S/C/50  
25 November 2016  
(16-6519) Page: 1/13 
 
ANNUAL REPORT OF THE  COUNCIL FOR TRADE IN  SERVICES  
TO THE GENERAL COUNC IL (201 6) 
Since its Annual Report of 201 5 to the General Council1, the Council for Trade in Services held five 
formal meetings, respectively on 15  October  2015, 2 November  2015 (Dedicat ed Session on the 
LDC services waiver) , 18 March 2016, 17 June 2016 and 7  October  2016.2 During the period 
covered by this report, the Council addressed the following matters.  
1  NOTIFICATIONS MADE T O THE COUNCIL PURSUA NT TO GATS ARTICLES  III:3 , V:7 
AND VII:4  
1.1.  The Council for Trade in Services took note, altogether, of the following notifications:  
(a) Notifications pursuant to Article III:3 of the GATS  
Russian Federation  S/C/N/814 -816 
Peru  S/C/N/826 -830 
Switzerland  S/C/N/831 , S/C/N/ 859 
Ukraine  S/C/N/832  
Paragu ay S/C/N/836 -838 
Lesotho  S/C/N/842 -852 
Egypt   S/C/N/862  
European Union  S/C/N/865 -867 
 
(b) Notifications pursuant to Article V:7 of the GATS  
Bahrain, Kuwait, Oman, Qatar, Saudi Arabia,  
 Singapore and United Arab Emirates  S/C/N/807/Rev.1  
Brunei Darussalam, C ambodia , India, Indonesia,  
 Lao PDR, Malaysia , Myanmar , Philippines ,  
 Singapore , Thailand , Viet Nam  S/C/N/822  
Kyrgyz Republic  S/C/N/823  
The European Union and Ukraine  S/C/N/744/Add.1 and Corr.1  
China and the Republic of Korea  S/C/N/854  
The Republic of Kor ea and New Zealand  S/C/N/855  
The European Union  S/C/N/856  
Australia and China  S/C/N/858  
The Republic of Korea and Viet Nam  S/C/N/861  
China and Hong Kong, China  S/C/N/264/Add.9  
China and Macao, China  S/C/N/265/Add.9  
Mongolia and Japan  S/C/N/863  
Mexico and Panama  S/C/N/86 4 
 
The agreements notified in these documents were referred to the Committee on Regional 
Trade Agreements for consideration.  
(c) Notifications pursuant to Article VII :4 of the GATS  
Russian Federation  S/C/N/817 -818 
 
                                                
1 S/C/48, dated 2 November 2015.  
2 Reports of these meetings are contained in documents S/C/M/124 to 128, and should be read in 
conjunction with this report.  S/C/50 
 
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  1.2.  At the meeting held in Mar ch 201 6, the Council took note of the updated annual Secretariat 
Note containing a statistical account of the notifications made under relevant GATS provisions.3 
1.3.  At the June and October meetings, the United States underscored the importance of timely 
and c omplete notifications of Economic Integration Agreements (EIAs) pursuant to GATS 
Article  V:7, and drew the Council's attention to services EIAs whose notification was outstanding.  
2  OPERATIONALIZATION O F THE LDC SERVICES W AIVER  
2.1.  The Council discussed the ope rationalization of the LDC services waiver during the entire 
reporting period. It also held a Dedicated Session , entirely devoted  to the LDC services waiver , on 
2 November  2015. 
2.2.  A total of 23 notifications of preferences for LDC services and service suppli ers were 
submitted to the Council by the end of the reporting period .  Notifications  were submitted by:  
Canada  S/C/N/792/Rev. 1 
Australia  S/C/N/8 05 
Norway  S/C/N/806  
Republic of Korea  S/C/N/808  
China  S/C/N/809  
Hong Kong, China  S/C/N/810  
Chinese Taipei  S/C/N /811 
Singapore  S/C/N/812  
New Zealand  S/C/N/813  
Switzerland  S/C/N/819  
Japan  S/C/N/820  
Mexico  S/C/N/821  
Turkey  S/C/N/824/Rev.1  
United States  S/C/N/825  
India S/C/N/833  
Chile S/C/N/834  
Iceland  S/C/N/835  
Brazil  S/C/N/839  
European Union  S/C/N/840  
Liechtenstein  S/C/N/841  
South Africa  S/C/N/853  
Uruguay  S/C/N/857  
Thailand  S/C/N/860  
 
