RESTRICTED
WORLD TRADE S/C/M/13
21November 1996
ORGANIZATION(96-4952)
Council forTrade inServices
REPORT OFTHE MEETING HELD ON23SEPTEMBER 1996
Note bytheSecretariat
1. TheCouncil forTrade inServices heldameeting on23September 1996. Theagenda for
themeeting iscontained inAirgram WTO/AIR/420. Under Other Business, theChairperson made
astatement concerning thestatus ofacceptances oftheSecond andThird Protocols totheGATS and
thedelegation oftheUnited States made astatement concerning certain agreements notified under
Article VoftheGATS.
ITEM A: PREPARATION FORTHE1996MINISTERIAL CONFERENCE OFSINGAPORE
2. TheChairperson recalled thatattheprevious meeting oftheCouncil on30Julytherehadbeen
afirstdiscussion onthepreparations fortheSingapore Ministerial Conference. Ithadtaken place on
thebasisofthetwosubmissions made bythedelegations ofChile andAustralia indocuments S/C/W/16
and17respectively. Thetwosubmissions hadfocused onrecommendations thatmight besubmitted
toMinisters inSingapore, inrelation tofuture work inservices, fortheirconsideration andadoption.
TheChairperson stated thatthediscussion hadbeenpreliminary andinconclusive. Ithadbeenfollowed
byinformal consultations on17September 1996 atwhich thedelegation ofAustralia hadcirculated
itssecond paper supplementing itsfirstsubmission (S/C/W/17/Add.1). Shestated thatattheendof
thatinformal meeting, shehadbeenasked toconsider producing anotewhich might summarize the
situation andprovide some direction. On20September, theSecretariat haddistributed aninformal
notebytheChairperson inwhich sheattempted tosummarize theviews expressed during various
discussions andatthesame timeshare withdelegations herthoughts concerning theCouncil 'sreport
totheGeneral Council andtoMinisters inSingapore. ItwasherviewthattheCouncil should make
useoftheMinisterial Conference togivefuture work inservices greater focus andimpetus. Thework
programme which hadalready beenenvisaged intheGATS represented alargeelement oftheWTO 's
built-in agenda, whose implementation andfulfilment should bethemajor concern oftheMinisterial
Conference. Therefore, shesuggested thatitwould seem sensible totakeadvantage ofthatmeeting
totakestock ofthework thathadbeendone thusfarinservices, toassign priorities anddeadlines
where necessary andtoobtain political impetus andguidance which onlyMinisters could give.
3. Therepresentative ofAustralia, inpresenting document S/C/W/17/Add.1, stated thatthenext
round ofcomprehensive negotiations, duetostartnolaterthantheyear2000, would needtobepreceded
bytheexamination oftheimplications ofthemany rapid changes thathadbeentaking intheservices
sector. Theforces ofchange wereleading toincreased global integration ofservices markets. These
changes were constantly adding tothecomplexity offuture market access negotiations. Australia
considered thatwork onthepreparation forthenewRound muststartin1997taking intoaccount the
concerns thathadbeenexpressed resource constraints.S/C/M/13
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4. Therepresentative ofChile drewattention totheinformal notedated 23September 1996which
hadbeensubmitted byhisdelegation bywayofelaboration onitssubmission indocument S/C/W/16.
Hestated thattheproposed programme ofexchange ofinformation would indirectly helptheattainment
oftheobjectives ofArticles III,IVandXIXoftheGATS. Hestated thatthere seemed tobean
agreement thatsuchaprogramme should notinterfere withthepresent work. Headded thatthestructure
ofsuchaprogramme needed tobeflexible andtakeintoaccount theoverall work loadinthearea
ofservices. Healsostated thatsuchaprogramme could notaffect thepresent rights andobligations
ofGATS Members.
5. Therepresentative ofPeruexpressed support fortheproposal made byChile. Hisdelegation
waspleased toseethataccount hadbeentaken ofparagraph 1ofArticle IVrelating toincreasing
participation ofdeveloping countries. Hestressed thattheexchange ofinformation exercise suggested
byChile must notentail bureaucratic burdens fordeveloping countries.
6. Therepresentative ofMexico stated thatanypreparatory work intheCouncil should takeinto
accountthebalanceofthebuilt-inagenda.Workin1997shouldstartwiththeestablishmentofguidelines
andprocedures fornegotiations asprovided inparagraph 3ofArticle XIX. Shestated thatinview
oftheshortlifeoftheGATS, anypremature evaluation ofitsresults would probably leadtounobjective
conclusions. Itwastheviewofherdelegation thatanyevaluation ofliberalization oftrade inservices
underregionalagreementswouldhavetobeconductedbytheCommitteeonRegionalTradeAgreements.
