RESTRICTED  
  
S/C/W/363  
 
25 September 2015  
(15-4957)  Page: 1/3  
Council for Trade in Services  Original: English  
 
  SUBMISSION BY BANGLADESH ON BEHALF OF THE LDC GROUP 
 
REQUEST FOR A DEDICATED SESSION OF THE CO UNCIL FOR TRADE IN SERVICES ON THE LDC 
SERVICES WAIVER AND RESULTS FROM THE HIGH LEVEL MEETING  
 
The following communication from the delegation of  Bangladesh on behalf of the LDC Group, dated 
21 September 2015, is being circulated to the Members of the Council for Trade in Services. 
 
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1.1.   This communication is a request of the LDC Group that a Dedicated Session of the Council 
for Trade in Services be convened to examine the results emerging from the Bali Decision on the 
Operationalization of the Waiver Concerning Pr eferential Treatment to Services and Services 
Suppliers of Least-Developed Countries and in the context of expected outcomes for LDCs at the WTO Tenth Ministerial Conference to be held in Nairobi, Kenya.  
1.2.   Article IV.3 of the Uruguay Round General Agreement on Trade in Services (GATS) 
committed Members of the World Trade Organization (WTO) to provide Least-Developed Countries (LDCs) special priority in services sectors and modes of supply of interest to them. Members further agreed in the 2003 Modalities for the Special Treatment for Least-Developed Country 
Members in the Negotiations on Trade in Services (TN/S/13) ("LDC Services Modalities") and 
Annex C of the 2005 Hong Kong Ministerial Declar ation, to devise a mechanism to accord the 
special priority envisaged under GATS Article IV.3. 
1.3.   At the WTO's Eighth Ministerial Conference (MC8) held in 2011, Ministers agreed on a 
decision to allow WTO Members to waive GATS Article II.1, Most Favoured Nation (MFN) treatment, in order to provide preferential tr eatment to LDC services and services suppliers 
(WT/L/847). Notwithstanding the decision, no pref erential treatment was accorded to LDCs until 
the end of 2013. Therefore, in 2013 Ministers ag reed in Bali at the WTO’s Ninth Ministerial 
Conference (MC9) on a decision to operationalize the MC8 LDC Services Waiver Decision (WT/L/918).  
1.4.   The Bali Decision provides that if LDCs submit a collective request, six months thereafter, a 
high-level meeting would take place where Members, in a position to do so, were required to indicate intended preferences in services sectors and modes of supply in favour of LDCs. In 
addition, paragraph 1.3 of MC9 Decision encouraged  Members in their individual capacities, at any 
time, to extend preferences to LDC services an d service suppliers, which have commercial value 
and promote economic benefits to LDCs.  
1.5.   Preferential treatment may be accorded th rough the elimination of the type of restrictions 
listed under GATS Article XVI or those falling outside of Article XVI.   
1.6.   In furtherance of the MC9 Decision, the LDC Group submitted a Collective Request on 
21 July 2014. The Collective Request represented the LDC Group’s collective articulation of 
meaningful preferences sought by LDCs in terms of sectors and modes of supply, and measures of 
concern to the group. The Collective Request crystalized elements arising from extensive research and experiences, targeting a number of barriers and encumbrances LDC services suppliers face in S/C/W/363 
 
