WORLD TRADE S/C/3
6November 1996
ORGANIZATION(96-4706)
Council forTrade inServices
COUNCIL FOR TRADE INSERVICES
Report totheGeneral Council
PartI:Activities oftheCouncil andSubsidiary Bodies
1. TheCouncilforTradeinServiceshasheldninemeetingsduring1996.Reportsonsuchmeetings
arecontained indocuments S/M/8 -16. TheCouncil addressed thefollowing matters:
Procedures fortheImplementation ofArticle XXI(Modification ofSchedules)
2. Paragraph 5ofArticle XXIoftheGATS (Modification ofSchedules) callsupon theCouncil
forTrade inServices toestablish procedures forrectification ormodification ofschedules. Ininformal
consultations intheUruguay Round, participants hadbeenworking onthebasisofadetailed preliminary
draftofsuchprocedures. During 1995, informal consultations started under theCouncil onthebasis
ofthatdraftandcontinuedin1996resultinginthreeconsecutiverevisionsthelastofwhichwascirculated
inaninformal notebytheSecretariat dated 23May1996. Several delegations expressed theview
thatinthelightofadditional questions which hadbeenraised, informal consultations should continue
withaviewtoproducing afinaldrafttextforconsideration andadoption bytheCouncil. Consultations
arecontinuing.
Taxes andSubsidies attheSub-Central Level
3. InaccordancewiththestatementmadebytheChairmanoftheGroupofNegotiationsonServices
dated 13December 1993(MTN.GNS/50), participants intheUruguay Round weregiven anadditional
period oftimeuntil15June1994 tocomplete thescheduling ofmeasures relating tosubsidies and
taxes atthesub-central level. Thestatement alsostipulated that"itisunderstood thatthisprocess will
notresult inanyalteration inthenegotiated balance ofrights ofobligations. Foraperiod ofthirty
daysstarting on16June1994, ifanyparticipant considers thatsuchbalance hasbeenaltered asaresult
ofscheduling additional measures, itmayconsult withtheparticipant orparticipants concerned with
aviewtoreaching asatisfactory adjustment". Pursuant tothatstatement, theUnited States submitted
acommunication, contained inPC/SCS/W/4 dated 30June1994, through theSub-Committee on
Services. Upon request fromdelegations, thecommunication wassubject tomultilateral consultations
under theauspices oftheSub-Committee onServices during 1994andunder theauspices oftheCouncil
during 1995 and1996. Atitsmeeting of4March 1996, theCouncil considered aninterim report
ontheprogress achieved inconsultations thusfar(S/C/W/13). TheCouncil tooknoteofthereport
andagreed thatmultilateral consultations shallcontinue withaviewtoreaching asatisfactory outcome
fullyconsistent withGATS disciplines. Anumber ofdelegations tooktheviewthatfuture consultations
onthematter should notbedirected towards factfinding, butshould focus onpractical solutions to
theproblems identified inprevious consultations.S/C/3
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Notification oftheEstablishment ofEnquiry andContact Points
4. Paragraph 4ofArticle IIIandparagraph 2ofArticle IVoftheGATS callupon Members to
establish enquiry points and,where appropriate, contact points within twoyears fromthedateofentry
intoforceoftheAgreement. However, thesearticles donotrequire thenotification oftheestablishment
andlocation ofthese agencies. Given theobjective behind theestablishment ofsuchagencies, the
Council considered itdesirable thattheirexistence andlocation bemade known. TheCouncil therefore,
atitsmeetingon28May1996,adoptedthe"DecisionontheNotificationoftheEstablishmentofEnquiry
andContact Points" (S/L/23) which callsuponMembers tonotify theestablishment ofsuchagencies.
Sofartwenty-four Members havesubmitted suchnotifications (S/ENQ/1 -24).
Notifications pursuant toArticle V(Economic Integration)
5. Atitsmeeting on22November 1995, theCouncil forTrade inServices hadreceived a
communication from theEuropean Communities andtheirMember States notifying the"Economic
Integration Agreement" asinstituted bytheTreaty ofRome, subsequently enlarged, andmodified most
recently bytheTreaty ontheEuropean Union. Atitsmeeting on23September 1996, theCouncil
decided torequest theCommittee onRegional Trade Agreements toexamine theAgreement interms
ofitsconsistency withtheprovisions ofArticle VoftheGATS.
