China’s commitments on opening service market under the RCEP
RCEP is the only FTA that applies both “positive approach” and “negative approach” to open trade in services in the world. Specifically:
- “Positive approach”: a country only opens its service markets to service suppliers of partners under the requirements, at the level and in the sectors as specified in “Schedule of Specific Commitments for Services” (in Annex II of RCEP’s Full Text);
- “Negative approach”: a country opens all of its service markets to service suppliers of partners without limit/restriction, except for specific reservations specified in the “Schedule of Reservations and Non-conforming measures for Services and Investment” (in Annex III of RCEP’s Full text)
RCEP allows member countries to choose whether to apply the "negative approach" or "positive approach" in the first phase of RCEP implementation (the transition period):
- There are 8/15 RCEP members opening service markets under the "positive approach" during the transition period, including Cambodia, Laos, Myanmar, New Zealand, Philippines, Thailand, China and Vietnam.
The transition period for these countries is 6 years after the date of entry into force of RCEP Agreement (the transition period for Cambodia, Laos, and Myanmar is 15 years).
- There are 7/15 RCEP members opening service markets under the "negative approach" from the date of entry into force of RCEP, including Australia, Brunei, Korea, Indonesia, Malaysia, Japan, Singapore.
Thus, China commits to open its service market under the "positive approach" during the transition period (6 years from effective date of RCEP) with a separate Schedule of specific commitments for services in Annex II of the RCEP.
This Schedule includes service sectors and sub-sectors that RCEP members have committed to opening to RCEP’s partners. Specific commitments on the level of openness for services and service suppliers in each sector and subsector stated accordingly, including:
- Commitments on terms, restrictions and requirements for Market access (MA);
- Requirements and standards for National Treatment (NT);
- Other additional commitments; and
- Schedule for implementing those commitments, if any.
The Schedule of Specific Commitment for services also clearly identifíes sectors and subsectors for Future Liberalization (FL), and/or have commitments to implement MFN.
Source: Center for WTO and International Trade
Documents are attached below:
