WORLD TRADE
ORGANIZATIONS/C/16
9 December 2002
(02-6792)
REPORT (2002) OF THE COUNCIL FOR TRADE IN SERVICES
TO THE GENERAL COUNCIL
1. Since its last report to the General Council, dated 9 October 2001, the Council for Trade in
Services has held seven formal meetings.  Reports of the meetings are contained in documentsS/C/M/55, S/C/M/56, S/C/M/58, S/C/ M/59, S/C/M/60, S/C/M/61, and S/C/M/63.  The Council has
also held two special meetings dedicated to the review of the Annex on Air Transport Services, the
reports of which are contained in documents S/ C/M/57 and S/C/M/62.  The reports of the meetings
should be read in conjunction with this report.  During the reporting period, the Council addressed the
following matters:
I. NOTIFICATIONS MADE TO THE COUNCIL PURSUANT TO GATS
ARTICLES III:3, V AND VII:4
2. At its meeting held on 4 October 2001 the Council took note of the following notifications:
(i) Notifications pursuant to Article III:3 of the GATS concerning modifications to
services regulations in sectors where specific commitments have been undertaken:
Brazil (S/C/N/143-154)
Albania (S/C/N/155-165)
Sri Lanka (S/C/N/167-168)
Switzerland (S/C/N/170-172)
(ii) A notification pursuant to Article V concerning an economic integration agreement:
EFTA and Mexico (S/C/N/166)
(iii) A notification pursuant to Article VII:4 concerning recognition measures and
agreements or arrangements:
Switzerland (S/C/N/173-178)
3. The Council referred the economic integration agreement between EFTA and Mexico to the
CRTA.S/C/16
Page 2
4. At its meeting held on 3 December 2001 the Council took note of the following notifications:
(i) Notifications pursuant to Article III:3 of the GATS concerning modifications to
services regulations in sectors where specific commitments have been undertaken:
Japan (S/C/N/179)
Poland (S/C/N/180-182)
(ii) A notification pursuant to Article V concerning an economic integration agreement:
New Zealand and Si ngapore (S/C/N/169)
5. The Council referred the economic integration agreement between New Zealand and
Singapore  to the CRTA.
6. At its meeting held on 5 June 2002 the Council took note of the following notifications:
(i) Notifications pursuant to Article III:3 of the GATS concerning modifications to
services regulations in sectors where specific commitments have been undertaken:
Latvia (S/C/N/183-184)
(ii) Notifications pursuant to Article V concerning an economic integration agreement:
European Communities and Latvia (S/C/N/187)
European Communities and Estonia (S/C/N/188)
European Communities and Lithuania (S/C/N/189)
European Communities and Slovenia (S/C/N/190)
Chile and Costa Rica (S/C/N/191)
(iii) Notifications pursuant to Article VII:4 concerning recognition measures and
agreements or arrangements:
Latvia (S/C/N/185-186)
7. The Council referred the five economic integration agreements notified to the CRTA.
8. At its meeting held on 17 July 2002 the Council took note of a notification pursuant to
Article V concerning an economic integration agreement between the European Communities and
Mexico, contained in document S/C/N/192, and referred it to the CRTA.
9. At its meeting held on 25 October 2002 the Co uncil took note of a notification pursuant to
Article V concerning an economic integration agreement between Jordan and the United States,
contained in document S/C/N/193, and referred it to the CRTA.
II. ISSUES ARISING FROM THE REVIEW OF ARTICLE II (MFN) EXEMPTIONS
10. At its meeting held on 4 October 2001 the Council based its discussion on a communication
from Hong Kong, China; Japan and Korea, which addressed a number of procedural and substantive
issues raised in the context of the review.  Discussions continued on a paper from Chile (JOB(01)/34)
regarding the procedures for the reduction and wi thdrawal of MFN exemptions.  Based on a request
from the Council, the Secretariat had produced a note  examining the legal aspects of procedures for
the termination, reduction, and rectification of MFN exemptions (JOB(01)/106).   Discussion began
on a communication from Mexico (S/C/W/196) regarding indeterminate deadlines indicated in someS/C/16
Page 3
MFN lists and the 10 year in principle deadline indicated in the Annex on Article II (MFN)
Exemptions.  The Council agreed to revert to this item at its next meeting.
