./.WORLD TRADE
ORGANIZATIONTN/S/4
25 November 2002
(02-6511)
Council for Trade in Services
Special Session
SPECIAL SESSION OF THE COUNCIL FOR TRADE IN SERVICES
Report by the Chairman to the Trade Negotiations Committee
The Council for Trade in Services met in Special Session on 28 October and 1 November
2002.
I. STATUS OF WORK
1. Under the item of the Assessment for Trade in Services, the Council had substantive
discussions based on a presentation on the results of trade liberalisation in the telecommunications
sector in Southern Africa, which included questions on regulation and managed liberalization.
Members also provided more in-depth comments on a communication from Thailand presented in
July. Members showed a renewed interest in re-examining previously submitted assessment
communications.
2. With respect to modalities for the treatment of  autonomous liberalization, the Special Session
of the Council held an informal meeting on this issue on 16 October.  Of the four issues being
considered by the Council under this item, I reported that progress had been made with respect to the
possibility of obtaining credit through concession on trade in goods and the relationship between
autonomous liberalisation and bindings.  Less progress, however, has been made on the two other
issues, namely, the scope of the modalities, particularly with reference to developing countries, and
the situation of recently acceded Members.
3. On modalities for the special treatment for least-developed countries the process is moving
forward at a promising pace.  Members appear committed to achieving agreement prior to end March
2003.
4. Under the item of proposals relating to the negotiations under Article XIX of the GATS,
substantive discussions were held on the basis of three Member communications on small andmedium-sized enterprises, computer and related services, and small economies and small suppliers of
services.  These proposals are focussed on specific facets of the negotiations and are perhaps a
reflection of the fact that negotiations are shifting into higher gear as the request process moves
forward.  Responding to a request from Members made in June 2002, a Secretariat note compiling
existing offers in Maritime Transport Services was circulated.
5. As reported to the TNC meeting on 3 October 2002, Members agreed to add a new item to the
agenda entitled review of progress in negotiations amongst participants.  A large number of
interventions made for a substantive and useful discussion.  Members welcomed a communication
submitted by Bolivia, Colombia, Cuba, Ecuador, Nicaragua, Peru and Trinidad and Tobago, contained
in document TN/S/W/7 regarding the Implementa tion of Paragraph 15 of the Guidelines and
Procedures for the Negotiations on Trade in Services (S/L/93).  Some support was shown for this
proposal, some questions raised, and some Members stated they required more time to study theTN/S/4
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document and would revert to it at the next mee ting.  Members also highlighted the importance of
concluding work undertaken in other services bodies, for instance on domestic regulation, emergency
safeguard measures and subsidies, which were at the forefront of delegations' minds as having an
important bearing on the services negotiations proper.  There have been a great deal of bilateral
contacts and a large number of meetings held, some of which have proven particularly fruitful due tothe large number of capital-based delegates in attendance, particularly from the developing countries.
This is a reflection of a healthy level of engagement.  Members expressed that the progress of
negotiations and the bilaterals have been conducted in a satisfactory manner and in a constructive
atmosphere, which is a good sign for the future.  Members underscored that these negotiations were
linked to progress in other areas of the Doha Development Agenda, and there were some expressions
of dissatisfaction and concern over the lack of pr ogress, which could have an impact on the progress
of negotiations on services.  All Members expressed commitment to progress in all areas of the DohaDevelopment Agenda.  Some difficulties were highlighted, especially by developing country
Members, regarding the comprehensive nature of requests and the lack of time and capacity to
examine them.  They requested that the Members concerned indicate which sectors they should treat
with priority.  With respect to deadlines, Members recognize that these are not a straightjacket, but
that they must be kept in mind in order to keep negotiations moving forward.
II. OUTSTANDING ISSUES
6. In the case of the modalities for the treatment of autonomous liberalisation agreement remains
to be reached regarding the scope of the modalit ies, particularly with reference to developing
countries, and the situation of recently acceded Members.  Flexibility and political compromise will
be required by all Members in order to reach consensus.  The Council is aware of the importance ofthis issue and hopes enough progress will have been made by its December meeting to consider draft
modalities for adoption.
7. With respect to the modalities for the special treatment of LDCs, the Council is optimistic that
movement forward will accelerate once draft modalities currently in preparation have been tabled by
the group of least-developed countries.
III. FUTURE WORK
8. Members decided to hold the next cluster of meetings in December.  There is a general wish
to maximize the opportunities for bilateral contac ts involving capital-based experts.  I will be
conducting consultations with delegations to find further common ground with respect to the
modalities for the treatment of autonomous liberali zation.  It is also my intention to convene an
informal meeting on the subject prior to the Council's December meeting.
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