WORLD TRADE
ORGANIZATIONS/WPGR/9
14 March 2003
(03-1500)
Working Party on GATS Rules
NEGOTIATIONS ON EMERGENCY SAFEGUARD MEASURES
Report by the Chairperson of the Working Party on GATS Rules
I. INTRODUCTION
1. On 22 July 2002, the Working Party on GATS Rules adopted a work programme on
emergency safeguard measures1 with a view to structuring future work.  Item (a) of the work
programme provides for Members "to identify, elaborate and consolidate elements for ESM and to
address the question of feasibility and desirability of ESM".  Moreover, Members were encouraged
"to put forward submissions on ESM as early as po ssible before 31 December 2002, without prejudice
to Members’ right to put forward further suggestions and raise relevant issues".  Item (c) of the work
programme mandates the Chairperson "to circulate a note by 15 March 2003 to report on the results ofwork under item (a), identifying areas of converge nce and divergence among Members, with a view
to providing a basis to facilitate further negotiations".  The work programme further stipulates that the
Working Party will organize its work "to prepare for the opportunity provided by the Fifth Ministerial
Conference to take stock of progress made in the negotiations" and "to finalize the negotiations under
Article X by 15 March 2004".
2. In organizing their work on emergency safeguard measures, together with the work on
subsidies and government procurement, Members recognized that:
"(a) The work programmes do not prejudge in any way the outcome of the
respective negotiations on emergency safeguard measures, subsidies and government
procurement.  Members will remain free to bring up any relevant issues for
discussion, including the questions of feasibility and desirability, as well as the scope
of the negotiations, under any of the three subjects of negotiations.
(b) The benchmarks for submissions are indicative, with a view to encouraging
Members to put forward submissions on the respective subjects as early as possible,
and would be without prejudice to Members’  right to put forward further suggestions
and raise relevant issues by way of submissions at any time, under any of the three
subjects of negotiations.
(c) The undertaking of individual items of work, including the question of
feasibility and desirability, should be without prejudice to each other under each
subject of negotiations."
Members also recognize that "flexibility should be exercised in conducting the work of the
Working Party and the work programmes may be adjusted in the future to take account of latestprogress."
 2
                                                     
1 S/WPGR/7, paragraph 3.
2 S/WPGR/7, paragraph 1.S/WPGR/9
Page 2
3. This Report starts by explaining the background of the negotiations on emergency safeguard
measures and briefly recalls the main activities of the Working Party in these negotiations
(Section II).  Section III contains my assessment of the situation and suggestions for the possible wayforward.  The Report is submitted on my own responsibility, as the Chairperson of the Working Party
on GATS Rules.
II. BACKGROUND OF THE NEGOTIATIONS AND MAIN ACTIVITIES
A. N
EGOTIATING MANDATE
4. GATS Article X:1 mandates that "[T]here shall be multilateral negotiations on the question of
emergency safeguard measures based on the principle of non-discrimination.  The results of such
negotiations shall enter into effect on a date no later than three years from the date of entry into forceof the WTO Agreement."  Thus, the negotiations were originally mandated to be concluded by
1
st January 1998.
B. EXTENSIONS OF THE DEADLINE
5. Notwithstanding the timeframe provided for in Article X:1, the negotiating deadline has been
extended four times, the latest extension setting it at 15 March 2004.3  In extending the deadline,
Members also decided that the results of the negotiations should "enter into force on a date not later
than the date of entry into force of the results of the current round of services negotiations."4
6. The fourth extension of the deadline was decided after the adoption of the Guidelines and
Procedures for the Negotiations on Trade in Services  by the Special Session of the Council for Trade
in Services on 28 March 2001.  The Guidelines stipulated that "[N]egotiations on safeguards underArticle X shall be completed by 15 March 2002 according to the Decision adopted by the Council for
Trade in Services on 1 December 2000".
5
C. OVERVIEW OF ACTIVITIES CARRIED OUT BY THE WORKING PARTY
7. The question of emergency safeguard measures has been on the agenda of the Working Party
on GATS Rules since its establishment in March 1995 and has been addressed at each of the41 formal meetings held since by the Working Party.
6  In addition, many informal meetings were
devoted to this issue.  Since early 2000, 22 such informal meetings have taken place.7
8. Throughout eight years of work, the Working Party has benefited from many written inputs:
(i) 20 formal and 24 informal contributions by Members;  (ii) over 40 notes by the various
Chairpersons, most of them aiming at structuring the debate or proposing issues for Members'
                                                     
3 First extension:  30 June 1999 ( Decision on Negotiations on Emergency Safeguard Measures , adopted
by the Council for Trade in Services on 26 November 1997, S/L/43);  second extension:  15 December 2000(Second Decision on Negotiations on Emergency Safeguard Measures , adopted by the Council for Trade in
Services on 24 June 1999, S/L/73);  third extension:  15 March 2002 ( Third Decision on Negotiations on
Emergency Safeguard Measures , adopted by the Council for Trade in Services on 1 December 2000, S/L/90);
fourth extension:  15 March 2004 ( Fourth Decision on Negotiations on Emergency Safeguard Measures ,
adopted by the Council for Trade in Services on 15 March 2002, S/L/102).
4 See S/L/73, S/L/90 and S/L/102.
5 S/L/93, paragraph 7.
6 Activities of the Working Party on GATS Rules – Report to the Council for Trade in Services
(S/WPGR/1) and Council for Trade in Services – Report on Work since 1 January 1995  (S/C/2).  See also the
reports of formal meetings of the Working Party in S/WPGR/M/1 to 41.
7 See Annex, Summaries of Comments Made During Informal Meetings .S/WPGR/9
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consideration;  and 20 formal and informal background notes by the Secretariat on various issues
related to a possible ESM in services.  A list of all relevant documents is annexed to this Report.
9. During discussions in the Working Party, differing views have been expressed by Members
with regard to whether or not an emergency safeguard mechanism under the GATS could or should be
developed.  Members decided to carry out the work with the understanding that it would not prejudge
the position of any delegation in respect of the desirability, feasibility or form of a possible emergency
safeguard mechanism.  The following paragraphs briefly recall some of the main steps of the
negotiation.
