WORLD TRADE  
ORGANIZATION  RESTRICTED 
S/CSC/M/65 
19 December 2012 
 (12-6972) 
Committee on Specific Commitments   
  
 
REPORT OF THE MEETING HELD ON 6 DECEMBER 2012 
 
Note by the Secretariat
1 
 
 
1. The Committee on Specific Commitments (CSC) held a meeting on 6 December 2012, 
chaired by Mr. Rodrigo Bardoneschi from Argentina.   
2. The Chairman said that under Other Business,  he would inform Members of the next 
presentation envisaged by the statistical experts from the WTO Secretariat.  They would continue to 
explain some important changes contained in th e new IMF Balance of Payments Manual (BPM6) 
with respect to services classifications.  
3. The agenda for the meeting, contained in WTO/AIR/4058, was adopted as modified. 
A. A DOPTION OF THE ANNUAL REPORT TO  THE  COUNCIL  FOR  TRADE  IN SERVICES  
4. The Chairman drew attention to the draft repor t contained in document S/CSC/W/60.  It was 
factual and self-explanatory, reflecting the work  the Committee had done during the past eleven 
months.  He suggested that the Committee adopt the report.    
5. It was so agreed.   
B. CLASSIFICATION ISSUES  
6. The Chairman recalled that at its last mee ting, the Committee had examined classification 
issues relevant to distribution services , based on the Secretariat's informal Note (JOB/SERV/111).  
Delegations had mainly addressed three aspects: th e incongruence between subsector headings of 
distribution services and their CPC corresponden ces in W/120; franchising; and the scope of 
wholesale and retailing services. The summary of the discussion was contained in document JOB/SERV/119.  As several delegations had indicated  that they were still reviewing the Note and 
would come back with comments at this meeting, the Committee had agreed to keep this sector on the 
agenda. 
7. The representative of India sought confirmation from the Chairman that, for all sectors, the 
current exercise was future -oriented with no intention to revise W/120 and did not affect the existing 
commitments, and that the discussions were not exhaustive in nature. 
8. The Chairman confirmed that it was the case. 
9. The Committee then held discussions on distribut ion services in informal mode.  At the end 
of the discussion, the Chairman said that Members might always come back on issues of particular 
interest or raise new issues. 
                                                      
