Australia-UK FTA Annex II Schedule of the United Kingdom

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Introductory Notes

1. For the avoidance of doubt, and recalling i) subparagraph 6(a) of Article 13.13 (Non-Conforming Measures – Investment) and subparagraph 3(b) of Article 8.2 (Scope – Cross-Border Trade in Services) relating to the exclusion of government procurement; and ii) subparagraph 6(b) of Article 13.13 (Non-Conforming Measures – Investment) and subparagraph 3(d) of Article 8.2 (Scope – Cross-Border Trade in Services) relating to the exclusion of subsidies or grants provided by a Party:

In relation to Research and Development (R&D) services, Chapter 13 (Investment) and Chapter 8 (Cross-Border Trade in Services) shall not interfere with the ability of the UK to grant exclusive rights or authorisations, for publicly funded R&D services, to nationals of the UK or enterprises of the UK having their registered office, central administration, or principal place of business in the UK.

2. With respect to computer services, any of the following services shall be considered as ‘computer and related services’, regardless of whether they are delivered via a network, including the Internet:

(a) consulting, adaptation, strategy, analysis, planning, specification, design, development, installation, implementation, integration, testing, debugging, updating, support, technical assistance, or management of or for computers or computer systems;

(b) computer programmes defined as the sets of instructions required to make computers work and communicate (in and of themselves), as well as consulting, strategy, analysis, planning, specification, design, development, installation, implementation, integration, testing, debugging, updating, adaptation, maintenance, support, technical assistance, management, or use of or for computer programmes;

(d) maintenance and repair services for office machinery and equipment, including computers; and

(e) training services for staff of clients, related to computer programmes, computers or computer systems, and not elsewhere classified.

For greater certainty, services enabled by computer and related services, other than those listed in (a) to (e), shall not be regarded as ‘computer and related services’ in themselves.

3. For greater certainty, the fact that a Party has made an entry does not necessarily mean that, in the absence of such an entry, the measure would be inconsistent with the obligations under Chapter 13 (Investment) and Chapter 8 (Cross-Border Trade in Services).

4. With respect to Annex II Entry 1 on Most-Favoured-Nation Treatment relating to agreements, the absence of language regarding the scope of the entry for differential treatment resulting from an amendment of those agreements in force or signed prior to the date of entry into force of this Agreement is without prejudice to the UK’s interpretation of the scope of the entry.

Entry No. II-1 – All sectors

Sector

All sectors

Obligations Concerned

Market Access

National Treatment

Local Presence

Most-Favoured-Nation Treatment

Senior Management and Boards of Directors

Performance Requirements

Description

The UK reserves the right to adopt or maintain any measure with respect to the following:

(a) Public utilities

With respect to Investment – Market Access:

Services considered as public utilities at a national or local level may be subject to public monopolies or to exclusive rights granted to private operators.

Public utilities exist in sectors such as related scientific and technical consulting services, research and development (R&D) services on social sciences and humanities, technical testing and analysis services, environmental services, health services, transport services, and services auxiliary to all modes of transport. Exclusive rights on such services are often granted to private operators, for instance operators with concessions from public authorities, subject to specific service obligations. Given that public utilities often also exist at the sub-central level, detailed and exhaustive sector-specific scheduling is not practical. This sub-entry (a) does not apply to telecommunications and to computer and related services.

(b) Most-Favoured-Nation Treatment

With respect to Investment – Most-Favoured-Nation Treatment and Cross-Border Trade in Services – Most-Favoured-Nation Treatment:

According differential treatment pursuant to any international investment treaty or other trade agreement in force or signed prior to the date of entry into force of this Agreement.

According differential treatment to a country pursuant to any existing or future bilateral or multilateral agreement which:

(i) creates an internal market in services and investment;

(ii) grants the right of establishment; or

(iii) requires the approximation of legislation in one or more economic sectors.

An internal market on services and investment means an area without internal frontiers in which the free movement of services, capital, and persons is ensured.