10. In the first instance, Members discussed a number of basic conceptual issues underlying the
establishment of a possible emergency safeguard mechanism in services.  Four key questions wereidentified by the Chairperson in an informal note
8:  "(i)  On whose behalf would emergency safeguard
action be taken?  (ii) In what circumstances would emergency safeguard action be taken and what
would be the purpose of such action?  (iii) What approach should be adopted in respect of
injury/adverse effects, and the relevant causal link between injury/adverse effects and commitments
under the GATS?  (iv)  What measures would be taken under the emergency safeguard mechanism?Are some measures deemed more suitable than others?"  Initial responses, not necessarily agreed, to
these four questions were circulated by the Chairperson in an informal note in September 1998.
9
11. Several Members provided written input during the initial phase of the debate.  Formal
contributions on emergency safeguard measures were  submitted to the Working Party by the delegations
of Australia,10 Thailand,11 Switzerland,12 the United States,13 Hong Kong, China14 Singapore15 and
Peru16.  At the request of the Working Party, th e Secretariat prepared several background notes.17
Moreover, seven Members responded on a voluntary basi s to a series of written questions on emergency
safeguard measures.18
12. At a second stage, discussions focused on more specific and technical questions.  The
1999 Report of the Working Party to the Council for Trade in Services indicates that Members
                                                     
8 Note from the Chairperson, Job No. 3102, 3 June 1997.
9 Note from the Chairperson, Job No. 4935, 16 September 1998.
10 Some Conceptual Issues Concerning the Application of Safeguards to Trade in Services
(S/WPGR/W/5).
11 A Discussion Paper on GATS Emergency Safeguards  (S/WPGR/W/6).
12 Safeguards and Trade in Services  (S/WPGR/W/14).
13 Emergency Safeguards  (S/WPGR/W/17.
14 Emergency Safeguard Measures in Services:  A Way Forward  (S/WPGR/W/18) and Emergency
Safeguard Measures:  A Way Forward on the Possible Principles  (S/WPGR/W/26).
15 Emergency Safeguard Measures  (S/WPGR/W/19).
16 Emergency Safeguards  (S/WPGR/W/23).
17 Emergency Safeguard Measures under Article X of GATS (S/WPGR/W/1);  Safeguard Provisions in
Regional Trade Agreements  (S/WPGR/W/2);  Safeguard Procedures in Regional Trade Agreements
(S/WPGR/W/4);  Emergency Safeguard Measures in GATS:  The Applicability of Concepts Applied in the WTO
Agreement on Safeguards  (S/WPGR/W/8);  Questions Relating to an Emergency Safeguard Mechanism in
GATS  (S/WPGR/W/15);  and Examples of Situations in Which Emergency Safeguard Action May Be Taken
(S/WPGR/W/24).
18 Questions Relating to an Emergency Safeguard Mechanism in GATS , Note by the Secretariat,
(S/WPGR/W/15).  The questions related to the justification and purpose of an ESM, the criteria that might bebrought to bear in determining when an emergency safeguard measures might be justified, and the form an ESM
could take.  Written replies were received from Thailand (S/WPGR/W/15/Add.1), India
(S/WPGR/W/15/Add.2), Poland (S/WPGR/W/15/Add.3), the European Communities and Their Member States(S/WPGR/W/15/Add.4), Egypt (S/WPGR/W/15/Add.5), Mexico (S/WPGR/W/15/Add.6), and Cuba(S/WPGR/W/15/Add.7).S/WPGR/9
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discussed in particular three issues:  (i) possible indicators to underpin trade-related injury concepts;
(ii) basic disciplines which would need to govern any future safeguard action, regardless of the
mechanism which may finally be adopted (including MFN treatment, advance notice, temporary anddegressive application, clear specification of the measures envisaged, protection of "acquired rights"
of established suppliers);  and (iii) the range of applicable measures and other relevant issues.
19
Members also discussed possible forms an ESM in services might take.  An overview of discussionsis provided in a Note by the Secretariat.
20
13. In 2000, the ASEAN Members presented a "Concept Paper" containing various elements of a
possible emergency safeguard mechanism in services.21  Other delegations tabled formal and informal
papers on specific aspects of an ESM22 and the Secretariat provided various background notes.23  The
Chairperson circulated an Illustrative List of themes relating to negotiations under Article X with a
view to structuring the debate.24  The List contains the following elements:  the questions of the
definition of "domestic industry" and the issue of "acquired rights";  modal application of a safeguard
mechanism;  concept of "like service";  indicators and criteria for determining injury and causality;
applicable measures;  compensation;  special and differential treatment;  situations justifying asafeguard action;  notification, consultation, transparency and surveillance mechanism;  and other
issues.  The List provided a basis for discussions at most formal and informal meetings in 2000
and 2001.
                                                     
19 S/WPGR/4.  See also List of Issues for the Organization of Future Discussions on Emergency
Safeguards , Proposal from Venezuela (Job No. 5412, 14 October 1998) and Informal Submission by Venezuela
(Job No. 2860, 17 May 1999).
20 Issues for Future Discussions on Emergency Safeguards  (S/WPGR/W/27).  This Note was updated
twice to reflect new elements in the discussions (S/WPGR/W/27/Rev.1 and 2).
21 Concept Paper:  Elements of a Possible Agreed Draft of Rules on Emergency Safeguard Measures
for Trade in Services (GATS Article X) , Communication from ASEAN (S/WPGR/W/30).  Later in the year,
ASEAN tabled a Non-paper containing a Draft Agreement on Emergency Safeguard Measures for Trade in
Services  (Job No. 6830, 31 October 2000).
22 Emergency Safeguards Mechanism Contained in Article 18 Act of  18 December 1998 on Foreign
Exchange Law , Communication from Poland (S/WPGR/W/34).  The delegation of the Republic of Korea
submitted an informal contribution on Definition of the Domestic Industry for the Emergency Safeguard
Measure , Job No. 6034 (2 October 2000).
23 Inter-Agency Task Force on Statistics of International Trade in services – Progress Report, May
2000I  (S/WPGR/W/32) and Patterns of Limitations Scheduled Under Mode 2  (S/WPGR/W/33).  The Secretariat
also contributed with informal background notes on Safeguards in Services:  Relevant Criteria, Sources and
Conditions  (Job No. 5294/Rev.2, 9 June 2000);  The Concept of "Unforeseen D evelopments" in Article XIX of
the GATT  (Job No. 5077, 18 August 2000);  and, Special and Differential Trea tment in the Context of
Emergency Safeguard Measures  (Job No. 5539, 15 September 2000).
