. /.WORLD TRADE
ORGANIZATIONTN/S/9
4 June 2003
(03-2878)
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
Further to my interim oral report made to the TNC on 9 May 2003, I wish to make this formal
written report.
The Council for Trade in Services in Special Session met on 19-22 May 2003.
I. STATUS OF WORK
1. Under the item "Assessment for Trade in Services" the Council held a substantive discussion
which included statements noting the importance of this exercise for developing countries and callingfor further assessment work on a sectoral basis.  Most delegations emphasised that work on this item
was an on-going process.  It is not an academic exercise, but has practical implications.  Members
noted that the information required for conducting an  assessment could be lacking;  that there was a
need for a broader range of sources of information to be used where those sources exist;  and that
developing countries required technical assistance to conduct assessments.  The suggestion was alsomade that I hold consultations on this item in order to better focus the Council's work.
2. On the "Modalities for the Special Treatment for Least-Developed Countries", a revised draft
of the Modalities was presented by the LDC group.  A substantive discussion was held in which
Members expressed their desire to move forward in a constructive, positive and expeditious manner.
The view was expressed that the modalities should no t seek to determine an outcome, but rather allow
LDCs to better formulate and pursue their interests in the negotiations.  Given the fact that we are now
in the initial offers stage, the Council also took note of the relative urgency of its work on this item.  Anumber of delegations noted that they withheld detailed comments on the draft in order to present
these in an informal meeting to be held on 11 June.
3. Regarding the item "Proposals Relating to the Negotiations under Article XIX", the Council
held substantive discussions, in part on two proposals on the scheduling of energy services.  The
importance of this sector in supporting economic growth for all Members was underlined.  Theproposals presented are the fruit of considerable on-going work of a "friends group" on energy
services.  I encouraged others to follow this exam ple and to apprise the Council of the work of such
friends groups, as further transparency helps to advance discussion in these sectors.  A contribution
was also made on cultural services, in which the sensitivities and complexities of conducting
negotiations were touched upon, as well as suggestions on how to appropriately overcome them.Further support was expressed for a joint communication on maritime transport services presented at
the last formal meeting.  Interventions were al so made highlighting the importance of logistics
services in international transport, as well as certain aspects of health services.
4. Under the item "Review of Progress in Negotiations", the Council's discussion was
characterised by a large number of interventions and the raising of substantive points demonstratingthat the negotiations had moved to a new level following the circulation of the first initial offers.TN/S/9
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Delegations indicated that there had been a healthy exchange of views in bilateral consultations, both
in terms of clarifying initial offers and, in a few cases, requesting deeper commitments.  In this regard,
concerns were raised with respect to possible roll-back, which would require clarification.  Most
Members indicated that they felt that the 25 initial offers circulated to date was a positive sign of
engagement;  however, it was observed that a clearer picture of the level of ambition would require aqualitative assessment in addition to the quantitative analysis.  Some developing country Members
expressed disappointment that sectors which they had indicated as being of interest to them were not
sufficiently reflected in the offers.  A number of delegations indicated that their offers were in the
final stages of preparation;  others underlined that capacity-related delays in submitting an offer
should not be interpreted as a lack of interest on their part.   A number of Members took the
opportunity to present their offers and indicated that these had been formulated with a view to
establishing positive linkages.  There were interventions to the effect that there remains importantunfinished business in areas outside the market access negotiations, namely in GATS rules and
domestic regulation.  I also think it worthwhile to point out that Members indicated that bilateral
consultations and the work of the Special Session has been characterised by a positive atmosphere.
5. Finally, in my last written report to the TNC, I stated that a proposal originally tabled last
October by a group of developing country Members was an Outstanding Issue.  The proposalconcerns paragraph 15 of the Guidelines and Procedures for the Negotiations on Trade in Services,
which refers to an evaluation of the results obtained in the negotiations in terms of the objectives of
Article IV (Increasing Participation of Developing Countries) of the GATS.  Members have now
agreed to include a permanent sub-item on the agenda under the item "Review of Progress in
Negotiations".
II. OUTSTANDING ISSUES
6. With respect to Outstanding Issues, there is a sense that the Council must pursue its work on
the Modalities for the Special Treatment for Least-Developed Countries with a sense of priority.  An
open-ended informal meeting will be held on 11 June to allow a technical discussion on the revised
draft.
III. FUTURE WORK
7. Under the item "Organisation of Future Work ", I informed the Council about a letter I
received from the Chairman of the General Council regarding Agreement-specific proposals on
Special and Differential Treatment.  As you know, these proposals have been referred to negotiating
bodies for their consideration.  The Special Session of the Council for Trade in Services will hold an
informal meeting in June in order to prepare the groundwork for the consideration of a report to the
General Council at the July cluster of services meetings.
8. Lastly, I informed the Council that, in prepar ation for the Fifth Ministerial Conference, I am
preparing a report on my own responsibility for submission to the TNC on the work of the Special
Session since the Fourth Ministerial Conference.
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