6. TheCouncilhasalsoreceivednotificationspursuanttoparagraph7(a)ofArticleVfromAustralia
andNewZealand (S/C/N/7), theEuropean Communities andtheirMember States andtheSlovak
Republic (S/C/N/23), theRepublic ofHungary (S/C/N/24), theRepublic ofPoland (S/C/N/25), the
Czech Republic (S/C/N/26), Romania (S/C/N/27) andtheKingdom ofNorway, theRepublic ofIceland
andthePrincipality ofLiechtenstein (S/C/N/28).
Atitsmeeting on30October 1996theCouncil decided torequest theCommittee onRegional
Trade Agreements toexamine thefollowing agreements:
- ProtocolonTradeinServicestotheAustralia-NewZealandCloserEconomicRelations
Trade Agreements (S/C/N/7)
- Europe Agreement between theEuropean Communities andtheirMember States and
theSlovak Republic (S/C/N/23)
- Europe Agreement between theEuropean Communities andtheirMember States and
Republic ofHungary (S/C/N/24)
- Europe Agreement between theEuropean Communities andtheirMember States and
Republic ofPoland (S/C/N/25)
Committee onSpecific Commitments
7. TheCommittee onSpecific Commitments hasheldtwomeetings in1996. Itsdiscussions have
focused onhowtoorganise itsactivities andwork priorities according toitsthree main areas of
responsibility asspecified intheterms ofreference (seedocument S/L/16).
8. With respect tothefirstresponsibility -overseeing theimplementation ofcommitments -
Members generally consider thattheoversight function should behandled onanad-hoc basisandshould
focus ontechnical aspects ofimplementation.S/C/3
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9. Members consider thatagreat dealofuseful work canbedoneintheCommittee regarding
thesecond function -examining technical aspects ofschedules ofcommitments andMFN exemption
listsinorder toimprove theirtechnical accuracy andcoherence butwithout affecting thecurrent
commitments. Astarthasbeenmade inexamining issues relating tothedefinition ofsectoral coverage
ofcommitments andtotheadequacy oftheexisting GATS classification list.TheCommittee discussed
aSecretariat paper onrelevant developments inservices classification systems incoordination with
otherinternational organizations andtheirimplications fornegotiations andscheduling under theGATS.
TheCommittee hasalsodiscussed thequestion ofhowtofacilitate thehandling oflistsofcommitments
andMFN exemptions. Inthisregard, theSecretariat prepared apaper analysing relevant issues
concerning, first, theintroduction ofaloose-leaf binding system forthelistsand,second, current
developments attheWTO inthecomputerisation ofschedules.
10. WithrespecttothethirdfunctionoftheCommittee-overseeingtheapplicationoftheprocedures
forthemodification ofschedules under GATS Article XXI-Members generally consider thatthe
Committee should address relevant issues when theprocedures themselves havebeenfinalized.
Working Party onProfessional Services
11. Since starting work inJuly1995, theWPPS hasheldseven meetings. Itsdeliberations have
focused onthethree setsofissues intheaccountancy sector laiddown inparagraph 2oftheDecision
onProfessional Services .These issues are:(a)thedevelopment ofmultilateral disciplines toensure
thatdomestic regulatory requirements arebased onobjective andtransparent criteria andarenotmore
burdensome thannecessary; (b)theuseofinternational standards and(c)theestablishment of
guidelines fortherecognition ofqualifications.
(a) Development ofmultilateral disciplines
12. Theactivities oftheWorking Party have focused ontheestablishment ofanextensive
information baseonregulation intheaccountancy sector andonprioritizing andaddressing specific
issues withaviewtothedevelopment ofmultilateral disciplines particularly inthissector.
13. TheWorking Party hasdevoted considerable timeandeffort tothecollection andanalysis of
dataandstudies ofdomestic regulation intheaccountancy sector. Aseminar wasorganized atwhich
theInternational Federation ofAccountants (IFAC) presented theresults ofamajor international survey
ontheregulation andstructure ofaccountancy services, explained itsroleandthatoftheInternational
Accounting Standards Committee (IASC) insetting international standards insuchareas asauditing,
education foraccountants andfinancial reporting, andintroduced astatement onrecognition of
accountancy qualifications. Briefings werealsoreceived fromtheOECD andUNCTAD, bothofwhich
havecarried outextensive workonaccountancy services. TheOECD presented theresults ofitssurvey
onregulations onaccess forprofessional services andthecategorized inventory ofmeasures affecting
trade inprofessional services. UNCTAD, through itsInter-governmental Working Group ofExperts
onInternational Accounting Standards ofAccounting andReporting (ISAR), explained itsmainactivities
inpromoting international harmonization ofcorporate accounting andreporting practices.
