RESTRICTED
WORLD TRADE S/C/M/17
10April 1997
ORGANIZATION(97-1560)
Council forTrade inServices
REPORT OFTHE MEETING HELD ON5MARCH 1997
Note bytheSecretariat
1. TheCouncil forTrade inServices heldameeting on5March 1997. Theagenda forthemeeting
wascontained inWTO/AIR/538. TheSecretariat alsoproduced anannotated agenda contained in
document S/C/W/20. Under other business therepresentative oftheEuropean Communities raised
twopoints, thefirstonBrazil 'slegislation onmaritime transport services andthesecond onthestatus
ofthework onstatistics andonArticle XXIprocedures formodification ofschedules.
A. OBSERVERSTATUSFORINTERNATIONALINTERGOVERNMENTALORGANIZATIONS
2. TheChairperson recalled thatatitsmeeting of7February 1997, theGeneral Council invited
other WTO bodies toproceed withthegrant ofobserver status tointernational intergovernmental
organizations. Shedrew attention todocument S/C/W/19, which contained twolistsofinternational
intergovernmental organizations. Thefirstlistnamed organizations which hadbeeninvited onanadhoc
basistoattend meetings oftheCouncil forTrade inServices andthesecond organizations which had
requested observer status, butwhose requests hadnotyetbeenaddressed bytheCouncil. Sheproposed
thattheCouncil agree togrant observer status tothefourinternational intergovernmental organizations
onthefirstlist:UN,UNCTAD, IMFandtheWorld Bank. Regarding those organizations onthesecond
list,sheproposed thatfurther informal consultations should beheldwithaviewtodeciding onthe
granting ofobserver status atthenextmeeting oftheCouncil.
3. TheCouncil soagreed.
B. THE APPOINTMENT OFCHAIRPERSONS OFTHE SUBSIDIARY BODIES
4. TheCouncil approved thefollowing nominations tochair therespective subsidiary bodies:
- Mr.Yoshio Okubo (Japan), Committee onFinancial Services;
- Mr.Asoke Kumar Mukerji (India), Committee onSpecific Commitments;
- Mr.Glyn Williams (United Kingdom), Working Party onProfessional Services;
- Ms.JillCourtney (Australia), Working Party onGATS Rules
5. Therepresentative ofJapan saidthatMr.Okubo would beresiding inGeneva during his
chairmanship oftheCommittee onFinancial Services, although ithadnotyetbeendecided whether
hewasgoing tobeamember oftheJapanese Mission during theperiod ofhisstay.S/C/M/17
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C. THE REPORT OFTHE GROUP ONBASIC TELECOMMUNICATIONS
6. TheChairperson drew attention totheReport oftheGroup onBasic Telecommunications
contained indocument S/GBT/4 andtoitsattachments: aNote bytheChairman concerning the
schedulingofbasictelecommunicationsservicescommitments,anotherNotebytheChairmanconcerning
market access limitations onspectrum availability andaListoftheSchedules ofCommitments and
ListsofMFN Exemptions which willbeannexed tothefourth Protocol totheGATS. Sheproposed
thattheCouncil takenoteoftheReport anditsattachments.
7. TheCouncil tooknote.
8. TheChairpersonalsoproposedthattheSchedulesofCommitmentsandListsofMFNExemptions
attached totheReport bederestricted sothattheSecretariat could make them available tointerested
parties outside theWTO. Some delegations suggested thatitwould bemoreappropriate ifderestriction
tookplace aftertheSchedules hadbeenverified. TheChairperson concluded that,intheabsence of
aconsensus toderestrict thedraftSchedules astheystood, afterverification thefinalSchedules and
Exemption Lists would beissued asunrestricted documents.
9. Therepresentative ofJapan stated thathisdelegation hoped thatacertified copyoftheprotocol
anditsattachments could beavailable bytheendofMarch, sothattheJapanese Dietcould meetthe
deadline of30November 1997forratification. TheChairperson reminded participants thataninformal
meeting oftheCouncil forTrade inservices wasscheduled for14March 1997toconduct theverification
oftheSchedules andLists ofExemptions from Article II.
