Under the Agreement, employment is ordinarily subject to the coverage laws of only the country where the employee performs the work. A person working in employment that both countries would cover without the Agreement will have coverage only under the laws of the country where the work is performed. Generally, a self-employed person will be subject to the coverage laws of only the country where the person is a resident.

The Agreement provides several exceptions to the territoriality rule to ensure that a worker's coverage is under the system of the country to which he or she has the greater attachment. The references cited below list these exceptions.