14. Inorder tocomplete theinformation thathadbeenmade available bytheabove organizations
ontheregulatory regimes ofMembers affecting theaccountancy sector, asupplementary questionnaire
onspecific aspects ofdomestic regulation wascirculated toWPPS Members. Twenty-three responses
covering thirty-seven Members havebeenreceived todate.S/C/3
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15. With respect toissues, Members drew upanon-exhaustive listofpriority issues, based on
delegation submissions andstatements, which define insome detail thepolicy areas forwhich the
Working Party isdeveloping multilateral disciplines. Theissues proposed forconsideration comprise:
qualificationrequirementsandprocedures;licensingrequirements(otherthanqualificationrequirements)
and procedures; regulations governing the establishment ofacommercial presence;
nationality/citizenship/residency requirements; professional liability andethics; regulations governing
entry andtemporary stayofnatural persons forthepurpose ofsupplying accountancy services. The
tworemaining issues, relating toguidelines forrecognition ofqualifications anduseofinternational
standards, aredealtwithbelow.
16. AmongtheseissuesMembershaveconcentratedinitiallyonlicensingrequirementsandprocedures
intheaccountancy sector. Inthisregard, theWorking Party hasstarted toexamine theapplicability
oftheconcepts andapproaches taken intheTechnical Barriers toTrade (TBT) Agreement astheyapply
tolicensing requirements andtheother measures covered byGATS Article VI.4. Similarly, theWPPS
hasbegun toexamine therelevance ofthedisciplines intheImport Licensing Agreement totheneed
toensure thatlicensing procedures intheaccountancy sector donotinthemselves restrict trade.
(b) Useofinternational standards
17. Themain roleoftheWorking Party inthisareaistokeeptrack ofwork going onelsewhere
andencourage cooperation withrelevant international organizations. Inafurther seminar members
oftheWorking Party received briefings onthedevelopment ofinternational standards bytheIASC
andtheInternational Auditing Practices Committee (IAPC), andontheir co-operation with the
International Organization ofSecurities Commissions (IOSCO).
(c) Establishment ofnon-binding guidelines formutual recognition agreements orarrangements
intheaccountancy sector
18. TheWorking Party hasalsoworked onthedevelopment ofnon-binding guidelines forthe
negotiation ofmutual recognition agreements orarrangements, which arepermitted under theconditions
laiddown inArticle VIIoftheGATS. Thepurpose ofsuchguidelines, which would constitute a
roadmaporchecklist, would betoassist onavoluntary basisthenegotiation andconclusion ofmutual
recognition agreements orarrangements among WTO Members andtoensure theirtransparency. At
itsseventh meeting, theWorking Party tooknotethatadraftpaper entitled Guidelines forMutual
Recognition Agreements orArrangements intheAccountancy Sector hadbeenprepared andisunder
discussion.
Working Party onGATS Rules
19. TheWorking Party onGATS Rules wasestablished inMarch 1995 bytheCouncil onTrade
inServices tocarry outthenegotiating mandates contained intheGATS onemergency safeguard
measures, government procurement inservices andsubsidies. Article Xrequires thatmultilateral
negotiations shallbeheldonthequestion ofemergency safeguard measures, based ontheprinciple
ofnon-discrimination, theresults ofwhich aretoenter intoeffect notlaterthan1January 1998.
