./.RESTRICTEDWORLD TRADE
ORGANIZATIONS/WPPS/M/20
28 July 1998
(98-2988)
Working Party on Professional Services
NOTE ON THE MEETING H ELD ON 16 JULY 1998
Note by the Secretariat
1. The Working Party on Professional Services held its twentieth meeting on 16 July 1998.  The
agenda for the meeting was contained in airgram WTO/AIR/878.
Work Pursuant to Paragraph 2(a) of the Decision on Professional Services
2. The Chairman opened formal discussion of the Secretariat note, Disciplines on Domestic
Regulation in the Accountancy Sector (ninth revi sion, Job No. 3684), by stating that he hoped to
finalize the disciplines before the summer break.  He also suggested that the current examination
should not take place on a paragraph-by-paragraph basis, as this had been completed at the previous
meeting, but rather on the basis of the outstanding issues.  The suggestion was adopted.
3. Egypt initiated discussion by stating that it had withdrawn its reservation on Paragraph 6 of
the disciplines.  Venezuela, commenting on the deci sion at the previous meeting to use the passive
voice in place of the previous language in Paragraphs 13, 15 and 23, suggested that this new wording
weakened the text.  Changes were suggested, but in the end Members agreed to keep the text as
written.
4. On Paragraph 2, the Chairman asked whether Members approved of the manner in which the
previous footnote was replaced with a reference to GATS Articles XVI and XVII, as reproduced atthe end of the text.  Members indicated they agreed.  Regarding Paragraph 11, the Chairman
summarized the discussion of the previous meeting, which India said was an accurate reflection of its
position.  Mexico stated that the withdrawal of its reservation on the paragraph depended on the
outcome of the discussions on the legal form of the disciplines.  The United States and Australia
replied that they could not accept the additional wording suggested by India, but were willing tocompromise by accepting India's alternative proposal of ending the paragraph after the word
"objective".  Japan did not approve of this change, but was willing to compromise and accept the
consensus decision if the Chairman stated that Members were dropping the remainder of the sentence
for the purpose of simplicity, and if this statement were reflected in the minutes.  The Chairman
agreed.  Mexico then said it would like to reflect on this change, and would submit its concerns aboutthe paragraph in writing.
5. On Paragraphs 15 and 16, the Chairman asked if the changes requested in the Spanish text at
the previous meeting had been made.  The changes were confirmed.  On Paragraph 20, the Chairman
asked if India had further comments on its previously suggested changes.  The Indian delegate statedthat his country continued to feel that the text of the paragraph did not adequately reflect the
objectives of the disciplines, i.e. the facilitation of trade in accountancy services.  India had repeatedly
amended its text, but unfortunately there was no support from Members.  Perhaps Members had
misinterpreted India's flexibility for a lack of resolve on the issue.  India remained open to any
alternative formulation, but in the meantime woul d maintain its reservation.  The United States
responded that it understood India's concern, but thought that MRAs were the best means forS/WPPS/M/20
Page 2
addressing the issue.  India replied by saying that MRAs were useful in the longer term, but required
much time to negotiate.  Regarding Paragraph 23, the Chairman enquired if the previously requested
change in the Spanish translation was acceptable.  The change was approved.  The Chairman
concluded discussion of the text of the disciplines by noting the two outstanding reservations, and
proposed a meeting during the last week of July  to complete the text.  It was so agreed.
6. For the second item on the agenda, the revised Secretariat Note Discussion of Matters
Relating to Articles XVI and XVII of the GATS (Job. No. 3720), discussion took place in informal
mode.  In the end, Members agreed to the Chairman's offer to draft a Note on the issue.7. Discussion of the remaining item on the agenda, the issue of the legal form of the disciplines,
also took place in informal mode.  Progress was ma de in refining previously suggested options, and
additional possibilities were raised.  Members also agreed to study the issue of how to initiate the
future discussion of horizontal issues, and accepted the offer of the Chairman to prepare a new
background Note.
8. The date of the next meetings was set for the morning of 29 July, and 22 October.
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