The right of establishment means an obligation to abolish in substance all barriers to establishment among the parties to the regional economic integration agreement by the entry into force of that agreement. The right of establishment shall include the right of nationals of the parties to the regional economic integration agreement to set up and operate enterprises under the same conditions provided for nationals under the law of the country where such establishment takes place.

The approximation of legislation means:

(i) the alignment of the legislation of one or more of the parties to the regional economic integration agreement with the legislation of the other party or parties to that agreement; or

(ii) the incorporation of common legislation into the law of the parties to the regional economic integration agreement.

Such alignment or incorporation shall take place, and shall be deemed to have taken place, only at such time that it has been enacted in the law of the party or parties to the regional economic integration agreement.

According differential treatment relating to the right of establishment to nationals or enterprises through existing or future bilateral agreements between the UK and any of the following countries or principalities: Andorra, Monaco, San Marino, and the Vatican City State.

According differential treatment to a third country pursuant to existing or future agreements relating to air services or to related services in support of air services.

(c) Arms, ammunitions, and war material

With respect to Investment – Market Access, National Treatment, Most-Favoured-Nation Treatment, Senior Management and Boards of Directors, Performance Requirements and Cross-Border Trade in Services – Market Access, National Treatment, Local Presence, Most-Favoured-Nation Treatment:

Production or distribution of, or trade in, arms, munitions, and war material. War material is limited to any product which is solely intended and made for military use in connection with the conduct of war or defence activities.

(d) Presence of natural persons

With respect to Cross-Border Trade in Services – Market Access:

The supply of a service by the presence of natural persons, subject to the provisions of Chapter 11 (Temporary Entry for Business Persons), that is not inconsistent with the United Kingdom’s obligations under the GATS.

Entry No. II-2 – Professional services (legal services and auditing services)

Sector – Sub-Sector	Professional services – legal services and auditing services
Industry Classification	Part of CPC 861, part of 862, part of 87902
Obligations Concerned	Market Access Local Presence National Treatment Senior Management and Boards of Directors
Description (a) Description (b) Existing measures (b)	Investment and Cross-Border Trade in Services (a) Legal services (part of CPC 861, part of 87902). The UK reserves the right to adopt or maintain any measure with respect to the supply of legal advisory and legal authorisation, documentation, and certification services provided by legal professionals entrusted with public functions, such as notaries, and with respect to services provided by bailiffs. (b) Auditing services (CPC – 86211, 86212 other than accounting and bookkeeping services) The UK reserves the right to adopt or maintain any measure with respect to the cross-border supply of auditing services. Companies Act 2006.

Entry No. II-3 – Professional services (health related and retail of pharmaceuticals)

Sector	Health related professional services and retail sales of pharmaceutical, medical and orthopaedic goods, other services provided by pharmacists
Industry Classification	CPC 63211, 85201, 9312, 9319
Obligations Concerned	Market Access National Treatment Local Presence
Description	(a) Medical and dental services; services provided by midwives, nurses, physiotherapists, psychologists and paramedical personnel (CPC 63211, 85201, 9312, 9319) With respect to Investment – Market Access: Establishment for doctors under the National Health Service is subject to medical manpower planning (CPC 93121, 93122). With respect to Cross-Border Trade in Services – Market Access, National Treatment, Local Presence The UK reserves the right to adopt or maintain any measure with respect to the supply of all health-related professional services, including the services provided by professionals such as medical doctors, dentists, midwives, nurses, physiotherapists, paramedical personnel, and psychologists, (part of CPC 85201, CPC 9312, part of 93191). (b) Retail sales of pharmaceutical, medical and orthopaedic goods, other services provided by pharmacists (CPC 63211) With respect to Investment – Market Access and Cross-Border Trade in Services – Market Access, National Treatment, Local Presence: The UK reserves the right to adopt or maintain any measure with respect to the supply of cross-border retail sales of pharmaceuticals and of medical and orthopaedic goods, and other services provided by pharmacists. Establishment in the UK is required for the retail of pharmaceuticals and specific medical goods to the general public in the UK.