Article XIIIofGATS callsformultilateral negotiations ongovernment procurement inservices within
twoyears fromthedateofentry intoforce oftheWTO Agreement. Article XVofGATS stipulates
thatnegotiations willbeheldwithaviewtodeveloping thenecessary disciplines toavoid thetrade-
distortive effects ofsubsidies thatmayariseincertain circumstances andtoaddress theappropriateness
ofcountervailingprocedures.ItalsorequiredMemberstoexchangeinformationconcerningallsubsidies
related totrade inservices andtoestablish afuture work programme todetermine how, andinwhat
timeframe, negotiations onsuchmultilateral disciplines willbeconducted.S/C/3
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20. TheWorking Party hasheldeight meetings. TheWorking Party firsttookuptheissue of
emergency safeguard measures, followed atintervals ofthree months bygovernment procurement in
services andsubsidies. Thus, since itsfifthmeeting, theWorking Party hasconsidered allthree
negotiating mandates atevery meeting. Differing views havebeenexpressed byMembers inregard
tothequestion ofdeveloping anemergency safeguard mechanism under GATS andsubstantive
discussions arecontinuing inregard tothisquestion. Working papers onemergency safeguard measures
were submitted totheWorking Party byAustralia (S/WPGR/W/5), Thailand (S/WPGR/W/6) and
Switzerland (S/WPGR/W/14). TheWorking Party agreed thatthose Members wishing todosowould
provide written contributions inrelation toquestions raised indocument S/WPGR/W/15 onemergency
safeguard measures.
21. Thediscussions intheWorking Party onthesubject ofgovernment procurement inservices
haveaddressed various aspects ofpossible disciplines, particularly inrelation totransparency. In
addition, Members haveconsidered theimplications oftheexistence oftheAgreement onGovernment
Procurement (GPA) foranydisciplines thatmight bedeveloped inGATS, aswellassome ofthereasons
given byMembers astowhytheyarenotsignatories oftheGPA. Members arealsoengaged, on
avoluntary basis, inaninformation-gathering exercise inrelation tonational procurement regimes
affecting trade inservices.
22. TheWorking Party'sdeliberations onthesubject ofsubsidies havesofarbeenofapreliminary
nature. Many delegations havenoted theinherent complexity ofthesubsidy issueinservices, urging
acareful andsystematic approach tothenegotiating mandate. Some discussion hastaken place on
thequestion whether adistinction should bemade between broad-based subsidies ofgeneral applicability
andnarrower, sector specific subsidies. TheWorking Party hasbegun toconsider themodalities of
theinformation exchange exercise called forinthenegotiating mandate. Aworking paper onconceptual
issues relating tosubsidies wassubmitted totheWorking Party byChile (S/WPGR/W/10).
Negotiations onBasic Telecommunications
23. TheNegotiating Group onBasic Telecommunications, established byMinisterial decision at
Marrakesh, completed itsworkon30April 1996. TheNegotiating Group hadheld17meetings between
May1994 andApril 1996. Fifty-three WTO Members werefullparticipants inthenegotiations and
24governments participated asobservers. TheNGBT submitted itsfinalreport totheCouncil for
Trade inServices (S/NGBT/18) on30April; toitwereattached alistoftheresults ofthenegotiations,
intheform of34Schedules ofCommitments representing 48WTO Member governments andone
ListofArticle II(MFN) Exemptions. Also on30April, theCouncil adopted theDecision on
Commitments inBasic Telecommunications (S/L/19) andtheFourth Protocol totheGeneral Agreement
onTrade inServices (S/L/20).
24. Ofthe34Schedules attached totheProtocol, 32offermarket access commitments invoice-
telephony; 28relate tolocaltelephone services, 27todomestic longdistance and25tointernational
services. Other services onwhich commitments were offered included data-transmission services
(31schedules), cellular/mobile telephone markets (28),private-leased circuit services (27)other types
ofmobile services (22)andsatellite services (16). Inanumber ofcases these commitments would
bephased-inovertime.Thirtyofthe34Schedulesincludecommitmentsrelatingtoregulatorydisciplines
onsuchmatters ascompetition safeguards, interconnection, licensing andtheindependence ofregulators
-matters which hadbeenextensively discussed inNGBT meetings devoted toconceptual andtechnical
issues.S/C/3
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25. TheSchedules andExemption Lists attached totheFourth Protocol willenter intoforce on
1January 1998 provided thattheProtocol hasbeenaccepted byallMembers concerned. However,
theDecision bywhich theCouncil adopted theProtocol alsoprovided thatduring theperiod from
15January to15February 1997theSchedules andExemption Listsmaybesupplemented ormodified,
andestablished anewGroup onBasic Telecommunications toconduct consultations onthe
implementation ofthisprovision.