7. Therepresentative ofthePhilippines -speaking onbehalf oftheASEAN -emphasized the
importance offollowing thebuilt-in agenda inservices. TheCouncil forTrade inServices should
bethebody todecide onspecific timeframes fordifferent items ofthebuilt-in agenda, allowing
consideration forthescarce resources thatsome delegations were concerned about. Sheexpressed
support fortheproposal make byChile foranexchange ofinformation programme. Ministers should
alsomandate theCouncil toconsider thepossibility ofsetting appropriate work programmes for
emergency safeguards, subsidies andgovernment procurement withaviewtotheircompletion inthe
context ofthefuture negotiations duetostartintheyear2000. Shealsoexpressed support forthe
completion ofwork onaccountancy bytheendof1997.
8. Therepresentative ofSwitzerland stated thattheproposals byAustralia were mainly based
onelements thatwerepartoftheon-going work programme ofservices. Members should concentrate
onthebuilt-in agenda ofMarrakesh, which would constitute themostappropriate preparation forthe
negotiations foreseen under Article XIXoftheGATS. Hesuggested thatattheendof1997, theCouncil
should reassess thesituation andmake thenecessary decisions concerning deadlines fordifferent items
ofwork. Insofar astheexchange ofinformation exercise wasconcerned, hestated thatresources were
limited. Heemphasized theroleoftheCouncil inguiding work intheareaofservices.
9. Therepresentative oftheUnited States stated thattheCouncil should notlosesightofthebuilt-in
agendaofservices,includingtheon-goingnegotiations.Inhisview,thecommencementofapreparatory
work programme in1997 didnotconstitute anundue burden ondelegations. Ithadbeenagreed that
anassessment would beconducted. What remained wasadecision onwhen itwould takeplace. He
expressed apreference forMinisters tolaunch suchaprocess in1997. Hisdelegation wasalsoof
theviewthatwork inaccountancy should beconcluded bytheendof1997.
10. Therepresentative ofNorway agreed thatattention should bedirected toon-going work and
negotiations andthatthereshould notbeanover-expansion ofactivity. Hisdelegation wasoftheview
thattheMinisterial conference represented anopportunity toobtain guidance from Ministers. A
preparatory work programme should startin1997 asproposed byAustralia.S/C/M/13
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11. Therepresentative ofMorocco stated thatthediscussion should focus onandgivepriority to
elements ofthebuilt-in agenda. Hisdelegation wasmostconcerned byquestions oflegalconsistency.
Hestated thatsome oftheproposals made bythedelegations ofAustralia andChile wentbeyond the
built-in agenda. Inhisviewadistinction needed tobedrawn between, forexample, whathadbeen
mandated byArticle XIXbywayofpreparation forfuture negotiations andother elements ofthe
proposals under discussion. Healsostated thatwork relating toregional agreements should takeplace
intheCommittee inRegional Trade Agreements.
12. Therepresentative ofKorea stated thathisdelegation hadaproblem withtheproposal tostart
anexchange ofinformation. Such anexercise seemed torequire considerable financial andhuman
resources anditwasnotclearhowuseful itwould beforthepurposes offuture negotiations. Inhis
viewthesuccess ofanynegotiations would depend ontheconcessions made andthepositions taken
bygovernments andnotoninformation exchange between governments. Hestated thatsubsidiary bodies
should carry onwiththeirassignments withaviewtoproducing results asplanned. TheCouncil for
Trade inServices could setdates atalaterstage forsubsidiary bodies toconclude work ondifferent
items. Intheviewofhisdelegation itwaspremature andinappropriate fortheCouncil torecommend
apreparatory work programme toMinisters inSingapore.
13. Therepresentative ofJapan presented anon-paper which hadbeencirculated byhisdelegation
reflecting itsbasic views. Hestressed theimportance ofpractical andpositive results intheareaof
tradeinservices attheSingapore Ministerial Conference. There wasaneedtoconfirm thecommitment
tosuccessfully conclude theongoing negotiations. Hesupported anearly startoftheassessment of
trade inservices mandated byArticle XIX:3 oftheGATS. Healsosuggested thatsubsidiary bodies
should beinaposition tomake theirownrecommendations inrelation totheareas ofwork falling
within theirresponsibilities.
14. Therepresentative ofPakistan stressed thatthepromotion ofthedevelopment ofdeveloping
countries wasoneofthemain objectives oftheGATS. Heexpressed concern overthedifficulties
facing theimplementation oftheagreement inareas suchasfinancial services andsuggested thata
political message fromMinisters atSingapore might helpreach asuccessful conclusion totheongoing
negotiations.
