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S/CSC/M/80  
 
31 July 2019 
(19-5019) Page: 1/5 
Committee on Specific Commitments    
 
REPORT OF THE MEETIN G HELD ON 24 JUNE 2019 
NOTE BY THE SECRETARIAT1 
The Committee on Specific Commitments (CSC) held a meeting on 24 June 2019 chaired by 
Mr. Nurbek Maksutov  from the Kyrgyz Republic .  
 
The Chairperson  stated that under Other Business, he would inform the Committee of a presentation 
by the Secretariat on recent developments in the measurement of digital trade at the Committee's 
next meeting. The agenda for the meeting , contained in document WTO/AIR/CSC/ 9, was adopted  
as modified .  
 
The Chairperson  recall ed that at the Committee 's last formal meeting, which took place on 
19 March  2019 after a two -year hiatus , delegations welcomed reinvigorating work in the Committee 
and recognized the importance of having technical discussions. He therefore encourage d Members 
to keep this momentum and continue to support future work of the Committee.  
 
1  ITEM A - SCHEDULING  ISSUE S 
1.1.  The Chair person  recalled that the Kyrgyz Republic had presented its Communication on mode  4 
related to scheduling issues (JOB/SERV/287) at the last meeting. The Communication drew 
Members' attention to some common scheduling issues in three main areas: e conomic needs tests 
(ENTs) or labour market tests (LMTs); categories of natural persons scheduled; and the relationship 
between horizontal and sector -specific entries. Delegations actively reacted to the Kyrgyz Republic's 
Communication. While i t was a gene ral view that the issues identified led to lack of transparency, 
ambiguity and uncertainty of mode 4 commitments , Members differed at how to address these 
issues.  
1.2.  In response to Members' interventions, before this meeting, the Kyrgyz Republic had circulat ed 
a room document sharing their views on the questions raised in the previous Communication.  
1.3.  The representative of the Kyrgyz Republic  thank ed all the delegations that had made 
interventions at the meeting of 19  March  2019 with respect to its Communication on scheduling 
issues under mode 4 (JOB/SERV/287).  The Kyrgyz Republic particularly appreciate d delegations' 
efforts in addressing the questions raised. The Kyrgyz Republic wishe d to share its own thoughts on 
these qu estions with a view to having a more in -depth discussion in the Committee . 
1.4.  The first  question related to  possible  common elements  to specify ENT entries , especially LMTs  
entries,  under mode 4  in the horizontal section . According to the Scheduling Guideline s, ENT entries 
"should indicate the main criteria on which the test is based ", and "these criteria do not relate to the 
quality of the services supplied, or to the ability of the supplier to supply the service ". In other 
words, the criteria should be objec tive and not on a discretionary basis. A labour market test 
inscribed in the schedule usually mean t that the entry and temporary stay of natural persons were 
conditional upon the situation of the local labour market, in particular, the availability of qual ified 
nationals . Detailed information about how the relevant administration would assess the availability 
of qualified nationals c ould add clarity and transparency to LMT entries in the schedule. For instance: 
requirement that employers provide information  to prove they ha d tried to recruit locally; 
requirement that employers publish/post the vacancy (online or in newspapers); or any prescribed 
                                                
1 This document has been prepared under the Secretariat's own responsibility and is without prejudice 
to the positions of Members or to their rights and obligations under the WTO.  S/CSC/M/80  
 