24 Negotiations on Safeguards under Article X of the GATS , Note from the Chairperson, Job No. 1979
(29 March 2000) and Job No. 1979/Rev.1 (6 October 2000).S/WPGR/9
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14. In 2001, a number of delegations presented formal and informal written contributions in
relation to the Article X mandate.25  In July 2001, the Working Party requested the Chairperson to
prepare, under his responsibility, a Synopsis which would outline the current state of the discussionunder the ten items identified in the Illustrative List.  The Synopsis
26 attempted to present in a
synthetic way the main options proposed by Members, as well as related comments.
15. In 2002, delegations continued their examination of various issues related to a possible ESM.
Consideration was given to a proposal by Australia for a "core mechanism" for temporary suspension
or modification of commitments.27  The issue of modal application of a safeguard measure was given
particular attention, on the basis of a Communication from the European Communities and Their
Member States.28  Some Members wished to further discuss the issue of desirability and feasibility of
an ESM in services, based on, inter alia , a Communication from the United States.29  I n  v a r i o u s
instances, the Chairperson invited delegations to compare, on the basis of the Synopsis, the various
approaches on the table with a view to identifying differences and possible common elements.
Several delegations were of the view that the Wo rking Party needed concrete examples of cases in
which safeguard measures would be needed, as a prerequisite for further progress in the negotiations.Discussions also addressed the concept of special and differential treatment as well as process-related
issues such as transparency, notification, consultation, surveillance and expedited dispute settlement.
16. At the first meeting of 2003,
30 the Working Party addressed, inter alia , the interpretation of
GATS Article X mandate, modal application of an ESM, safeguard-type provisions contained in
economic integration agreements and in WTO instruments, as well as desirability and feasibility of anESM.  A group of delegations presented an example of a situation in which a safeguard measure
might be taken.  Shortly after the meeting, the European Communities and Their Member States
circulated a formal contribution on the Scope for Emergency Safeguard Measures (ESM) in GATS .
31
                                                     
25 Desirability of a Safeguard Mechani sm for Services:  Promoting Libe ralization of Trade in Services ,
Communication from the United States (S/WPGR/W/37);  Modal Application of an Emergency Safeguard
Measure , Communication from the European Communities and Their Member States (S/WPGR/W/38). The
following informal contributions were presented:  Indicators and Criteria for the Determination of Serious
Injury or Threat Thereof , Submission by Venezuela (JOB(01)/48);  Emergency Safeguard Measures –
Compensation , Non-paper by Brazil (JOB(01)/50);  Emergency Safeguard Measures , Non-paper by Mexico
(JOB(01)/67);  Possible Comprehensive Approach for an Emergency Safeguards Mechanism (ESM) ,
Communication from Chile, Costa Rica and Switzerland (JOB(01)/81);  Emergency Safeguard Mechanism
(ESM):  A Multilateral Surveillance Procedure , Communication from Canada (JOB(01)/100);  Negotiations on
Emergency Safeguard Measures:  Causal Link , Non-paper from Venezuela (JOB(01)/101 and Add.1);
Emergency Safeguard Measures , Non-paper by Japan (JOB(01)/105);  Emergency Safeguard Measures ,
Communication from Mauritius (JOB(01)/143);  Situations Justifying an Emergency Safeguard Action , Non-
paper by New Zealand (JOB(01)/146);  Elements for Establishing an Emergency Safeguard in Services , Non-
paper by Argentina (JOB(01)/148);  and Contribution by Cuba, The Dominican Republic, Guatemala, Honduras
and Nicaragua  (JOB(01)/166).
26 Synopsis – Note from the Chairperson , JOB(01)/122 (7 August 2001) and JOB(01)/122/Add.1
(21 December 2001).
27 Elements for a Possible "Core Mechanism" fo r Temporary Suspensi on or Modification of
Commitments , Communication from Australia (JOB(02)/8.  See also JOB(02)/9 and JOB(02)/85).
28 Modal Application of an Emergency Safeguard Measures , S/WPGR/W/38.
29 Desirability of a Safeguard Mechani sm for Services:  Promoting Libe ralization of Trade in Services ,
S/WPGR/W/37.
30 Report of the Meeting of 25 February 2003 , Note by the Secretariat, S/WPGR/M/41.
31 S/WPGR/W/41.S/WPGR/9
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III. ASSESSMENT OF THE SITUATION
A. GENERAL
17. Over the years, Members have made a significant amount of contributions on the subject
matter of an ESM, in terms of volume, coverage and details, as evident from the brief recap of
negotiations above, the list of submissions and documents produced, and the various records and
summaries of formal and informal meetings.  Among the three subjects the Working Party is
mandated to negotiate, ESM has been the item to which the Working Party has devoted most of its
time, compared with subsidies and government procurement.  However, this is far from indicating that
substantial progress has been achieved towards convergence on the various issues at stake.  Quite thecontrary.  Notwithstanding the number of substantive submissions presented and discussions held on
an ESM over the past eight years, and despite Members' adoption of a work programme in July 2002
to organize work, my assessment is that the Work ing Party has not moved very far in respect of its
tasks to identify, elaborate and consolidate common elements for an ESM and to address the question
of feasibility and desirability of ESM.
18. There is very little, if any, convergence on the fundamental issues, and many basic questions
remain open;  different views have been expressed as to whether they should be addressed, and, if so,
how; and Members remain divergent on issues as fundamental as the forms that an ESM might take.
Attempts to address identification, elaboration and consolidation of the elements for an ESM without
prejudice to the question of desirability and feasibility have not been very successful in bringing aboutconvergence on the various elements.  At the same time, the discussion on the question of desirability
and feasibility of an ESM has not progressed very far in the absence of converging views on the
possible common elements for an ESM.  In fact, discussions in recent years seems to indicate that as
the discussion becomes more in-depth and refined, divergences of views in respect of the various
issues become more apparent and glaring.  I would also observe that, even if we were to decide tostart drafting an ESM, there would appear to be no common basis among Members on how to proceed
with this task.
19. My assessment on the individual items of work, having regard to the past eight years of work,
specifically the discussion held under the work programme since its adoption, is set out below.  This
is by no means an exhaustive listing of all the issu es that have been identified by the Working Party,
but rather highlights of what are, in my personal vi ew, some of the issues indicating the state of play
of the negotiations, as well as areas of convergence and divergence.