2.3.  As required by the Waiver Decision4, notified preferential measures that go  beyond 
Article  XVI of the GATS need to be approved by the Council.  At the Dedicated Session, the Council 
approved all such preferences included in the notifications submitted until then . Pursuant to t he 
Decision on preferential treatment for LDCs adopted by Ministers in Nairobi5, which , inter alia, 
instructs the Council to expeditiously consider approval of prefe rential measures beyond Article 
XVI, at its March meeting , the Council did consider, and  approve , all such preferences , which were 
contained in five of the notifications on the agenda for that meeting . 
2.4.  At the Dedication Session of 2 November, the LDC Group  presented its initial assessment of 
the notifications received up to that point. At the June and October 2016 meetings, t he Group  
offered a further, detailed assessment of the preferences notified by the European Union and 
South Africa, as well as of Turk ey's revised  notification.  The LDC Group indicated that it would 
continue , at future meetings of the Council,  to share its examination of the notifications received.  
2.5.  As stipulated in the relevant Nairobi Ministerial Decision, the Council is to facilitate 
discussions on technical assistance aimed at promoting LDCs' participation in services trade. In 
line with that mandate , in March  the European Union, China, Australia and India shared 
information  on various technical assistance and capacity -building measur es they had implemented 
                                                
3 Document JOB(09)/10/Rev. 6. 
4 WT/L/847.  
5 WT/L/982.  S/C/50 
 
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  or would undertake to promote the increasing participation of LDCs in services trade.  A t the June 
meeting,  furthermore, a representative of the World Bank  shared a preliminary assessment of the  
preferences granted; a distinction wa s made between the  kinds of preferences that LDCs could 
take advantage of relat ively rapidly  and those for which more work w as required . The World Bank 
also provided an overview of the kind of skills, regulatory and connectivity assistance that would 
likely be of greatest relevance to LDCs.   
3  WORK PROGRAMME ON EL ECTRONIC COMMERCE  
3.1.  In July 2015, Members had accepted China's  suggestion to embark on a structured 
information -sharing exercise under the Work Programme  through  the addition of  a standing 
agenda sub -item. Hence, at the October  2015 meeting China provided  the latest available 
information on the rapid expansion of e -commerce  in its market , developments with domestic 
e-commerce legislation  and the role  e-commerce had played in integrating Chinese SMEs in to the 
world trading system. Nigeria also contributed information on the remarkable progress 
e-comme rce had enjoyed in its market.  
3.2.  Pursuant to the  relevant  Nairobi Ministerial Decision6, in 2016 the CTS continued with its 
deliberations under the Work Progr amme.  In March , China presented the most recent  data on the 
continuous acceleration of e -commerce in its market, while Canada shared information on the e -
commerce provisions it had included in its trade agreements. A representative of UNCTAD updated 
the Co uncil on a number of activities UNCTAD was unde rtaking related to e -commerce.  
3.3.  After noting that existing WTO rules were already applicable to e -commerce, at the June 
meeting some delegations called on the Membership to consider whether and which additional  
disciplines might usefully complement the mult ilateral rulebook in the  area. One delegation 
reiterated, however, that Members' discussions under the Work Programme must not aim at any 
norma tive or prescriptive outcomes. The WTO institutional arrangements for deliberations on e -
commerce were al so mentioned by a few Members. While one delegation viewed the fragmentation 
across different bodies as unhelpful, several others supported such multi -layered discussions, in 
light of the b road range of issues involve d. The MIKTA7 countries shared with the Membership the 
programme of the e -commerce seminar they were organising on 5 July.  
3.4.  Also at the  June meeting , Brazil proposed that the Secretariat update a 1998 Note produced 
to assist Members' examination of the trea tment of electronic commerce in the GATS legal 
framework.8 Many delegations welcomed the suggest ion but a few requested more time to 
consider the proposal. The Chairman organised open -ended consultations on the matter in July, 
but no consensus could be re ached and, at the October meeting, Brazil indicated that it did not 
intend to revisit its proposal.   
3.5.  Pursuant to the mandate  in the Nairobi Ministerial Decision , that the General Council 
periodically review s progress with the Work Programme based on the re ports that might be 
submitted by the WTO bodies entrusted with its implementation, in June the Council agreed that 
the Chairman would produce, under his own responsibility, a factual report of the essence of the 
discussion s the Council had had  under that a genda item  up to that point .9  
3.6.  In October , Members considered a proposal by Chinese Taipei et al. that the Council  hold a 
seminar on the services trade -aspects of e -commerce.10 Around 30 delegations took the floor to 
support the proposed seminar , with sever al referring to e -commerce a s a possible MC11 
deliverable. A few delegations, however,  indicated that they needed more time to consider the 
proposal and would revert to it.  While generally agreeable to  discussing e -commerce issues within  
the confines of th e Work Programme, these delegations recalled  that the Work Programme did not 
contain a  negotiating mandate , called for special attention to be paid to its developmental aspects  
and underscored the need to bridge the e -commerce knowledge and regulatory gap that 
developing countries faced before any discussion of trade  disciplines could be undertaken.  It was 
                                                
