WORLD TRADE
ORGANIZATIONS/CSS/W/59
21 March 2001
(01-1412)
Council for Trade in Services
Special SessionOriginal:  English
COMMUNICATION FROM NORWAY
The Negotiations on Trade in Services
The attached communication has been received from the delegation of Norway with the
request that it be circulated to Members of the Council for Trade in Services.
_______________
I. INTRODUCTION
1. This proposal is submitted with reference to the “Roadmap” adopted at the Special Session of
the Council for Trade in Services on 25 May 2000, paragraph 2 (c).  The proposal represents initial
views on procedures and the content of the negotiations on trade in services.  As foreseen in the
“Roadmap”, Norway may submit further or more detailed proposals at a later stage.
2. Starting with the stocktaking exercise at the end of March 2001, ample time should be
allowed for a thorough discussion of the proposals submitted by Members.  To ensure such a
comprehensive treatment of all proposals, it would be useful to begin with a general debate on the
proposals at the next meetings of the Special Session of the Council for Trade in Services, leading up
to the summer break, before proceeding to a more detailed discussion on the various sectors and
horizontal issues.
3. We regard the service negotiations as a part of a broader negotiating agenda in the WTO.
II. OBJECTIVES
4. In order to ensure that the negotiations are as relevant and successful as possible, they should
reflect the rapidly increasing importance and dynamic nature of the services sector in the world
economy.  The negotiations should aim at promoting the general objectives of the WTO, such as:
• raising standards of living, and ensuring full employment,
• promoting trade for all, and thereby ensuring that developing countries, and especially the
least developed among them, secure a share in the growth in international trade that is
commensurate with their economic development needs,
• allowing for the optimal use of the world’s resources in accordance with the objective of
sustainable development, seeking both to protect and preserve the environment and to
enhance the means of doing so in a manner consistent with the Members’ respective needs
and concerns at different levels of economic development.S/CSS/W/59
Page 2
5. To promote these general objectives, the negotiations should:
• be conducted on the basis of due respect for national policy objectives, and recognize the
right of Members to regulate in order to meet national policy objectives, as laid down in the
GATS,
• lead to an increasing number of legally binding and economically meaningful market access
commitments,
• treat all Members’ proposals fairly, secure an overall balance of rights and obligations for all
participants, and allow for appropriate flexibility for individual developing country Members,
• contribute to the increased participation of developing countries in trade in services, giving
special priority to least developed country Members, inter alia by liberalization of market
access in sectors and modes of supply of special interest to these Members,
• take into account the need for technical assistance, aimed at strengthening the efficiency and
trade capacity of the domestic services sector and improving national authorities’ regulatory
capacity,
• build on the MFN- principle as a cornerstone of the WTO and GATS agreements,
• lead to few or no MFN exemptions, in order to prevent erosion of the commitments on market
access and national treatment,
• deal with improvement in Members’ commitments in relation to all modes of supply.
6. We also take as a point of departure that all Members respect the importance of cultural
identity, and that this is duly considered in the relevant areas of the negotiations.
III. GATS RULES
7. Norway regards the rules of the GATS as an important mechanism to establish a framework
of rules and disciplines that promotes trade and helps bring about a better-organized world economy.
Regarding the mandated negotiations in this area, we have the following comments at this stage.
1. Domestic Regulation (GATS Art. VI)
8. As the level of traditional market access commitments rises, domestic regulations will
become an important aspect for further liberalization of trade in services.  Disciplines on domesticregulation should ensure that market access and national treatment commitments are not undermined
by unnecessarily trade-restrictive regulations. This work should be conducted on the basis of due
respect for national policy objectives, and recognize the right of Members to regulate in order to meet
national policy objectives.  Important work in this respect is currently being undertaken in the
Working Party on Domestic Regulation (WPDR) through the development of regulatory disciplinesregarding transparency and “necessity”.
9. The establishment of a multilateral discipline on domestic regulation is primarily a horizontal
issue.  However, for some sectors with a high degree of regulatory complexity, “reference papers” on
regulatory issues could be developed, like the one established on telecommunication services.  Such
reference papers would provide a basis for undertaking additional commitments.  This work should bepursued in parallel with the development of general disciplines in the WPDR.S/CSS/W/59
Page 3
2. Emergency Safeguard Measures (GATS Art. X)
10. An emergency safeguard for trade in services would have to be compatible with the preamble
to the GATS and include criteria and procedures that do not undermine the concessions and
commitments made under the GATS.  The provisions must ensure adequate multilateral control of any
application of an emergency safeguard instrument, in addition to the normal and full disputesettlement procedure.