Entry No. II-4 – Business services (collection agency services and credit reporting services)

Sector – Sub-Sector	Business Services – collection agency services, credit reporting services
Industry Classification	CPC 87901, 87902
Obligations Concerned	Market Access National Treatment Local Presence
Description	Cross-Border Trade in Services The UK reserves the right to adopt or maintain any measure with respect to the supply of collection agency services and credit reporting services.

Entry No. II-5 – Business services (placement services)

Sector – Sub-Sector	Business services – placement services
Industry Classification	CPC 87202, 87204, 87205, 87206, 87209
Obligations Concerned	Market Access National Treatment Local Presence Senior Management and Boards of Directors
Description	Investment and Cross-Border Trade in Services The UK reserves the right to adopt or maintain any measure with respect to the following: (a) The supply of placement services of domestic help personnel, other commercial or industrial workers, nursing and other personnel (CPC 87204, 87205, 87206, 87209); (b) Requiring establishment for, and the prohibition of cross-border supply of, placement services of office support personnel and other workers.

Entry No. II-6 – Business services (investigation services)

Sector – Sub-Sector	Business services – investigation services
Industry Classification	CPC 87301
Obligations Concerned	Market Access National Treatment Local Presence Performance Requirements Senior Management and Boards of Directors
Description	Investment and Cross-Border Trade in Services The UK reserves the right to adopt or maintain any measure with respect to the supply of investigation services (CPC 87301).

Entry No. II-7 – Business services (other business services)

Sector – Sub-Sector	Business services – other business services
Industry Classification	CPC 86764, 86769, 8868
Obligations Concerned	Market Access National Treatment Local Presence
Description	Cross-Border Trade in Services The UK reserves the right to adopt or maintain any measure with respect to the cross-border supply of maintenance and repair services in relation to the following: (a) rail transport equipment; (b) internal waterways transport vessels; (c) maritime vessels. Only recognised organisations authorised by the UK may carry out statutory surveys and certification of ships on behalf of the UK. Establishment may be required.
Existing measures:	Regulation (EC) No 391/2009 of the European Parliament and the Council of 23 April 2009 on common rules and standards for ship inspection and survey organisations as retained in UK law by the European Union (Withdrawal) Act 2018, and as amended by the Merchant Shipping (Recognised Organisations) (Amendment) (EU Exit) Regulations 2019.

Entry No. II-8 – Education services

Sector	Education services
Industry Classification	CPC 92
Obligations Concerned	Market Access National Treatment Local Presence Senior Management and Boards of Directors Performance Requirements
Description	Investment and Cross-Border Trade in Services The UK reserves the right to adopt or maintain any measure with respect to the following: (a) All educational services which receive public funding or State support in any form and are therefore not considered to be privately funded. Where the supply of privately funded education services by a foreign provider is permitted, participation of private operators in the education system may be subject to concession allocated on a non-discriminatory basis; (b) The supply of privately funded other education services, which means other than those classified as being primary, secondary, higher and adult education services (CPC 929).

Entry No. II-9 – Health and social services

Sector	Health and social services
Industry Classification	CPC 931 (other than 9312, part of 93191), CPC 933
Obligations Concerned	Market Access National Treatment Local Presence Senior Management and Boards of Directors Performance Requirements
Description	The UK reserves the right to adopt or maintain any measure with respect to the following: (a) Health services – including hospital, ambulance, residential health services (CPC 931 other than 9312, part of 93191) With respect to Investment – Market Access, National Treatment, Senior Management and Boards of Directors, Performance Requirements: (i) The supply of all health services which receive public funding or State support in any form, and are therefore not considered to be privately funded; (ii) All privately funded health services other than hospital services; (iii) The participation of private operators in the privately funded health network may be subject to concession on a non-discriminatory basis. An economic needs test may apply. Main criteria: number of and impact on existing establishments, transport infrastructure, population density, geographic spread, and creation of new employment. (b) Health and social services, including pension insurance (CPC 931 other than 9312, part of 93191) With respect to Cross-Border Trade in Services – Market Access, National Treatment, Local Presence: The cross-border supply of health services, the cross-border supply of social services, as well as activities or services forming part of a public retirement plan or statutory system of social security. Sub-entries (a) and (b) do not relate to the supply of any health-related professional services, including the services provided by professionals such as medical doctors, dentists, midwives, nurses, physiotherapists, paramedics, and psychologists, which are covered by other entries. (c) Social services, including pension insurance With respect to Investment – Market Access, National Treatment, Senior Management and Boards of Directors, Performance Requirements: (i) The supply of all social services which receive public funding or State support in any form, and are therefore not considered to be privately funded, and activities or services forming part of a public retirement plan or statutory system of social security; (ii) The supply of privately funded social services other than services relating to convalescent and rest houses and old people’s homes; (iii) The participation of private operators in the privately funded social network may be subject to concession on a non-discriminatory basis. An economic needs test may apply. Main criteria: number of and impact on existing establishments, transport infrastructure, population density, geographic spread, and creation of new employment.