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  minimum duration of the advertisement before procedure to employ foreigners c ould be started . The 
Kyrgyz Republic encouraged Members to share information on how LMTs are conducted in their 
respective jurisdictions, if LMTs exist ed. 
1.5.  The second question was about the desirab ility to develop common definitions of the categories 
of mode 4 persons  and what might have been the basis for such common definitions . Alternatively, 
the question was also about how clarity and predictability could be enhanced for scheduled mode 4 
categories  and whether a checklist of key definitional elements could be developed, for instance . 
The Kyrgyz Republic noted that most mode 4 commitments were made by following several general 
categories of natural persons, including Independent Professionals, Contract ual Service Suppliers, 
Intra-Corporate Transferees, and Business Visitors. It was desirable to develop common definitions 
of categories of mode  4 persons to increase clarity and transparency of commitments. Nevertheless, 
the Kyrgyz Republic also underst ood that Members want ed to maintain flexibility to accommodate 
their domestic regulation. Alternatively, Members could  consider some key elements to be included 
in individual definitions in the schedule. For example, whether the natural person was employed or  
self-employed; whether the natural person was employed locally or in the home country; whether 
the natural person was engaged in the supply of services in the host country; the natural person's 
position in the firm (e.g. manager, executive); and degree of  education or specialization . 
1.6.  With respect to the third question on whether it would  be useful to clarify the relationship 
between horizontal and sector -specific commitments in the case of mode 4 , the Kyrgyz Republic 
noted that the Scheduling Guidelines were not helpful with respect to the situation where the 
horizontal mode 4 entry "Unbound except for measures affecting the entry and temporary stay of 
natural persons in the following categories … " was combined with the sectoral mode 4 entry "None" 
or "Unbound". It would add certainty to mode 4 commitments by clarifying the relationship between 
horizontal and sector -specific entries, either collectively or individually . 
1.7.  The last question concerned the desirability to use the Procedures for the Certification of 
Rectifications or Improvements to Schedules (S/L/84)  to add clarity and accuracy to commitments 
under mode 4 . The Kyrgyz Republic noted that the Procedures for the Certification of Rectifications 
or Improvements to Schedules (S/L/84) were designed for Members to bring their commitments up 
to date as the Procedures apply to "new commitments, improvements to existing ones, or 
rectifications or changes of a purely technical character that do not alter the scope or the substance 
of the existin g commitments ". Therefore, Members could  apply the Procedures to add clarity and 
accuracy to their commitments under mode 4, including specifying ENT entries, clearly defining the 
categories of natural persons, or clarifying the relationship between horizo ntal and sector -specific 
commitments . 
1.8.  The representative of Turkey  thanked the Kyrgyz Republic again , not only for their efforts to 
invigorate the discussions in th e Committee but also for drawing attention to one of the most 
neglected areas of work in services trade. Mode 4 was the least committed mode by Members and 
the ambiguity in scheduling sometimes rendered mode 4 commitments less meaningful and 
unenforceable.  
1.9.  She then shared information on LMTs in Turkey. There were no LMTs  for the categories of 
natural persons on which Turkey  had undertaken commitments. With respect to  other categories to 
which  LMTs were applied,  the procedure s were established  by the Ministry  of Family, Labour and 
Social Security. In the current system, the Ministry direct ed employers first to the "Turkish 
Employment Agency (İş -Kur)" which was responsible for unemployment  regist ration . Information on  
qualifications and job requests  of the unem ployed  was published on the website of t he agency. If an 
employer want ed to apply for a work permit for a possible foreign worker , he/she needed to  first 
check the website of the Turkish Employment Agency to ensure  that no Turkish applicant would fulfil 
the employment requirements. Should negotiations on market access start in the Special Session of 
the CTS,  Turkey would  be ready to discuss its LMT  system , including how to incorporate it into the 
schedule in the most transparent and legally predictable way.  
1.10.   With respect to the question on common definitions of categories of Mode 4 persons , Turkey 's 
past negotiation experience showed that  it would be v ery difficult  for Members to reach a common 
understanding on this issue . Nevertheless, Turkey recognized the merits for each Member to properly 
define the categories in its commitments. Turkey therefore  shared the view of  the Krygz Republic 
that the key el ements be included in schedules to make commitments  more meaningful.  S/CSC/M/80  
 
