RESTRICTED
WORLD TRADE S/CSC/W/4
29May 1997
ORGANIZATION
(97-2316)
Committee onSpecific Commitments
ANNOTATED PROVISIONAL AGENDA FOR THE
THIRD MEETING OFTHE COMMITTEE
ONSPECIFIC COMMITMENTS
Asstipulated inWTO/AIR/600 thefollowing items areproposed fordiscussion atthethird
meeting oftheCommittee onSpecific Commitments tobeon16June1997.
A. Participation ofObservers
1. ThefourInstitutions (United Nations, International Monetary Fund, World Bank andUnited
Nations Conference onTrade andDevelopment) thathadobserver status inthecommittee ona
provisional basis willnowenjoy permanent observer status. Noadditional request forobservership
status hasbeenreceived since thelastmeeting.
B. Classification Issues
I. Second Discussion ofDocument S/CSC/W/2
2. Atitslastmeeting thecommittee hadafirstdiscussion ofthedocument S/CSC/W/2
"developments ininternational classification systems andimplications fornegotiations under theGeneral
Agreement onTrade inServices". Theviews expressed bydelegations onthisdocument wereofa
verypreliminary nature. Itissuggested thatthecommittee hasasecond discussion onthisdocument
which could concentrate onthequestions raised inpartVofthedocument (paragraphs 39to41)and
toaddress those questions onebyone.
3. Thequestion ofnewservices (para 39,page11):howcanaclassification system provide
coverage ofnewservices thatmayemerge inthefuture?
Theessential issuehereisthedifferentiation ofnewservices fromrelated services (which may
becovered bythesame CPC number onwhich commitments exists). Thisquestion isatthesame
timetechnical andprocedural.
4. Question 40(i):"domembers agree thatthebasis forclassifying services continue tobethe
CPC? ifsowhich improvements arenecessary toensure abetter definition ofthesectoral
coverage ofcommitments?"
Themainquestion hereiswhether theCPCshould bethebasis forscheduling commitments.
Members maywish towaittohaveafullanalysis ofCPC Rev.1 before answering thisquestion.
However theirpractical experience inscheduling mayhaverevealed shortcomings orsuggested possible
improvements inthatsystem. These shortcomings andsuggestions could beusefully collected and
discussed.S/CSC/W/4
Page 2
5. Question 40(ii)"should theobjective oftheexercise firstbeagreed bymembers (e.gbetter
coverage ofallcovered services, higher degree ofdisaggregation ,more detailed definitions
tobetter distinguish between services)?"
Members maywishtoexpress views about theobjectives tobefollowed asregards classification
aswellasscheduling.
6. Question 40(iii)"isthere agreement onthemain deficiencies ofthecurrent system ofusing
secretariat listbacked upwiththeCPC (e.glackofsufficient descriptive detail ofservices,
inadequate coverage ofaparticular service)? whatshould beconcluded from thedepartures
fromthissystem thathaveoccurred inthetelecommunications andmaritime transport sector?
isthere scope foragreeing ondetailed definitions ofservices sectors andsubsectors asinthe
airtransport annex?"
Asfarasthedeficiencies areconcerned members maywish toconsider theusefulness of
identifying andlisting problems encountered. Asfarasthequestion ofthe"departures from the
MTN.GNS/W/120-CPC" isconcerned thefactisthatmostofthesectoral negotiations thathavetaken
place since theround haveusedadhoc,tailor-made scheduling classifications andtechniques with
variable status, andthatintheround itself some sectors were judged specific enough tohavetheir
ownmodalities ofscheduling.
7. Question 40(iv)"Ifthere is,orcould beagreement onthemain deficiencies ofthecurrent
method ofclassification should therevision work begeared tocorrecting thedeficiencies or
should itbebroader inscope andlooktomake recommendations forallservices sectors covered
bythemandate ofthecommittee? What classification should bestudied inaddition toCPC?