11. Norway acknowledges that an emergency safeguard clause may be of particular interest to
developing countries in order to achieve progressively higher levels of liberalization of trade in
services.  If we were able to reach consensus on emergency safeguard measures within the agreed
time frame, this would give a positive signal as regards the other ongoing negotiations on trade in
services.
3. Government Procurement (GATS Art. XIII)
12. Bearing in mind Article XIII of the GATS, namely that “there shall be multilateral
negotiations on government procurement in services under this Agreement”, Norway expects such
negotiations to take place in the course of GATS 2000.  Government procurement plays an important
part in Members’ economies.  Extending existing GATS disciplines as well as basic GATS principles,
such as transparency and fairness of administration, to government procurement would be beneficialfor governments, as well as for industries and consumers.  The negotiators should profit from the
work being carried out by the Working Group on Transparency in Government Procurement as far as
transparency relating to services is concerned.
4. Subsidies (GATS Art. XV)
13. Certain subsidies might have distortive effects on trade in services.  Members have committed
themselves to negotiations with a view to developing the necessary multilateral disciplines to
minimize such trade-distortive effects.  Norway recognizes the complexity of this issue.  The issue
should, however, be treated in full conformity with the Mandate, and discussions of subsidies should
be part of the GATS 2000.
IV. SECTOR-SPECIFIC PROPOSALS
A. N
EGOTIATION PROCESS
14. GATS 2000 negotiations should take place in the Council for Trade in Services and its
Special Session, which in our view should have a strong and guiding role in the work ahead.
B. PROPOSALS
15. At this stage Norway is presenting spec ific proposals in the following sectors:
• business services
• telecommunications
• financial services
• maritime transport
• air transport
• energy services
16. The proposals represent initial views on some important sectors.  Norway expects to table
further proposals at a later stage.S/CSS/W/59
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1. Business Services
(a) Introduction
17. Business services cover a wide range of different service industries, which are important to
business development.  In an increasingly globalized world economy, it is important that business
service suppliers can move with their clients and venture into new markets.  Trade in businessservices enhances the positive economic effects of trade in general.  The Norwegian market is open to
competition, as reflected in the Norwegian schedule.
18. Business service sectors in most countries are subject to national regulations in order to attain
national quality objectives.  Liberalization efforts must take into account such legitimate objectives as
consumer protection, public safety and the rule of law.
(b) Proposal
19. WTO work on regulatory issues should, insofar as possible, be based on international
standards which are well developed for specific service sectors, for instance, the ISA (International
Standards on Auditing) and the IAS (International Accounting Standards).
20. Norway encourages Members to undertake ad ditional commitments with regard to market
access and national treatment and reduction in or elimination of remaining MFN exemptions.  MFN
exemptions based on reciprocal recognition of professional qualifications should be notified inaccordance with the GATS Art. VII.
21. In particular Norway seeks commitments in relation to:
− Architectural Services (CPC Prov.  8671)
− Engineering Services (CPC Prov. 8672)
− Technical Testing and Analysis Services  (CPC Prov. 8676)
− Computer and Related Services (CPC Prov. 841 - 849)
− Real Estate Services (CPC Prov. 821 - 822)
− Accounting, Auditing and Bookkeeping Services (CPC Prov. 862)
2. Telecommunications
(a) Introduction
22. Telecommunications provide a key infrastructure needed for economic development.  The
Norwegian market is fully open to competiti on, as reflected by the Norwegian commitments.
Allowing competition to thrive has had a positive impact on the development of our domestic market.
It has contributed to the emergence of a strong communications sector in Norway, and allowed
consumers and businesses to take advantage of a greater range of choice, lower prices and innovativeservices and applications.
23. Furthermore, recent studies indicate that developing countries have also benefited from
liberalizing their telecommunications sectors and opening up for trade.