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  1.11.   One of the most significant issues raised by the Kyrgyz Republic was the relationship between 
the horizontal and sectoral commitments. This committee could  work further to establish  an 
"Understanding " among Members to make Mode 4 commitments clear er, more meaningful and more 
reader -friendly. Turkey noted the difficulty of  establishing such an understanding , given the 
significant divide among the membership.  
1.12.   Turkey  thank ed the Kyrgyz Repu blic again for bringing up these issues , believ ing that they 
formed  a solid ground for the future agenda of th e Committee.  
1.13.   The representative of India reiterate d her delegation's appreciation for the Kyrgyz Republic's 
useful proposal on "Scheduling issues under mode 4 ", as contained  in document JOB/SERV/287. 
Transparent ENT entries, agreed definitions of committed mode 4 categories , and a clear relationship 
between horizontal and sector -specific commitments  were pertine nt issues in relation to the 
scheduling of mode 4 commitments and should have been addressed long time ago . India also 
appreciate d the Kyrgyz  Republic's responses to Members’ interventions and the Communication from 
the Chairman to facilitate this meeting.  
1.14.   The criteria for administering ENTs should be transparent and objective and not on a 
discretionary basis . It would  be useful to publish information with regard to such criteria and details 
of requirements, procedures and/or guidelines for the administrati on of such tests . India welcome d 
the suggestion by the delegation of the European Union at the last meeting that there should be no 
ENTs for the category of Intra -Corporate Transferees (ICTs).  
1.15.   India noted some Members ' statement at the last meeting that it would  be difficult to develop 
agreed definitions for the commonly scheduled mode 4 categories at the multilateral level , given 
different domestic legislations . However, India believed  that developing key definitional elements or 
some common criteria for c ommitted categories of mode 4 might  still be workable. For instance, as 
suggested by the Kyrgyz Republic, it would  be extremely useful to specify the degree of education 
or specialisation. As mentioned at the last meeting, service suppliers from India face d difficulties 
due to the subjective and arbitrary assessment of an applicant’s qualifications , especially in the case 
of the "specialist ", a sub-category of ICTs .  
1.16.   India noted the view shared by  many Members at the last meeting that it would  be extremely 
helpful to clarify the relationship between horizontal and sector -specific commitments in mode 4.  
1.17.   India also noted the suggestion  that the Procedures for the Certification of Rectifications or 
Improvements to Schedules (S/L/84)  be used  to address the above  scheduling issues under mode  4. 
India was also open to other suggestions.  
1.18.   The representative of Nigeria  stated that the  Kyrgyz Republic's paper on Scheduling issues 
under mode 4  (JOB/SERV /287) shed light on the shallow nature of most WTO Members ' mode 4 
horizontal commitments and various related scheduling problems.  As with the Kyrgyz Republic, 
mode 4 was the most important mode of export interest for developing countries. Remittance from 
citizens working abroad under mode 4 constitute d a significant proportion of the GDP of developing 
countries like Nigeria. It was therefore of critical importance for Nigeria that mode 4 commitments 
were clear and unambiguous as this would enhance predictability to services trade under mode 4 
and exports expansion. Nigeria  therefore welcome d discussions in this committee that sought  to 
clarify and improve the accuracy of M embers ' mode 4 commitments.  
1.19.   The representative of the  Kyrgyz Republic  thanked  the delegates for their interventions and 
high interest in the topic . The goal of the Kyrgyz Republic was to bring these issues to Members'  
attention. The WTO bodies should serve  as a discussion platform to enable Members to express their 
opinions  and exchange views. This would improve Members' knowledge of the magnitude and nature 
of the problems  and help  find solutions for the future . In conclusion, he express ed gratitude again 
to Members for their interest and support. He would  report back to his capital and get back to 
interested Members at the next meeting.  
1.20.   The Chair person  recall ed suggestions made  at the last meeting that the Committee should 
look into other scheduling issues as well, including classification of computer and telecom services, 
cross-border delivery of services, and updating schedules as originally indicated in the commitments.  
He invited Members  to consider how the Committee  should proceed with these important issues  and S/CSC/M/80  
 
