Article 4.2 applies to persons whose earnings from self-employment would be subject to compulsory coverage under the laws of both countries. A self-employed Portuguese resident whose earnings would otherwise be covered by both Portugal and the United States will be covered only under the laws of Portugal. A dually covered U.S. resident will be covered only under U.S. laws. This provision will primarily affect self-employed U.S. citizens who reside in Portugal. In the absence of an agreement, such persons would be covered under Portuguese law because they reside in Portugal and would also be covered under U.S. law because they are U.S. citizens.