ANNEX ON ROAD FREIGHT TRANSPORT AND RELATED LOGISTICS SERVICES. EU does not see a clear value in this Annex given the nature of road transport.

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1 ANNEX ON ROAD FREIGHT TRANSPORT AND RELATED LOGISTICS SERVICES General Comments AU in favor of adding provisions on related logistics services. AU/JP/CO/TW proposed to clarify the relationship between the general provisions of the main text and the Annex. EU does not see a clear value in this Annex given the nature of road transport. Article 1: Objective This annex is aimed at liberalizing access by the Parties to each other's road freight transport and related logistics market in such a way to insure the existence of a sound international competition environment and smooth operation of carriage of goods, recognizing the right of governments to control externalities for the public. Article 2: Scope and Coverage 2.1 This Annex applies to measures [CH/HK/LI/PE/CL propose: by Parties] [CH/HK/LI/PE/CL oppose: related to the provision of] [CH/HK/LI/PE propose: affecting trade in] road freight transport and related [CH/LI/PE/CL propose: road freight] logistics services. AU consider expanding the scope to include more freight transport services, to add full range of auxiliary transport services, and related services such as rental of commercial vehicles with operator. TW propose to check consistency regarding usage of road freight transport services and road transport services. 2.2 Road freight transport services as defined in CPC 7123 cover international and domestic freight transport services [MX/CH/CL/PE/LI oppose: including cabotage]. [CH/LI/PE propose: 2.3 Logistics services related to road freight transport cover; 1

2 (a) cargo-handling services as defined in CPC 741 (b) storage and warehousing services as defined in CPC 742 (c) other auxiliary services as defined in CPC 749]. 2.3 Where applicable and subject to the disciplines of Article V of the GATT 1994 and the WTO Trade Facilitation Agreement, this Annex also cover transit traffic. For the purposes of this Annex; Article 3: Definitions 3.1 Vehicle means a motor vehicle registered in a Party, or a coupled combination of vehicles the motor vehicle of which at least is registered in a Party, used exclusively for the carriage of goods; 3.2 International Transport means: (a) a laden journey undertaken by a vehicle, the point of departure and the point of arrival of which are in two different Parties, with or without transit through one or more Parties, or third countries; (b) a laden journey undertaken by a vehicle from a Party to a third country or vice versa, with transit through one or more Parties; (c) an unladen journey in conjunction with the carriage referred to in points (a) and (b); 3.3 Professional Driver means an individual who acts as the steersman of a vehicle to provide road freight transport services as well as any other person engaged in the driving of the vehicle who holds a valid driving license given by the competent authorities of the Parties; 3.4 Service Supplier means any person that supplies road freight transport services as defined in CPC 7123; 3.5 Swop Body means the part of a vehicle which is intended to bear the load, has supports and, by means of a device which is part of the vehicle, may be detached from the vehicle and re-incorporated therein; 2

3 3.6 Transit means [Placeholder]. Article 4: General Obligations 4.1 Each Party shall, as far as practicable, establish in its Schedule the category of professional drivers and set out the conditions in Part II of its Schedule relating to Article I-3 (Market Access) with respect to measures affecting trade in services covered by this Annex. 4.2 No limitations shall be imposed on vehicles in transit and their drivers except where necessary for the protection of public safety, environment, infrastructure and other public policy reasons on the condition that those measures are applied on a non-discriminatory basis. Article 5: Domestic Regulation [CL/JP oppose: 5.1 The Parties shall abolish and abstain from introducing any administrative and technical requirements and procedures which could constitute a disguised restriction or have discriminatory effects on the free supply of services in international transport as defined in Article 3 [CH propose: and related logistics services]. CA stated concern with regard to the term disguised restriction. 5.2 Each Party shall give service suppliers of the other Party the right to select their preferred mode of transport. [CL oppose: 5.3 Parties confirm that, to the extent that cross-border movement and transit of equipment such as containers and swop bodies is required for the completion of services covered by this Annex, such movement shall be permitted, without prejudice to customs duties and generally applicable administrative procedures. Such procedures shall be applied [CH oppose: without any discrimination] [ CH propose: on a non-discriminatory basis] to service suppliers of any Party and shall no be more burdensome that necessary.] [CL oppose: 5.4 To the extent that such movement related to the provision of services covered by this Annex, Parties shall not require service suppliers of another Party to follow specific routes. Where zoning is necessary for public safety or security, Parties may apply mandatory routes on the condition that this obligation is applied on a non-discriminatory basis. 5.5 Each Party shall ensure charges imposed on service suppliers with regard to the use of 3

