RESTRICTED  
  
S/CSC/M/79  
 
18 April 2019  
(19-2606) Page: 1/6 
Committee on Specific Commitments    
 
REPORT OF THE MEETIN G HELD ON 19 MARCH  2019 
NOTE BY THE SECRETARIAT1 
The Committee on Specific Commitments (CSC) held a meeting on 19 March  2019 chaired by 
Mr. Nurbek Maksutov  from the Kyrgyz Republic . The agenda for the meeting as contained in 
document WTO/AIR/CSC/8  was adopted .  
 
The Chairperson  indicated that last time the Committee had met was on 15 March 2017. He 
recalled  the Committee's terms of reference  as contained in document S/L/16  which  consisted of 
functions  in three aspects. The first was to "oversee the implementation of specific commitments 
in all modes of supply, including specific commitments relating to the movement of natural 
persons". The secon d was to examine Members' specific commitments with a view to improving 
their technical accuracy and coherence in the future. The third was to oversee the application of 
the procedures for the modification of schedules pursuant to GATS Article XXI. In view  of the 
Committee's broad mandate  the Committee ha d been underused  and many issues within the 
mandate ha d never , or not fully,  been addressed. The Committee's work, like the WTO, should be 
Member -driven  and Members should consider how to make better use of  this institution to serve 
their interest s.  
 
The Chairperson noted  that the handover of the chairmanship of the Committee should normally 
take place at the end of the first meeting of the  year.  However, since the consultations conducted 
by the out -going Chair of the CTS were still underway, the handover w as postponed until the 
consultations concluded. Consequently , the Committee did not address the item on the 
appointment of the new Chairperson  at this meeting . 
 
1  ITEM A - SCHEDULING  ISSUES  
1.1.  The Chairperson  stated  that since taking  over the chairmanship of the Committee in June 
2018, he had held extensive consultations with Members. In this context, one view was that 
scheduling issues had not been adequately addressed in the Committee. Some delegates had 
particularly mentioned the possibility to examine scheduling issues arising from electronic supply 
of services, such as " unbound" with asterisk under modes 1 and 2 . He noted  that paragraph 47 of 
the Scheduling Guidelines (S/L/92) stated that "where the mode of  supply is thought to be 
inapplicable is in fact applicable or becomes so in the future, the entry means "unbound "." Since 
digital technologies had made almost all services tradable, he asked if  Members want ed to revisit 
this paragraph in the Scheduling Guidelines. Another issue that some Members had mentioned was  
the distinction between modes 1 and 2 as far as  online transactions  were concerned , or the line 
between market access and national treatment for some measures such as data localization 
requirements. He encourage d Members  to consider whether it was desirable for the Committee to 
consider these issues and whether they would like to make c ontribution s in this regard.   
1.2.  The representative of the Kyrgyz Republic  presented his delegation's  Communication 
regarding mode 4  related  scheduling issues , which had been circulated  on 6 March 2019 
(JOB/SERV /287). For the Kyrgyz Republic, as for many othe r developing Members, mode 4 was 
considered as an area of comparative advantage and constitute d an important component of its 
economy. The Kyrgyz Republic was one of the leading countries to export service s, relative to its 
population and size of economy, having almost one third of its active population working abroad 
                                                