D. PROPOSED ESTABLISHMENT OFACOMMITTEE ONTELECOMMUNICATIONS
10. Therepresentative oftheUnited States proposed thatacommittee ontelecommunication be
established toprovide aforum forthediscussion ofspecific technical issues, including those regarding
thepro-competitive regulatory principles oftheReference Paper. Hesaidthatsuchacommittee would
bring telecommunications andtradeexpertise together. Hestressed thatitwould notbeconcerned with
theimplementation oftheschedules, which remained ataskfortheCouncil forTrade inServices.
Some delegations agreed withtheproposal andsaidthatthere wasmerit inestablishing acommittee
ontelecommunications todealwithtechnical issues relating totheregulation ofthesector. One
delegation noted thatacommittee ontelecommunications should notduplicate thework oftheITU.
Several delegations expressed interest intheproposal, butsaidthatitwasnecessary tobalance the
advantages ofacommittee against possible disadvantages. Among theadvantages mentioned wasthe
importance ofhaving aspecialised forum thataddressed thetechnical aspects oftelecommunications
andwhich involved experts. Ontheother handsome delegations expressed concern about proliferation
ofsubsidiarybodiesandtheheavydemandondelegations,especiallythesmallerones.Somedelegations
suggested thatthere wasnoreason toproceed immediately withthecreation ofatelecommunications
committee andthatitmight beadvisable towaitsome timetoseewhether theneedforsuchacommittee
would ariseinpractice. Delegations, however, expressed theneedtofurther reflect andconsult with
theircapitals. Therepresentative oftheUnited States saidthatinorder tofacilitate further discussion
ofthematter, hisdelegation would provide draftterms ofreference fortheproposed committee on
telecommunications. TheChairperson suggested thattheCouncil takenoteofthestatements made and
revert tothisitematafuture meeting.
11. Itwassoagreed.S/C/M/17
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E. NOTIFICATIONS MADE TOTHE COUNCIL PURSUANT GATS PROVISIONS
12. TheCouncil tooknoteofthefollowing Notifications:
(i) Notifications pursuant toArticle III:3oftheGATS concerning modifications toservices
regulations insectors where specific commitments hadbeenundertaken:
Czech Republic S/C/N/39
Liechtenstein S/C/N/40
Liechtenstein S/C/N/41
Liechtenstein S/C/N/42
Federal Republic ofGermany S/C/N/48
Federal Republic ofGermany S/C/N/49
Federal Republic ofGermany S/C/N/50
(ii) Notifications pursuant toArticle V(bis)oftheGATS concerning labour market
integration agreements:
Denmark S/C/N/34
Iceland S/C/N/35
Norway S/C/N/36
Sweden S/C/N/37
Finland S/C/N/38
(iii) Notifications pursuant toArticle VII:4 oftheGATS concerning recognition measures
andagreements orarrangements:
Switzerland S/C/N/31
Switzerland S/C/N/32
Switzerland S/C/N/33
United States ofAmerica S/C/N/51
United States ofAmerica S/C/N/52
United States ofAmerica S/C/N/53
F. THEIMPLEMENTATION OFTHEWORK PROGRAMME APPROVED BYMINISTERS
ATTHE SINGAPORE MINISTERIAL CONFERENCE
13. Three sub-items were discussed under thispoint: (i)exchange ofinformation programme;
(ii)Article VI:4work programme; (iii)guidelines forthefuture negotiations mandated byArticle XIX
oftheGATS.
14. (i)Under exchange ofinformation programme, theChairperson recalled thatMinisters in
Singapore endorsed therecommendation thattheCouncil forTrade inServices would develop an
informationexchangeprogramme,aspartoftherequisiteworktofacilitatethenegotiationsofprogressive
liberalization oftradeinservices asmandated byArticle XIXandthatthetaskoftheCouncil for1997
wastoagree tothemodalities andthetiming ofsuchaprogramme.
