RESTRICTED
WORLD TRADE S/C/M/10
9July1996
ORGANIZATION(96-2673)
Council forTrade inServices
REPORT OFTHE MEETING HELD ON28MAY 1996
Note bytheSecretariat
1. TheCouncil forTrade inServices heldameeting on28May1996. Theagenda forthemeeting
iscontained inAirgram WTO/AIR/319. Under other business twoitems wereadded: astatement by
theChairperson concerning theChairmanships oftheGroup onBasic Telecommunication Services
andtheWorking Party onProfessional Services, andastatement bythedelegation oftheUnited States
concerning theexamination oftheEuropean Union pursuant toArticle VoftheGATS.
ItemA:Procedures fortheImplementation ofArticle XXI(Modification ofSchedules)
2. TheChairperson recalled thatatitsprevious meeting theCouncil hadreceived asecond revision
ofthetextofthedraftProcedures fortheModification ofSchedules inaninformal notebytheSecretariat
dated 29February 1996. Atthatpoint, there hadbeentwooutstanding issues relating toarbitration
procedures andpossible retaliation byanaffected Member intheevent amodifying Member doesnot
comply withthefindings ofarbitration. However, several delegations hadreserved therighttoraise
additional issues inthelightoffurther examination ofthetextbytheircapitals. Insubsequent informal
consultations, anumber ofnewpoints hadbeenraised. Those points, aswellasafurther revision of
thetextwerecirculated intheinformal notebytheSecretariat dated 23May1996. TheChairperson
stated thatfurther informal consultations wereneeded toresolve those issues. Shesuggested thatthe
Council takenoteofherstatement andrevert tothismatter atafuture meeting.
3. TheCouncil soagreed.
ItemB:Financial Services -Statement bytheChairperson onthestatus ofacceptances oftheSecond
Protocol totheGATS
4. TheChairperson stated thatthedeadline foracceptance oftheSecond Protocol totheGATS
onfinancial services was30June1996. Inaccordance withtheterms oftheProtocol, ifby1July
ithasnotbeenaccepted byallMembers concerned, those Members which hadaccepted itbefore that
datewould needtodecide onitsentry intoforce within aperiod of30daysthereafter. Furthermore,
according totheDecision onCommitments inFinancial Services (S/L/8) ifadecision wasmade that
theProtocol would notenter intoforce, allMembers oftheWTO would haveaperiod of60days
beginning on1August 1996 during which theymight modify orwithdraw allorpartofthespecific
commitments inscribed intheirschedules andexemptions from MFN. TheChairperson stated that
theremight beaneedtoconvene ameeting oftheCouncil priortothedeadline of30Junetoconsider
thematter. Sheurged Members totakethenecessary steps toensure thesuccessful conclusion ofthe
process ofacceptance andentry intoforce oftheProtocol.
5. Therepresentative ofIndia requested thattheChairperson would issue thesame appeal to
Members inrelation totheThird Protocol totheGATS concerning Movement ofNatural Persons.
Hestated thathisgovernment would immediately accept theSecond Protocol upon acceptance ofthe
Third Protocol byallMembers concerned.S/C/M/10
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6. Therepresentative ofJapan appealed toallMembers concerned toaccept theSecond Protocol
intime. Headded thatiftheProtocol failed toenter intoforce itcould adversely affect thestability
offinancial systems. Herecalled thatsome delegations which hadpreviously criticized thedelegation
ofJapan forrequesting 30Juneasadeadline foracceptance oftheProtocol hadnotthusfaraccepted
itthemselves.
7. Therepresentatives ofCanada, Norway, Australia, Switzerland andHungary indicated that
theyexpected toconclude theiracceptance procedures before thedeadline of30June.
8. TheChairperson appealed toallMembers concerned totakethenecessary stepstoensure the
acceptance oftheSecond andThird Protocols totheGATS by30June1996.
ItemC:Notification oftheEstablishment ofEnquiry Points pursuant toArticle III:4oftheGATS
-Draft Decision bytheCouncil
9. TheChairperson recalled thatatthemeeting oftheCouncil of22November 1995theChairman
hadpointed outthatparagraph 4ofArticle IIIandparagraph 2ofArticle IVoftheGATS callupon
Members toestablish enquiry points and,where appropriate, contact points within twoyears from
thedateofentry intoforce oftheAgreement. However, these Articles didnotrequire thenotification
oftheestablishment andlocation ofthese agencies. Given thepurpose ofsetting upsuchagencies,
itseemed desirable thattheirexistence andlocation bemade known. TheCouncil hadagreed atthat
meeting toasuggestion bytheChairman toconsider whether theestablishment ofenquiry points and
contact points should benotified, andthatsuchnotifications could, atalaterstage, becompiled in
onesingle directory which could periodically beupdated following thepractice established bythe
Committee onTechnical Barriers toTrade. TheChairperson drew attention todocument S/C/W/14
which contained adraftDecision bytheCouncil calling upon Members tonotify theestablishment
ofenquiry points and,where appropriate, contact points. Shesuggested thattheCouncil adopt the
Decision.