Entry No. II-10 – Health, Social and Education Services

Sector	Health, Social and Education Services
Obligations Concerned	Market Access National Treatment Senior Management and Boards of Directors
Description	Investment The UK, when selling or disposing of its equity interests in, or the assets of, an existing state enterprise or an existing governmental entity providing health, social or education services, may prohibit or impose limitations on the ownership of such interests or assets, and on the ability of owners of such interests and assets to control any resulting enterprise, by investors of Australia or their investments. With respect to such a sale or other disposition, the UK may adopt or maintain any measure relating to the nationality or residency of senior management or members of the boards of directors, as well as any measure limiting the number of suppliers. For the purposes of this entry: (a) any measure maintained or adopted after the date of entry into force of this Agreement that, at the time of the sale or other disposition, prohibits or imposes limitations on the ownership of equity interests or assets or imposes nationality or residency requirements or imposes limitations on the numbers of suppliers as described in this entry shall be deemed to be an existing measure subject to paragraph 1 of Article 13.13 (Non-Conforming Measures – Investment) and paragraph 1 of Article 8.7 (Non-Conforming Measures – Cross-Border Trade in Services); and (b) ‘state enterprise’ means an enterprise owned or controlled through ownership interests by the UK and includes an enterprise established after the date of entry into force of this Agreement solely for the purposes of selling or disposing of equity interests in, or the assets of, an existing state enterprise or governmental entity.

Entry No. II-11 – Recreational, cultural and sporting services

Sector	Recreational, cultural and sporting services
Industry Classification	CPC 963, 9619, 964
Obligations Concerned	Market Access National Treatment Local Presence Senior Management and Boards of Directors Performance Requirements
Description	Investment and Cross-Border Trade in Services The UK reserves the right to adopt or maintain any measure with respect to the following: (a) The supply of library, archive, museum and other cultural services (CPC 963); (b) The cross-border supply of entertainment services, including theatre, live bands, circus and discotheque services (CPC 9619, 964 other than 96492); (c) The supply of gambling activities, which involve wagering a stake with pecuniary value in games of chance, including in particular lotteries, scratch cards, gambling services offered in casinos, gambling arcades or licensed premises, betting services, bingo services and gambling services operated by and for the benefit of charities or non-profit-making organisations (CPC 96492).