(b) Proposal
24. Many Members have not yet made any basic and value-added telecommunications
commitments. Others have made commitments that are partial or have been phased-in over a long
period of time, and yet others have limitations on market access (e.g. limits on foreign investment andS/CSS/W/59
Page 5
the number of service suppliers).  All Members should fully adopt the agreements on value-added and
basic telecommunications services (including satellite, Internet and mobile services) in the course of
the negotiations.
25. A Reference Paper on Regulatory Principles was negotiated in the negotiations on basic
telecommunications. This reference paper imposes pro-competitive disciplines such as competitive
safeguards, interconnection guarantees, neutrality of universal service requirements, transparency of
licensing procedures, establishment of independent regulators and guidelines for the allocation and
use of scarce resources.  The reference paper is essential in order to ensure fair competition.
Therefore, all Members should adopt in full the provisions of this document.
3. Financial Services
(a) Introduction
26. The financial sector plays a key role in overall economic performance.  By improving
financial intermediation and resource allocation, an d providing the means for specialization on the
basis of comparative advantages, the diffusion of know-how and the realization of economies of scale
and scope, liberalization of trade in financial services can have a strong, positive effect on income and
economic growth.
27. The presence of foreign operators can make the financial service sector more efficient and
stable, while increasing the incentives for better macroeconomic policies and regulation.  In addition,
ready access to capital and risk sharing on competitive terms will prove vital to businesses in an ever-
growing, more closely integrated world economy.  Liberalization of trade in financial services can
thus also enhance the effects of liberalization in other service sectors as well as in goods.
28. Most present commitments by Members are related to commercial presence (Mode 3).  Fewer
Members have made commitments in relation to cross-border services (Mode 1) or to consumption
abroad (Mode 2).  There is however, a growing tendency to make Mode 2 commitments for financial
services sub-sectors which are included in the Financial Services Annex, such as financial advisory
services, insurance intermediation, reinsurance, risk assessment, and insurance related to maritime
transport, aviation and other transport services.
29. Norway has liberal legislation for the financial sector and supports further multilateral
liberalization in this sector.  This liberalization should however not preclude the possibility of
applying host country regulation for prudential and other imperative purposes.
(b) Proposal
30. Norway invites Members to undertake real improvements in their commitments with regard
to market access and national treatment and to reduce or eliminate remaining MFN exemptions.
31. The classification set out in the Annex on Financial Services and the Understanding on
Commitments in Financial Services provides a comprehensive and transparent basis for scheduling
commitments.  Norway encourages all Members to adhere fully to the broad definitions used therein
when scheduling commitments.  In this regard, Norway emphasizes the need for additional
commitments in the field of insurance related to maritime shipping.  Ships transport about 80 percent
of world trade in goods.  The development of an open and competitive regime for insurance formaritime shipping will contribute to reducing the costs of trade, and thereby to stimulating trade in
goods and overall economic development.S/CSS/W/59
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4. Maritime Transport
(a) Introduction
32. Maritime transport is an important sector for Norway in the services negotiations.  Half of the
value of Norwegian exports of services is related to maritime transport.1
33. Maritime transport provides the basic infrastructure for world trade, as ships carry close to
80 per cent of world trade in goods.  The unique mobility of the means of production (the ship), as
well as more liberal trade policies than for most other service sectors, has made international shipping
one of the leading and most globalized industrial sectors in terms of markets, technology, capital and
employment.  It is therefore a paradox that this sector is not adequately covered by the GATS.  The
results of the Uruguay Round in this sector were disappointing, since a proper solution for this
important service sector was not found due the lack of commitments and application of the MFN
principle.
34. Provided that  an efficient regulatory regime is in place, maritime transport has environmental
advantages compared with most other modes of transport.  A proper WTO solution for maritime
transport would contribute to reinforcing efforts being made by many countries, including Norway, to
stimulate a shift of transport from road to sea fo r environmental reasons.  Removing restrictions in
this area may have a great potential.  At the same  time, Norway remains firmly committed to dealing
with environmental challenges in the fields of maritime transportation itself, and will co-operate
actively with other nations in the IMO and other relevant fora in order to improve international safety
and environmental regulations.
