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II. Chapter Questions
Allowable WTO Restrictions
1. Students’ answers may vary. No restrictions may be applied by member states to international
GATS and NAFTA Commitments
2. Students’ answers may vary. GATS is designed to open up specific service sectors of the WTO
member states’ markets to international access on a sector-by-sector and a state-by-state basis.
For the sectors listed in a member state’s Schedule of Specific Commitments, and subject to the
Each of the NAFTA countries has to observe the basic rules of transparency, MFN treatment, and
national treatment. NAFTA does not deal with services generally, but rather by sectors. Its main
service provisions, accordingly, are in three core service chapters (cross-border trade in services,
telecommunications, and financial services), two associated chapters (investment and temporary
Role and Power of the ILO Fact-Finding and Conciliation Commission
3. Students’ answers may vary. The Fact-Finding and Conciliation Commission may consider
Power of the ILO Administrative Tribunal
4. Students’ answers may vary. The tribunal’s jurisdiction extends to disputes involving the
©2013 Pearson Education, Inc. Publishing as Prentice Hall
Services and Labor
Freedom of Speech and Press in the EU
5. Students’ answers may vary. Article 39(2) of the EC Treaty states that workers who are citizens
of a member state cannot be treated differently because of their nationality. This guarantee is
As part of its guarantee of freedom of assembly, the Human Rights Convention includes the right
Right of an Attorney to Employment in Another EU Country
6. Students’ answers may vary. Transnational labor unions, with the ability to represent
employees across international boundaries, can exist only where IGOs have the power to sanction
U.S. Passport Rules
7. Students’ answers may vary. A passport is a letter of introduction in which the issuing
sovereign vouches for the bearer and requests other sovereigns to aid the bearer. The freedom to
National Government Power over Visas
8. Students’ answers may vary. Some may argue that the faculty may succeed in claiming that
Treaties of Friendship, Commerce, and Navigation
9. Students’ answers may vary. Treaties called “Friendship, Commerce, and Navigation”
commonly establish a reciprocal right for the national businesses of either signatory state to
©2013 Pearson Education, Inc. Publishing as Prentice Hall
Services and Labor
Extraterritorial Application of U.S. Law
10. Students’ answers may vary. The U.S. Supreme Court recognizes that Congress “has the
authority, in certain cases, to enforce its laws beyond the territorial boundaries of the United
III. Key Terms
Council for Trade in Services—A committee of representatives of all WTO member states
that oversees the General Agreement on Trade in Services.
EU freedom of movement for workers—Right of member state nationals to seek and accept
employment throughout the EU.
EU freedom to provide services—Right of member state nationals and firms to market their
services on a temporary or nonpermanent basis throughout the EU.
EU right of establishment—Right of member state nationals and firms to settle permanently
and carry on a business throughout the EU.
European Convention on Human Rights of 1950—Establishes and guarantees civil and
political rights for the nationals of the member states of the Council of Europe.
European Social Charter—Establishes and guarantees economic, social, and cultural rights
for the nationals of the member states of the Council of Europe.
General Agreement on Trade in Services (GATS)—Multilateral agreement in force from
January 1, 1995, that contains rules and principles governing international trade in services
and establishes guidelines for negotiating the future liberalization of such trade.
General Conference—The legislative body of the ILO, made up of representatives from
government, labor, and management from each member state.
Governing Body—The governing body of the ILO, responsible for setting the ILO’s agenda.
It is made up of representatives from government, labor, and management from 28 member
states.
ILO Administrative Tribunal—Special court that hears complaints from employees in the
secretariats of the ILO and other IGOs.
ILO Committee of Experts on the Application of Conventions and Recommendations—A
committee of the ILO’s Governing Body that analyzes annual reports to determine the extent
of member state compliance with ILO recommendations and conventions.
ILO Conference Committee on the Application of Conventions and Recommendations—
Committee of the ILO General Conference responsible for making a list of member states
that have defaulted on their obligations to the ILO.
ILO conventions—Labor conventions sponsored by the ILO.
ILO Fact-Finding and Conciliation Commission on Freedom of Association—Special ILO
committee of inquiry that considers complaints that a state has violated the ILO’s freedom of
association conventions. If the state consents, the inquiry can proceed even though the state is
not a member of the ILO.
©2013 Pearson Education, Inc. Publishing as Prentice Hall
Services and Labor
ILO recommendations—International Labor Office opinions as to proper labor practices and
as to how ILO conventions should be interpreted.
International Labor Office—The secretariat of the ILO.
International Labor Organization (ILO)—A specialized agency of the United Nations
responsible for promoting international efforts to improve working conditions, living
standards, and the equitable treatment of workers worldwide.
Market access—GATS requirement that a WTO member state accord to services and service
suppliers of other member states treatment no less favorable than that listed in its GATS
Schedule of Specific Commitments.
Most-favored-nation (MFN) treatment—GATS requirement that its member states accord
immediately and unconditionally to services and service suppliers of other members
treatment that is no less favorable than that it accords to like services and service suppliers of
any other state.
National treatment—GATS requirement that a WTO member state accord to services and
service suppliers of other member states treatment no less favorable than what the member
grants its own like services and service suppliers.
OECD Guidelines for Multinational Enterprises—Norms suggested by the OECD for the
operation of multinational firms both in home and host states.
Passport—A warrant of protection and authority to travel between nations.
Percentile legislation—A law requiring a certain percentage of employees to be local
nationals.
Service—An act or action, such as work rendered or performed for another.
Service sectors—Any parts of the economy involving the performance of a service.
Special list—List of member states that have defaulted on their obligations to the ILO.
Transparency provision—GATS requirement that its member states publish their regulations
affecting trade in services, that they notify the Council for Trade in Services of any relevant
changes, and that they respond promptly to requests for information from other members.
Visa—Formal authorization to enter a country.
©2013 Pearson Education, Inc. Publishing as Prentice Hall
