./.WORLD TRADE
ORGANIZATIONS/CSS/W/58
14 March 2001
(01-1413)
Council for Trade in Services
Special SessionOriginal:  English/
French
COMMUNICATION FROM CANADA
Initial Negotiating Proposal on Oil and Gas Services
The attached communication has been received from the delegation of Canada with the
request that it be circulated to Members of the Council for Trade in Services.
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1. Canada reserves the right to modify this pro posal at any time. This proposal does not prejudge
Canada’s position on other service sectors, nor any future offer on this or other sectors. This proposal
should be read in conjunction with the principles and objectives as outlined in Canada’s initial
negotiating proposal.
A. INTRODUCTION
2. Canada continues to conduct extensive consultations on issues that may be subject to
negotiations. Although the process is still ongoing, Canada would like to share its preliminary
thoughts concerning the GATS negotiations and oil and gas services.
3. For the purpose of this paper, oil and gas services include a wide range of services, such as:
drilling services; derrick erection; repair and dismantling services; services necessary for oil or gas
extraction such as well casing; cementing, pumping and plugging wells; as well as specialized fireextinguishing services. Small- and medium-sized businesses (SMEs) as well as large multinationals
are involved in this sector.
4. The global market for oil and gas services is increasing rapidly. Market restructuring,
technological advances and economic growth all point to an increased demand for oil and gas
products, and the subsequent demand for the services to ensure a supply of these products.
5. Providing improved market access in this sector can have many beneficial effects for both
developed and developing countries, including:
• increased innovation in the provision of oil and gas services;
• greater efficiencies that reduce the cost of oil and gas products to the consumer can
also reduce the environmental impact resulting from the use of these products;
• more widespread use of environmentally friendly technology;
• additional opportunities to develop work force skills and management methods; andS/CSS/W/58
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• additional investment in technology, as well as increased opportunities for co-
operation in the development of advanced technology.
6. Liberalization of oil and gas services does not mean an unregulated regime. For example,
governments will continue to regulate to ensure performance and quality controls to preserve the
environment and to protect consumers. However, rules should be clearly defined, non-discriminatoryand transparent.
7. In many countries, including Canada, governments are vested with the ownership of natural
resources in trust for their citizens. Nothing in these negotiations will address the ownership of
resources.
8. Only 33 Members have taken commitments with respect to the  
services incidental to mining.
Eleven of those Members have limited their commitments to advisory or consulting services. Canada
has taken commitments on services incidental to mining.
9. Typical obstacles to trade in energy services include:
• restrictions for the entry and stay of energy services managers, professionals and
experts;
• restrictions for the entry of the equipment and tools needed to provide the service;
• arbitrary business and licensing requirements; and
• absence of transparence of regulatory framework. 
B. PROPOSAL
10. Canada believes that all services in the oil and gas sector can be found in the W/120. In
addition to services incidental to mining, different related oil and gas services may be included in real
estate services, rental/leasing services, technical testing and analysis services, services incidental to
energy distribution, related scientific and technical consulting services, and construction and related
engineering services. The current classification has certain merits and logic (e.g., all engineering
services should be grouped together, irrespective whether it is civil, electrical or energy-related) andoften, as is the case for engineering, it is a better reflection of the legal reality (i.e., regulates services
of a same nature, not according to specialization areas). Services related to the sector could still be
subject to a special “cluster” or “checklist” that  Members may use as an aide-memoire during the
negotiations.
11. By its proposal, Canada wants to encourage WTO Members to broaden and deepen
commitments for the provision of oil and gas services. All four modes should be examined for greater
liberalization.
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