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/79  
 
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  and receiving remittances which reach ed 30% of its GDP. Mode 4 appear ed to be a meaningful 
area of concern for the Kyrgyz Republic . It was a high priority to promote progress in the WTO by 
bringing certainty and predictability to services trade under Mode 4. The Kyrgyz Republic w anted 
to focus Members ' attention to certain issues related to the scheduling of Mode 4 commitments 
which were, from th e point of view of this delegation, still in need of clarification and 
understanding by the Members . The Kyrgyz Republic found  that many Mode 4 entries were vague 
and ambiguous, which m ight have laid  the ground for significant administration discretion. To  
some degree, lack of clarity and transparency in mode 4 commitments entail ed legal uncertainty 
and thus undermine d the value of specific commitments. The Communication  highlight ed some 
common scheduling issues under mode 4, including those related to: eco nomic needs tests 
(ENTs); categories of natural persons scheduled ; and relationship between horizontal 
commitments and sectoral entries. Not intended to be exhaustive, the purpose of th e 
Communication  was to revive the discussion in the Committee and to invite Members to consider 
possible future work. The first scheduling issue related to Mode 4 reiterate d again the issues 
earlier raised by some WTO Members, but with more focus on Mode 4 itself. Despite the 
requirement and guidance which show ed explicitly t hat ENT s should be expressed in quantitative 
terms, rather than qualitative as could be  found , the lack of clarity and specificity constitute d the 
main scheduling problem in Members' schedules. Another issue  concern ed categories of natural 
persons, such as intra -corporate transferees, business visitors, contractual service suppliers, 
independent professionals, etc.  The categories were  either not well defined or differ ed widely in 
their scope and coverage from schedule to schedule. The absence of agreed definitions for 
different mode 4 categories and vague inscriptions in many schedules further increase d the 
uncertainty of commitments under Mode 4 as they m ight be subject to arbitrary implementation. 
The third issue was about the relationship between horizontal and sector  specific entries, where 
horizontal commitments were combined with "none" or "unbound" at the sectoral level. As stated 
in the Secretariat Background Note on the Presence of Natural Persons (Mode 4), t his raised a 
question of interpretation as "it is not always clear whether this is to be read as a full commitment, 
as no commitment, or whether the horizontal entry is supposed to prevail"  (S/C/W/75).  The 
Scheduling Guidelines were silent about "none" or "un bound" entries in the sectoral section under 
mode 4. Inconsistency between horizontal and sectoral entries would add more uncertainty to 
mode 4 commitments . Keeping in mind that ot her scheduling issues were worth discussing, this 
Communication  was intended  to serve as the first step to revive the discussion in the Committee 
with a view to improving the clarity and accuracy of commitments. The Kyrgyz Republic  suggest ed 
the following questions for discussion:  
a. Should a Member decide to specify its ENT entries under mode 4, what might have been 
the common elements, especially for labour market tests inscribed in the horizontal 
section?  
b. Was it desirable to develop common definitions of the categories of mode 4 persons? If 
so, what might have been the basis for su ch common definitions? Alternatively, how 
could clarity and predictability be enhanced for scheduled mode 4 categories? Could a 
checklist of key definitional elements be developed, for instance?  
c. Would it be useful to clarify the relationship between horizo ntal and sector -specific 
commitments in the case of mode 4?  
d. To add clarity and accuracy to commitments under mode 4, would Members consider 
applying the Procedures for the Certification of Rectifications or Improvements to 
Schedules (S/L/84)?  
1.3.  The represent ative of India stated that  the issues presented in the Kyrgyz Republic's 
Communication  were pertinent and should have been addressed long ago. She indicated that India 
had tabled several  proposals in these areas, some of which ha d also been referenced in the 
document JOB/SERV/287.  India strongly recommend ed the Membership to jointly work in the 
identified areas .  Firstly, there was a need to be full y transparen t about the criteria on which ENTs 
were based . Secondly, for an objectiv e evaluation of an application, it was critical to develop key 
definitional elements for committed categories of mode 4. For instance, s ervice suppliers from 
India ha d faced difficulties due to subjective assessment of an applicant’s qualifications especia lly 
in the case of the “specialist” sub -category of Intra -Corporate Transferees (ICTs) . Thirdly, it w ould 
be extremely helpful to clarify the relationship between horizontal and sector -specific 
commitments in the case of mode 4. In some Members’ schedules,  there was a conflict between S/CSC/M/79  
 