Should thework bedone inthecommittee orshould outside expertise becalled upon?
Themain issue iswhether weshould continue towork onthebasis ofW/120 which isitself
based ontheCPC orwhether amore elaborated system ofclassification should bedeveloped.
8. Question 40(v):"inconsidering howtheGATS classification system could beimproved would
itbedesirable orfeasible tointroduce anydistinctions according tothefourmodes ofsupply.
(indeveloping astatistical framework which would meet theGATS needs thesecretariat
acknowledges thatdifferent statistical classifications-BOP, establishment trade, foreign direct
investment, production correspond onlyinanincomplete waytothefourmodes concept of
trade andthatsignificant improvements arerequired interms ofmethodology andstatistical
systems)"
Thisrelates tothequestion ofthework onstatistics (seebelow). Statistics oftrade under the
different modes ofsupply would certainly behelpful butwillnotbeavailable inanynearfuture.
Classification ofservices according tomodes ofsupply might beseenasinconsistent withthestructure
oftheAgreement.
9. Question 40(VI)"finally ifmembers dodecide togoahead andoverhaul thecurrent method
ofclassifying services, whatshould berecommended withrespect totheuseoftheresulting
classification?
Thequestion iswhether theuseofanagreed andimproved classification system should be
mandatory orvoluntary. Iftheagreed objective isgreater clarity andcomparability ofschedules in
thelongterm, would compulsoriness helpinthatregard?S/CSC/W/4
Page 3
II. Progress Report ontheDetailed Analysis oftheChanges brought bytheRevision oftheCentral
Classification ofProducts, CPC Rev.1
10. ThisprogressreportiscontainedinsecretariatdocumentsS/CSC/W/6andS/CSC/W/6/Add.1-5.
Itexplains thatalthough theCPCRev.1 hasbeenadopted inFebruary 1997bythestatistical committee
oftheUN,thisrevision isnotcompleted. Some modifications willtakeplace inthedefinitions and
itwillbedefinitive onlyafterpublication. Publication isscheduled forSeptember 1997. Therefore
theanalysis contained indocuments S/CSC/W/6/Add.1-5 isprovisional asthedefinitions described
aresubject tochange andasthewhole concordance described willbechecked again bytheVoorburg
group.
11. Theaddenda describe foreachsector already analyzed bythesecretariat (thatistransport,
energy, construction, hotels andtourism, distribution) howthesector hasbeenrearranged inthenew
nomenclature. Asthisdescription isofatechnical anddetailed nature delegations maynotwishto
discuss those documents indetail. They mayhaveviews toexpress asregards theusefulness ofthe
various changes brought bytherevision andmaywishtogiveadditional guidance tothesecretariat
asregards thewaytostudy andpresent those changes.
C. Procedural andCostImplications oftheDevelopment ofaLoose LeafSystem withorwithout
Legal Value
12. These implications havebeenevaluated bythenoteofthesecretariat S/CSC/W/5. Itappears
thatsuchasystem could bedeveloped inapproximately sixmonths without significant additional costs
fortheMembers.
13. Thequestion ofthelegalvalue orabsence oflegalvalue ofsuchasystem isapolicy decision
pertaining tothemembers andthatwillhavedifferent procedural implications according tothedecision
taken.
D. Scheduling Guidelines
Itwasagreed atthelastmeeting thatthereshould beamoredetailed discussion ofthescheduling
guidelines.
Thechairman intends tosuggest todelegations, tosubmit inwriting iftheysowishquestions
andproblems encountered asregards scheduling asabasisforageneral discussion ofthese questions.
E. Statistics
Thesecretariat willpresent anoralprogress report onthework oftheinteragency taskforce
onstatistics.
F. Other Business
Ifmembers wishtoraiseother issues thattheyconsider relevant tothework ofthecommittee,
theyareinvited tosoinform thesecretariat which could notify other delegations inadvance ofthe
meeting.