Entry No. II-12 – Transport services and auxiliary transport services

Sector	Transport services
Obligations Concerned	Market Access National Treatment Local Presence Most-Favoured-Nation Treatment Performance Requirements Senior Management and Boards of Directors
Description (a) Description (b) Description (c) Description (d) Description (e) Existing Measures (e) Description (f) Description (g) Existing Measures (g) Description (h) Description (i)	The UK reserves the right to adopt or maintain any measure with respect to the following: (a) Maritime transport and any other commercial activity undertaken from a ship With respect to Investment – Market Access, National Treatment, Senior Management and Boards of Directors, Performance Requirements and Cross-Border Trade in Services – Market Access, Local Presence, National Treatment: The nationality of the crew on a seagoing or non-seagoing vessel. With respect to Investment – Market Access, National Treatment, Most-Favoured-Nation Treatment, Senior Management and Boards of Directors: For the purpose of registering a vessel and operating a fleet under the flag of the UK (all commercial marine activity undertaken from a seagoing ship, including fishing, aquaculture, and services incidental to fishing; international passenger and freight transportation (CPC 721); and services auxiliary to maritime transport). This paragraph does not apply to enterprises incorporated in the UK and having an effective and continuous link to its economy. With respect to Investment – Market Access, National Treatment, Senior Management and Boards of Directors, Most-Favoured-Nation Treatment, Performance Requirements and Cross-Border Trade in Services- Market Access, Local Presence, National Treatment, Most-Favoured-Nation Treatment The supply of maritime cabotage services Maritime cabotage services cover: (i) transportation of passengers or goods between a port or point located in the UK and another port or point located in the UK, including on its continental shelf as provided in the UN Convention on the Law of the Sea; (ii) traffic originating and terminating in the same port or point located in the UK. For greater certainty, this entry applies to related traffic in support of offshore activities. (b) Auxiliary services to maritime transport With respect to Investment – Market Access, National Treatment, Senior Management and Boards of Directors and Cross-Border Trade in Services – Market Access, National Treatment, Local Presence: The supply of pilotage and berthing services. Only vessels flying the flag of the UK may provide pushing and towing services (CPC 7214). (c) Inland waterways transport and auxiliary services to inland waterways transport With respect to Investment – Market Access, National Treatment, Most-Favoured-Nation Treatment, Senior Management and Boards of Directors, Performance Requirements and Cross-Border Trade in Services – Market Access, National Treatment, Local Presence, Most-Favoured-Nation Treatment: Inland waterways passenger and freight transportation (CPC 722); and services auxiliary to inland waterways transportation. For greater certainty, this entry also covers the supply of cabotage transport on inland waterways (CPC 722). (d) Rail transport and auxiliary services to rail transport With respect to Investment – Market Access, National Treatment and Cross-Border Trade in Services – Market Access, National Treatment, Local Presence: Railway passenger transportation (CPC 7111). With respect to Investment– Market Access and Cross-Border Trade in Services – Market Access, Local Presence: Railway freight transportation (CPC 7112). (e) Road transport (passenger transportation, freight transportation, international truck transport services) and services auxiliary to road transport With respect to Investment – Market Access, National Treatment, Senior Management and Boards of Directors and Cross-Border Trade in Services – Market Access, National Treatment, Local Presence: (i) to require establishment and to limit the cross- border supply of road transport services (CPC 712); (ii) an economic needs test may apply to taxi services in the UK setting a limit on the number of service suppliers. Main criterion: Local demand as provided in applicable laws (CPC 71221). Regulation (EC) No 1071/2009 of the European Parliament and of the Council of 21 October 2009 establishing common rules concerning the conditions to be complied with to pursue the occupation of road transport operator and repealing Council Directive 96/26/EC as retained in UK law by the European Union (Withdrawal) Act 2018 and as amended by The Licensing of Operators and International Road Haulage (Amendment etc.) (EU Exit) Regulations 2019; Regulation (EC) No 1072/2009 of the European Parliament and of the Council of 21 October 2009 on common rules for access to the international road haulage market as retained in UK law by the European Union (Withdrawal) Act 2018 and as amended by The Licensing of Operators and International Road Haulage (Amendment etc.) (EU Exit) Regulations 2019; and Regulation (EC) No 1073/2009 of the European Parliament and of the Council of 21 October 2009 on common rules for access to the international market for coach and bus services, and amending Regulation (EC) No 561/2006 as retained in UK law by the European Union (Withdrawal) Act 2018 and as amended by The Common Rules for Access to the International Market for Coach and Bus Services (Amendment etc.) (EU Exit) Regulations 2019. (f) Space transport and rental of space craft With respect to Investment – Market Access, National Treatment, Performance Requirements, Senior Management and Boards of Directors and Cross-Border Trade in Services – Market Access, National Treatment, Local Presence: Transportation services via space and the rental of space craft (CPC 733, part of 734). (g) Air Traffic Management and Air Traffic Control With respect to Investment – Market Access, National Treatment, Senior Management and Boards of Directors: (i) NATS Holdings Ltd and its successors; (ii) The exercise of statutory powers and the discharge of statutory functions and duties in relation to Air Traffic Management and Air Traffic Control. Transport Act 2000. (h) Most-favoured-nation exemptions With respect to Investment – Most-Favoured-Nation Treatment, and Cross-Border Trade in Services – Most-Favoured-Nation Treatment: Road and rail transport To accord differential treatment to a country pursuant to existing or future agreements relating to international road haulage (including combined transport – road or rail) and passenger transport, concluded between the UK and a third country (CPC 7111, 7112, 7121, 7122, 7123). That treatment may: (i) reserve or limit the supply of the relevant transport services between the contracting parties or across the territory of the contracting parties to vehicles registered in each contracting party; or (ii) provide for tax exemptions for such vehicles. (i) Air services With respect to Investment – Market Access, National Treatment, Senior Management and Boards of Directors, Most-Favoured-Nation Treatment, Performance Requirements: Air carriers and airports. This paragraph does not apply to air carriers used for specialty air services.