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  mode 4 commitments in the horizontal and sectoral sections, which need ed to be clarified or 
amended at the earliest . Finally , concerning the suggest ion that Members consider applying the 
Procedures for the Certification of Rec tifications or Improvements to Schedules , India wanted  to 
hear from Members on other possible options to address these critical scheduling issues.  
1.4.  The representative of Tajikistan  shared  some initial observations. The purpose of the Kyrgyz 
Republic's Communication was to promote liberalization of mode 4 trade in services, which was of 
interest to developing countries.  Mode 4 was defined as the supply of a service by a service 
supplier of one Member , through presence of natural persons of a Member in the territory of an y 
other Member. ENTs constituted one of the most important market access and national treatment 
barriers to international trade in services under the GATS, affecting a wide range of sec tors 
relevant for mode 4. Tajikistan noted that ENTs were not equally registered by all Members and 
these measures c ould generally be considered as a quantitative restriction to foreign services and 
services suppliers. Thus, all proposals and negotiations should aim at considering the development 
and the increasing participation of developing countries in international trade in services , with a 
focus on sectors and modes of supply of export interest to developing countries. Tajikistan  was 
willing  to partici pate in further discussions and looked forward to constructive work to reach a 
reasonable outcome.  
1.5.  The representative of China  echoed India's statement  that this kind of discussion was long 
overdue . China  was willing to contribute to the technical discussi ons on the relevant issues raised 
in the proposal.  Regarding the ENT issue, China welcome d relevant discussions based on the 
Background Note by the Secretariat. Specifying Members’ ENT requirements under mode 4 would 
improve the predictability and certaint y of commitments. China encourage d Members to exchange 
their own practices and experiences in this regard, however, such technical discussions sh ould be 
without prejudice to Members’ rights to regulate in line with their commitments.  Regarding the 
common d efinitions of the categories of natural persons, China  agree d that they w ould be 
desirable. The Secretariat B ackground Note ha d provided preliminary definitions on terms such as 
independent professionals, contractual service suppliers, intra -corporate tran sferees and business 
visitors, etc. These definitions c ould serve as a good basis for the future  discussion.  China  
support ed further clarification on the relationship between horizontal and sector -specific 
commitments in the case of mode 4, which w ould contribute to enhancing the consistency of 
Members’ commitments , and therefore improve their  implementation. Regarding  applying the 
Procedures for the Certification of Rectifications or Improvements to Schedules, since the 
Certification was subject to the  acceptance of all WTO Members, the completion of such a process 
could not be successful without mutual understanding and consensus among all Members. 
Therefore, relevant technical discussions on improving the accuracy of Members’ commitments 
would be more  practical. China  indicated that it was  looking forward to further discussion of these 
issues.  
1.6.  The representative of South Africa  deliver ed a statement on behalf of the African Group. The 
Group  welcome d reinvigorating work in the CSC after a two -year hiatus. The African Group 
recognise d the importance of scheduling issues as they relate d to Members ' schedules of specific 
commitments. It also acknowledged  the relevance of Mode 4, an area of longstanding interest to 
developing and least developed countries. Members could benefit from a deeper discussion on 
these issues and  could go along with supporting future work in the CSC. The Group  pointed out 
that this future work should include all relevant scheduling issues, not only limited to Mode 4. 
These include d discussions on the classification of computer and telecom services, and the Mode 1 
delivery of services.  
1.7.  The representative of Thailand  welcomed the efforts to revive the discussions in the 
Committee. Thailand support ed a Member -driven process  and was therefore open for an 
information or experience sharing exercise on topics falling within the mandate of th e Committee 
that m ight be of Members’ interest. Such an exercise should be  conducted on a voluntary basis 
and without prejudice to Members’ existing commitments.  
1.8.  The representative of Turkey  reiterated her delegation's  position  that Mode 4 ha d been the 
most neglected mode in terms of existing commitments and of the work undertaken to further the 
benefits of existing commitments. As previously stated by  the Turkish  Ambassador in the  TNC 
meeting, Members were negotiating issues related to mode 1 and 2 through the e-commerce 
initiative and mode 3 through the investment facilitation initiative, although not all Members 
participate d in those. Although Turkey  welcome d all initiatives and negotiations per se, it also S/CSC/M/79  
 