11. At its meeting held on 3 December 2001, the Council pursued its discussions on a
communication from Mexico (S/C/W/196), as well as on earlier contributions, which focused on the
substantive issue of terminating MFN exemptions.  It also began discussion on a communication fromKorea, contained in document (S/C/W/204).  The Council agreed to revert to this item at its next
meeting.
12. At its meeting held on 19 March 2002, the Council continued its discussion on earlier
communications from Mexico (S/C/W/196) and from Korea (S/C/W/204) regarding the specific or
indicative nature of the 10 year deadline contained in the Annex on Article II (MFN) Exemptions.
Reference was also made to an earlier paper from Hong Kong, China (Job No. 7775) regarding MFN
exemptions which were purported to grant less favourable treatment.  The Council agreed to includethis item on future agenda only upon receipt of new submissions.
III. PROCEDURES FOR THE TERMINATION, REDUCTION AND RECTIFICATION
OF ARTICLE II (MFN) EXEMPTIONS
13. At its meeting held on 3 December 2001, the Council considered draft Procedures for the
Certification of Terminations, Reductions and Rectifications of Article II (MFN) Exemptions,contained in document S/C/W/202, which had been prepared by the Secretariat upon the request of
Members.  A draft decision in this regard, contained in S/C/W/203, was also submitted for
consideration.  The Council agreed to revert to this item at its next meeting.
14. At its meeting held on 19 March 2002, the Council considered a revised draft of the
Procedures for the Certification of Terminations, Reductions and Rectifications of Article II (MFN)Exemptions, contained in docum ent S/C/W/202/Rev.1.  Changes were suggested and requests to
revert to the revised draft were made.
15. At its meeting held on 5 June 2002, the Council considered a new revised draft of the
Procedures for the Certification of Terminations, Reductions and Rectifications of Article II (MFN)
Exemptions, contained in document S/C/W/202/ Rev.2.  After a few minor amendments were
proposed and accepted, the draft decision contained in document S/C/W/203 was adopted, and has
been issued as document S/L/105.  The procedures were issued as document S/L/106.
IV. REVIEW OF THE UNDERSTANDING ON ACCOUNTING RATES IN
TELECOMMUNICATIONS
16. At its meeting held on 4 October 2001, the Council continued its discussions on the review of
the understanding on accounting rates, as provided for in paragraph 7 of the Report of the Group on
Basic Telecommunications, contained in do cument S/GBT/4.  The Council postponed its
consideration of two notes presented by Australia in July, on Terms of Reference for a
Telecommunications Accounting Review (JOB (0 1)/73) and related Questions and Answers
(JOB (01)/111).  The Council agreed to revert to this item at its next meeting.
17. Discussion continued on this item in the Council's meeting on 3 December 2001.  The
representative of Australia suggested that the Council complete the review by its March 2002meeting.  The Council agreed to revert to this item at a future meeting.
18. At its meeting held on 19 March 2002 the Council considered a new proposal from Australia,
contained in JOB(02)/25, to obtain additional information necessary to the review.  It was suggested
that Members communicate answers to the questions contained in the new proposal to the Secretariat.
The Council agreed to revert to this item at its next meeting.S/C/16
Page 4
19. At its meeting held on 5 June 2002, the Council continued its discussions based on the
previous submissions.   It was noted that no information had been communicated to the Secretariat
based on the questions contained in JOB(02)/25, and the Council agreed to revert to this issue in the
future only if such information had been received.
V. PROPOSALS FOR A TECHNICAL REVIEW OF GATS PROVISIONS
20. At its meeting held on 4 October 2001, the Council continued its discussion on this item
based on previous submissions from the Secretariat (JOB(01)/17); Australia, the European
Communities and their Member States, Hong Kong, China, Japan, Norway and Switzerland
(JOB(01)/40); and Japan (JOB(01)/107), which cont ained suggestions with regard to possible issues
to be addressed in a technical review.  The Council ag reed to revert to this item at its next meeting.
21. At its meeting held on 3 December 2001, the Council continued to discuss the substantive
issues raised in previous submissions, as well as those contained in a communication from Brazil,
contained in JOB(01)/165.  The Council agreed to  revert to this item at its next meeting.
22. At its meeting held on 19 March 2002, the Council pursued its discussions on this item based
on the previously tabled submissions.  Given the interest expressed in a number of particular cases,
namely Articles XVI, XVII and XX:2, the Chair suggested he convene an informal meeting on this
issue with a view to reaching a concensus on which subjects could form part of a technical review.