10. TheCouncil adopted theDecision.
ItemD:Theappointment ofaChairperson fortheCommittee onTrade inFinancial Services
11. TheChairperson stated thatatthelastmeeting oftheCouncil shehadsuggested that
Mr.Frank Swedlove ofCanada, theformer Chairman oftheCommittee onTrade inFinancial Services,
should bereappointed foranother year.Based onhersubsequent informal consultations, theChairperson
confirmed theappointment ofMr.Frank Swedlove asChairman oftheCommittee onTrade inFinancial
Services untiltheendof1996.
12. TheCouncil soagreed.
ItemE:Progress report oncurrent negotiations onMaritime Transport
13. TheChairperson stated thatsince theprevious meeting oftheCouncil, theNegotiating Group
onMaritime Transport Services hadheldthreemeetings: on26-29 March, 8Mayandon24May1996.
Inaddition tothese formal meetings, intensive rounds ofbilateral negotiations hadbeenheldonthe
basis ofoffers andrequests submitted byparticipants andinformal meetings hadbeenconvened by
theChairman ofthenegotiating group todiscuss technical matters relating toarevised draftschedule
ofcommitments inmaritime transport. New offers hadbeen submitted byBrazil, Colombia,
Côted'Ivoire, Indonesia, Mexico andSlovenia, bringing thetotalnumber ofoffers to15.Several
other participants hadindicated theirintention tosubmit offers orimprovements toexisting ones. Most
participants hadexpressed satisfaction withtheincrease inboththequantity andquality ofoffersS/C/M/10
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submitted. Theyhadalsobeenencouraged bypositive developments inbilaterals withtheirnegotiating
partners. Atthemeeting on24May, however, greatconcern hadbeenexpressed following astatement
bytheUnited States thatitcould envisage nodevelopments inthenegotiations which would enable
ittoputforward anofferbefore itsconclusion. Atthatmeeting, discussions hadfocused largely on
thatissue. Nevertheless, many delegations hadstated theirintention topursue thecompletion ofthe
critical mass ofoffers andthesuccessful conclusion ofthenegotiations. TheNegotiating Group on
Maritime Transport Services wasscheduled tomeet athighlevel on4June1996 withbilateral
negotiations taking place during thesame week.
14. Therepresentative oftheEuropean Union stated thathisdelegation hadrevised itsofferand
encouraged others todothesame. However hisdelegation wasconcerned bytheposition taken by
theUnited States andhoped thatitwould bereconsidered.
15. TherepresentativesofAustralia,Japan,Norway,thePhilippines(onbehalfofASEAN),Canada,
Korea andNewZealand alsoexpressed theirdisappointment withtheposition taken bytheUnited
States andexpressed thehopethatitwould bereconsidered. They alsoexpressed theirdetermination
topursue asuccessful conclusion ofthemaritime negotiations.
16. Therepresentative oftheUnited States stated thathisdelegation tooknoteofthestatements
made byothers butpointed outthattherewerephilosophical differences ofviews onhowliberalization
ofmaritime transport services should takeplace. While theprinciple ofprogressive liberalization was
recognized, itwasimportant toestablish acertain threshold ofliberalization inmaritime. Henoted
that,fromhisdelegation 'spointofview, existing offers failed tosolve anumber ofimportant problems
inthissector. Heinvited other delegations toreflect onwhether binding existing restrictions was
thebestwaytoliberalize.
Other Business
(a) Statement bytheChairperson
(i) TheGroup onBasic Telecommunications
17. TheChairperson drewattention totheestablishment oftheGroup onBasic Telecommunications
bytheCouncil on30April 1996. Sheindicated thatshewould beconsulting ontheappointment of
aChairperson forthegroup andthatshehoped soontobeinaposition tosubmit aconcrete proposal.
Sheinvited delegations whomight havecandidates topropose todosoassoonaspossible.
18. TherepresentativeoftheEuropeanCommunitiesstatedthatherdelegationwasformallynotifying
thatMr.NeilMcMillan would beavailable toserve astheChairman ofthegroup.
(ii) TheWorking Party onProfessional Services
19. TheChairperson stated thatshehadbeeninformed bytheChairperson oftheWorking Party
onProfessional Services that,duetoherother competing responsibilities, shewould beobliged to
relinquish theChair following theJulymeeting oftheWorking Party. Accordingly, theChairperson
oftheCouncil indicated thatshewould bestarting informal consultations ontheappointment ofanew
Chairperson fortheWorking party. Sheinvited delegations whomight havecandidates topropose
todosoassoonaspossible.S/C/M/10
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20. TheCouncil tooknoteofthestatement.
(b) Statement bytheUnited States
21. Therepresentative oftheUnited States stated thathisdelegation would liketorequest the
examination oftheTreaties establishing theEuropean Union pursuant toparagraph 7ofArticle Vof
theGATS. Therepresentative oftheEuropean Communities stated thatherdelegation tooknoteof
therequest andwould beready todiscuss itatthenextmeeting oftheCouncil.
22. TheCouncil tooknoteofthestatements.