Common use of Modification of Schedules Clause in Contracts

Modification of Schedules. Article XXI provides a framework of rules for modifying or withdrawing specific commitments. The relevant provisions may be invoked at any time after three years have lapsed from the date of entry into force of a commitment. (In the absence of emergency safeguard measures, which are still under negotiation, this waiting period is reduced to one year under certain conditions). It is thus possible for Members, subject to compensation, to adjust their commitments to new circumstances or policy considerations. At least three months' notice must be given of the proposed change. The compensation to be negotiated with affected Members consists of more liberal bindings elsewhere that "endeavour to maintain a general level of mutually advantageous commitments not less favourable to trade" than what existed before. Application must be on an MFN basis. If the negotiations fail, Article XXI allows for arbitration. If the arbitrator finds that compensation is due, the proposed changes in commitments must not be put into effect until the compensatory adjustments are made. Should the modifying country ignore the arbitrator's findings, affected countries have the right to retaliate by withdrawing commitments. In 1999, the Council for Trade in Services enacted detailed procedures for the modification of schedules pursuant to Article XXI (document S/L/80). Improvements to schedules, i.e. inscription of new sectors or removal of existing limitations, are subject to more streamlined procedures, laid down in document S/L/84.

Modification of Schedules. Article XXI provides a framework of rules for modifying or withdrawing specific commitments. The relevant provisions may be invoked at any time after three years have lapsed from the date of entry into force of a commitment. (In the absence of an emergency safeguard measuresmechanism, which are is still under negotiation, this waiting period is reduced to one year under certain conditions). It is thus possible for Members, subject to compensation, to adjust their commitments to new circumstances or policy considerations. At least three months' notice must be given of the proposed change. The compensation to be negotiated with affected Members consists of more liberal bindings elsewhere that "endeavour to maintain a general level of mutually advantageous commitments not less favourable to trade" than what existed before. Application must be on an MFN basis. If the negotiations failShould no agreement be reached, Article XXI allows for arbitration. If the arbitrator finds that compensation is due, the proposed changes in commitments must not be put into effect until the compensatory adjustments are made. Should Otherwise, in the modifying country ignore event that the arbitrator's findingsfindings are ignored, affected countries have the right to retaliate by withdrawing commitments. In 1999, the Council for Trade in Services enacted detailed procedures for the modification of schedules pursuant to Article XXI (document S/L/80). Improvements to schedules, i.e. inscription of new sectors or removal of existing limitations, are subject to more streamlined procedures, laid down in document S/L/84.

Modification of Schedules. Article XXI provides a framework of rules for modifying or withdrawing specific commitments. The relevant provisions may be invoked at any time after three years have lapsed from the date of entry into force of a commitment. (In the absence of an emergency safeguard measuresmechanism, which are is still under negotiation, this waiting period is reduced to one year under certain conditions). It is thus possible for Members, subject to compensation, to adjust their commitments to new circumstances or policy considerations. At least three months' notice must be given of the proposed change. The compensation to be negotiated with affected Members consists of more liberal bindings elsewhere that "endeavour to maintain a general level of mutually advantageous commitments not less favourable to trade" than what existed before. Application must be on an MFN basis. If the negotiations failShould no agreement be reached, Article XXI allows for arbitration. If the arbitrator finds that compensation is due, the proposed changes in commitments must not be put into effect until the compensatory adjustments are made. Should Otherwise, in the modifying country ignore event that the arbitrator's findingsfindings are ignored, affected countries have the right to retaliate by withdrawing commitments. In 1999, the Council for Trade in Services enacted detailed procedures for the modification of schedules pursuant to Article XXI (document S/L/80). Improvements to schedules, i.e. inscription of new sectors or removal of existing limitations, as well as rectifications or changes of technical nature, are subject to more streamlined procedures, laid down in document S/L/84.