VI. PROPOSALS FOR A TECHNICAL REVIEW OF GATS PROVISIONS  –
ARTICLE XX:2
23. At its meeting held on 5 June 2002 the Council had a preliminary substantive discussion on
Article XX:2.  The Council tasked the Secretariat to produce a note on the drafting history of
Article XX:2.  The Council agreed to revert to this item at its next meeting.
24. At its meeting on 17 July 2002 the Council continued its discussions based on a Secretariat
note contained in JOB(02)/89 on the drafting histor y of Article XX:2.  The Secretariat was further
tasked with producing a short note illustrating some of the scenarios raised by a few Members in the
discussion.  The Council agreed to revert to this issue at its next meeting.
25. At its meeting held on 25 October 2002, the Council continued its discussions based on two
Secretariat notes, contained in JOB(02)/89, and a new note, contained in JOB(02)/153, which
illustrates a few practical scenarios.  The Council agreed that an informal, open-ended meeting on this
item be convened and to revert to this item at the next meeting.
VII. IMPLEMENTATION OF COMMITMENTS BY THE PEOPLE'S REPUBLIC OF
CHINA – STATEMENT BY THE UNITED STATES
26. At its meeting held on 19 March 2002 the Council had a discussion on this item at the request
of the United States on the basis of a statement made by its delegation.  The Council took note of thestatements made.
27. At its meeting held on 5 June 2002 the Council had a discussion on this item at the request of
the United States.  It was agreed that the discussion of this item was outside the context of the
transitional review mechanism.  The Council took note of the statements made.
28. At its meeting held on 17 July 2002 the Council had another discussion on this item at the
request of the United States.  The Council took note of the statements made.S/C/16
Page 5
VIII.  PREPARATIONS IN CONNECTION WITH SECTION 18 OF THE PROTOCOL ON
THE ACCESSION OF THE PEOPLE'S REPUBLIC OF CHINA
29. At its meeting held on 5 June 2002 the Council had a discussion on this item at the request of
the United States.  The Chair proposed to have consultations on the matter.  The Council agreed to
revert to this item at its next meeting.
30. At its meeting held on 17 July 2002 the Council continued its discussion on this item.  The
Chair informed the Council of the General Coun cil's intention to conduct its review on 10-11
December 2002.  She proposed further consultations on the matter.  The Council took note of the
statements made.
IX. TRANSITIONAL REVIEW UNDER SECTION 18 OF THE PROTOCOL OF
ACCESSION OF THE PEOPLE'S REPUBLIC OF CHINA
31. At its meeting held on 25 October 2002 the Council for Trade in Services conducted and
concluded the first Transitional Review under Section 18 of the Protocol of Accession of the People's
Republic of China.  The Council took note of the report from the Committee on Trade in Financial
Services on its own review, contained in document S/FIN/7, which would form part of the Services
Council's report on this matter to the General Council.  Discussion on this item took place based on
communications from the European Communities and their Member States (S/C/W/211 andS/C/W/211/Corr.1);  the United States (S/C /W/212); Japan (S/C/W/213); Chinese Taipei
(S/C/W/217); and Australia (S/C/W/2 19).  The Council took note of the statements made.  The report
to the General Council on the review of the Council for Trade in Services is contained in document
S/C/15.
X. WORK PROGRAMME ON ELECTRONIC COMMERCE
32. At its meeting held on 4 October 2001 the Council had this item on its agenda but no
discussion has taken place.
XI. NEGOTIATIONS UNDER ARTICLE X OF THE GATS (EMERGENCY
SAFEGUARDS) – EXTENSION OF THE DEADLINE FOR NEGOTIATIONS
33. At a special meeting held on 15 March 2002 the Council received a communication from the
Chair of the Working Party on GATS Rules proposing to extend the deadline on the negotiations
under Article X of the GATS on emergency safeguard measures, contained in document
S/C/W/205/Rev.1.  The Chair of the Working Part y on GATS Rules presented a proposal for the new
deadline of 15 March 2004, on the basis of which, the Council adopted the Fourth Decision on
Negotiations on Emergency Safeguard Measures (S/L/102).
XII. RE-OPENING OF THE FOURTH PROTOCOL FOR ACCEPTANCE
34. At its meeting held on 5 June 2002, following a request from Papua New Guinea, the Council
adopted a decision, contained in document S/L/104, to re-open the Fourth Protocol to the GATS
relating to basic telecommunications, for acceptance by Papua New Guinea.