35. Norway and some 30 other countries entered co mmitments on maritime transport in schedules
under the GATS agreement in connection with the Uruguay Round and the ensuing NGMTS2
negotiations.  The Norwegian commitments on international maritime transport reflect Norway’s
liberal trading regime in this sector.  The MFN principle applies to any specific commitments on
maritime transport services that are inscribed in the schedules of member countries.  More generally, the
MFN principle will enter into force for this sector when GATS 2000 has been concluded.
36. The Norwegian Government will approach this sector on the basis of the Decision3 regarding
maritime transport services made by the Council for Trade in Services on 28 June 1996.  Members
should benefit from the efforts and comprehensive work already done in this sector during the
Uruguay Round and the NGMTS. The starting point for the negotiations should be existing or
improved offers as decided by the Council for Trade in Services.
37. Through the joint statement4 on maritime transport by the European Communities and their
Member States, Hong Kong, China, Japan, the Republic of Korea, Norway and Singapore, the issue of
maritime transport has been made part of the agenda and work program for the Special Session of theCouncil for Trade in Services.  This statement and many constructive comments and contributions
from other Members have identified in general terms the challenges and areas for negotiation in this
sector.  There is now a need to enhance the position of this sector in the WTO system through real and
meaningful liberalization and an increased number of commitments in the course of the negotiations.
                                                     
1 The Norwegian-owned fleet is the third largest in the world after Greece and Japan.  Norwegian
shipping companies employ 65,000 seafarers of more than  50 different nationalities. More than half of them is
from developing countries, and some 15,000 are Norw egian nationals. In addition 10,000 persons are employed
in the land-based organization of shipping companies, of which 50 per cent in Norway.
2 Negotiating Group on Maritime Transport Services
3 S/L/24
4 S/CSS/W/8 dated 6 October 2000S/CSS/W/59
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(b) Negotiation objectives
38. Norway has three main aims for the negotiations in the maritime transport sector:
(i) the MFN clause should enter into force as foreseen for all Members,
(ii) more Members should undertake commitments entailing real and meaningful
liberalization of maritime transport in their schedules under the GATS, and
(iii) few or no MFN exemptions.
(c) Proposal
39. During the negotiations Norway will present country-specific requests on commitments in
relation to restrictions that limit market access and national treatment in relation to the various modes
of supply.  The formulation of the requests will be based on the three-pillar structure (maritime
transport services, maritime auxiliary services, port services) of the model schedule and relevant MFN
exemption principles.
40. At the present stage, Norway does not foresee a need for any changes in the model schedule,
as it adequately covers the international maritime transport services sector.  It may, however, be
helpful to use a checklist as a supplement to the commitments in other transport sectors with
relevance to maritime transport services, in particular the land modes of multimodal services
involving a sea leg.  In addition, some Members migh t need a formula to address restrictions in parts
of the maritime cabotage sector. In order to provide for these needs, a draft checklist is enclosed in
Annex 1 with the heading Supplement to the maritime transport model schedule.
41. The international maritime transport service restrictions that Norway will address during the
negotiations are related to the following: unilateral market access and national treatment restrictions;
cargo-sharing provisions in bilateral/plurilateral agreements; government-owned and/or financedcargoes; establishment of a commercial presence, part icularly in relation to shipping companies and
multimodal operations; discriminatory measures in ports; and discriminatory licensing requirements
and economic needs tests.
42. As for the MFN exemptions, the following principles should be observed:
• provisions in bilateral agreements which are entered as MFN exemptions are only recognized
when both parties to the agreement take equivalent MFN exemptions,
• the MFN exemption list cannot establish any right to introduce future restrictions beyond
what is directly provided for by the GATS agreement,
• MFN exemptions cannot provide a basis for countermeasures,
• the MFN exemption list should not contain reservations or measures aimed at securing access
to cargo on a basis of reciprocity.S/CSS/W/59
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5. Air transport
(a) Introduction
43. Norway5 pursues a liberal policy with the aim of negotiating as many Open Skies-type Air
Services Agreements as possible, and we are therefore generally supportive of proposals aimed at
liberalizing the regimes governing world aviation.
44. Norway emphasizes that any agreement for this sector needs to be in full conformity with
international standards and regulatory measures, as established by the ICAO6 and/or the ECAC7.
(b) Proposal
45. Regarding services already included in the current GATS Annex on Air Transport Services,
Norway would encourage Members to increase the number and quality of their commitments.