B. I
DENTIFICATION , ELABORATION AND CONSOLIDATION OF COMMON ELEMENTS FOR AN ESM
20. On the basis of the tremendous amount of work and efforts that Members have put in, and the
substantive and technical discussions prompted by a number of contributions over the years, it would
be fair to say that Members' identification of issues relevant to the consideration and formulation of an
ESM has been rather comprehensive.  These issues have been identified in Members' submissions and
summarized in a structured way in the Checklist and Synopsis prepared by my predecessors (Job
No. 1979 and Job No. 1979/Rev.1 dated 29 March 2000 and 6 October 2000 respectively, and
JOB(01)/122 & Add.1 dated 7 August and 21 December 2001 respectively) and tabulated as coreS/WPGR/9
Page 7
elements in the recently circulated matrix (JOB(02)/200/Rev.1 dated 7 February 2003)32.  Elements
which have arisen in recent discussions of the Working Party, including those in the past year, appear
to fall one way or the other under the various issues summarized in the aforementioned documents.This, in my view, is an indication of the comprehensiveness of the scope of issues that Members have
identified in deliberating an ESM.
21. There appears to be no fundamental disagreement within the Working Party that all those
issues would be relevant to the deliberation of an ESM, though some elements have been highlighted
more often than others (for instance, situations justifying an ESM, scope of an ESM, applicable
measures and administrative provisions) and their relative level of importance might differ depending
on the different forms that an ESM might take, as identified in Members' submissions.
33  In this
regard, it has been suggested that, in one or more  of the suggested forms (for instance the "core"
safeguard mechanism), it might not be necessary to address all those issues in any prescriptive
manner, thus leaving possibly some of them to be decided in individual cases.
22. However, notwithstanding the comprehensive identification and detailed deliberations of
those issues, the debate did not appear to have br ought about any convergence of views of delegations
on individual issues.  Without trying to go into details on all the different positions of individual
Members on the various issues, I would only observe that there remains significant divergence on all
of the fundamental issues crucial to the formulation of an ESM – the gaps as identified in the
Synopsis have by and large remained there despite various attempts to bridge them.  For instance, on
situations justifying an ESM, there remains no co nsensus as to what could constitute an emergency
that would warrant the use of an ESM, as also reflected by the discussion at the recent meeting of the
Working Party on 25 February 2003.  As the Chairperson, I fail to perceive eagerness coming from all
of the Members to resolve such fundamental differences.
                                                     
32 To recap, these "core elements" as tabulated in JOB(02)/200/Rev.1 are:
/g159 Situations justifying an emergency safeguard action
/g159 Modal application of safeguard measures
/g159 Concept of "like service"
/g159 Definition of "domestic industry"
/g159 Issue of "acquired rights"
/g159 Indicators and criteria
/g159 Applicable measures
/g159 Compensation
/g159 Special and differential (S&D) treatment
/g159 Administrative provisions such as notification, consultation, transparency and surveillance mechanism
/g159 Desirability and feasibility of an ESM
/g159 Other issues, including the form of an ESM
33 These forms as put forward in a number of proposals submitted by Members are –
(a) A "horizontal" safeguard mechanism (including the so-called "goods model") whereby a
safeguard measure would be available across-the-board in all schedule sectors.
(b) A "scheduled" safeguard mechanism (including safeguards linked to commitments), whereby
safeguard measures would be available to the extent that they have been scheduled in respect of
the relevant sector(s) or commitment(s).
(c) A "consensus-based" safeguard mechanism, whereby a Member would be able to apply a
safeguard measure with the approval of the other Members (through the Council for Trade inServices, for instance).
(d) A "core" safeguard mechanism, whereby the invoking Member would be able to temporarily
suspend or modify its commitments based on a less prescriptive set of guidelines and procedures
in exchange for more accountability to Members and stronger CTS surveillance.
(e) No express or explicit emergency safeguard mechanism, which might or might not entail a
provision allowing for an earlier recourse to Article XXI (i.e. "making Article X:2 permanent").S/WPGR/9
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C. DESIRABILITY AND FEASIBILITY OF AN ESM
23. Another task that Members have agreed to undertake is to address the question of desirability
and feasibility of an ESM.  It is perhaps worthwhile to note that contemplating the desirability of anESM in services as well as its feasibility, including actual applicability, apart from considering the
purpose, the form and the elements of an ESM, was, when it was first raised, unique to ESM among
all the negotiations on rules.  There are several submissions by Members addressing the question of
desirability and/or feasibility.  But again, the work of the Working Party on this issue has not
progressed very far, and the discussion so far has not brought about any convergence of views on both
questions.
24. The question of feasibility is being addressed in the discussion of the technical aspects of the
various elements of an ESM, and modal application of a possible ESM has been highlighted.
25. On the question of desirability, there are vastly different views among delegations.  Some
have considered that the need for an ESM is self-evident and an ESM would be desirable in
safeguarding Members against potential injury and/or building their confidence to undertaken
liberalization in services.  Some have indicated a linkage between the desirability of an ESM and itsdemonstrated ability to induce a higher level of liberalization commitments.  Others have noted that
the question of desirability would inevitably be linked  to the form of an ESM or the elements therein.
26. In this connection, some Members have referred to safeguard-type provisions in existing
bilateral trade agreements or in other Members' existing schedule of commitments, as examples of
safeguards being desirable and feasible in services.  Others have pointed to the fact that suchsafeguard-type provisions are either applicable to both goods and services, or have not been invoked
so far, or have raised the linkage between such safeguard provisions to the level of liberalization
envisaged under those agreements.  Some have referred to the need to focus on more concrete
examples of actual or hypothetical situations justifying safeguards and how they could be applied to
further address the question of desirability and feasibility.
27. It is perhaps understandable that the political dimension of the desirability and feasibility
question may not be readily resolvable within the Working Party.  However, it certainly does not
mean that the technical part of the question could not be addressed, for instance the potential trade and
economic impact of safeguard measures and their practicability in terms of actual application.  But
again, it does not appear to me that there is sufficient input on the part of all Members to address these
issues substantively.
D. W
AY FORWARD
28. It is my view that the negotiations have reached a stalemate.  Despite the continuation of
discussions on the elements for an ESM and on the questions of desirability and feasibility, and
despite various attempts by Members to bridge the gaps, it is clear that there remain fundamental
differences.