XIII.  RE-OPENING OF THE FIFTH PROTOCOL FOR ACCEPTANCE
35. At its meeting held on 25 October 2002, following a request from the Republic of Bolivia, the
Council adopted a decision, contained in document S/L/108, to re-open the Fifth Protocol to theGATS relating to financial services, for acceptance by the Republic of Bolivia.S/C/16
Page 6
XIV. COOPERATION BETWEEN THE INTERNATIONAL CIVIL AVIATION
ORGANIZATION (ICAO) AND THE WTO
36. At its meeting held on 4 October 2001, the Council had a discussion based on a previous note
by the Secretariat (JOB(01)/64), containing a le tter from the Secretary-General of ICAO with a
proposal to develop a cooperation agreement betw een ICAO and the WTO; a new Secretariat note
S/C/W/199, containing an ICAO paper entitled "Co operation between the International Civil Aviation
Organization and the World Trade Organization"; and an oral presentation made by a representative
of ICAO.  The Council agreed to revert to this item at a future meeting.
XV. REVIEW OF THE ANNEX ON AIR TRANSPORT SERVICES UNDER
PARAGRAPH 5 OF THE ANNEX
37. The third meeting devoted to the review was held on 9 October 2001.  The Council continued
its discussion based on an oral presentation and an ICAO paper on charges for airports and airnavigation services, contained in document S/C/ W/188; a communication from the United States,
contained in document S/C/W/198; and a communi cation from Brazil on the situation of commercial
air transport in Brazil, contained in document S/C/W/201.  The Council also discussed documents
prepared by the Secretariat, contained in  S/C/W/163/Add.3, S/C/W/163/Add.4, S/C/W/163/Add.5,
S/C/W/163/Add.6 and S/C/W/200.  The report of th e meeting is contained in document S/C/M/57.
The Council agreed to hold a further meeting in March 2002.
38. The fourth meeting devoted to the review was held on 18 March 2002.  The Council pursued
its discussion based on a new Secretariat note , contained in document S/C/W/200/Add.1; and a
communication from Australia, Chile and New Z ealand, contained in document S/C/W/206.  Given
the divergent views concerning the scheduling of a future meeting, the Chair suggested that he hold
informal consultations in this regard.  The report of the meeting is contained in document S/C/M/62.
XVI. APPOINTMENT OF NEW CHAIRPERSON OF THE COUNCIL
39. At its meeting held on 19 March 2002 the Council appointed Ambassador Mary Whelan
(Ireland) as the Chair of the Council for Trade in Services.
XVII.  WORK OF THE SUBSIDIARY BODIES
40. The activities of the subsidiary bodies are reflected in their respective reports, which are
annexed to this report as follows:
Annex I Report of the Committee on Specific Commitments
Annex II Report of the Committee on Trade in Financial Services
Annex III Report of the Working Party on Domestic Regulation
Annex IV Report of the Working Party on GATS Rules
_______________S/C/16
Page 7
Annex I
Committee on Specific Commitments S/CSC/7
6 December 2002
REPORT OF THE COMMITTEE ON SPECIFIC COMMITMENTS
TO THE COUNCIL FOR TRADE IN SERVICES (2002)
1. Since its last report to the Council for Trade in Services, the Committee on Specific
Commitments held five formal meetings between 30 November 2001 and 24 October 20 02.  The
reports of these meetings are contained in documents S/CSC/M/21, 22, 23 and 23 Corr.1, 24 and 25.
The Committee’s work in this period focused on two items:  matters relating to the scheduling of
commitments, and classification issues.
I. MATTERS RELATING TO THE SCHEDULING OF COMMITMENTS
A. INCORPORATION OF COMMITMENTS RESULTING FROM THE CURRENT SERVICES NEGOTIATIONS
IN MEMBERS ' SCHEDULES
2. Members addressed technical issues arising from commitments that result from current
services negotiations and their relationship with exis ting commitments.  On the basis of a Secretariat
note (S/CSC/W/33), two scenarios were explored: "accumulation," where new commitments wouldcomplement the existing set of a Member's commitments, and "replacement," which would result in a
single schedule for each Member at the end of the negotiations.  Without prejudice to the ultimate
legal relationship between pre-existing and new commitments, Members supported the concept of a
single consolidated schedule at the end of the negotiations.  It was agreed that offers should already be
submitted on the basis of draft consolidated schedules.  The Secretariat was requested to prepare suchdraft schedules for all Members except those who preferred to undertake the consolidation
themselves.  Members agreed that the draft schedules  Would not have any legal status, but would be a
negotiating tool for delegations to present their offers.