Entry No. II-13 – Fishing and water

Sector	Fishing, aquaculture, services incidental to fishing; collection, purification and distribution of water
Industry Classification	ISIC Rev. 3.1 0501, 0502, 41, CPC 882
Obligations Concerned	Market Access National Treatment Local Presence Most-Favoured-Nation Treatment Performance Requirements Senior Management and Boards of Directors
Description (a) Existing measures (a) Description (b)	Investment and Cross-Border Trade in Services (a) Fishing, aquaculture and services incidental to fishing (ISIC Rev. 3.1 0501, 0502, CPC 882) The UK reserves the right to adopt or maintain any measure, in particular within the framework of UK fisheries policy, and of fishing agreements with a third country, with respect to access to and use of the biological resources and fishing grounds situated in the maritime waters coming under the sovereignty or jurisdiction of the UK. The UK reserves the right to adopt or maintain any measure (i) to the effect that the fishing activity of fishing vessels flying its flag must have an economic link (to the extent and according to the terms specified in the measure) with the UK and (ii) relating to fishing vessels’ eligibility to use UK fishing opportunities by reference to the nationality of the owner or owners of vessels or place of incorporation of a company.  The UK reserves the right to adopt or maintain any measure: (i) regulating the landing of catches performed in the quotas allocated to vessels of Australia or of a designated third country in UK ports;  (ii) determining a minimum size for a company in order to preserve both artisanal and coastal fishing vessels;   (iii) according differential treatment pursuant to existing or future international agreements relating to fisheries; (iv) with regard to the nationality of the crew of a fishing vessel flying the flag of the UK; or (v) with respect to the establishment of marine or inland aquaculture facilities. Fisheries Act 2020. (b) Collection, purification and distribution of water With respect to Investment – Market Access, National Treatment and Cross-Border Trade in Services – Market Access, Local Presence, National Treatment: The UK reserves the right to adopt or maintain any measure with respect to activities, including services relating to the collection, purification and distribution of water to household, industrial, commercial or other users, including the supply of drinking water, and water management.

Entry No. II-14 – Energy related activities

Sector	Production of energy and related services
Industry Classification	ISIC Rev. 3.1 401, 402, CPC 7131, 887 (other than advisory and consultancy services)
Obligations Concerned	Market Access Local Presence National Treatment Performance Requirements Senior Management and Boards of Directors
Description	Investment and Cross-Border Trade in Services The UK reserves the right to adopt or maintain any measure where the UK permits foreign ownership of a gas or electricity transmission system, or an oil and gas pipeline transport system, with respect to enterprises of Australia controlled by natural persons or enterprises of a third country which accounts for more than five per cent of the UK’s oil, natural gas or electricity imports, in order to guarantee the security of the energy supply of the UK. This entry does not apply to advisory and consultancy services provided as services incidental to energy distribution.

Entry No. II-15 – Other services not included elsewhere