29. Many of the elements for an ESM and, to some extent, the issue of desirability relate to the
basic questions concerning the raison d'être of an ESM – in very broad terms: for what a safeguard is
needed; when a safeguard would be needed; who should be protected; protected against what;
protected by what means; and the safeguard should apply to whom.  The discussion so far has been
undertaken largely on a theoretical or conceptual basis.  Despite attempts and contributions by
Members to address them, it remains a fact that there is so far no consensus answer.  It should benoted that some Members have expressed doubts on the need to answer these questions, while others
considered them crucial.  Looking ahead, a discussion among Members on these basic questions, notS/WPGR/9
Page 9
just conceptually but also with reference to practical situations, would be useful in my view.  In this
regard, the recent focus of the discussion on concrete  examples should be helpful.  That said, I should
point out that this is but one aspect of the discussion.
30. It is unclear to me how the current mode and pace of discussion would enable the
negotiations to be finalized by the deadline of 15 March 2004 .  Given that only one year remains
before the deadline for negotiations on ESM, there is  a need for Members to grapple with the situation
with a view to finding ways to resolve the current impasse.  In particular, Members would need to
consider what they intend to do during the remaining 12 months with a view to finalizing the
negotiations.  In this regard, Members should star t considering how they intend to prepare for the
opportunity provided by the Fifth Ministerial Conference to take stock of progress made in thenegotiations, as agreed in the work programme.  Members may also wish to start considering how to
proceed should there be no consensus on the various issues identified as relevant to an ESM by the
deadline of negotiations.
31. Ultimately, the key to enable discussions to move forward and to finalize the
negotiations by the deadline of 15 March 2004 is political will from all Members.  There must be
commitment on the part of all Members to engage substantively with a view to concluding the
negotiations process within the remaining time available.  Political will would be crucial to enable the
negotiations to reach an outcome, irrespective of what that outcome might be.  In the absence of
political will to strive for an outcome one way or the other, it would be doubtful in my view how the
Working Party would be able to finalize its negotiations under Article X of the GATS.
_______________S/WPGR/9
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ANNEX
List of documents related to the negotiations under GATS Article X
I. REPORTS OF MEETINGS
A. ANNUAL REPORTS
Symbol Title Date
S/WPGR/1 Activities of the WPGR – Report to the CTS 23 October 1996
S/WPGR/2 Activities of the WPGR – Report to the CTS 26 November 1997
S/WPGR/3 Report of the WPGR to the CTS 3 December 1998
S/WPGR/4 Report of the WPGR to the CTS 26 October 1999
S/WPGR/5 Report of the WPGR to the CTS 24 November 2000
S/WPGR/6 Report of the WPGR to the CTS 4 October 2001
S/WPGR/7 Work Programmes - Adopted by the WPGR on 22 July 2002 25 July 2002
S/WPGR/8 Report of the WPGR to the CTS (2002) 5 December 2002
B. REPORTS OF FORMAL MEETINGS
Symbol Title Submitted by Date
S/WPGR/M/1 Report of the Meeting held on
17 July 1995Note by the Secretariat 29 August 1995
S/WPGR/M/2 Report of the Meeting held on
18 October 1995Note by the Secretariat 14 November 1995
S/WPGR/M/3 Report of the Meeting of
8 December 1995Note by the Secretariat 21 December 1995
S/WPGR/M/4 Report of the Meeting of
23 February 1996Note by the Secretariat 19 March 1996
S/WPGR/M/5 Report of the Meeting of
28 March 1996Note by the Secretariat 13 May 1996
S/WPGR/M/6 Report of the Meeting of
3 June 1996Note by the Secretariat 22 July 1996
S/WPGR/M/7 Report of the Meeting of
29 July 1996Note by the Secretariat 19 September 1996
S/WPGR/M/8 Report of the Meeting of
8 & 14 October 1996Note by the Secretariat 13 December 1996
S/WPGR/M/9 Report of the Meeting of
23 January 1997Note by the Secretariat 7 March 1997
S/WPGR/M/10 Report of the Meeting of
13 March 1997Note by the Secretariat 1 May 1997
S/WPGR/M/11 Report of the Meeting of
22 May 1997Note by the Secretariat 30 June 1997
S/WPGR/M/12 Report of the Meeting of
23 July 1997Note by the Secretariat 3 September 1997
S/WPGR/M/13 Report of the Meeting of
1 October 1997Note by the Secretariat 19 November 1997
S/WPGR/M/14 Report of the Meeting of
26 November 1997Note by the Secretariat 2 December 1997
S/WPGR/M/15 Report of the Meeting of
13 February 1998Note by the Secretariat 27 February 1998S/WPGR/9
Page 11
Symbol Title Submitted by Date
S/WPGR/M/16 Report of the Meeting of
27 April 1998Note by the Secretariat 10 June 1998
S/WPGR/M/17 Report of the Meeting of
23 June 1998Note by the Secretariat 31 July 1998
S/WPGR/M/18 Report of the Meeting of
6 October 1998Note by the Secretariat 13 November 1998
S/WPGR/M/19 Report of the Meeting of
1 December 1998Note by the Secretariat 21 January 1999
S/WPGR/M/20 Report of the Meeting of
19 February 1999Note by the Secretariat 17 March 1999
S/WPGR/M/21 Report of the Meeting of
16 April 1999Note by the Secretariat 7 May 1999
S/WPGR/M/22 Report of the Meeting of
19 May 1999Note by the Secretariat 15 June 1999
S/WPGR/M/23 Report of the Meeting of
21 June 1999Note by the Secretariat 6 July 1999
S/WPGR/M/24 Report of the Meeting of
27 July 1999Note by the Secretariat 8 September 1999
S/WPGR/M/25 Report of the Meeting of
8 October 1999Note by the Secretariat 2 November 1999
S/WPGR/M/26 Report of the Meeting of
24 March 2000Note by the Secretariat 20 April 2000
S/WPGR/M/27 Report of the Meeting of
4-5 May 2000Note by the Secretariat 6 June 2000