6 WT/L/977.  
7 Mexico, Indonesia, Korea, Turkey and Australia.  
8 S/C/W/68, 16 November 1998.  
9 The report is contained in document S/C/4 9. 
10 RD/SERV/133/Rev.2, spo nsored by Chinese Taipei with Australia; Canada; Colombia; Hong Kong, 
China; Israel; the Republic of Korea; Mexico; Panama; Paraguay; Qatar; Singapore and the United States.  S/C/50 
 
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  agreed that t he Chairman would  hold open -ended consultations  on whether to hold the proposed 
seminar and what its programme might  be. 
4  RECENT DEVELOPMENTS  IN TRADE IN SERVICES  
4.1.  Discussions under this agenda item took place at the October 2015  meeting, with  TISA-
partic ipating Members indicating their availability to share information  on progress with their 
negotiations with any interested Member .  
5  CERTAIN MEA SURES RELATED TO THE  REFORM OF THE UNIFIE D GAS 
TRANSPORTATION SYSTE M OF UKRAINE – STATEMENT BY THE RUS SIAN FEDERATION  
5.1.  At its October 2015 , March , June and October 2016 meetings,  the Council addressed certain 
measures related to the reform of the Unified Ga s Transportation System of Ukraine, at the 
request of the Russian Federation. The Council took note of the statements made by the Russian 
Federation, Brazil, the Plurinational State of Bolivia,  Argentina and  the Bolivarian Republic of 
Venezuela  at the October 2015  meeting;  the Russian Federation and  Ukraine at the March 
meeting; the Russian Federation, Ukraine, Armenia, Nicaragua and Cuba at the June meeting; and 
the Russian Federation, Ukraine, Armenia and Cuba at the October meeting . 
6  RE-OPENING OF THE FIF TH PROTOCOL FOR ACCE PTANCE BY BRAZIL  
6.1  At its March meeting, the Council agreed to re -open the Fifth Protocol to the GATS  on financial 
services  until 25  March  2016, to allow the Government of Brazil to deposit the instrument of 
acceptance that would give leg al effect to Brazil's commitments annex ed to that P rotocol.  
7  MODE 4 - ASSESSMENT OF BARRIE RS TO ENTRY – STATEMENT BY INDIA  
7.1.  At its March meeting, the Council addressed India's  assessment of barriers to entry in 
mode  4 of the GATS , on the basis of a written communication  India had submitted .11 The 
communication refers, inter alia, to measures taken , or being considered , by the United States , 
Canada and the United Kingdom that India considers impede or may impede mode 4 trade.12 
7.2.  The United States stated  that, since India had filed a request for consultations under the DSU 
on the US measure under discussion, India had chosen the WTO forum in which to address the 
issue, and discussions of the same  measure  in the  Council were procedurally inappropriate . The 
European  Union and the United Kingdom stated that the Indian communication refer red to neither 
a measure nor a draft measure within the meaning of the GATS, but simply  to a recommendation 
from an independent consultative body . Canada indicated that India had misun derstood and 
misperceived its recent  reforms.  
7.3.  Several developing countries echoed India's  general  concerns  with respect to regulatory 
barriers that might impede mode 4 trade, while Australia noted that regulatory barriers could limit 
trade in other modes of supply.  
7.4.  India also proposed that the Secretariat update its 2009 Background Note on mode 4, to 
reflect , inter alia,  the increase in perceived obstacles to mode 4, but a  few Members expressed 
their opposition . The request was reiterated at the June meeti ng, but yet again no consensus was 
arrived at.  
7.5.  At the June meeting,  the United Kingdom, Canada and the United States questioned  India's 
approach  in mentioning specific measures, rather than generic ba rriers, and expressed  their 
disappointment that the issu e had been revisited in the Council in a manner they considered 
unconstructive.  Several developing countries echoed India's general concerns about the many 
barrie rs that hampered mode 4 trade.  
7.6.  When the  Council  took up  the issue again at its  October  meetin g, India suggested that , 
rather than focusing on specific measures by specific Members, the Council organize either a 
                                                
