Lao PDR Commitments in Environmental Services under Regional and International Agreements

Key agreements that the Lao PDR has signed in respect of the environment services sector are noted to be: 

• WTO General Agreement on Trade in Services
• ASEAN Framework Agreement on Services (9^th Package of Commitments)
• ASEAN – Australia/New Zealand Free Trade Agreement
• Agreement on the Movement of Natural Persons Agreement
• ASEAN – China Free Trade Agreement Trade in Services
• ASEAN – India Agreement on Trade in Services

WTO General Agreement on Trade Services

The schedule of commitments for Lao PDR under the WTO General Agreement on Trade in Services notes that 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.

The agreement covers:

• Wastewater management (part of CPC 9401)
• Waste management (part of CPC 9402 and 9403)
• Protection of ambient air and climate (part of CPC 9404)
• Remediation and cleanup of soil and water (part of CPC 9406)
• Noise and vibration abatement (part of CPC 9405

In respect of limitations on market access for these services, Lao PDR is unbound under mode 1, cross border supply of services, except in relation to consulting services. Lao placed no limitations on market access under modes 2 and 3, consumption abroad and the establishment of a commercial presence respectively. Lao PDR is unbound under mode 4, except as indicated in the horizontal section.

As it relates to limitations on national treatment, the same limitations as applied to market access are applied to national treatment.

ASEAN Framework Agreement on Services (9^th Package of Commitments)

Under this agreement, the scope of commitments is extended to services in Vientiane Capital only.  It is also important to note that publicly funded services are excluded.

The agreement covers the following services:

• Sewage services (CPC 9401)
• Refuse disposal services (CPC 9402)
• Sanitation and similar services (CPC 9403)
• Cleaning of exhaust gases (Part of CPC 9404)
• Noise abatement services (Part of CPC 9405)
• Nature and landscape protection services (CPC 9406)

For these services above listed, Lao PDR has placed no limitations on market access and national treatment for the supply of these services under modes 1, 2 and 3.

ASEAN – Australia/New Zealand Free Trade Agreement

Under the ASEAN-Australia/New Zealand Free Trade Agreement, Lao PDR has not imposed any limitations on market access or national treatment for:

• Sewage services (CPC 9401)
• Refuse disposal services (CPC 9402)
• Sanitation and similar services (CPC 9403)
• Nature and landscape protection services (CPC 9406)

for modes 1 and 2, cross border supply of services and consumption abroad respectively.  As it relates to mode 3, the establishment of a commercial presence, Lao PDR has made no commitments in respect of national treatment, but horizontal commitments apply. In relation to limitations on market access for the same mode of supply of services, there are however no limitations applied.

For services provided in Urban Areas only, Lao PDR has made no commitments both in relation to national treatment and market access for the supply of Cleaning of exhaust gases services (CPC 9404) and Noise abatement services (CPC 9405) for modes 1 (cross border supply) and 2 (consumption abroad). For these same services, in respect of mode 3 (commercial presence), Lao PDR committed to applying no limitations on market access but made no commitments in relation to national treatment but will apply those as listed under horizontal commitments.

ASEAN Agreement on the Movement of Natural Persons

Under this agreement, the scope of environmental services covered is:

• Sewage services (CPC 9401)
• Refuse disposal services (CPC 9402)
• Sanitation and similar services (CPC 9403)
• Other:
  • Cleaning of exhaust gases (Part of CPC 9404)
  • Noise abatement services (Part of CPC 9405)
  • Nature and Landscape Protection Services (CPC 9406)

No sector specific commitments have been made in respect of any of these services. The only commitments that apply are horizontal commitments.

ASEAN – China Free Trade Agreement on Trade in Services

Under this agreement, 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. The scope of the agreement covers:

• Sewage Services (CPC 9401)
• Refuse Disposal Services (CPC 9402)
• Sanitation and Similar Services (CPC 9403)

In relation to providing these services through mode 1, cross border supply of services, Lao PDR is unbound except in relation to consulting services. In respect of mode 2, consumption abroad, Lao PDR placed no limitations on market access and national treatment. Specific to mode 3, establishment of a commercial presence, Lao limits market access, stipulating Foreign equity participation be limited to 70%, but placed no limitations on national treatment. In relation to mode 4, movement of natural persons, Lao PDR is unbound both in relation to market access and national treatment, except as indicated in the horizontal section.

ASEAN – India Agreement on Trade in Services

The scope of the agreement is extended to services in Vientiane Capital only.  It is also important to note that publicly funded services are excluded. The agreement covers:

• Sewage services (CPC 9401)
• Refuse disposal service (CPC 9402)
• Sanitation and similar services (CPC 9403)
• Cleaning of exhaust gases (Part of CPC 9404)
• Noise abatement services (Part of CPC 9405)
• Nature and Landscape Protection Services (CPC 9406)

Lao PDR placed no limitations on market access and national treatment both in relation to modes 1 and 2, cross border supply of services and consumption abroad. In relation to mode 3, the limitations on market access are as specified in the horizontal section, however in relation to national treatment, Lao PDR is unbound, except as stipulated in the horizontal section. In relation to mode 4, movement of persons, Lao PDR is unbound except as stipulated in the horizontal section, both in relation to market access and national treatment.