4 infrastructure are applied on a non-discriminatory basis and reflect standard cost elements for the calculation of costs. [CH propose; TW oppose: 5.6 Parties should refrain to apply authorization or licensing requirements as a condition for the creation or the acquisition of a commercial presence, including joint venture, in its territory by a service supplier of another Party, in the following activities: [JP/TW oppose: (a) road freight transport services (CPC 7123)] (b) cargo-handling services related to road freight transport (CPC 741) (c) storage and warehousing services related to road freight transport (CPC 742)] [CH propose; PE/JP oppose: 5.7 Parties recognize the essential role of international road transport for the timely delivery of perishable goods to the market and that such transport may be unduly delayed by some types of traffic rules, in particular those that restrict transport during specific days or hours. [JP oppose: In order to avoid deterioration of perishable goods, each Party shall ensure that their timely delivery is not impaired by any regulatory measures.] In a manner consistent with possibilities provided by its domestic legislation, each Party shall consider to implement, appropriate derogations and exceptions or different rules or practices for such transport.]] [CH propose: 5.8 If the competent authority of a Party requires suppliers of service auxiliary to road freight transport to deposit a financial guarantee in order to supply such services on its territory, it shall set such guarantee immediately upon completion of the operation.] [CH propose: 5.9 When a Party transfers the management and operation of a public infrastructure for logistics services related to road freight transport, the competent authorities of each Party shall endeavor to rely on an open and transparent process that considers the overall public interest and to rely generally on market-based approaches. If and as provided by its domestic legislation, each Party shall: [JP opposes: (a) endeavor to ensure that suppliers of other Parties are eligible to take part in such processes;] (b) conduct such process in a transparent and impartial manner; (c) avoid conflicts of interest; 4

5 (d) limit conditions for participation to those that have the objective to ensure that a supplier has the legal and financial capacities and the commercial and technical abilities to operate and manage the infrastructure. [JP oppose: The competent authorities of each Party should endeavor to, as a rule, limit the validity of arrangements referred to under this paragraph to a predetermined time period and should consider opening a bidding process for the renewal of the concession by the end of the period.] [JP oppose: Parties recognize that the nature and specificities of some infrastructures referred to in paragraph 5.13 may require that the operators shall be limited in number. When such cases occur, the competent authority of each Party shall endeavor to set the number of operators at a level compatible with an efficient management.]] Article 6: Access to and use of the public infrastructure 6.1 Each Party shall permit road freight transport [CH propose: and related logistics] service providers of another Party the access to or use of the public infrastructure and/or services necessary for the provision of a service within the meaning of the Annex under reasonable and non-discriminatory terms and conditions. 6.2 No Party may deny service suppliers of another Party access to cargo handling equipment. 6.5 [CH oppose: A Party cannot adopt or maintain measures that] [CH propose: No Party may] deny [CH oppose: services or] service suppliers of another Party with regard to entry/exit of land border crossing points, the use of road infrastructure and roadside facilities. Article 7: Transparency [JP oppose: 7.1 Each Party shall make publicly available on the internet, [PE/TW/MX oppose: in a consolidated form], all necessary information on conditions for the provision of a road freight transport service. This shall include, inter alia, laws, rules and regulations pertaining to: (a) weight and dimensions for vehicles; (b) fiscal charges; (c) border formalities; (d) traffic bans; 5

6 [CL oppose; PE considering: (e) social regulations.] 7.2 Each Party shall promptly provide information on the internet concerning any amendments, new regulations and international agreements affecting the provision of services covered by this Annex.] CL/JP/MX/PE state that this subparagraph is redundant since we already have a general transparency provision capturing all services in the core text. With regard to specific transparency provision CH drew attention to specific items in Telecom Annex of GATS which further specifies transparency in relation to that specific sector, and also that this article should be revisited once the TiSA transparency text is finalized. [PE/TW oppose: Article 8: Expeditious Application Procedures for the Entry and Temporary Stay of Professional Drivers Where applicable Parties; 8.1 shall issue multiple-entry visas with the term of validity of up to one year provided that they have previously obtained at least one visa from that Party; 8.2 shall, for professional drivers, introduce expeditious and user-friendly visa application procedures, including but not limited to rapid delivery, reduced number of application documents and limited need for compulsory application in person; 8.3 shall recognize the intermediary role of transport associations as part of facilitations measures with due diligence, thereby helping professional drivers employed by their member operators to obtain their visas, maintaining the right of professional drivers to submit visa applications on an individual basis if they so wish; 8.4 shall ensure that the visa fees for professional drivers are reasonable; 8.5 shall apply the bona-fide status for subsequent applications. [CH/HK oppose: Article 9: Exceptions JP requests redrafting in accordance with exception clauses in WTO. 6

7 This Annex is without prejudice to any laws or regulations concerning the protection of the integrity and proper operation of transportation infrastructure as well as requirements for compliance with road safety standards. All such laws and regulations shall be applied on a non-discriminatory basis and shall not be more restrictive than necessary to achieve their respective objective.] CA stated as a systemic concern, that they don't want to be subject to a necessity test. [CH/HK propose: Article 9: Exceptions Subject to the requirement that such measures are not applied in a manner which would constitute a means of arbitrary or unjustifiable discrimination between countries where like conditions prevail, or a disguised restriction on trade in services, nothing in this Annex shall be construed to prevent the adoption or enforcement by any Party of measures: (a) necessary to protect the integrity and proper operation of its transportation infrastructure; (b) necessary to secure compliance with its road safety standards.] [TR propose: Alternative to Article 9: Right to Regulate Parties recognize the right to regulate and to introduce new regulations with regard to the supply of road freight transport services in their territories in order to meet public policy objectives, in a manner consistent with this Agreement.] 7