11 JOB/SERV/229.  
12 S/C/W/301.  S/C/50 
 
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  dedicated discussion or a seminar to discuss generic mode 4 obstacles . Such obstacles included  
unclear definitions, non -portability of soc ial security, non-recognition of qualifications, residency 
requirements and economic needs tests. While several  Members called o n India to provide more 
details  about its proposal,  in writing, a number nonetheless offered their preliminary support to 
India' s suggestion. A few others  expressed an interest in discussing all services market access 
issues, across the board , and noted that no single mode should be singled out  when debating 
barriers to services trade, while  also observing that the sectoral scope a nd level of commitments 
Members had undertaken should also be considered  in such discussions . A couple of delegations 
indicated that the novelty of India's  proposal prevented them from reacting . It was agreed that , in 
light of India's most recent proposal  under this agenda item, the Chairman would hold 
consult ations  to better delineate the scope of th e Council's deliberations on the  issue.   
8  FOURTH REVIEW OF MFN  EXEMPTIONS  
8.1.  In light of the decision Members had taken in 2011 to  hold the fourth review of MFN 
exemptions "no later than 2016 "13, at its March meeting t he Council  debated when exactly , in 
2016, it would  start the review . The decision was reached  to commence the review  at the  June 
Council meeting , with a discussion of procedural issues .  
8.2.  Consequently , at the June meeting Members started the fourth review of MFN exemptions , by 
discussing organisational issues. Delegations were in overall agreement that past practice could be 
adhered to , although many suggested that the review  should be streamlined and a  number of 
ideas were put forward  to that effect . At a subsequent  informal meeting , convergence emerged on 
the procedural arrangements  to be followed; these  were later outlined in detail in a Chairman's 
Note and agreed to by Members.14 The fourth review of M FN exemptions will , accordingly,  be 
conducted on that basis.  
9  FUTURE WORK OF THE S UBSIDIARY BODIES TO THE COUNCIL FOR TRAD E IN 
SERVICES – STATEMENT BY BRAZIL  
9.1.  At the June meeting Brazil proposed that Members consider how to restructure the work of 
the subsid iary bodies  to the Council . Specifically, Brazil  suggested that the Committee on Trade in 
Financial Services be discontinued and the Workin g Party on GATS Rules and the Committee on 
Specific  Commitments suspended;  in lieu, a standing item would be added to  the agenda  of the 
Council , for Members to discuss the issues that were curren tly addressed in those bodies. T he 
Working Party on Domest ic Regulation (WPDR)  should  continue its work if Members engaged in 
text-based negotiations,  or also be suspended  otherw ise. 
9.2.  Several Members asked Brazil to put its ideas in writing, so as to be able to consider them  
properly. One delegation found Brazil's proposal  of interest,  but a number of others  expressed  the 
view that, at a time of renewed interest in services work, t he Council's  subsidiary bodies should 
continue  with their work . However, m ost delegations  indicate d that they were open to 
reconsidering the frequency of meetings: not all subsidiary bodies would necessarily have to meet 
during each cluster , whereas the WP DR might need to meet more frequently.   The Council agreed 
that t he Chairman  would organise informal consultations  on the issue . Although at those 
consultations no consensus emerged on Brazil's proposal, an item entitled "Future Work and 
Timing of the Next  Meeting" was added to the agenda of each subsidiary body, to offer delegations 
an opportunity to discuss what future work might be undertaken and when  the next meeting might 
be organised.  
10  RECENT DEVELOPMENTS IN TRADE IN SERVICES  STATISTICS  
10.1.   At the October  meeting of the Council, the Secretariat made a presentation on recent 
developments in trade in services statistics, which focus ed on data production and dissemination, 
technical assistance activities, specific projects and new areas o f work . The Council a greed that 
such an update would be organised on a yearly basis.  
                                                