1 This document has been prepared under the Secret ariat's own responsibility and without prejudice to 
the positions of Members and to their rights and obligations under the WTO. S/CSC/M/65 
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  10. Moving on to postal and courier services , the Chairman recalled that, at the last meeting, the 
Committee had considered classification issues arisi ng in this sector, based on an informal Note 
(JOB/SERV/110) prepared by the Secretariat for this  exercise.  Delegations had discussed the current 
classification of this sector in W/120 and alterna tive classification schemes tabled so far, including 
Members' proposals.  There seemed to be c onvergence concerning the particular classification 
problems surrounding this sector in W/120 and CPC Provisional.   
11. The Committee then continued to discuss postal and courier services in informal mode.  
12. Referring to paragraph 5 of the Annotated Age nda for this meeting, the representative of 
Hong Kong, China agreed with the description that  views converged on the particularity of the 
classification problem of this sector.   However, there was no convergence on how to deal with this 
problem, as a number of different proposals had been submitted in this regard, including one from this 
delegation. 
13. Echoing the above comments on paragraph 5 of the Annotated Agenda, the representative of 
India indicated that one should not attempt to convey the impression of convergence that did not exist. 
14. In concluding, the Chairman reiterated that Members might always come back on issues of 
particular interest or raise new issues related to this sector. 
15. Turning to legal services , the Chairman indicated that, to facilitate discussions, the Secretariat 
had prepared an informal Note (JOB/SERV/ 129) providing an overview of the issues and 
summarizing views expressed by Members in the past .  He invited the Secretariat to introduce the 
Note. 
16. A representative of the Secretariat stated this  Note drew upon previous Secretariat Notes, 
submissions by delegations, and other relevant mate rials.  The introduction outlined the particularities 
of legal services.  First, laws varied considerably  from one jurisdiction to another, and they were 
usually enforceable only in the jurisdiction where th ey had been enacted.  Second, legal services were 
often viewed as closely linked to the governance of a country.  Part II described the current 
classification of legal services in W/120 and CPC Provisional, and highlight ed the changes brought 
about by CPC Version 2.   Part III summarised alternative clas sification approaches proposed by 
Members or outside bodies like the IBA or the UI A.  Questions listed in the Note were only 
suggestive, and Members might raise any additional points they found appropriate. 
17. The Committee then discussed lega l services in informal mode. 
18. On the subsequent work under this agenda ite m, the Chairman indicated that the Committee 
would consider classification issues related to mar itime transport and logistics services during the first 
cluster of next year.  The Committee would continue with the discussion on legal services as well.  
19. He recalled that, at the last meeting, he had raised the idea of a Secretariat Note on WTO 
jurisprudence related to services classification.  As foreseen, he had held cons ultations on the possible 
content.  During the consultations, Members had reiterat ed the interest expressed at the last meeting.  
There was general agreement that the Note should be factual, addressing services classification issues 
arising in WTO jurisprudence, including the inte rpretative approach applied by Panels and the 
Appellate Body.  The Note would also contai n a background section summarizing the history of 
introducing a services classification system into th e WTO.  It was aimed at deepening Members' 
understanding of services classification, and no particular outcome was intended from it.  S/CSC/M/65 
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  20. The representatives of India, Hong Kong China,  Australia, Saudi Arabia, the EU, Malaysia 
(also on behalf of Indonesia, Thailand, Singapore and the Philippines), South Africa, New Zealand, 
Chinese Taipei, China, Chile, and Japan  supported the Chairman's proposal.   
21. In addition, the representative of India compli mented the Chairman for the participative 
process he had adopted which would make the proposed Note more useful to all Members.  While the 
Secretariat was doing an excellent job in preparing documents requested by Members, the content of 
these documents could be made more relevant an d focused if there were more discussions on the 
terms of reference before the S ecretariat was tasked. India would strongly encourage this type of 
participative and inclusive process in other areas as well. 
22. The Chairman thanked delegations for their s upport and engagement.  He suggested that the 
Secretariat go ahead with the preparation of the Note along the lines he had outlined, and that the 
Committee revert to this item at its next meeting.  
23. It is so agreed.  
C. SCHEDULING ISSUES  
24. There was no discussion under this item.   
25. The Chairman suggested that the Committee re vert to this item at its next meeting. 
26. It was so agreed. 
D. REVIEW OF THE OPERATION OF THE PROCEDURES UNDER ARTICLE XXI  
27. The Chairman recalled that, at the request of Australia, the review of the operation of the 
procedures under Article XXI had been included in the ag enda of the last meeting.  Australia had also 
submitted a communication (S/CSC/W/ 59) proposing that Members shar e experience with using these 
procedures and that, in order to facilitate discussi ons, the Secretariat produce a factual report on their 
application.   
28. As foreseen, he had held consultations on how  to proceed with the review, as well as on 
Australia's request for a Secretaria t Note.  He thanked delegations fo r their flexibility and constructive 
engagement.  It had been agreed that the discussi on under this item would be carried out in informal 
mode, that Members would share their views and experience with the operation of the procedures 
without re-opening them, and that a non-attributab le summary of the informal discussion would be 
circulated after each meeting under the Chairman's r esponsibility.  It had also been agreed that the 
Secretariat would prepare, on the basis of publicly  available information, a factual Note containing a 
statistical account of the application of the proced ures to date.  Accordingly, the Secretariat had 
prepared the Note which, contained in document JOB/SERV/123, had been circulated to Members on 
26 November.   
29. A representative of the Secretariat confirmed th at the Note was factual, based on publicly 
available information.  Drawing a ttention to footnote 2 of the Note, he indicated that the Secretariat 
had followed the Procedures for the Circulation a nd Derestriction of WTO Documents, a decision 
adopted by the General Council, contained in document WT/L/452. 
30. The Committee then held discussions in informal mode. S/CSC/M/65 
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  31. In concluding, the Chairman reiterated that a non-attributable summary of the informal 
discussion would be circulated under his responsibility af ter this meeting.  He then suggested that the 
Committee revert to this item at its next meeting. 
32. It was so agreed.   
E. OTHER BUSINESS  
33. The Chairman recalled that, at the Committee's last meeting, statistical experts from the WTO 
Secretariat had made a presentation on important services classification changes brought about by the 
new IMF Balance of Payments Manual (BPM6).  The focus of the presentation had been on the 
statistical treatment of manufacturing services on a fee basis, as well as of maintenance and repair services.  The presentation had been well received a nd delegations had welcomed further information 
on the development of services trade statistics.   Th e WTO statistical experts would be ready to make 
another presentation to the Committee at the next meeti ng, with respect to the statistical treatment of 
IP-related products, another im portant change brou ght about by BPM6 on classification. 
34.  The Chairman then adjourned the meeting. 
 
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