PRESS RELEASE
PRESS/351
3 September 2003
(03-4641)
GATS NEGOTIATIONS
WTO Members agree on ways to  boost LDC participation in
services negotiations
The Special Session of the Council for Trade in Services today (3 September 2003) adopted
modalities for the special treatment for least-developed country (LDC) Members in the negotiations
on trade in services. The establishment of these modalities is mandated by Article XIX of the
General Agreement on Trade in Services, the prov ision concerned with setting out the framework
for the negotiations.
"By agreeing on ways for providing special priority to LDCs in the services negotiations, WTO
Members continue to put into action the overarching commitment in the Doha Development
Agenda," said WTO Director-General Dr Supachai Panitchpakdi. "This agreement is a timely boost
to LDC participation in these negotiations as Members intensify their bilateral market access
bargaining."
"We consider the negotiations on services as of prime importance to the LDC group," said H.E. Dr
Toufiq Ali, Ambassador of Bangladesh, speaking on behalf of the 30 LDC Members of the WTO, at
the Special Session of the Council for Trade in Services. "There are numerous estimates thatindicate that the potential benefit of free trade in services may be several times that of free trade
in goods." He emphasised that the most important means of supplying services was through "the
export of services supplied by less skilled persons", estimating that "a temporary visa scheme thatamounts to no more than 3 per cent of the OECD labour force would yield economic benefits for
both developed and developing countries equivalent to almost US$150-200 billion."
The text of the modalities is attached.PRESS/351
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MODALITIES FOR THE SPECIAL TREATM ENT FOR LEAST-DEVELOPED COUNTRY
MEMBERS IN THE NEGOTIATIONS ON TRADE IN SERVICES
Adopted by the Special Session of the Council for Trade in Services on 3 September 2003
I. OBJECTIVES AND PRINCIPLES
1. In pursuance of the objectives of the GATS and as required by Article XIX:3 of the GATS
special treatment for least-developed country Members (LDCs) shall be granted by providingspecial priority to LDCs in the implementation of  paragraphs 1 and 2 of Article IV of the GATS.
Particular account shall be taken of the serious difficulty of LDCs in undertaking negotiated specific
commitments in view of their special economic situation and their development, trade and financialneeds.
2. The importance of trade in services for LDCs goes beyond pure economic significance due
to the major role services play for achieving so cial and development objectives and as a means of
addressing poverty, upgrading welfare, improv ing universal availability and access to basic
services, and in ensuring sustainable development, including its social dimension.  LDCs are facing
serious difficulty in addressing a number of complex issues simultaneously, and lack institutionaland human capacities to analyse and respond to offe rs and requests.  This should be factored into
the negotiating process in general and regard ing the individual requests made to LDCs.
3. Together with the Guidelines and Procedures for the Negotiations on Trade in Services(S/L/93), the Modalities for the Special Treatment for Least-Developed Country Members in the
Negotiations on Trade in Services shall ensure maximum flexibility for LDCs and shall form the
basis for the negotiations.
II. SCOPE
4. Members shall take into account the serious difficulty of LDCs in undertaking negotiated
specific commitments in view of their special economic situation, and therefore shall exercise
restraint in seeking commitments from LDCs. In particular, they shall generally not seek the
removal of conditions which LDCs may attach when making access to their markets available to
foreign service suppliers to the extent that those conditions are aimed at achieving the objectivesof Article IV of the GATS.
5. There shall be flexibility for LDCs for opening fewer sectors, liberalizing fewer types of
transactions, and progressively extending market access in line with their development situation.LDCs shall not be expected to offer full national  treatment, nor are they  expected to undertake
additional commitments under Article XVIII of the GATS on regulatory issues which may go
beyond their institutional, regulatory, and administrative capacities. In response to requests, LDCsmay make commitments compatible with their development, trade and financial needs and which
are limited in terms of sectors, modes of supply and scope.
6. Members shall, as provided for in Articles IV  and XIX of the GATS, give special priority to
providing effective market access in sectors and modes of supply of export interest to LDCs,
through negotiated specific commitments pursuant to Parts III and IV of the GATS.  LDCs should
indicate those sectors and modes of supply that re present priority in their development policies, so
that Members take these priorities into account in the negotiations.
7. Members shall work to develop appropriate mechanisms with a view to achieving full
implementation of Article IV:3 of the GATS and facilitating effective access of LDCs' services andservice suppliers to foreign markets.
8. Members shall take measures, in accordance with their individual capacities, aimed at
increasing the participation of LDCs in trade in services. Such measures could include:
• strengthening programmes to promote investment in  LDCs, with a view to building their domestic
services capacity and enhancing their efficiency and export competitiveness;PRESS/351
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• reinforcing export/import promotion programmes;
• promoting the development of LDCs' infrastructure and services exports through training,
technology transfer, enterprise level actions and schemes, intergovernmental cooperationprogrammes, and where feasible, financial resources; and
• improving the access of LDCs' services and service suppliers to distribution channels and
information networks, especially in sectors and modes of supply of interest to LDCs.
9. It is recognized that the temporary  movement  of natural persons supplying services (Mode
4) provides potential benefits to the sending and recipient Members. LDCs have indicated that this
is one of the most important means of supplying services internationally. Members shall to theextent possible, and consistently with Article XIX of the GATS, consider undertaking commitments
to provide access in mode 4, taking into account all categories of natural persons identified by
LDCs in their requests.10. LDCs shall be granted appropriate credit for their autonomous trade liberalization. In
addition, Members shall refrain from requesting credits from LDCs.
11. In developing any multilateral rules and disciplines, including under GATS Articles VI:4(Domestic regulation), X (Emergency safeguard measures), XIII (Government procurement) and
XV (Subsidies), Members shall take into account the specific interests and difficulties of LDCs.
III. PRINCIPLES FOR THE PROVISION OF TECHNICAL ASSISTANCE WITH REGARD
TO TRADE IN SERVICES
12. Targeted and coordinated technical assistance and capacity building programmes shall
continue to be provided to LDCs in order to strengthen their domestic services capacity, buildinstitutional and human capacity, and enable them to undertake appropriate regulatory reforms. In
pursuance of Paragraph 14 of the Guidelines and Procedures for the Negotiations on Trade in
Services (S/L/93), technical assistance shall also be provided to LDCs to carry out nationalassessments of trade in services in overall terms and on a sectoral basis with reference to the
objectives of the GATS and Article IV in particular.
IV. MECHANISMS AND PROCEDURES
13. The Special Session of the Council for Trade in Services shall review, as necessary, the
implementation of these modalities under the standing item on "Review of Progress in the
Negotiations".14. In his report to the Trade Negotiations Committee, the Chairman of the Special Session of
the Council for Trade in Services will include the issues raised by Members with regard to these
modalities.
END