13 S/C/M/105, paragraph s 35-36. 
14 JOB/SERV/238.  S/C/50 
 
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  11  WORK OF THE SUBSIDIA RY BODIES  
11.1.   The activities of the subsidiary bodies in 201 6 are reflected in their respective reports, which 
are annexed to this report, as follows:  
 Annex I Report of the C ommittee on Trade in Financial Services (S/FIN/ 31) 
 Annex II  Report of the Committee on Specific Commitments (S/CSC/ 22) 
 Annex III  Report of the Working Party on Domestic Regulation (S/WPDR/ 19) 
 Annex IV  Report of the Working Party on GATS Rules (S/W PGR/27). 
 
 
_______________  
 
 
 S/C/50 
 
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S/FIN/31  
 
24 November 2016  
(16-6469) Page: 1/1 
ANNUAL REPORT OF THE  COMMITTEE ON TRADE I N FINANCIAL SERVICES  
TO THE COUNCIL FOR T RADE IN SERVICES (20 16) 
Since its previous Annual Report to the Council for Trade in Servi ces1, the Committee on Trade in 
Financial Services held four formal meetings , on 14 October 2015, 16 March 2016, 15  June 2016, 
and 5 October 2016.2   
 
1  ACCEPTANCE OF THE FI FTH PROTOCOL TO THE GATS  
1.1.  On 18 March 2016, Brazil accepted t he Fifth Protocol to the GATS . In terms of paragraph 3 of 
the Protocol and pursuant to the Decision of the Council for Trade in Services (reproduced in 
document S/L/411), the Protocol entered into force for Brazil on 18 March 2016. The Protocol has 
now been accepted by all its par ties. 
2  TRADE IN FINANCIAL S ERVICES AND DEVELOPM ENT 
2.1.  The Committee focused on the issue of financial inclusion, on the basis of a Background Note 
by the Secretariat on Barriers to Financial Inclusion and Trade in Services (S/FIN/W/88/Add.1). 
The Note provides  an overview of barriers to financial inclusion (e.g. supply -side and demand -side 
constraints, inadequate regulatory frameworks, institutional weaknesses and deficient financial 
infrastructure), shows – through various original case studies – how trade in services contributes 
to overcoming those obstacles, and discusses the role of trade policy in services in that context. As 
part of this discussion, Members also exchanged information on their respective financial inclusion 
initiatives and policies.  
3  REGULA TORY ISSUES IN FINAN CIAL SERVICES  
3.1.  In the context of the Committee's review of recent developments in global financial 
regulatory reform and the implications for trade in financial services, representatives of the Global 
Forum on Transparency and Exchange o f Information for Tax Purposes, the International Monetary 
Fund and the Islamic Financial Services Board made presentations on recent developments in their 
respective areas of competence. The presentations were followed by discussions with Members.  
3.2.  The Co mmittee also considered a Note by the Secretariat overviewing recent standard -
setting activities by the Basel Committee on Banking Supervision, the Financial Stability Board, the 
International Association of Insurance Supervisors, the International Organiz ation of Securities 
Commissions, as well as the Islamic Financial Services Board, over the last two years (document 
S/FIN/W/90 and Add.1).  
4  RECENT DEVELOPMENTS IN FINANCIAL SERVICE S TRADE  
4.1.  At the meetings in June and October 2016, the representative of Jamai ca, on behalf of the 
members of the Caribbean Community (CARICOM), drew Members' attention to the impact of "de -
risking" on correspondent banking relationships in the region.  
_______________  
                                                