15. Therepresentative oftheEuropean Communities stated thattheproposed information exchange
exercise would beveryuseful, atalaterstage, inthecontext ofpreparing guidelines fornegotiations
asrequired byArticle XIX. Theassessment ofliberalization under regional agreements, however,
should takeplace under theaegis oftheCommittee onRegional Trade Agreements. With respect to
work under Article VI:4oftheGATS, shestated thatsome experience needed tobegained fromthe
current work onaccountancy before expanding work intoother areas. With respect tothedeadline
forthework onaccountancy, herdelegation wasoftheviewthatdeadlines werenotnecessarily most
helpful inensuring asuccessful conclusion. However thematter wasstillunder consideration. In
general, shestated thatfortheforthcoming year,priority should begiven tothecurrent workprogramme
andongoing negotiations inbasic telecommunications andfinancial services. TheCouncil forTrade
inServices should reassess thesituation attheendof1997andtakeanydecisions thatmaybenecessary
toprovide guidance indifferent areas ofwork inservices.S/C/M/13
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16. Therepresentative ofIndia stated thatthereport oftheCouncil forTrade inServices tothe
General Council would mainly consist ofreports ofsubsidiary bodies. Therefore, afinalconsideration
should begiven tosuchareport afterthenecessary inputs hadbeenmade bysubsidiary bodies. With
respect totheproposals made byAustralia andChile, hisdelegation wasoftheviewthattheywere
quite useful butshould beconsidered asmatters relating tothework oftheCouncil andnotissues
thatshould beputtoMinisters atSingapore. While hisdelegation wasflexible ontheexchange of
information exercise, anyacceleration ofthebuilt-in agenda wasconsidered undesirable. Theflexibility
fordeveloping countries underscored byArticles IVandXIXoftheGATS mustbetaken intoaccount.
17. Therepresentative ofHong Kong wasoftheview thatadvantage should betaken ofthe
Ministerial meeting inSingapore togiveguidance towork inservices. Hisdelegation attached
importance tolaunching apreparatory work programme andsupported theexchange ofinformation
exercise suggested byChile. Headded thatanypreparatory work programme should takeintoaccount
ongoing work including ongoing negotiations infinancial services andbasic telecommunications.
18. Therepresentative ofArgentina stated thatpriority should begiven towork already underway
insubsidiary bodies. Setting newdeadlines would notbeaguarantee thatwork would beconcluded
expeditiously andeffectively. Hesuggested thattowards theendof1997 theCouncil forTrade in
Services could make anassessment oftheprogress achieved andtakeanydecisions thatmayberequired
tofurther direct andguide thework ofsubsidiary bodies.
19. Therepresentative ofNewZealand supported apreparatory work programme onallitems of
thebuilt-in agenda. Herdelegation supported alltheelements oftheproposals made byChile and
Australia. Shenoted thattheproposal byAustralia referred alsotowork which formed partofthe
built-in agenda under theAnnexes totheGATS, inparticular, theAnnex onArticle IIExemptions
andtheAnnex onAirTransport. Shesuggested thatMembers should usetheopportunity ofthe
Singapore Ministerial Conference togiveimpetus toongoing work andlaunch apreparatory work
programme. Sheattached theutmost importance toasuccessful conclusion ofnegotiations onbasic
telecommunications andfinancial services.
20. Therepresentatives ofHungary andPoland stated thatitwould bedesirable torelymore on
theCouncil forTrade inServices inrunning thedaytodaywork indifferent areas ofservices. The
imposition ofspecific deadlines might notinitself behelpful. TheCouncil should assess progress
towards theendof1997 andtakethenecessary decisions inthelightofthatassessment.
21. Therepresentative ofEgypt stated thattheconcerns expressed byothers inrelation toresources
should betaken seriously. Healsoagreed withthose whosuggested thattheCouncil forTrade in
Services should reassess thesituation attheendof1997andtakethenecessary decisions onanyfurther
guidance thatmight beneeded inthelightofsuchanassessment.
22. Therepresentative ofCanada stated thathisdelegation maintained theviews ithadexpressed
attheprevious meeting. Hisdelegation wasstillconcerned about lackofprogress incertain areas
ofwork.
23. Therepresentative ofAustralia agreed thatpriority should begiven toensuring thesuccessful
implementation ofthebuilt-in agenda. Shesuggested thatsome distinction might needtobedrawn
between those items onwhich work hadalready beenunderway andothers onwhich work hadnot
yetstarted. Sheaccepted thepoint thattheavailability ofresources maybeaproblem, butsuggested
thatifwork proceeded attheright pacethatproblem should bemanageable. While deadlines in
themselves would notguarantee thesuccessful conclusion ofwork, theirabsence could haveanegative
effect onthepaceofwork.S/C/M/13
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24. TheChairperson stated thatitwasclearthatdelegations agreed thatpriority should begiven
toelements ofthebuilt-in agenda including theconclusion ofongoing negotiations. There weredifferent
views however concerning theextent towhich Ministers should becalled upon tomake decisions
concerning future work. With respect totheexchange ofinformation exercise, shenoted thatwhile
therehadbeennoobjection totheprinciple, thereweredifferences concerning thetiming andmodalities
forsuchanexercise. Shesuggested thattheCouncil takenoteofthestatements andthatsheshould
continue herinformal consultations ontheissues raised.