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  wanted to draw Members’ attention to the lack of an initiative and/or negotiations on Mode 4 
which exacerbate d the imbalance of commitments under other modes and this m ode. Turkey was  
again struck by how few commitments Members ha d undertaken  in Mode 4, which  were also 
ambiguous with  strong links to Mode 3. Although not directly relevant to the discussions, the main 
reason for so few  commitment s and such ambiguity , seem ed to stem from the fact that while 
undertaking commitments Members had not at hand  the tools to differentiate between temporary 
and permanent stay , work permits , and between a service supplier as defined under GATS and a 
regular applicant for the domestic labour  market. Members apparently still d id not have such tools . 
The Background Note by the Secretariat  (S/C/W/301 ), state d that "even the concessions granted 
in Preferential Trade Agreements have only provided rather limited advances over GATS mode 4 
commi tments ". When  market access negotiations re -started, this m ight be the first challenge to 
tackle. In the meantime, Members should at least try to develop understandings and disciplines to 
better harness the benefits of the existing commitments. Kyrgyz Repu blic’s submission had 
successfully put forth possible future work that could be  undertake n before market access 
negotiations start. Turkey  also provide d some answers to the questions raised in the 
Communication . The answer to the first question lay in the fact that Members’ entry, temporary 
stay and work permit procedures d id not differentiate between temporary and permanent 
migration. Labour  market test s might  have prove n to be unnecessary for natural persons as 
defined under GATS if migration authorities had a way to distinguish them from regular foreign 
applicants for the domestic labour  market. For the second question, common definitions should  be 
developed. The basis for such common definitions could be the existing entries of the Members 
which were already compiled by the Secretariat in its Informal Note contained in document 
JOB(03)/195. For the third question, it would be very useful to clarify the relationship between 
horizontal and sector -specific commitments in the case of mode 4. However, when clarifying the 
relationship between horizontal and sector -specific commitments , all modes of supply  should be 
included.  Concerning the last ques tion, Turkey w ould not hesitate to activate the procedures of a 
Certification process if it was so agreed , but this would be difficult given the burden of the process 
and the conflicting interest s of Members at that point in time . 
1.9.  The representative of Uganda  delivered a statement on behalf of the LDC Group . The LDC 
Group attached utmost importance to mode 4 issues, an d this had been reflected in the Collective 
Request Pursuant to the Bali Decision on the Operationalization of the Waiver Concerning 
Preferential Treatment to Services and Service suppliers of Least -developed Countrie s 
(S/C/W356). In the collective request the Group  called for the removal of ENTs. Specifically, under 
point A.2, the LDC Group asked  Members to "waive all economic needs tests  and labour market 
tests, or other procedures of similar effect , for LDC supplier s entering in accordance with a bona 
fide contract for a duration of two years renewable. " Going forward in the discussion, the LDC 
Group was interested in hearing whether Members with ENT s would be willing to waive those  in 
favour of service suppliers of LDCs that successfully attracted consumer 's interest in their mode 4 
services. In this regard, contractual service suppliers and independent professionals were desirable 
categories.  
1.10.   The representative of the Bolivarian Republic of Venezuela  noted the impor tance of the topic 
for developing economies  and hoped to have in -depth discussions on all the elements that were 
pertinent in that context.  
1.11.   The representative of Pakistan  noted  the questions and issues raised as relevant and 
important. Pakistan looked forw ard to participat ing in any discussion on this subject and the 
specific submission of the Kyrgyz Republic.  
1.12.   The representative of the United States  noted that t he Kyrgyz Republic's  Communication  
referred to the Secretariat Background Note  on Mode 4 , and ask ed what new developments were 
sought .  Some of the suggestions in the Communication  would be challenging for the Committee, 
such as agreeing on common criteria, definitions or categories. The United States  noted that 
recently acceded Members  typically ha d undertaken more comprehensive commitments covering  
all areas as opposed to original Members. This might be worth examining. It was said that mode 4 
commitments  were weak, but this was often due to the lack of sectoral coverage. The fact that 
many original Members ' schedules  did not have a  comprehensive sectoral coverage  weaken ed 
entries in all modes. The United States supported South Africa' s statement that there were issues  
to be consider ed beyond mode 4. For instance, certain Members had yet to  submit upd ated 
schedules after new legislation had passed , although they had  indicated they would do so in their 
original schedules . This was long overdue.  S/CSC/M/79  
 
