Table 1. Selected EU countries’ WTO GATS commitments in particular services sectors EU country Services sector Sub-sector/s Restrictions under mode 3*
Germany professional services accounting and auditing services
providing of services through specific legal forms (such as “GmbH&CoKG”,“EWIV”) are not allowed foreign companies/professionals in these areas may hold up to 49% of ownership or control.
qualifications of professionals are subject to specific qualification and experience requirements legal services legal advice, domestic law services and legal
representation in courts is not allowed by foreign companies/representatives
providing legal advice is not allowed by foreign law firms which are not owned or controlled by locally licensed professionals
transport services air transport services to provide domestic and international passenger air transport services a license to operate an enterprise is granted only to companies majority-controlled by nationals of the EEA countries maritime transport
services
the right to the national flag is reserved to ships owned by German or EU nationals, respectively by companies controlled by EU-nationals and located in the EU
maritime auxiliary services are quite open, except for Bremen where there is a monopoly with regard to cargo handling and maritime agency services road transport services domestic road freight sector is open only to
companies of the EU countries Austria professional services accounting and auditing
services
foreign professionals are not permitted to form a partnership with local firms
limitations on ownership and control by foreign nationals: only foreign professionals from GATS member countries may hold up to 25% ownership, while at least 51% must be held by locally qualified and resident professionals
managing directors must be residents of Austria legal services establishment of branches is allowed only to
licensed lawyers from EEA countries and foreign lawyers are not permitted to hire local lawyers as employees
transport services air transport services domestic and international passenger air transport sector companies must be established as
subsidiaries and the effective control must be held by Austrians
road transport services domestic road freight sector is open only to companies from the EU; however, under certain circumstances exemptions to firms from non-EU countries are possible
rail transport services in domestic rail freight transport services entry is allowed upon meeting the licensing and investment requirements
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France transport services maritime transport services
international maritime shipping is closed for foreign acquisition, the establishment of a registered company for the purpose of operating a fleet under the national flag, is not allowed rail transport services domestic rail transport sector is closed for foreign
acquisition
air transport services companies must be entirely or majority owned/controlled by EU nationals
road transport services domestic road freight transport sector is open only to firms of EU Member States
professional services accounting and auditing services
ownership or control by non-locally-licensed professionals is limited to 25%
for the auditing services restrictions on the clientele are also imposed: there are special requirements for auditing state-owned enterprises legal services non-EU firms are not permitted to establish branch
offices in France under their own names non-EU lawyers and firms are not permitted to form partnerships with, or hire, French lawyers depending on the form of establishment, majority ownership or control may be required to be held by the professionals who are active in the firm telecommunication
services
fixed-line
telecommunications services
non-EU natural or juridical persons may not hold over 20% of the voting shares of firms that operate radio-based infrastructure for the provision of telecom services
Italy transport services air transport services for domestic and international air transport services, at least two-thirds of the share capital must be owned by Italian citizens
licenses are subject to a nationality requirement, as well as control of enterprises must be held by EU citizens
maritime transport services
for international maritime shipping, at least a 50%
share must be owned by Italian citizens, the Italian public sector or Italian private companies
(exemptions may be allowed if company has its primary establishment in Italy)
for maritime auxiliary services an economic needs test is applicable to cargo handling
road transport services domestic road freight services sector is open only to EU firms (under certain circumstances, exemptions to firms from non-EU countries are possible)
rail transport services providing domestic rail freight transport services is allowed for international freight transport if the foreign company is registered in the EU professional services accounting and auditing
services
access is restricted to natural persons (however, the establishment of professional associations of natural persons is permitted)
legal services for legal advice on domestic law and legal representation in courts commercial presence for providing these services may take any legal form allowed under the national law of an EU member State
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financial services insurance services for automobile insurance, the takeover of an Italian company by a company originating from a non-EU country approval is needed
for life insurance and reinsurance services approval is required to establish a new company or acquire an existing firm
for automobile and life insurance sectors the supervisory authority of the insurance industry may deny authorization if the home country of the company has not enacted reciprocal legislation to permit Italian insurance companies to operate in that country
Cyprus financial services insurance and reinsurance services
insurance and reinsurance services are restricted to insurance companies registered in Cyprus and authorized by the responsible national authority investment by non-residents in insurance companies requires the prior approval of the Central Bank
the share of foreign participation in the capital of local insurance companies is determined on a case by case basis, depending on an economic needs test
banking services for banking services, a license is required from the Central Bank and for the granting of the license an economic needs test may be applied
branches of foreign banks must be registered in Cyprus under the Companies Law and licensed under the Banking Law
broking services in securities broking services, a brokerage firm may only be registered as a member of the Cyprus Stock Exchange and registered in accordance with the Companies Law of Cyprus
firms acting as brokers must employ individuals as brokers only provided that they are appropriately licensed
banks and insurance companies may not undertake brokerage business (however their subsidiary brokerage firms may do so)
professional services accounting, auditing and taxation services
access is restricted to natural persons who have obtained authorization from the Minister of Finance (authorization is subject to an economic needs test); However, professional
associations/partnerships among natural persons are permitted.
* Commitments under WTO GATS Schedules of commitments.
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