S/WPGR/M/28 Report of the Meeting of
7 July 2000Note by the Secretariat 4 August 2000
S/WPGR/M/29 Report of the Meeting of
27 September 2000Note by the Secretariat 9 October 2000
S/WPGR/M/30 Report of the Meeting of
30 November 2000Note by the Secretariat 22 December 2000
S/WPGR/M/31 Report of the Meeting of
21 March 2000Note by the Secretariat 6 April 2001
S/WPGR/M/32 Report of the Meeting of
10 May 2001Note by the Secretariat 17 May 2001
S/WPGR/M/33 Report of the Meeting of
2 July 2001Note by the Secretariat 10 July 2001
S/WPGR/M/34 Report of the Meeting of
3 October 2001Note by the Secretariat 10 October 2001
S/WPGR/M/35 Report of the Meeting of
28 November 2001Note by the Secretariat 7 December 2001
S/WPGR/M/36 Report of the Meeting of
13 and 15 March 2002Note by the Secretariat 3 April 2002
S/WPGR/M/37 Report of the Meeting of
3 June 2002Note by the Secretariat 26 June 2002
S/WPGR/M/38 Report of the Meeting of
15 July 2002Note by the Secretariat 26 July 2002
S/WPGR/M/39 Report of the Meeting of
23 October 2002Note by the Secretariat 12 November 2002
S/WPGR/M/40 Report of the Meeting of
3 December 2002Note by the Secretariat 23 December 2002
S/WPGR/M/41 Report of the Meeting of
25 February 2003Note by the Secretariat 12 March 2003S/WPGR/9
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C. SUMMARY OF COMMENTS MADE DURING INFORMAL MEETINGS
Job Number Title Submitted by Date
Job 3449 Points raised during informal meetings Note by the Secretariat 7 June 2000
3449/Add.1
(4069)Points raised during informal meetin gs Note by the Secretariat 27 June 2000
3449/Add.2
(6180)Points raised during the informal
meeting of 27 September 2000Note by the Secretariat 6 October 2000
6943 Summary of Comments Made During
the Informal Meetingon 1 to 3 November 2000Note by the Secretariat 3 November 2000
Job(01)/26 Summary of Comments Made During
the Informal Meeting
on 1 and 2 February 2001Note by the Secretariat 27 February 2001
Job(01)/45 Summary of Comments Made During
the Informal Meetingon 21 March 2001Note by the Secretariat 5 April 2001
Job(01)/54 Summary of Comments Made During
the Informal Meeting
on 23 and 24 April 2001Note by the Secretariat 26 April 2001
Job(01)/74 Summary of Comments Made During
the Informal Meetingon 10 May 2001Note by the Secretariat 17 May 2001
Job(01)/108 Summary of Comments Made During
the Informal Meetingof 26 and 27 June 2001Note by the Secretariat 5 July 2001
Job(01)/109 Summary of Comments Made During
The Informal Meeting
of 2 July 2001Note by the Secretariat 9 July 2001
Job(01)/149 Summary of Comments Made During
the Informal Meetingof 25 September 2001Note by the Secretariat 1 October 2001
Job(01)/150 Summary of Comments Made During
the Informal Meetingof 3 October 2001Note by the Secretariat 10 October 2001
Jog(01)/164 Summary of Comments Made During
the Informal Meeting
of 23 November 2001Note by the Secretariat 29 November 2001
JOB(01)/168 Summary of Comments Made During
the Informal Meetingof 28 November 2001Note by the Secretariat 7 December 2001
JOB(02)/2 Summary of Comments Made During
the Informal Meetingof 17 and 18 January 2002Note by the Secretariat 21 January 2002
JOB(02)/14 Summary of Comments Made During
the Informal Meeting
of 12 February 2002Note by the Secretariat 1 March 2002
JOB(02)/72 Summary of Comments Made During
the Informal Meetingof 3 June 2002Note by the Secretariat 26 June 2002
JOB(02)/96 Summary of Comments Made During
the Informal Meetingof 15 July 2002Note by the Secretariat 29 July 2002S/WPGR/9
Page 13
Job Number Title Submitted by Date
JOB(02)/159 Summary of Comments Made During
the Informal Meetingof 23 October 2002Note by the Secretariat 12 November 2002
JOB(02)/211 Summary of Comments Made During
the Informal Meetingof 22 November 2002Note by the Secretariat 13 December 2002
JOB(02)/216 Summary of Comments Made During
the Informal Meeting
of 3 December 2002Note by the Secretariat 16 December 2002
JOB(03)/21 Summary of Comments Made During
the Informal Meetingof 29 January 2003Note by the Secretariat 7 February 2003
II. DOCUMENTS PRESENTED BY DELEGATIONS
A. FORMAL DOCUMENTS
Symbol Submitted by Title Date
S/WPGR/W/5 Communication
from AustraliaSome Conceptual Issues Concerning the
Application of Safeguards to Trade in
Services6 December 1995
S/WPGR/W/6 Communication
from ThailandA Discussion Paper on GATS Emergency
Safeguards18 December 1995
S/WPGR/W/14 Communication
from SwitzerlandSafeguards and Trade in Services
Characteristics of the GATS and identificationof circumstances10 October 1996
S/WPGR/W/15/
Add.1Communication
from ThailandResponse to the Questions Relating to an
Emergency Safeguard Mechanism in GATS11 March 1997
S/WPGR/W/15/
Add.2Communication
from IndiaResponse to the Questions Relating to an
Emergency Safeguard Mechanism in GATS29 April 1997
S/WPGR/W/15/
Add.3Communication
from PolandResponse to the Questions Relating to an
Emergency Safeguard Mechanism in GATS2 May 1997
S/WPGR/W/15/
Add.4Communication
from the ECand their Member
StatesResponse to the Questions Relating to an
Emergency Safeguard Mechanism in GATS20 May 1997
S/WPGR/W/15/
Add.5Communication
from EgyptResponse to the Questions Relating to an
Emergency Safeguard Mechanism in GATS20 May 1997
S/WPGR/W/15/
Add.6Communication
from MexicoResponse to the Questions Relating to an
Emergency Safeguard Mechanism in GATS22 May 1997
S/WPGR/W/15/
Add.7Communication
from CubaResponse to the Questions Relating to an
Emergency Safeguard Mechanism in GATS25 August 1997
S/WPGR/W/17 Communication
from the USEmergency Safeguards 13 March 1997
S/WPGR/W/18 Communication
from Hong Kong,
ChinaEmergency Safeguard Measures in Services:
A Way Forward16 May 1997
S/WPGR/W/19 Communication
from SingaporeEmergency Safeguard Measures 25 June 1997
S/WPGR/W/22 Communication