B. A
PPROACHES TO THE SCHEDULING OF ADDITIONAL COMMITMENTS UNDER ARTICLE XVIII OF
THE GATS
3. Members discussed approaches to the scheduling of additional commitments under
Article XVIII of the GATS.  Based on a Secretariat note (S/C/W/34), several technical and systemicissues were explored, including the role of Article XVIII in relation to other provisions of the GATS
and the nature of commitments that could be taken under this Article.
II. CLASSIFICATION ISSUES
4. During the reporting period, the Committee discussed new classification proposals regarding
Legal Services (S/CSC/W/32 – proposal by Australia) and Computer and related Services(S/CSC/W/35 – European Communities).  In addition, a proposal of MERCOSUR and Bolivia
(S/CSS/W/108) on the classification of Post al and Courier Services was discussed.
5. To assist Members in taking stock of existing classification proposals and to facilitate
discussion, the Secretariat was requested to prepare a compendium of these proposals (Job (02)/143).
_______________S/C/16
Page 8
Annex II
Committee on Trade in Financial Services S/FIN/8
4 December 2002
REPORT OF THE COMMITTEE ON TRADE IN FINANCIAL SERVICES
TO THE COUNCIL FOR TRADE IN SERVICES (2002)
1. Since its last annual report to the Council for Trade in Services, the Committee on Trade in
Financial Services has held six formal meetings, on 11 October, 27 November, 18 March, 4 June,
22 July 2002, and 21 October 2002.  Reports of those meetings are contained in documents
S/FIN/M/32 to 37.  In this period, the Committee addressed the following matters: the acceptance of
the Fifth Protocol to the General Agreement on Trade in Services; technical issues; recent
developments in financial services trade; presentations by the International Monetary Fund and theWorld Bank; and the transitional review under section 18 of the Protocol on the Accession of the
People's Republic of China.
I. ACCEPTANCE OF THE FIFTH PROTOCOL TO THE GATS
2. At its meeting on 21 October, the Committee was informed by Bolivia that it had concluded
its domestic procedures and was in a position to accept the Fifth Protocol.  Six other Members havenot yet accepted the Protocol: Brazil, Dominican Republic, Jamaica, Philippines, Poland, and
Uruguay.  At the Committee's invitation, those Member s reported periodically on the situation of their
domestic ratification processes and acceptance procedures.  Details of those reports are contained in
documents S/FIN/M/32 to 37.
II. TECHNICAL ISSUES
3. Discussions under this agenda item focussed on the sectoral classification of financial
services, on the basis of an informal note submitted by Thailand (Job(02)/47, dated 30 May 2002) on
classification issues raised in the negotiating proposals submitted by Canada and Switzerland to the
Special Session of the Council for Trade in Services (documents S/CSS/W/50 and W/71,
respectively).  Details of those discussions are contained in documents S/FIN/M/34 to 36.
III. RECENT DEVELOPMENTS IN FINANCIAL SERVICES TRADE
4. Discussions at the meetings in Octobe r and November 2001, and March and June 2002,
focused on a presentation by the United States on regulatory transparency, subsequently circulated as
document JOB(01)/161 (dated 27 November 2001).  The presentation described the regulatory
process by which the United States Executive Branch developed regulations for the implementation of
the Gramm-Leach-Bliley Act, including the request for public comment from interested parties.Details of that discussion are contained in documen ts S/FIN/M/32 to 35.  At the meeting held in July
2002, senior financial regulators from Chinese Taipei and Mexico made presentations on recent
domestic regulatory reform initiatives, with particular emphasis on the application of transparency
principles to the regulatory process.  Additionally, Canada submitted an informal document on
regulatory transparency.  Details of those presentations and the subsequent discussion are contained indocument S/FIN/M/36.  At the meeting held in October 2002, Australia presented document
S/FIN/W/23, outlining its experience with financial sector reform.S/C/16
Page 9
IV. PRESENTATIONS BY THE INTERNATIONAL MONETARY FUND AND THE
WORLD BANK
5. At its meeting in June 2002, the Committee decided to invite the International Monetary Fund
to make a presentation on the Fund's Financial Sector Assessment Programme (FSAP). That
presentation by IMF representatives was held on 22 July 2002. At its meeting in October 2002, theCommittee decided to invite the World Bank to make a presentation on its policy report entitled
"Finance for Growth: Policy Choices in a Volatile World". This presentation by World Bank
representatives will be delivered in March 2003.
