement mean the following:

WTO - The World Trade Organization created according to the Marrakesh agreement on organization of the World Trade Organization of April 15, 1994;

GATS - The general agreement on trade in services of 1994 containing in Appendix 1B to the Marrakesh agreement on organization of the World Trade Organization of April 15, 1994.

When using in this agreement of references to provisions GATS or other international agreements signed within the WTO, the concepts "the agreeing party / contracting parties" or "members/members" which contain in them designate according to the Party/party as they are determined in this agreement preamble;

activities - activities of commercial or professional nature of legal entities, branches, the representations specified in subitems of "a"-"v", and (or) the physical persons specified in the subitem "g" of determination of the term "organization" including on trade in services and production of goods and (or) services, except for to the activities performed in case of accomplishment of functions of the government;

income - the means received from investments, including, in addition, profit, dividends, percent, the income from capital gain, royalty and other remunerations;

the legislation of the Party - the laws and other regulatory legal acts of the Party;

investments - the assets enclosed by the investor of one Party in the territory of other Party according to the legislation of the last which have characteristics of investments including such characteristics as the obligation concerning the capital or other resources, expectation arrived also acceptances to themselves risk, including without limitation:

money, securities, personal and real estate;

the rights to implementation of business activity granted on the basis of the legislation of the Parties or under the agreement, including, in particular, the rights to investigation, development, production and operation of natural resources;

the property and other rights having money value including the rights to intellectual property items.

The term "investments" does not include:

a) loans to the Party or the legal entity who belongs or is controlled by the Party;

b) requirements for money which arise only from commercial contracts on sale or loan of goods or services;

c) requirements for money which arise only because of prolongation of the credit in connection with commercial transaction, such as trade financing.

No change of form of investments influences their qualification as investments if such change does not contradict the legislation of the Party in the territory of which investments were performed.

The term "investments" includes the investments of investors of one Party performed in the territory of other Party in the form of organization as it is determined and is regulated by Chapter III "Organization and activities" of this agreement;

the investor of the Party - any person of one of the Parties which performed or performing investments in the territory of other Party.

The term "investor of the Party" does not include:

a) any physical person who is citizen of the Party in the territory of which investments are performed or were performed;

b) any physical person who was citizen of the Party in the territory of which investments were performed for date when such investments were performed;

c) any legal entity of the Party who belongs or is controlled directly or indirectly by person of other Party;

d) any legal entity of the Party, if such legal entity does not perform essential business activity in the territory of other Party or if such legal entity belongs or is controlled directly or indirectly by persons of the third state;

the investor of the third state - any physical person or legal entity of the third state which is not the Party of this agreement;

the individual entrepreneur - the physical person of the Party registered as the individual entrepreneur according to the national legal system;

the exclusive supplier of service - any person of the Party, state or private which in the market of the corresponding service of the Party authorized officially or is actually created as one of small number of suppliers of such service and the competition among such service providers in the territory of the Party is significantly limited;

licensing - the procedure and activities of competent authorities for provision, renewal and prolongation of effective period, refusal, suspension and cancellation of licenses (allowing documents) established by the legislation of the Party;

person - any physical person or legal entity of the Parties;

measure of the Party - the legislation of the Party, and also the decision, action or failure to act of body or the official of this Party which are taken at any level of the government of this Party, its local government bodies or the organizations when implementing by them of the powers delegated by it such bodies;

the measure of the Party influencing trade in services includes measures in the relation:

1) purchases, payments and uses of service;

2) access to services and use in connection with delivery of services concerning which the Parties establish requirements of their wide offer to the population;

the measure of the Party influencing organization and activities includes measures concerning organization and activities of legal entities, branches, representations and individual entrepreneurs of one Party of this agreement in the territory of any of other Parties of this agreement;

the exclusive supplier of service - any person of the Party, state or private which in the market of the corresponding service of the Party authorized officially or is actually created as the single supplier of such service in the territory of the Party;

the service provider - any person of the Party who delivers service;

the consumer of service - any person of the Party who receives or uses service;

permission - stipulated by the legislation confirmation of the Party by competent authority of the Party of the right of person to trade in services, organization and activities;

freely used currency - means freely used currency by determination of the International Monetary Fund according to articles of the Agreement on the IMF;

the sector of service is determined and classified on the basis of the International qualifier of main products approved by the Statistical commission of the Secretariat of the United Nations (Central Products Classification) in 1991 and means:

a) concerning individual liability one or several, or all splits of this service as it is established in the list of the Party;

b) in other respects all sector of this service completely, including all its splits;

articles of the Agreement of the IMF - the article of the Agreement of the International Monetary Fund of July 22, 1944;

the territory of the Party - the territory of the Party, and also its space concerning which it performs the sovereign rights and jurisdiction according to international law and the legislation;

the economic feasibility test - issue of permission to organization, activities or trade in services depending on availability of need and requirement of the market by economic evaluation of efficiency of activities of the service provider on compliance to the purposes of economic planning of specific industry or to interests of the national labor market if it is provided by the national legal system of the Parties. Compliance to interests of the national labor market is determined by means of check of absence on it the physical persons of the Party meeting requirements of the service provider;

trade in services - the delivery of services including production, distribution, marketing, sale, delivery of services and performed by the following methods:

