./.WORLD TRADE
ORGANIZATIONWT/GC/W/204
14 June 1999
(99-2358)
General Council Original:  English
PREPARATIONS FOR THE 1999 MINISTERIAL CONFERENCE
Objectives for GATS 2000 Negotiations
Communication from Australia, Chile and New Zealand
The following communication, dated 7 June 1999, has been received from the Permanent
Mission of Australia.
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1. The Governments of Australia, Chile and New Zealand are convinced that substantial
preparatory work needs to be undertaken now to en sure that the resumed services negotiations fully
meet the interests of WTO Members and the needs of the global economy.  Australia previouslysubmitted views on preparations for the forthcoming services negotiations (WT/GC/W/116 of
20 November 1998).  This proposal, endorsed by the Governments of Chile, New Zealand and
Australia, follows on from that paper and sets the scene for additional, more detailed proposals on
specific issues.
Proposal
2. The services negotiations should improve market access significantly for developed and
developing countries.  To do so, the negotiations should achieve higher levels of liberalization in all
services sectors, including air and maritime transport; simplification of schedules and greater
transparency in commitments; limitation of the scope and number of MFN exemptions; and the
development of binding rules on domestic regulation.
Background
3. The General Agreement on Trade in Services (GATS) provided an essential first step towards
integrating services trade within the WTO's overa ll framework of trade rules and to opening up trade
in services across the board.  The final form of the GATS left work to be done in specific sectors
(telecommunications, financial services, maritime and air services), in completion of the structure ofGATS rules (in regard to emergency safeguards, subsidies, government procurement and domestic
regulation), in negotiating ways to apply in practice the rules already in the GATS, and – most
importantly – in expanding market access.
4. In the judgement of Australia, Chile and New Zealand, the focus of the next services round
must be on expansion of market access and removing discriminatory barriers.  The key objective mustbe to fulfil the mandate set out in Article XIX of the GATS, to achieve "a progressively higher level
of liberalization" in services trade.  The negotia tions should be conducted "with a view to promoting
the interests of all participants on a mutually advantageous basis and to securing an overall balance of
rights and obligations".WT/GC/W/204
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5. The scope of the negotiations should be comprehensive, with no sector excluded as a matter
of principle.  Comprehensive negotiations offer the best prospect for broad liberalization and also give
Members an opportunity to reach the critical mass and make the trade-offs required to achieve
substantial results.
6. As a corollary, all four modes of supply shou ld be thoroughly exam ined with a view to
improving and expanding liberalization commitments.  In addition, scheduled commitments may need
to be expanded in certain sectors to reflect technological advances.  The impact of the development of
electronic commerce is particularly relevant in this context.
7. The services negotiations should be conducted in the most effective, practical way possible,
be that through  model schedules, standardized minimum liberalization commitments, request-offer or
other suitable means, including a mixture of approaches if considered appropriate.
8. In our judgement, expansion of market access will also require reviewing operational
provisions of the GATS, e.g., Articles VI (domestic regulation), VII (recognition)  and IX (business
practices), to ensure that they effectively underpin and facilitate market opening.  For example,
transforming into binding principles the principles listed in Article VI.4 would in itself bring domestic
regulation within the GATS legal framework .  One area of special interest could be a standardized
minimum commitment to not apply trade-restrictive nationality or permanent residency requirementsas a condition for meeting qualification and licensing requirements for service providers, except in
exceptional cases.  There may also be a need to review Articles XVI (market access) and XVII
(national treatment) to ensure that commitments made under them are up to date and have clear
commercial significance.
9. Mindful of the particular interests and needs of developing countries, the negotiations should
be undertaken in such a way as to encourage their full participation, including more balanced
commitments in all modes of supply.
10. In making commitments, full attention should be given to the principle of transparency
(including through the implementation of Article III) and to making the GATS more user-friendly and
more accessible to business.
11. In expansion of trade liberalizing measures, due care should be taken to limit as far as
possible the scope and the duration of MFN exemptions.  Countries should work steadily towards full
elimination of MFN exemptions within the period specified in the GATS.
12. The services negotiations should conclude within three years in order to focus negotiators'
work and to gain maximum benefit from liberalization measures agreed in negotiations.  The result
should be an integral part of a single undertaking concluded at the end of the next trade negotiations
round.
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