V. TRANSITIONAL REVIEW UNDER SECTION 18 OF THE PROTOCOL ON THE
ACCESSION OF THE PEOPLE'S REPUBLIC OF CHINA
6. At its meeting on 21 October 2002, the Committee carried out the first transitional review of
the implementation by China of its WTO commitments, pursuant to section 18 of the Protocol on the
Accession of the People's Republic of China. The report submitted by the Committee to the Council
for Trade in Services on this matter is contained in  document S/FIN/7.  At its meetings in June and
July 2002, the Committee discussed preparations in connection with that review.  Detailed account of
those discussions is contained in documents S/FIN/M/35, 35/Corr.1 and 36.
_______________S/C/16
Page 10
Annex III
Working Party on Domest ic Regulation S/WPDR/4
6 December 2002
REPORT OF THE WORKING PARTY ON DOMESTIC REGULATION
TO THE COUNCIL FOR TRADE IN SERVICES (2002)
1. Since its last annual report to the Council for Trade in Services, the Working Party on
Domestic Regulation (WPDR) held five formal meetings and two informal meetings.  Minutes of the
formal meetings are found in WTO documents S/WPDR/M/14 to M/18.  Informal papers have beensubmitted to the Working Party.  Informal papers were submitted by the Chairperson,
1 Members2 and
the Secretariat.3
I. DEVELOPMENT OF REGULATORY DISCIPLINES UNDER GATS ARTICLE VI:4
2. With respect to the development of regulatory disciplines on domestic regulation, discussions
of the Working Party in late 2001 and early 2002 continued to focus on the elements identified byMembers in the revised Checklist of Issues for WPDR  (JOB(01)/92 dated 19 June 2001).  At the
formal meeting on 12 March, Members agreed that the Summary of Discussions on the Checklist of
Issues for WPDR  and the Checklist itself  should be merged into one document.  The most recent
version of the Summary was circulated as JOB(02)/3/Rev.2, dated 4 October 2002.
3. At the formal meeting on 16 July, 2002, the OECD gave a brief presentation, on an informal
basis, regarding the meeting of services experts that was held in Paris in March 2002.
II. ORGANIZATION OF FUTURE WORK
4. Members discussed the organization of future work at an informal Working Party meeting (on
Friday 1 March) and during the formal meeting on 12 March, based on two Chairperson’s Notes
(JOB(02)/4, dated 30 January 2002, and JOB(02)/22, dated 7 March).  They were generally of the
view that it was time to focus more on the regulatory barriers and issues that service suppliers actually
faced.  This involved engaging in a review of the measures contained in the informal Secretariat paperExamples of Measures to be Addressed by Disciplines under GATS Article VI:4  (latest version is
JOB(02)/20/Rev.2, dated 18 October 2002).
                                                     
1 JOB(01)/159, dated 22.11.01;  JOB(02)/4, dated 30.01.02; JOB(02)/22, dated 07.03.02;  JOB(02)/46,
dated 29.05.02;  JOB(02)/80, dated 12.07.02;  JOB(02) /81, dated 12.07.02; JOB(02)/80/Rev.1, dated 13.08.02;
and JOB(02)/147, dated 17.10.02.
2 JOB(02)/48, dated 31.05.02 (Communication fr om Thailand);  JOB(02)/50, dated 03.06.02
(Communication from Hong Kong, China); JOB(02)/150, dated 22.10.02 (Communication from Japan);JOB(02)/146, dated 16.10.02 (Communication from  Australia); and JOB(02)/151, dated 21.10.02
(Communication from Australia).
3 JOB(01)/162, dated 27.11.01; JOB(02)/3, dated 29.01.02; JOB(02)/20, dated 07.03.02;
JOB(02)/3/Rev.1, dated 12.04.02;  JOB(02)/20/Rev.1,  dated 12.07.02; JOB(02)/3/Rev.2, dated 04.10.02;
JOB(02)/139, dated 4.10.02;  JOB(02)/139/Rev.1, date d 17.10.02;  JOB(02)/20/Rev.2, dated 18.10.02; and
JOB(02)/139/Rev.2, dated 25.10.02.S/C/16
Page 11
III. DEVELOPMENT OF DISCIPLINES FOR PROFESSIONAL SERVICES
5. Regarding the development of disciplines for professional services, the Working Party held
discussions on the informal Secretariat paper Synthesis of Results to Date of the Domestic
Consultations in Professional Services  (JOB(01)/162, dated 27 November 2001).  At the formal
meeting on 22 October 2002, the WPDR agreed on S ecretariat consultations with international
professional services organizations, as selected by Members, concerning the potential suitability of
the Disciplines on Domestic Regulation in the Accountancy Sector  (S/L/64, dated 17 December 1998)
for other professions.