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  whether the Secretariat could provide any assistance for this purpose, for example, to compile those 
obviously outdated specific commitments . 
1.21.   No delegation further sought  the floor . The Chair  suggest ed that the Committee  take note of 
the statements made and revert to this agenda item at the next meeting. The new Chair person  
would consult with Members on how the Committee should move forward under this agenda item.  
1.22.   It was so agreed .  
2  ITEM B - CLASSIFICATION  ISSUES  
2.1.  The Chair person  recalled  that while there were no interventions under this agenda item per se , 
interest in having discussions on classification issues related to online transactions (e.g. platform -
based services) had been  expressed in his consultations as well as at the last meeting.  Past 
discussion in the Committee already pointed to the inadequa cy of the current classification in 
reflecting services market realities. He invite d Members to consider whether it was desirable for the 
Committee to consider classifications issues on so -called "digital services ", and if so, how to proceed.  
2.2.  The represent ative of the Russian Federation  thank ed the Chairperson  for reminding Members 
of classification challenges in reflecting market realities in services.  She recalled that  the Committee 
did tremendous work on classification in various sectors in the past when  it met  on a regular basis.  
In this regard , Russia would like to ask the Secretariat to provide  a briefing session devoted to the 
past exercises on W/120 and the main approaches of DSB to the interpretation of sectoral entries in 
services schedules.  It would be extremely useful to get an updated picture of the main challenges 
and recent progress with respect to  the GATS classification issues.  According to Russia, fragmented 
approach to the classification of new services could be unproductive. Each new service require d 
comprehensive discussion , especially  in the case of new telecom, computer and cross -border 
delivery services . The briefing session would be helpful for  the discussion concerning the  
incorporat ion of  domestic regulation disciplines  into the  schedule . The growing interest in e-
commerce discussions also required  a clear understanding of original schedules.   
2.3.  The representative of China  thanked the Chair person  for his  effort s to stimulate discussions in 
the Committee  and the Kyrgyz delegation fo r their valuable input s.  Regarding the classification 
issue, he support ed the suggestion by the Russian delegation for a possible briefing session by the 
Secretariat  to cover the latest developments of classifications , the emerging  new services  and their 
relationship with W/12 0.  
2.4.  The representative of the United States  thanked the Kyrgyz Republic for their paper and for 
raising  those issues . The CSC was an important committee to examine some of the issues. He 
cautioned about the suggestion s on classification issues and on so-called "digital services ". He 
wondered whether  a new term was introduced or  it was simply  a new way to delivering an existing 
service. Existing commitments should not be undermined simply because they were delivered via 
digital means. Members should  be careful on how to approach this . With respect to  the suggestion 
for a briefing session by the Secretariat, he requested for  more clarity before agree ing to have such 
a session.   
2.5.  The representative of the European Union  echoed the request of the United States for more 
clarity with respect to  the content and the purpose of Russia's proposal, though he understood the 
interest to have  a presentation on the different exercises that took place in this Committee over the 
last 15 years . He recalled  different initiatives to revisit classification and lot s of work under  previous 
Chairs. Regarding  new services, it was up to Members to  interpret and not an issue for presentation .  
2.6.  The Chairperson  proposed  that the Committee take note of the statements made and revert to 
this agenda item at the next meeting . He suggested that the new Chairperson  hold consult ations  on 
Russia's proposal .  
2.7.  It was so agreed .  S/CSC/M/80  
 
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  3  ITEM C – OTHER BUSINESS  
3.1.  The Chairperson  recalled the previous agreement  that the Committee should be informed of 
the latest developments on the statistics of services trade. The Secretariat was ready to give a 
presentation on recent developments with respect to  the measurement of digital trade at the next 
meeting of the Commi ttee. The presentation would cover the conceptual work developed by the 
international statistical community on digital trade, with a particular focus on services and related 
classification issues.  
3.2.  The representative of the European Union  sought clarity on the statement made by the 
Chairperson.  
3.3.  The representative of  the Secretariat  recalled the agreement adopted at the Committee's 
meeting of 16 November 201 0 that the Committee should be informed on a regular basis of changes 
and developments in services classification and in statistical systems  relating to international 
services trade .  
4  ITEM D – APPOINTMENT  OF THE CHAIRPERSON FOR THE COMMITTEE  
4.1.  The Chairperson  noted that the Chairperson of the Council for Trade in Services ha d recently 
concluded his consulta tions on the slate of names for the Chairpersons of the various bodies.  
According to the result of the consultations, h e propose d that the Committee elect Mr. Tamas Vattai 
from Hungary as its new Chairperson by acclamation . 
4.2.  The newly elected Chairperson  suggest ed that the Committee take note of all the statements 
made. With respect to the timing of the next meeting, he would  hold consultations and inform 
Members accordingly  in due course . 
4.3.  The meeting was adjourned . 
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