15. Therepresentative ofAustralia introduced adiscussion paper, suggesting thattheprocess of
information exchange mandated byMinisters should commence withthedrafting ofbackground papers
onfourissues which Australia considered toberelevant totheinformation exchange. Theissues were:S/C/M/17
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trends inservices trade flows; thebenefits ofderegulation andliberalization ofservices markets; the
impact ofnewtechnologies oncross-border trade inservices; andshifts inbusiness strategies. She
saidthatthediscussion paper wasneither intended todefine theexchange ofinformation programme,
nortopre-empt other approaches. Shesuggested thatinputs forthebackground papers proposed by
Australia should come from delegations aswellastheSecretariat. Several delegations expressed
appreciation forthepaper presented byAustralia andindicated thattheywould make comments once
theyhadhadtimetoexamine itmore closely. Some delegations agreed thatitwould bedesirable if
theSecretariatwouldstartbackgroundworkonsomeofthemattersindicatedintheAustraliandiscussion
paper. They alsosuggested thattheCouncil should consider howtomake useofinformation already
gathered bytheSecretariat aswellasinformation available inother international organization, inorder
toavoid duplication ofefforts. Regarding thecoverage oftheexchange ofinformation programme
some delegations saidthatitshould becomprehensive withnoexclusion ofservices sectors. Other
delegations, although agreed thatinprinciple nosector should beexcluded, noted thatitmight be
desirable toconcentrate onthose sectors which were more likely candidates forliberalization inthe
nextround ofnegotiations.
16. (ii)Under theArticle VI:4work programme, theChairperson recalled thattheCouncil was
called upontoexamine, asappropriate, under paragraph 4ofArticle VIoftheGATS, measures relating
toqualification requirements andprocedures, technical standards andlicensing requirements. Some
delegations saidthatpriority should begiven todisciplines tobedeveloped inspecific sectors andin
particular tothework which wasbeing doneintheWorking Party onProfessional Services, asthis
might provide agood basis forexpanding thework further. Others noted thatwork should bedone
onahorizontal basisaswellasinspecific services sectors. Itwassuggested thatinformal consultations
might beveryuseful asviews onthismatter hadnotyetbeenfullydeveloped.
17. (iii)Onguidelines andprocedures forfuture negotiations, theChairperson recalled thatthe
Council wascalled upontobegin, atanappropriate time, theconsideration ofguidelines andprocedures
forthefuture negotiations mandated under Article XIXoftheGATS. Some delegations expressed the
viewthatitwaspremature atthatstagetostartwork onthismatter andthattheexchange ofinformation
exercise should takepriority andprecede work onguidelines andprocedures. Onedelegation noted
thatthere wasarelation between theexchange ofinformation andtheguidelines andprocedures for
negotiations. Itwassuggested thatthematter bediscussed further ininformal consultations.
18. TheChairperson suggested thattheCouncil takenoteofthestatements made andthatinformal
consultations beheldonsub-items (i),(ii)and(iii)ofthework programme mandated bytheSingapore
ministerial conference.
19. Itwassoagreed.
G. INSTALLATION OFTHE NEW CHAIRMAN
20. Following theconsensus established atthemeeting oftheGeneral Council on7January 1997,
theCouncil forTrade inServices elected Ambassador JounYung SunofKorea asitsChairman by
acclamation. Several delegations intervened tothank theoutgoing Chairperson, Ambassador Bautista
ofthePhilippines forherwork andtocongratulate andwelcome thenewChairman.S/C/M/17
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H. OTHER BUSINESS
21. Therepresentative oftheEuropean Communities expressed concern about anewlawinBrazil
concerning maritime transport services, which wasenacted inJanuary 1997. Sheargued that,asit
contained some elements ofdiscrimination onfreight transportation andsome conditions ofreciprocity
ontaxadvantages, itwascontrary tothestandstill clause contained intheMinisterial Decision taken
attheendofthenegotiation onmaritime transport services. Shealsoexpressed concern about
discriminatory lighthouse feesandnoted thatatrend towards discrimination inmaritime transport in
Brazil could make further negotiations inthesector more difficult. Therepresentative ofBrazil took
noteofthestatement fromtheEuropean Communities andsaidthathewould referittohisauthorities.
Heindicated thattheywereavailable toprovide thenecessary information totheEuropean Communities
regarding Brazil 'slegislation. Therepresentative ofNorway saidthatheshared thesame concerns
oftheEuropean Communities onBrazil 'salleged discriminatory practices onmaritime transport services
andindicated thathisdelegation hadalready raised thequestion ofdiscriminatory lighthouse feesat
theTPRM withBrazil lastyearandthathisauthorities stillexpected suchdiscriminatory practice to
beabolished.
22. Therepresentative oftheEuropean Communities alsomade astatement concerning the
development ofprocedures forthemodification ofschedules under Article XXIoftheGATS. She
saidthatherdelegation wanted toensure thatwork onthese procedures would continue, given the
limited timeavailable. Shealsoindicated thatherdelegation would liketobeinformed onthestatus
ofthework onstatistics.