./.RESTRICTEDWORLD TRADE
ORGANIZATIONS/WPGR/W/40
20 November 2002
(02-6449)
Working Party on GATS Rules
- DRAFT -
REPORT OF THE WORKING PARTY ON GATS RULES
TO THE COUNCIL FOR TRADE IN SERVICES (2002)
1. Since its last annual report1, the Working Party on GATS Rules held five formal meetings.2
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, andto finalize the negotiations by 15 March 2004.
5. Various delegations presented formal and informal written contributions on specific aspects
of a possible emergency safeguard mechanism (ESM) in services.
3  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 modalapplication of safeguard measures, the concept of special and differential treatment, and relevant
procedural matters, such as notification, consulta tion and surveillance.  Divergent views continued to
be expressed on these issues.
                                                     
1 S/WPGR/6, 4 October 2001.
2 Minutes of the meetings are contained in documents S/WPGR/M/35-39.
3 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/WPGR/W/40
Page 2
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)/82).  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).
__________