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  1.13.   The representative of the European Union  welcomed the fact of putting forward some 
substantial work for the Committee which  could add value to what had been done over the past 
years.  On the first question  raised the Kyrgyz Republic's  Communication , the European Union' s 
approach would be not to i mpose ENTs for the category of intra-corporate transferees. For the 
other categories it m ight be very difficult to establish common ENT criteria as practices amongst 
Members differ ed, rendering the identification of common elements difficult. But Members c ould be 
encouraged to be as clear as possible when scheduling mode 4 commitments. On the second 
question on common definitions of categories  of mode 4 persons , the European Union's position 
had always been that this would be a valuable exercise. An existin g communication by the 
European Union and other Members of 18 February 2005 (TN/S/W32), suggested the adoption of 
common categories for mode 4 commitments. Concerning the third question on the relationship 
between horizontal and sectoral commitments, the E uropean Union would be happy to discuss this, 
but did not see the issue at stake. The fourth q uestion might be  premature , in the view of the 
European Union . 
1.14.   The representative of Colombia  agreed  that there was space for improving the transparency 
of ENTs. Mode 4 commitments could be more beneficial. Discussions could be based on the 
existing elements in Members'  commitments. There was a huge need for more in -depth work to 
improve the clarity of horizontal and sectoral entries.  
1.15.   The representative of Peru believed  that the issues raised were relevant  and could be 
fruitfully discussed in the Committee. Peru was very interested in mode 4, but also in other modes 
of supply. If other Members engage d in this, Peru would welcome  informal discussions based on  
questions and statements that were made by the Kyrgyz Republic.  
1.16.   The representative of Mexico  supported the comments made by Colombia. But, given that 
national systems differ ed greatly, it m ight be difficult to identify common denominators and 
definitions. Mexico would also be interested in discussions regarding horizontal and sector specific 
commitments. A lot remained to be done in that respect and the Background Note from the 
Secretariat was very useful.  
1.17.   The representative of Australia  viewed Mode 4 as a n important mode of supply, as we ll as it 
did for the other three modes.  Australia was  ready to engage in any future technical discussions on 
the issues raised in the Kyrgyz Republic 's Communication . 
1.18.   The representative of Chile echoed the support for the r e-establishment of the dialogue in 
the Committee and in all services regular bodies. Some greater clarity on ENTs could be achieved 
and would be useful. Chile's experience in negotiations, including regional, showed that defining 
common categories or defin itions for mode 4 was difficult , as domestic regulations differ between 
countries. Chile viewed the clarification of the relationship between mode 4 horizontal and sectoral 
commitments worth discussing. Chile agreed that some schedules ha d created some doubts and 
needed clarifications.  
1.19.   The representative of the Kyrgyz Republic  thanked delegates for their high -level 
interventions and interest in the topic. He emphasized that , as could be witnessed in Member's 
comments, even if the Committee could not reach a solution and move to the next steps, the goal 
was to increase awareness of these issues . The WTO bodies  should create a discussion platform to 
enable Members to express their opinions, including opposing views. This would improve Members'  
knowledge of the magnitude and nature of the problem s, as well as  find solutions for the future.  
1.20.   The Chairperson  invited Members to reflect  on his introductory remarks of this agenda item 
regarding the consideration of scheduling issues arising from elec tronic supply of services or on -
line transactions. Noting that no delegation was seeking the floor, he suggested that the 
Committee take note of the statements made and revert to this item at its next meeting.  He would 
continue to consult with Members on h ow the Committee should move forward under this agenda 
item. 
1.21.   It was so agreed .  S/CSC/M/79  
 
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  2  ITEM B - CLASSIFICATION  ISSUES  
2.1.  The Chairperson  recalled  that since June 2018 he had  been holding extensive consultations. 
There was persistent interest expressed in having discussions on classification issues related to 
online transactions. One specific issue suggested was  the classification of platform services : were  
they covered by W/120, and if so, where  should they fall ? For examp le, the sharing  economy had 
become an important business model, cutting across many various sectors such as distribution, 
transport or entertainment. It involved platform -based on -line transactions and facilitated access 
to goods and services. Amazon, Uber , eBay or Airbnb were well known examples. The chairperson 
invited Members to consider whether and how the Committee should undertake meaningful work 
in this area.  
2.2.  The Chairperson  proposed  that the Committee revert to this agenda item at the next 
meeting . He would continue to consult with Members on how the Committee should move forward 
under this agenda item.  
2.3.  It was so agreed .  
3  ITEM C – OTHER BUSINESS  
3.1.  No delegation made  interventions under this item.  
3.2.  The Chairperson  indicated  that he would hold consultations on the timing of the next meeting 
and inform Members in due course.  
3.3.  The meeting was adjourned . 
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