from ASEANEmergency Safeguards 23 July 1997S/WPGR/9
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Symbol Submitted by Title Date
S/WPGR/W/23 Communication
from PeruEmergency Safeguards 21 August 1997
S/WPGR/W/26 Communication
from Hong Kong,ChinaEmergency Safeguard Measures:
A way forward on the Possible Principles10 February 1998
S/WPGR/W/30 Communication
From ASEANConcept Paper:  Elements of a Possible
Agreed Draft of Rules on Emergency
Safeguard Measures for Trade in Services
(GATS Article X)14 March 2000
S/WPGR/W/34 Communication
from PolandEmergency Safeguards Mechanism contained
in Article 18 Act of 18 December 1998 onForeign Exchange Law3 July 2000
S/WPGR/W/37 Communication
from the USDesirability of a Safeguard Mechanism for
Services:  Promoting Liberalization of Tradein Services2 October 2001
S/WPGR/W/38 Communication
from the EC and
their Member StatesModal application of an emergency safeguard
measure21 January 2002
S/WPGR/W/38/
Corr.1Communication
from the EC andtheir Member StatesModal application of an emergency safeguard
measure – Corrigendum3 April 2002
S/WPGR/W/41 Communication
from the EC and
their Member StatesScope for Emergency Safeguard Measures
(ESM) in the GATS3 March 2003
B. INFORMAL DOCUMENTS
Job Number Submitted by Title Date
From Egypt, India,
Malaysia, Pakistan,Peru, Thailand &VenezuelaEmergency Safeguards Measures in GATS -
Points for discussion29 July 1996
Questions from
AustraliaInformal Note on Emergency Safeguards 8 October 1996
Communication
from ThailandEmergency Safeguards 6 October 1997
Job 5412 Proposal from
VenezuelaList of issues for the organization of future
discussions on emergency safeguards14 October 1998
Communication
from CanadaDiscussions on Emergency Safeguards 15 October 1998
Job 2860 Informal
submission byVenezuelaSafeguards 17 May 1999
Job 6034 Communication
from KOREADefinition of the domestic industry for the
emergency safeguard measure3 October 2000
6830 Non-Paper from
ASEANDraft Agreement on Emergency Safeguard
Measures for Trade in Services31 October 2000
Job(01)/48 Submission by
VenezuelaIndicators and Criteria for the Determination
of Serious Injury or Threat Thereof18 April 2001
Job(01)/50 Non-paper by
BrazilEmergency Safeguard Measures -
Compensation19 April 2001S/WPGR/9
Page 15
Job Number Submitted by Title Date
Job(01)/67 Non-paper by
MexicoEmergency Safeguard Measures 9 May 2001
Room document Speaking notes of
the EC and their
Member StatesSpeaking notes on Negotiations on Emergency
Safeguard Measures (GATS Article X):
“Situation justifying an emergency safeguardmeasure”10 May 2001
Job(01)/81 Communication
form Chile, CostaRica & SwitzerlandPossible comprehensive approach for an
emergency safeguards mechanism8 June 2001
Job(01)/100 Communication
from CanadaEmergency Safeguard Mechanism (ESM):  A
Multilateral Surveillance Procedure29 June 2001
Job(01)/101 Non-Paper from
VenezuelaNegotiations on Emergency Safeguard
Measures:  Causal Link29 June 2001
101/Add.1 Non-paper from
VenezuelaNegotiations on Emergency Safeguard
Measures:  Causal Link - Addendum25 September 2001
Job(01)/105 Non-Paper by Japan Emergency Safeguard Measures 2 July 2001
Job(01)/143 Communication
from MauritiusEmergency Safeguard Measures 24 September 2001
Job(01)/146 Non paper by New
ZealandSituations Justifying an Emergency Safeguard
Action27 September 2001
Job(01)/148 Non-paper by
ArgentinaElements for Establishing an Emergency
Safeguard in Services28 September 2001
JOB(01)/166 Contribution by
Cuba, the
Dominican Rep,Guatemala,Honduras andNicaragua.Negotiations on Emergency Safeguard
Measures4 December 2001
JOB(02)/8 Communication
from AustraliaElements for a Possible 'Core Mechanism' for
Temporary Suspension or Modification of
Commitments13 February 2002
JOB(02)/9 Communication
from AustraliaQuestions raised at the informal meeting of
the Working Party on GATS Rules held on 12February 200213 February 2002
JOB(02)/85 Communication
from AustraliaAustralian Intervention:  Temporary
Suspension of Commitments - GATS RulesWorking Party, 3 June 200215 July 2002
III. NOTES BY THE CHAIRPERSON
Job Number Title Date
Meeting of the Working Party on GATS Rules dated 28 March 1996 2 April 1996
Job 2534 Non-paper by the Chairperson on Emergency Safeguard Measures
Relating to Trade in Services1 May 1997
Revision – Non-paper by the Chairperson on Emergency Safeguard
Measures Relating to Trade in Services20 May 1997
Job 3102 Four questions concerning a possible emergency safeguard
mechanism3 June 1997
Job 3294 Note from the Chairperson (safeguards, subsidies, government
procurement)15 June 1998
Job 4935 Note from the Chairperson (responses to the 4 questions on ESM) 16 September 1998S/WPGR/9
Page 16
Job Number Title Date
Job 5169 Note from the Chairperson (safeguards, subsidies, government
procurement)22 September 1998
Job 772 Note from the Chairperson (safeguards, subsidies, government
procurement)10 February 1999
Job 1998 Note from the Chairperson (safeguards, subsidies, government
procurement)8 April 1999
Job 2803 Note from the Chairperson (safeguards, subsidies, government
procurement)11 May 1999
Job 3237 Note from the Chairperson – Draft Second Decision on Emergency
Safeguards Measures7 June 1999
Job 3432 Note from the Chairman (safeguards, subsidies, government
procurement)15 June 1999
3237/Rev.1
(3479)Note from the Chairperson (Rev ision - Draft – Second Decision
Negotiations on Emergency Safeguard Measures)16 June 1999
Job 4141 Note from the Chairperson (safeguards, subsidies, government
procurement)12 July 1999
Job 5332 Note from the Chairperson (safeguards, subsidies, government
procurement)16 September 1999
Job 782 Note from the Chairperson (safeguards, subsidies, government
procurement)14 February 2000
Job 1979 Note from Chairperson - Negotiations on Safeguards under Article X