25. TheCouncil tooknote.
ITEM B: APPOINTMENT OFACHAIRPERSON FOR THE WORKING PARTY ON
PROFESSIONAL SERVICES
26. TheChairperson oftheCouncil stated thatshehadbeenconsulting ontheappointment ofa
Chairperson fortheWorking Party onProfessional Services. Sheindicated thatthere hadbeenthree
candidates allofwhom weresupported byanumber ofdelegations. However, shewasnotinaposition
toidentify aconsensus onanyofthem. Inherviewitwasnecessary tofindanewcandidate andshe
invited delegations tocome forward withnewnominations. Sheindicated thatshewould continue
toconsult onthematter.
ITEM C: ESTABLISHMENTOFTHEEUROPEANUNION-REQUESTFOREXAMINATION
PURSUANT TOARTICLE VOFTHE GATS
27. TheChairperson recalled thatattheCouncil meeting on28May1996, thedelegation ofthe
United States hadrequested, under other business, theexamination oftheTreaties Establishing The
European Union pursuant toparagraph 7ofArticle VoftheGATS.
28. Therepresentative oftheUnited States reiterated itsrequest thattheTreaties Establishing The
European Union beexamined pursuant toparagraph 7ofArticle VoftheGATS.
29. TheChairperson suggested that,intheabsence ofanyobjection, theCouncil would decide
toreferthose Treaties totheCommittee onRegional Trade Agreements fortheirexamination pursuant
toparagraph 7ofArticle VoftheGATS.
30. TheCouncil soagreed.
ITEM D: OBSERVER STATUS FOR INTERNATIONAL INTERGOVERNMENTAL
ORGANIZATIONS
31. TheChairperson recalled thatinaccordance withtheadhocprocedure which hadbeenagreed
bytheGeneral Council concerning participation ofinternational intergovernmental organizations as
observers inthemeetings ofWTO bodies, theServices Council hadbeeninviting foursuchorganizations
toitsmeetings onanadhocbasis untiltheGeneral Council hasapproved thegeneral Guidelines for
Observership ofsuchorganizations. TheGeneral Council, atitsmeeting, on18July1996, hadapproved
the"GuidelinesonObserverStatusforInternationalIntergovernmentalOrganizations".TheChairperson
saidthatshewould holdinformal consultations concerning which international intergovernmental
organizations would begranted permanent observer status intheServices Council. Until such
consultations wereconcluded andadecision wastaken bytheCouncil, thesame fourorganizations,
theUN,UNCTAD, IMFandtheWorld Bank should beinvited toparticipate intheCouncil meetings
asobservers onanadhocbasis.
32. TheCouncil soagreed.S/C/M/13
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ITEM E: OTHER BUSINESS
33. TheChairperson recalled thaton30July1996 theCouncil hadadopted thedecision onthe
Acceptance oftheSecond andThird Protocols totheGeneral Agreement onTrade inServices (S/L/28)
which extending thedeadline fortheacceptance ofbothProtocols until30November 1996. Asof
23September thesituation ofacceptances wasasfollows:
(a) Withregard totheSecond Protocol which hadentered intoforceon1September 1996,
thefollowing Members whohadnotyetaccepted: Belgium, Brazil, Egypt, Greece,
Portugal andSpain.
(b) Withregard totheThird Protocol, Members which hadnotaccepted: Belgium, Greece,
Portugal, Spain andSwitzerland.
TheChairperson strongly urged those Members todotheirbesttofinalize theirdomestic
procedures fortheacceptance bythedeadline of30November 1996.
34. Therepresentative oftheUnited States made astatement requesting thattheCouncil takea
decision toexamine, pursuant toparagraph 7(a)ofArticle V,thefollowing agreements:
(a) ProtocolonTradeinServicestotheAustralia-NewZealandCloserEconomicRelations
Trade Agreement (S/C/N/7)
(b) Europe Agreement between theEuropean Communities andtheirMember States and
theSlovak Republic (S/C/N/23)
(c) Europe Agreement between theEuropean Communities andtheirMember States and
Republic ofHungary (S/C/N/24)
(d) Europe Agreement between theEuropean Communities andtheirMember States and
Republic ofPoland (S/C/N/25).
35. TheChairperson suggested thattheCouncil takenoteofthestatement andrevert tothismatter
atitsnextmeeting.
36. TheCouncil tooknote