_______________S/C/16
Page 12
Annex IV
Working Party on GATS Rules S/WPGR/8
5 December 2002
REPORT OF THE WORKING PARTY ON GATS RULES
TO THE COUNCIL FOR TRADE IN SERVICES (2002)
1. Since its last annual report4, the Working Party on GATS Rules held five formal meetings.5
In each meeting, the Working Party considered th e three negotiating mandates it is entrusted with:
emergency safeguard measures (Article X);  government procurement (Article XIII);  and subsidies
(Article XV).
2. On 22 July 2002, the Working Party adopted work programmes on emergency safeguard
measures, subsidies and government procurement respectively, recognizing, inter alia , that these did
not prejudge in any way the outcome of the negotiations under the respective agenda items, and that
the undertaking of individual items of work, including the questions of desirability and feasibility,
should be without prejudice to each other under each subject of negotiations (S/WPGR/7).
I. NEGOTIATIONS ON EMERGENCY SAFEGUARD MEASURES UNDER GATS
ARTICLE X
3. At its meeting on 15 March 2002, the Working Party agreed to extend the negotiating
mandate under Article X until 15 March 2004 (S/C/W/205/Rev.1).  This proposal was adopted the
same day by the Council for Trade in Services (S/L/102).
4. Moreover, on 22 July 2002, the Working Party adopted a work programme for organizing its
work on emergency safeguard measures (S/WPGR/7).  Main elements are, inter alia , to identify,
elaborate and consolidate elements for an ESM, to address the questions of desirability and feasibility,
to encourage Members to put forward submissions as early as possible before 31 December 2002, and
to finalize the negotiations by 15 March 2004.
5. Various delegations presented formal and informal written contributions in relation to the
mandate contained in Article X.6  During several formal and informal meetings, delegations continued
their examination of issues related to a possible ESM, including the question of desirability and
feasibility, the form of a possible ESM, the modal application of safeguard measures, the concept of
special and differential treatment, and relevant procedural matters, such as notification, consultation
and surveillance.  Divergent views continued to be expressed on these issues.
                                                     
4 S/WPGR/6, 4 October 2001.
5 Minutes of the meetings are contained in documents S/WPGR/M/35-39.
6 See Desirability of a Safeguard Mech anism for Services:  Promoti ng Liberalization 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);  Contribution from Cuba, the Dominican Republic, Guatemala, Honduras and Nicaragua(JOB(01)/166); 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).S/C/16
Page 13
II. NEGOTIATIONS ON GOVERNMENT PROCUREMENT UNDER GATS
ARTICLE XIII
6. On 22 July 2002, the Working Party adopted a work programme on government procurement
(S/WPGR/7).  It provides, inter alia , for continued discussion on the basis of submissions from
Members and materials available, and encourages Members to put forward submissions as early aspossible before 31 March 2003.
7. In their discussions, Members examined a Communication from the European Communities
and their Member States on government procurement of services (S/WPGR/W/39).  The issue of the
scope of the mandate contained in Article XIII was also raised.
III. NEGOTIATIONS ON SUBSIDIES UNDER GATS ARTICLE XV
8. On 22 July 2002, the Working Party adopted a work programme on subsidies (S/WPGR/7).  It
provides, inter alia , for continued discussion on subsidies on the basis of submissions from Members
and materials available, and encourages Members to put forward submissions on subsidies as early as
possible before 31 March 2003.
9. Discussions under this agenda item focused on the information exchange mandated in
Article XV, and on the need for further information on services subsidies in general.  Members gave
consideration to a simplified questionnaire put forward by the delegations of Argentina, Chile andHong Kong, China (JOB(02)/84).  Moreover, the Secretariat circulated a further addendum to the
overview of information on subsidies contained in Trade Policy Review reports
(S/WPGR/W/25/Add.3).
__________