a) from the territory of one Party on the territory of any other Party;

b) in the territory of one Party to the consumer of services of any other Party;

c) the service provider of one Party by presence of physical persons of the Party in the territory of any other Party;

the service delivered in case of accomplishment of functions of the government - any service which is delivered on nonprofit basis and not on the terms of the competition to one or several service providers;

services include any service in any sector, except for the services delivered in case of accomplishment of functions of the government;

organization:

a) creation, the organization and (or) acquisition of the legal entity (equity participation of the created or founded legal entity) of any form of business and pattern of ownership provided according to the legislation of the Party in the territory of which such legal entity is created;

b) the acquisition of control over the legal entity of the Party which is expressed in receipt of opportunity is direct or through the third parties to determine and influence the decisions made by such legal entity including by the order by the voices falling on voting shares (shares) by participation in managing bodies of such legal entity (including the board of directors, the supervisory board and other governing bodies); or

c) creation of branch or opening of representation according to the legislation of the Parties;

d) registration as the individual entrepreneur according to the legislation of the Parties;

the physical person - the citizen of the Party according to its legislation;

the legal entity - the organization created or founded in the territory of the Party in any form of business according to the legislation of this Party.

Other terms and determinations used in individual lists of the Parties are determined according to the national legal system of the relevant Party.

Chapter I. General obligations

Article 2. Internal regulation

1. For the purposes of this Article the measures of the Parties influencing trade in services, organization and activities in sectors and types of activity, are understood as licensed requirements and procedures, and also qualification requirements and procedures.

2. Concerning measures of the Parties influencing trade in services, organization and activities in sectors and types of activity on which obligations are assumed or there are no withdrawals according to individual lists of the Parties in appendices B, B and G to this agreement:

a) each Party provides that any measures of this Party influencing trade in services, organization and activities were applied reasonably, objectively and without prejudice;

b) when permission to trade in services, organization and activities, competent authorities of the Party during the reasonable period of time after submission of the request which is considered this Party which is drawn up according to requirements of the legislation is required, inform the applicant on the decision concerning the statement. At the request of the applicant competent authorities of the Party provide information on the course of consideration of the request in reasonable time and no later than the term provided by the national legal system;

c) The parties do not apply the licensed or qualification requirements which are canceling or reducing benefits which are represented according to the conditions included in appendices B and B to this agreement, way, which:

is not based on objective and public criteria, such as competence and capability to deliver service;

in case of procedures of licensing - was not in itself restriction for service delivery;

was not more burdensome, than it is necessary for service quality assurance.

If according to individual lists of the Parties in appendices B and B to this agreement obligations (there are no withdrawals) regarding professional services are included, each Party performs procedures according to the legislation for check of competence of professionals of any other Party.

3. Concerning measures of the Parties influencing trade in services, organization and activities:

3.1. If the Party applies procedures and requirements of licensing (allowing procedures), then such Party provides that:

a) names of the competent authorities of the power which are responsible for issue of licenses (permissions) to activities implementation were published or otherwise brought to the general attention;

b) licensed (allowing) procedures were not in itself restriction for trade in services, organization and activities and that the licensed (allowing) requirements directly connected with the right to trade in services or implementation of activities were not in itself unreasonable barrier to trade in services or activities;

c) all licensed procedures and requirements were established in the legislation and the legislation establishing or applying licensed procedures or requirements was published beforehand, but no later than its entry into force (enforcement) according to provisions of Article 4 of this agreement;

d) competent authorities made the decision on issue (refusal in issue) licenses (permission) during the period of time determined in the relevant act of the legislation, and any charges levied in connection with representation and consideration of the application on licensing (permissions) would correspond to the legislation and were not in itself restriction for trade in services, organization and activities and were based on the costs of authorized body for issue (refusal in issue) licenses (permission) connected with consideration of the application and licensing (permission), except for royalties for use of radio-frequency range and resources of numbering which size is determined by the national legal system;

e) after the period of time specified in the subitem "g" of this Item and upon the demand of the applicant the relevant competent authority of the Party informed the applicant on condition of consideration of its statement, and also on whether this statement properly filled is considered. Anyway the applicant will be given opportunity to make technical corrections to the statement. The statement will not be considered properly filled until all information and documents specified in the relevant act of the legislation of the Party are obtained;

e) according to the written requirement of the applicant to which it was refused reception of an application the competent authority which refused reception of an application in writing informed the applicant on the reasons of such refusal. However this provision shall not be interpreted as demanding from competent authority to open information which disclosure interferes with execution of the law or otherwise contradicts public concerns or essential interests of safety;

g) in case it was refused reception of an application, the applicant could submit the new application for licensing (permission) or make changes to the old statement which will fix any being available problems for licensing (permission).

3.2. Each Party keeps or creates so soon as it is almost possible, judicial, arbitral or administrative authorities or procedures which at the request of the service provider or person whose interests are infringed provide immediate consideration and when it is proved, proper correction of the executive decisions affecting trade in services, organization and activities. When the specified procedures are not independent of body, authorized to make such executive decisions, the Party provides objective and impartial consideration of the specified questions within such procedures.

Disclaimer! This text was translated by AI translator and is not a valid juridical document. No warranty. No claim. More info