26. TheCouncil Decision alsoincluded astandstill provision calling upontheMembers concerned,
tothefullest extent consistent withtheirexisting legislation andregulations, nottotakemeasures which
would beinconsistent withtheirundertakings resulting fromthese negotiations. TheCouncil, which
willmonitortheacceptanceoftheProtocol,willalsoexamineanyconcernsraisedbyMembersregarding
thestandstill.
27. TheGroup onBasic Telecommunications (GBT) helditsfirstmeeting on19July1996. At
thatmeeting, theGroup decided tobeopentoallMembers oftheWTO. Participants recognized the
importance oftheresults achieved inApril, interms ofcreating abenchmark forfurther liberalization
andestablishing newregulatory disciplines. Participants suggested thattheprincipal issues before the
GBTincluded thedesirability ofimproving thequantity andquality ofSchedules offered, andtheneed
toaddress possible distortions intrade resulting fromthecoexistence ofopenmarkets andmonopoly
markets ininternational telecommunications services andtoclarify commitments ontheprovision of
satellite-based services.
28. TheGBTapproved atimetable ofmeetings andactivities leading uptothe15February 1997
deadline forthemodifications. Thetimetable comprised monthly meetings inSeptember, October
andNovember 1996 andamore intensive programme ofmeetings tobeheldduring the15January
to15February period, theconduct ofbilateral negotiations inassociation withthese meetings, and
indicative datesforthesubmission totheGroup ofproposals forneworimproved draftoffers throughout
theprocess. Itwasalsoproposed thattheGBTshould holdahigh-level meeting inNovember 1996.
Negotiations onMaritime Transport Services
29. TheMinisterial Decision onNegotiations onMaritime Transport Services andtheAnnex on
Negotiations onMaritime Transport Services provided amandate forMembers tonegotiate, bythe
endofJune1996, commitments relating tomaritime transport services leading totheelimination of
restrictions within afixed timescale. TheDecision established theNegotiating Group onMaritime
Transport Services tocarry outthenegotiations. TheNegotiating Group held16meetings andreported
periodically totheCouncil onTrade inServices.
30. InOctober 1994, theNegotiating Group issued aQuestionnaire onMaritime Transport Services
covering market structure andregulatory issues. TheGroup reviewed participants 'responses tothe
questionnaire. Inall,35ofthefullparticipants andtwoobserver governments submitted questionnaire
responses. Another activity oftheGroup wastoexamine outstanding technical andconceptual issues.
Amongissuesdiscussedweretechnicalmattersrelatingtotheschedulingofcommitmentsoninternational
shipping, auxiliary services, access toanduseofportfacilities andmultimodal transport services.
AttheendofJune1995,participantsbegansubmittingdraftoffersofcommitmentsonmaritimetransport
services toserve asthebasis fornegotiations.
31. Atitsmeeting on28June1996, theCouncil forTrade inServices adopted aDecision tosuspend
thenegotiations onmaritime transport services andtoresume them withthecommencement of
comprehensive negotiations onservices, inaccordance withArticle XIXoftheGATS, andtoconclude
them nolaterthanattheendofthisfirstround ofprogressive liberalization (S/L/24).S/C/3
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32. After thesuspension ofthenegotiations, twoMembers, Iceland andNorway, consolidated their
bestoffers, i.e.transformed theiroffers intospecific commitments tobeinscribed intheirschedules.
Two Members, Austria (inthecontext ofitsaccession totheEuropean Union) andthe
DominicanRepublic,withdrewtheircommitments,whiletwoMembers,CanadaandMalaysia,modified
theircommitments slightly. Currently, 35Members havecommitments onmaritime transport services.
This includes: 29Members who made commitments intheUruguay Round, 4Members
(PapuaNewGuinea,SaintChristopherandNevis,SierraLeoneandSlovenia)whoaccededsubsequently,
and2Members (Iceland andNorway) whomade commitments aftertheextended negotiations.
33. Atthetimeofsuspension ofthenegotiations, 56governments (including theEuropean
Communities andtheirMember States) hadelected toparticipate fullyinthenegotiations. Another
16governments wereparticipating intheprocess asobservers. Bythattime24conditional offers had
beensubmitted.
Committee onTrade inFinancial Services
34. Theactivities oftheCommittee onTrade inFinancial Services in1996 focused onfivemain
issues: monitoring oftheacceptance andimplementation oftheresults ofthefinancial services
negotiations concluded inJuly1995; exchange ofinformation onrecent developments infinancial
services trade; consideration ofsome technical issues regarding theschedules ofspecific commitments
andArticle II(MFN) exemptions; availability offinancial services data; andorganization offuture
work. The work oftheCommittee in1996 was conducted under theChairmanship of
Mr.Frank Swedlove ofCanada. TheCommittee heldtwoformal meetings in1996.
