WORLD TRADE
ORGANIZATIONTN/S/13
5 September 2003
(03-4637)
Council for Trade in Services
Special Session
MODALITIES FOR THE SPECIAL TREATMENT FOR LEAST-DEVELOPED COUNTRY
MEMBERS IN THE NEGOTIATIONS ON TRADE IN SERVICES
Adopted by the Special Session of the Council for Trade in Services on 3 September 2003
I. OBJECTIVES AND PRINCIPLES
1. In pursuance of the objectives of the GATS and as required by Article XIX:3 of the GATS
special treatment for least-developed country Members (LDCs) shall be granted by providing special
priority to LDCs in the implementation of paragraphs 1 and 2 of Article IV of the GATS.  Particularaccount shall be taken of the serious difficulty of LDCs in undertaking negotiated specific
commitments in view of their sp ecial economic situation and their development, trade and financial
needs.
2. The importance of trade in services for LDCs goes beyond pure economic significance due to
the major role services play for achieving social and development objectives and as a means ofaddressing poverty, upgrading welfare, improving universal availability and access to basic services,
and in ensuring sustainable development, including its social dimension.  LDCs are facing serious
difficulty in addressing a number of complex issues simultaneously, and lack institutional and human
capacities to analyse and respond to offers and requests.  This should be factored into the negotiating
process in general and regarding the individual requests made to LDCs.
3. Together with the Guidelines and Procedures for the Negotiations on Trade in Services
(S/L/93), the Modalities for the Special Treatm ent for Least-Developed Country Members in the
Negotiations on Trade in Services shall ensure maxi mum flexibility for LDCs and shall form the basis
for the negotiations.
II. SCOPE
4. Members shall take into account the serious difficulty of LDCs in undertaking negotiated
specific commitments in view of their special economic situation, and therefore shall exercise
restraint in seeking commitments from LDCs. In particular, they shall generally not seek the removal
of conditions which LDCs may attach when making access to their markets available to foreign
service suppliers to the extent that those conditions are aimed at achieving the objectives of Article IV
of the GATS.
5. There shall be flexibility for LDCs for opening fewer sectors, liberalizing fewer types of
transactions, and progressively extending market access in line with their development situation.
LDCs shall not be expected to offer full national treatment, nor are they expected to undertake
additional commitments under Article XVIII of the GATS on regulatory issues which may go beyond
their institutional, regulatory, and administrative capacities. In response to requests, LDCs may make
commitments compatible with their development, trade and financial needs and which are limited interms of sectors, modes of supply and scope.TN/S/13
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6. Members shall, as provided for in Articles IV and XIX of the GATS, give special priority to
providing effective market access in sectors and modes of supply of export interest to LDCs, through
negotiated specific commitments pursuant to Parts III and IV of the GATS.  LDCs should indicate
those sectors and modes of supply that represent priority in their development policies, so that
Members take these priorities into account in the negotiations.
7. Members shall work to develop appropriate mechanisms with a view to achieving full
implementation of Article IV:3 of the GATS and facilitating effective access of LDCs' services and
service suppliers to foreign markets.
8. Members shall take measures, in accordance with their individual capacities, aimed at
increasing the participation of LDCs in trade in services. Such measures could include:
• strengthening programmes to promote investment in  LDCs, with a view to building their domestic
services capacity and enhancing their efficiency and export competitiveness;
• reinforcing export/import promotion programmes;
• promoting the development of LDCs' infrastructure and services exports through training,
technology transfer, enterprise level actions and schemes, intergovernmental cooperation
programmes, and where feasible, financial resources; and
• improving the access of LDCs' services and service suppliers to distribution channels and
information networks, especially in sectors and modes of supply of interest to LDCs.
9. It is recognized that the temporary  movement  of natural persons supplying services (Mode 4)
provides potential benefits to the sending and recipient Members. LDCs have indicated that this is one
of the most important means of supplying servic es internationally. Members shall to the extent
possible, and consistently with Article XIX of the GATS, consider undertaking commitments to
provide access in mode 4, taking into account all categories of natural persons identified by LDCs in
their requests.
10. LDCs shall be granted appropriate credit for their autonomous trade liberalization. In
addition, Members shall refrain from requesting credits from LDCs.
11. In developing any multilateral rules and disciplines, including under GATS Articles VI:4
(Domestic regulation), X (Emergency safeguard measures), XIII (Government procurement) and XV
(Subsidies), Members shall take into account the specific interests and difficulties of LDCs.
III. PRINCIPLES FOR THE PROVISION OF TECHNICAL ASSISTANCE WITH 
REGARD TO TRADE IN SERVICES
12. Targeted and coordinated technical assistance and capacity building programmes shall
continue to be provided to LDCs in order to strengthen their domestic services capacity, build
institutional and human capacity, and enable them to undertake appropriate regulatory reforms. In
pursuance of Paragraph 14 of the Guidelines and Procedures for the Negotiations on Trade in Services
(S/L/93), technical assistance shall also be provided to LDCs to carry out national assessments oftrade in services in overall terms and on a sectoral basis with reference to the objectives of the GATS
and Article IV in particular.TN/S/13
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IV. MECHANISMS AND PROCEDURES
13. The Special Session of the Council for Trade in  Services shall review, as necessary, the
implementation of these modalities under the standing item on "Review of Progress in the
Negotiations".
14. In his report to the Trade Negotiations Committee, the Chairman of the Special Session of the
Council for Trade in Services will include the is sues raised by Members with regard to these
modalities.
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