46. Regarding the ongoing review of the Annex, we have the following proposals:
• Overflights/Air Transit
The supply of air transport services directly related to the exercise of traffic rights is explicitly
excluded from the GATS in accordance with the Annex on Air Transport Services.  Norway
proposes that the 1st and 2nd freedoms8 of traffic rights of the ICAO Air Transit Agreement
(1944) also be included as horizontal commitments of Members.  This would present the
airlines with fairer and more equal opportunities to compete in the international market on anon-discriminatory basis, leading to the more efficient transport of passengers and cargo.  It
would also secure all countries the ability to take full advantage of the 3
rd and 4th freedoms9 of
traffic rights, which they have already obtained.  This proposal would have a positive impact
on the environment, since airlines would be free to choose the most optimal international
established airway instead of being compelled to fly around certain countries.  As for safety, itwould be enhanced due to shorter flying times, and, on certain routes, easier access to
emergency landing sites.
• Ground-handling services
Commitments should be considered regarding ground-handling services related to the
different categories of ground-handling, such as the handling of passengers, baggage, aircraft
etc
• Services auxiliary to all modes of transport when delivered in an air transport context
In connection with cargo handling at airports, commitments should be considered regarding
storage and warehousing.
                                                     
5 in close cooperation with Denmark and Sweden.
6 ICAO:  International Civil Aviation Organization.
7 ECAC:  European Civil Aviation Conference.
8 First freedom: the right or privilege granted by one State to another State to fly across the territory of
the first State without landing. Second freedom: the righ t or privilege granted by one State to another State to
make stops in the territory of the first State for non-traffic purposes.
9 Third freedom: the right or privilege granted by one State to another State to put down, in the territory
of the first State, traffic coming from the home Stat e of the carrier. Fourth freedom: the right or privilege
granted by one State to another State to take on, in the territory of the first State, traffic destined for the home
State of the carrier.S/CSS/W/59
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6. Energy services
(a) Introduction
47. Norway regards energy services as one of the most important “new” areas to be negotiated
during GATS 2000.
48. Reliable, efficient and competitively priced energy is a fundamental requirement for
economic and social development in any country.  Efficient energy services are, like modern
telecommunications, transport and financial services, key factors in economic growth.
49. Despite the economic importance, relatively few commitments have been made for energy
services. However, market conditions for energy services have changed fundamentally since the days
of the Uruguay Round.  In many countries these services have undergone a comprehensive
deregulation process. The Nordic countries (Denmark, Finland, Norway and Sweden) have
established a common, liberalized electricity market. European countries are also facing a gradual
liberalization of the energy market.  In other parts of the world, there has also been rapid and dynamic
development in the field of energy services.
50. During these negotiations energy services should therefore be firmly incorporated into the
GATS framework, in order to secure cost-effective energy services, to the benefit of all.
(b) Scope
51. We consider energy services to encompass all services involved in the exploration,
development, extraction, production, generation, transportation, transmission, distribution, marketing
and consumption of energy, energy products and fu els.  Many of these activities are closely
interrelated.
52. It is essential that we take a broad approach when defining energy services.  In order to
realize fully the benefits of  efficient, competitive energy services and to make economically
meaningful commitments, we need to consider the entire chain of activities involved in resource
identification, production, transmission, transportation and distribution, sales and marketing,
irrespective of whether the activities take place onshore  or offshore.
53. This point can be further illustrated by taking oil and gas production as an example. A
significant share of the world production of oil and gas takes place offshore. Highly specialized
equipment and services providing for offshore resource identification, exploration, extraction,
production and transportation have been developed for this purpose. These core functions rely on a
wide range of offshore supporting activities such as providing offshore storage, accommodation,
safety and security services, transportation of supplies, etc.  These activities are all key services in the
production/value chain for oil and gas products and, consequently, have a natural place  in the field ofenergy services.
54. Energy services do not form a separate sector or sub-sector in W/120, and the relevant
services are included in different parts of the classification (and in the CPC).  For discussion purposes
a preliminary checklist for energy-related services is  enclosed in Annex 2.  This checklist is without
prejudice to our final position as to the question of classification.S/CSS/W/59
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(c) Proposal
• Some general observations:
Respect for national policy objectives and the legitimate right of national authorities to
regulate underpins also this part of the proposal.  The question of public ownership of naturalresources falls outside these negotiations.