35. Onthemonitoring oftheacceptance andimplementation oftheresults ofthefinancial services
negotiations, theCommittee provided transparency onthestatus ofacceptances oftheSecond Protocol
totheGATS toallMembers, andcontributed tothecompletion oftheacceptance process bythe
Members concerned.1Although notallMembers concerned wereabletoaccept theProtocol bythe
initial deadline of30June1996, itentered intoforce on1September 1996byvirtue ofadecision taken
on30July1996 byMembers which hadaccepted it.Thiswasinaccordance withtheprocedures
inscribed intheProtocol adopted bytheCommittee inJuly1995. Adecision bytheCouncil forTrade
inServices wasalsotaken onthesame daytoextend theperiod foracceptance oftheProtocol until
30November 1996, allowing theremaining Members toaccept. TheCommittee continues tomonitor
theacceptance oftheProtocol bytheremaining Members.
36. Concerning theexchange ofinformation onrecent developments infinancial services trade,
several Members reported recent liberalization measures. These developments werewelcomed, and
Members were encouraged toreport anyrelated developments totheCommittee fortransparency
purposes.
37. Regarding theconsideration oftechnical issues, theSecretariat produced anoteindicating issues
fordiscussion ontwotechnical questions; thedistinction between Modes 1and2infinancial services
andsectoral classification offinancial services. Other technical issues, suchashowtoimprove the
verification ofschedules andMFN exemptions afternegotiations, havealsobeenraised. TheCommittee
agrees topursue these discussions.
1TheMembers concerned are:Australia, Brazil, Canada, Chile, Czech Republic, Dominican Republic,
Egypt, European Communities andtheir Member States (15), Hong Kong, Hungary, India, Indonesia,
Japan, Korea, Kuwait, Malaysia, Mexico, Morocco, Norway, Pakistan, Philippines, Poland, Singapore,
Slovak Republic, South Africa, Switzerland, Thailand, Turkey, Venezuela. Members whohave not
accepted theProtocol asof5November 1996 were Belgium, Brazil, Egypt, Greece, Portugal andSpain.S/C/3
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38. Ontheavailability offinancial services data,theCommittee encouraged theSecretariat towork
inclose cooperation withother international organizations intheirefforts toimprove theavailability
ofstatistics, andrequested ittoreport onanyfuture developments withrespect tothissubject.
39. TheCouncil forTrade inServices haddecided inJuly1995 thatallMembers begiven the
opportunity tomodify orwithdraw allorpartoftheirspecific commitments andtolistArticle II(MFN)
exemptions under theGATS infinancial services during aperiod of60days beginning on
1November1997.TheCommitteewilloverseenegotiationsundertakeninaccordancewiththisdecision,
andhasdecided thatsuchnegotiations willresume inearly April 1997.
40. Ontheorganization offuture work, theCommittee recognized theimportance ofproper early
preparation fortheresumption ofnegotiations in1997. Ittherefore agreed todraw upatimetable
forsuchnegotiations leading totheirconclusion inDecember 1997. Suchatimetable willbepresented
tothenextmeeting oftheCommittee tobeheldinearly April 1997.
Movement ofNatural Persons
41. During 1996, theCouncil reviewed thestatus ofacceptance oftheThird Protocol totheGATS.2
TheProtocol hadbeenopen foracceptance until30June1996. Atthatpoint, there remained five
Members which hadnotaccepted theProtocol duetoprocedural delays. Atitsmeeting on30July
1996 theCouncil reviewed thesituation andadopted the"Decision ontheAcceptance oftheSecond
andThird Protocol totheGeneral Agreement onTrade inServices" (S/L/28) which provides an
additional period foracceptance, until30November 1996.