of the GATS29 March 2000
Job 2598 Note from Chairperson – Meeting of 4 and 5 May 2000 (safeguards,
subsidies, government procurement)28 April 2000
Job 4058 Note from the Chairperson – Meeting on 7 July 2000 (safeguards,
subsidies, government procurement)27 June 2000
Job 5538 Note from the Chairperson – Meeting of 27 September (safeguards,
subsidies, government procurement)15 September 2000
1979/Rev.1
(6178)Note from the Chairperson – Negotiations on Safeguards under
Article X of the GATS (includes suggestions made by delegations atthe meeting of 27 September 2000)6 October 2000
6944 Consultations on safeguards deadline – Chairman's summary –
3 November 20003 November 2000
6947 Statement by the Chair – Proposal regarding deadline on ESM 3 November 2000
6943/Add1
(7003)Chairman's summary of the 1-3 November meeting – Oral remarks
by the Chairperson on 3 November reg. ESM (to be read in
conjunction with Job 6943)3 November 2000
7352 Annotated Agenda from the Chairperson – Meeting of 30 November
2000 (safeguards, subsidies, government procurement)17 November 2000
8397 Annotated Agenda from the Chairperson – Informal Meeting on
1 and 2 February 2001 on ESM21 December 2000
Job(01)/35 Annotated Agenda from the Chairperson - Meeting on 21 March
2001 (safeguards, subsidies, government procurement)14 March 2001
Job(01)/47 Annotated Agenda from the Chairperson - Informal meeting on
23 and 24 April 2001 (ESM)10 April 2001
Job(01)/58 Annotated agenda from the Chairperson – Meeting on 10 May 2001
(safeguards, subsidies, government procurement)1 May 2001
Job(01)/80 Annotated Agenda from the Chairperson – Informal meeting on
26 and 27 June 2001 (ESM)6 June 2001
Job(01)/95 Annotated agenda from the Chairperson – Meeting on 2 July 2001
(safeguards, subsidies, government procurement)21 June 2001
Job(01)/122 Note from the Chairperson – Synopsis (ESM) 7 August 2001S/WPGR/9
Page 17
Job Number Title Date
JOB(01)/122/
Add.1Note from the Chairperson – Synopsis – Addendum (ESM) 21 December 2001
JOB(02)/43 Annotated agenda from the Chairperson Designate – Meeting of
3 June 2002 (safeguards, subsidies, government procurement)24 May 2002
JOB(02)/82 Note from the Chairperson – Draft Work Programme (safeguards,
subsidies, government procurement)12 July 2002
JOB(02)/83 Annotated Agenda from the Chairperson – Meeting of 15 July 2002
(safeguards, subsidies, government procurement)12 July 2002
JOB(02)/82/
Rev.1Note from the Chairperson – Draft Work Programme - Revision 15 July 2002
JOB(02)/82/
Rev.2Note from the Chairperson – Draft Work Programme - Revision 16 July 2002
JOB(02)/144 Meeting of 23 October 2002 - Annotated Agenda from the
Chairperson (safeguards, subsidies, government procurement)16 October 2002
JOB(02)/202 Annotated Agenda from the Chairperson, Meeting of
3 December 2002 (Annual report, safeguards, subsidies, governmentprocurement)3 December 2002
JOB(03)/30 Annotated Agenda from the Chairperson, Meeting of
25 February 2003 (safeguards, government procurement andsubsidies)14 February 2003
IV. BACKGROUND DOCUMENTS BY THE SECRETARIAT
A. FORMAL NOTES
Symbol Title Date
S/WPGR/W/1 Emergency Safeguard Measures under Art. X of GATS 6 July 1995
S/WPGR/W/2 Safeguard Provisions in Regional Trade Agreements 5 October 1995
S/WPGR/W/4 Safeguards Procedures in Regional Trade Agreement 24 November 1995
S/WPGR/W/4/
Add.1Safeguards Procedures in Regional Trade Agreement
Addendum20 February 2003
S/WPGR/W/8 Emergency safeguards measures in GATS: The applicability of
concepts applied in the WTO Agreement on Safeguards6 March 1996
S/WPGR/W/15 Questions relating to an Emergency Safeguard mechanism in GATS 12 December 1996
S/WPGR/W/24 Examples of situations in which Emergency Safeguard action may be
taken3 September 1997
S/WPGR/W/27 Issues for Future Discussions on Emergency Safeguards 20 November 1998
S/WPGR/W/27/
Rev.1" – Revision 7 May 1999
S/WPGR/W/27/
Rev.2" – Second Revision 16 September 1999
S/WPGR/W/28 Draft Report to the Council for Trade in Services (safeguard,
government procurement, subsidies)20 November 1998
S/WPGR/W/32 Inter-Agency Task Force On Statistics Of International Trade In
Services – Progress report, May 200012 May 2000
S/WPGR/W/33 Patterns of limitations scheduled under Mode 2 30 May 2000
S/WPGR/W/35 Draft Report of the WPGR to the CTS (safeguard, government
procurement, subsidies)3 November 2000
S/WPGR/W/36 Draft Report of the WPGR to the CTS (safeguard, government
procurement, subsidies)20 September 2001
S/WPGR/W/40 Draft Report of the WPGR to the CTS (2002) (safeguard, government
procurement, subsidies)20 November 2002S/WPGR/9
Page 18
B. INFORMAL NOTES
Job Number Title Date
Draft – Examples of situations in which emergency safeguards action
may be taken2 September 1997
Extending the negotiations on safeguards 1 October 1997
Job 6569 Informal non-attributable reflections on elements in the discussion of
the GATS Article X mandate27 November 1998
Job 5294 Safeguards in Services: Criteria & indicators to establish injury 13 September 1999
5294/R.1
(6576)Safeguards in Services: relevant criteria, sources and conditions 2 November 1999
5294/Rev.2
(3567)Safeguards in Services: relevant criteria, sources and conditions 9 June 2000
Job 5077 The concept of "unforeseen developments" in Article XIX of the
GATT18 August 2000
Job 5539 Special and Differential Treatment in the context of Emergency
Safeguard Measures15 September 2000
Job(01)/61 WTO Members' practice relating to Article 8 of the Agreement on
Safeguards3 May 2001
JOB(02)/200 Core elements contained in Members' proposals – Overview of the
synopsis13 December 2002
JOB(02)/200/
Rev.1Core elements contained in Members' proposals – overview of the
Synopsis – Revision7 February 2003
JOB(03)/20 Compilation of references made by delegations to safeguard-type
provisions7 February 2003
__________