. /.WORLD TRADE
ORGANIZATIONS/WPGR/3
3 December 1998
(98-4857)
Working Party on GATS Rules
REPORT OF THE WORKING PARTY ON GATS RULES
TO THE COUNCIL FOR TRADE IN SERVICES
1. The Working Party on GATS Rules held five formal meetings in 1998.  In each meeting, the
Working Party considered all three negotiating mandates:  emergency safeguard measures under
Article X,  government procurement under Article XIII and subsidies under Article XV.
Negotiations on emergency safeguard measures under Article X of the GATS
2. Differing views have been expressed by Members with regard to the desirability of
developing an emergency safeguard mechanism under the GATS.  Substantive discussions arecontinuing on the subject without prejudging the position of any delegation in respect of the
desirability, feasibility or form of any possible emergency safeguard mechanism, with the objective of
concluding negotiations by 30 June 1999.
3. In recent meetings, the Working Party has focused on four key questions identified by the
Chairperson in an informal note (dated 3 June 1997):  (i)  On whose behalf would emergency
safeguard action be taken?  (ii) In what circumst ances would emergency safeguard action be taken and
what would be the purpose of such  action?  (iii) What approach should be adopted in respect of
injury/adverse effects, and the relevant causal link between injury/adverse effects and commitmentsunder the GATS?  (iv)  What measures would be  taken under the emergency safeguard mechanism?
Are some measures deemed more suitable than others?
4. The delegation of Hong Kong, China, made a submission suggesting some broad principles
that might be included as part of any safeguard mechanism (circulated as S/WPGR/W/26).  The
Chairperson circulated an informal note (dated 16 September 1998) containing responses, not
necessarily agreed, to the above four questions.  The questions raised in this note were discussed
during an informal brainstorming session on 1 October 1998 and in subsequent meetings.  The
delegation of Venezuela made an informal submission (dated 14 October 1998) listing issues for the
organization of future discussions on emergency safeguards. The Secretariat prepared a paper
(S/WPGR/W/27) describing, first, alternative forms that a safeguard mechanism under the GATS maytake and then elaborating on the list of issues identified in the submission from Venezuela.
Negotiations on government procurement under Article XIII of GATS
5. Costa Rica submitted a response to the questionnaire on national procurement regimes
(S/WPGR/W/11/Add.22), adding to the twenty-one responses received during 1997.  An indicative
tabulation relating questionnaire responses to possible elements of multilateral disciplines, presentedin a note from the Chairperson (dated 21 February 1997), has formed the basis for a structured
consideration of these elements.  In recent meetings, discussion has focused on the scope and
coverage of any disciplines on government procurement on the basis of a non-paper submitted by the
European Communities and Their Member States (dated 13 February 1998).  In this context, the issueS/WPGR/3
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of how concessions should be treated has received particular attention.  Members have emphasized
the need for the Working Party to continue to coordinate work with the Working Group on
Transparency in Government Procurement .
Negotiations on subsidies under Article XV of GATS
6. Delegations expressed the need to continue the technical analysis of subsidies related to trade
in services.  To this end the Secretariat prepared a note presenting information on the subject
contained in WTO Trade Policy Reviews (circulated as S/WPGR/W/25).  The Chairperson circulated
an informal note (dated 3 April 1998) to facilitate identification of the circumstances in which
subsidies may cause trade distortions.  Discussion on the relevant conceptual and legal issues iscontinuing even as efforts are being made to advance the information exchange.
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