2Members whoattached aschedule totheThird Protocol were: Australia, Canada, European Communities
andtheir Member States (15), India, Norway andSwitzerland. Members who, asof5November 1996, have
notaccepted theThird Protocol: Belgium, Greece, Portugal, Spain andSwitzerland.S/C/3
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PartII:Future work
Negotiations onBasic Telecommunications
42. Itisrecommended thatMinisters stress theircommitment tobring thenegotiations onbasic
telecommunications toasuccessful conclusion by15February 1997, urgeallWTO Members tostrive
forsignificant,balancedandnon-discriminatoryliberalizationcommitmentsonbasictelecommunications
bythatdateandrecognize theimportance ofresolving theprincipal issues before theGBT.
Committee onTrade inFinancial services
43. Itisrecommended thatMinisters stress theircommitment tobring thenegotiations ontrade
infinancial services, toberesumed inearlyApril 1997, toasuccessful conclusion within theprescribed
timeframe.
Working Party onGATS Rules
44. Itisrecommended thatMinisters notethatmore analytical work willberequired onemergency
safeguard measures, government procurement inservices, andsubsidies. They agree thattheWorking
Party onGATS Rules should aim, inaccordance withtheprovisions ofArticle X,tocomplete
negotiations onthequestion ofemergency safeguard measures by31December 1997. Ifnegotiations
havenotbeenconcluded bythatdate, theCouncil forTrade inServices mayextend theprovisions
ofArticle XoftheGATS toanappropriate time. Ministers agree toreview thereport oftheCouncil
onprogress intheGATS Rules negotiations attheirmeeting in1998, bearing inmind theneedtocarry
forward thenegotiations expeditiously.
Working Party onProfessional Services
45. TheWorking Party onProfessional Services should:
- Aimtocomplete itswork ontheaccountancy sector bytheendof1997.
- Pursue workontheArticle VI.4work programme asitrelates toprofessional services,
examining,asappropriate,bothhorizontalaspectsofthisworkandspecificissuesrelated
toparticular services withdueconsideration forthediversity ofprofessional services.
- Pursueworkonvoluntaryguidelinesformutualrecognitionagreementsorarrangements.
- Cooperate withUNCTAD initswork onprofessional services, particularly onthe
accountancy sector.
- Encourage theefforts made byother relevant international organizations asdefined
bytheGATS, including theInternational Accounting Standards Committee andthe
International Organization ofSecurities Commissions, toformulate international
standards intheaccountancy sector which areaimed atachieving greater comparability
infinancialstatementsandfacilitatingtheeffectiveliberalizationofaccountancyservices.S/C/3
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Committee onSpecific Commitments
46. TheCommittee onSpecific Commitments should pursue itsmandate, including work relating
tothescheduling ofcommitments, andshould make recommendations forimproving thetechnical
accuracy andcoherence ofschedules ofspecific commitments andlistsofexemptions fromArticle II
oftheGATS before thecommencement ofthenextround ofnegotiations onservices liberalisation
pursuant toArticle XIXoftheGATS.
Further work bytheCouncil
47. Itisrecommended thatMinisters reaffirm theimportance ofprogressive liberalization oftrade
inservices asmandated inArticle XIXandother relevant provisions oftheGATS. Therequisite work
tofacilitate suchnegotiations, taking intoaccount theneedforappropriate flexibility, shallinclude,
interalia,:
- TheCouncil forTrade inServices willdevelop aninformation exchange programme.
Theaimofthisprogramme istofacilitate theaccess ofallMembers, inparticular
developingcountryMembers,toinformationregardinglaws,regulations,administrative
guidelines andpolicies affecting tradeinservices inorder tocontribute totheassessment
oftrade inservices which would assist future negotiations intheservices sector. The
structure should besimple andabletoprovide acommon standard andconcise
multilateral basis tounderstand thestateandevolution oftheregulations governing
theservices sector avoiding anyunnecessary burden totheMembers ingeneral and
developing country Members inparticular. During 1997, theCouncil should agree
tothemodalities andthetiming forthisprogramme.
- TheCouncilshouldbegintheconsiderationofguidelinesandproceduresfornegotiations
mandated under Article XIXatanappropriate time.
- TheCouncil should examine, asappropriate, under Article VI:4oftheGATS, measures
relating toqualification requirements andprocedures, technical standards andlicensing
requirements withaviewtotaking theworkasfaraspossible before thecommencement
ofthenextround ofliberalization negotiations referred toabove.
Negotiations onMaritime Transport Services
48. Itisrecommended thatMinisters takenoteofthecurrent status ofthesuspended negotiations
onmaritime transport services andconfirm their commitment toproceed according totheagreed
conclusions.