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  pursuing existing and potential consumers and clients in a number of WTO Members, both 
developed and developing countries.   
1.7.   In addition to GATS Article XVI measures, GATS Article XVII national treatment is important, 
however, a number of domestic regulatory meas ures were found to be impediments. The LDC 
Group considered that Members might venture into  notifying preferences in this area to, at a 
minimum, reduce visa, residence permit, and othe r license application and registration fees, for 
both Mode 3 and Mode 4, specifically for LDC independent professionals and contractual service 
suppliers. In addition, reduction of administrative procedures explicitly for LDCs (including if they 
have been reduced for non-LDCs under other pr eferential schemes) would go a long way to 
address impediments. LDCs also felt that elimination of other restrictions for LDCs that are not in place in the applied regimes of Members, but are not yet bound in GATS commitments, should also 
be "doable" for Members.   
1.8.  The submission of the Collective Request in July 2014 triggered the setting of the date for the 
Bali mandated high-level meeting (HLM) whereby Members would indicate intentions to provide 
preferences to LDCs. The convening of the HLM ma rked the fulfillment of one of the elements 
required to implement the Bali LDC Services Waiver Decision. After extensive bilaterals and discussions held based on the LDC Collective Requ est, LDCs were pleased with the indications 
made at the HLM held on 5 February 2015, from approximately 22 Members. However, LDCs 
registered that (1) concrete preferences for LDCs mu st be notified, and (2) the details will need to 
be examined. At the high-level meeting, Members agreed (1) to a date for initial assessment of the indications made at the high-level meetin g and (2) that Members would aim to submit 
notifications by end of July 2015. 
1.9.  By the end of July, the LDC Group was pl eased to take note of 10 notifications that 
specifically stated the provision of preferential tr eatment in favor of LDC services suppliers and the 
use of the LDC Services Waiver Decision to derogate from the requirement to provide MFN 
treatment to other WTO Members.
1 One notification offering preferential treatment in favor of 
LDCs was submitted in August.2 Two Members submitted an announcement of intention to notify.3 
Two members have submitted their notifications in September4. 
1.10.  Various formats were used to demonstrate the intention to provide preferences in favor of 
LDCs and derogating from the GATS Article II. 1, MFN. The LDC Group expressed preliminarily 
appreciation of those Members who, in their notifi cations, ventured beyond their indications made 
at the HLM by providing more preferences than ea rlier announced. The LDC Group is also grateful 
for those who provide both Article XVI market access preferences and other preferences beyond 
market access, including reduction of fees. It is clear from the MC8 LDC Services Waiver Decision, 
those measures falling under GATS Article XVI will  apply without any requirement for agreement in 
the WTO. However, the LDC Group is confident that  additional authorization required in the CTS 
for preferences beyond GATS Article XVI measures, will not become an obstacle. Therefore, the 
LDC Group encourages notifications beyond GATS Article XVI measures as well and has called for 
the CTS to expeditiously convene a meeting to  authorize those preferences beyond GATS 
Article XVI measures.  
1.11.  While the LDC Group is carefully examining th e content of the notifications submitted so far, 
the LDC Group is concerned about outstanding notifications not submitted. The LDC Group 
cautions against delaying the submission of all notifications as a Nairobi deliverable. 
1.12.  This submission requests that a Dedicated Session be convened in early October to consider 
the LDC perceptions of the notifications submitted so  far, exchange of questions and clarifications 
and the need for a Council for Trade in Services meeting to authorize preferences notified beyond GATS Article XVI measures, and to consider next steps in light of notifications not yet received. 
The Dedicated Session will also allow for a collective discussion among Members that will further 
assist the LDC Group in its deliberations on next steps for outcomes for LDCs at MC10. The following is a proposed agenda for the meeting. 
                                               
1 Australia; Norway; China; Hong Kong China; Republ ic of Korea; Chinese Taipei; Japan; New Zealand; 
Singapore and Switzerland. 
2 Mexico. 
3 European Union (including a draft of their intended notification) and Chile. 
4 United States of America and Turkey. S/C/W/363 
 
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  PROPOSED AGENDA 
Item 1: Review of notifications submitted so far.  
a. LDC Group presentation of its init ial assessment of the notifications and 
responsiveness to the LDC Collective Request. 
b. Consideration of next steps for notifications containing preferences beyond GATS 
Article XVI measures requiring authorization in the CTS. 
Item 2:  Review of the state of play concerning notifications not yet received. 
Item 3:  Recommendations to the General Council for MC10. 
 
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