55. We acknowledge that Members are in various phases of regulatory development and, as a
result, competition for energy services varies significantly from one country to another.  Differences
in the level of commitments undertaken should therefore be expected.
• Goals
the Norwegian goals for the energy services negotiations can be summarized as follows:
• the negotiations should encompass all energy services,
• the negotiations should aim for increased commitments as regards market access and
national treatment,
• energy services are complex and highly regulated, and it is therefore important to
address regulatory issues specifically. A reference paper in line with the one
established for telecommunication services could be developed. Central elements insuch a paper would be rules on transparency, non-discriminatory access to with
energy networks and grids, an independent regulator and requirements that prevent
anti-competitive practices for energy  services in general,
• we believe that a model schedule or a checklist for energy services could serve as a
useful negotiating tool, and assist Members in making commercially meaningful
commitments.S/CSS/W/59
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ANNEX 1
DRAFT CHECKLIST
SUPPLEMENT TO THE MARITIME TRANSPORT MODEL SCHEDULE
Commitments in the maritime and land transport sectors with some relevance to international
maritime transport and not covered by the maritime transport model schedule:
Maritime cabotage transport in general
• Maritime cabotage transport feeder services related to international cargo
• Maritime cabotage transport of empty containers for international trade
• Maritime cabotage transport servicing offshore petroleum exploration and production
Road cabotage transport in general
• Road cabotage transport of cargo as part of transports where an international sea leg is involved
• Road cabotage transport of containerized cargoes as part of transports where an international sea
leg is involved
Rail cabotage transport in general
• Rail cabotage transport of cargo as part of transports where an international sea leg is involved
• Rail cabotage transport of containerized cargo as part of transports where an international sea leg
is involvedS/CSS/W/59
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ANNEX 2
DRAFT CHECKLIST FOR ENERGY SERVICES
This checklist is preliminary, intended for discussion purposes only, and should be considered as
”work in progress”. Furthermore, the checklist is without prejudice to our final position as to the
question of classification. Norway expects to table a revised list at a later stage in these negotiations.
Several of the CPC numbers cover activities with dual/several end-uses. In these cases, the reference
is to the energy -relevant component of these activities.
 -
W/120 Classification Prove. CPC
NumbersProvisional CPC Heading
1.A Professional Services
8672 Engineering services
8673 Integrated engineering services
1.B. Computer and Related Services 84 Computer and Related Services
1.C. Research and Development
Services851 Research and experimental development services
on natural sciences and engineering
1.E. Rental and Leasing Services,
without Operator83107, 83109 Rental and leasing services without operators
relating to construction machinery and
equipment or other machinery and equipment,
without operator (note: rental of equipment with
operator is classified under construction services,CPC 518).
83103 Rental/Leasing Services without operators
relating to ship)
1.F. Other Business Services 865 Management consulting services
866 Services related to management consulting8676 Technical testing and analysis services
883 Services incidental to mining
884, 885 Services incidental to manufacturing
887 Services incidental to energy distribution
8675 Related scientific and technical consulting
services
886 Maintenance and repair of equipment
8790 Other Business ServicesS/CSS/W/59
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W/120 Classification Prove. CPC
NumbersProvisional CPC Heading
3. Construction and Related
Engineering Services511 Pre-erection work at construction sites
512 Construction work for buildings
513 Construction work for civil engineering
515 Special trade construction work
516 Installation work
518 Renting services related to equipment for
construction or demolition of buildings or civil
engineering works, with operator
4. Distribution Services 621 Commission agents’ services
622 Wholesale trade services632 Non-food retailing services
6111, 6113,
6121Sales of motor vehicles, motorcycles and
snowmobiles, and related parts and accessories
613 Retail sales of motor fuel
6. Environmental Services 940 Sewage and refuse disposal, sanitation and other
environmental protection services
9.A Hotels and restaurants 64199 Other lodging services n.e.c. (offshore
accommodation services)
11. Transportation Services including 7112 Freight transportation by railway
7123 Freight transportation by road
713 Transport services via pipeline
7212 Maritime freight transportation
(Maritime cabotage transport servicing offshore
petroleum exploration and production)
__________