1 S/FIN/30, dated 14 October 2015 . 
2 The reports of the formal meetings are contained in documents S/FIN/M/8 6 to 89 , and should be read 
in conjunction with this report.  S/C/50 
 
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S/CSC/22  
 
23 November 2016  
(16-6427) Page: 1/2 
  
ANNUAL REPORT OF THE C OMMITTEE ON SPECIFIC  COMMITMENTS  
TO THE COUNCIL FOR T RADE IN SERVICES (20 16) 
Since its Annual Report of 2015 to the Council for Trade in Services1, the Committee on Specific 
Commitments  (CSC) held four formal meetings, respectively on 2 October 2015, 17 March 2016, 
16 June 2016, and 5 October 2016 .2 During the period covered by this report,  the Committee 
addressed two standing items - classification issues and  scheduling issues – and considered future 
work.  
 
1  CLASSIFICATION ISSUE S  
1.1.  At the meeting of 2 October 2015, a representative of the UN Statistics Division  made a 
presentation on services in the Central Product Classification (CPC) through video conference, with 
a focus on the evolution of CPC and its general application rules. In th e follow -up discussions, 
Members reiterated their divergent views on various issues related to "new services", including 
whether "new services" existed, whether a definition of "new services" was needed, and the 
implications of "new services" for existing commitments under the GATS .  
1.2.  During the reporting period, a number of delegations indicated repeatedly that the 
Committee had exhausted the discussion on "new services", while some others continued to 
express interest in further exploring related issues.  
2  SCHEDULING ISSUES  
2.1.  At the meeting of 17 March 2016, the delegation of Turkey presented its communication on 
economic needs tests (ENTs) with a view to reinvigorating the discussion in the Committee.3 
Noting problems arising from vague and ambiguous ENT entr ies in Members' schedules, Turkey 
made a number of specific suggestions for future work in this regard, including: updating the 
Secretariat's Note on ENTs, examining tendencies in the scheduling of ENTs in FTAs, exchange of 
information among Members on the  application of ENTs, and identifying common elements of the 
criteria for ENTs by mode or by sector. Turkey's proposals received general support from Members 
and a shared view was expressed that ambiguous ENT entries in Members' schedules undermined 
the va lue of specific commitments under the GATS. Nevertheless, the Committee only agreed to 
task the Secretariat to update its Note on ENTs by examining the schedules of newly acceded 
Members.  
2.2.  At the meeting of 16 June 2016, the Secretariat presented the updat e of its Note on 
economic needs tests , which  examined the schedules of the 11 Members that had acceded  to the 
WTO after 16 April 2010.4 The updated Note highlighted that many ENT -related  entries continued 
to be problematic, even in new Members' schedules.  
2.3.  At the meeting of 5 October 2016, the Committee continued its discussion on ENTs, but no 
progress was made on substance.  
                                                
1 S/CSC/21, dated 14 October 2015.  
2 The reports of the formal meetings are contained in doc uments S/CSC/M/74 -77, and should be read in 
conjunction with this report.  
3 JOB/SERV/224, dated 29 February 2016.  
4 S/CSS/W/118/Add.2, dated 25 May 2016.  S/C/50 
 
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  3  FUTURE WORK  
3.1.  The Chairman held consultations on possible  future  work the Committee might undertake 
within its mandate. At the meeting of 5 October 2016, a number of delegations expressed interest 
in discussing various scheduling and classification issues, in particular those related to e -
commerce. There were also questions about the purpose of the Committee's work in the absence 
of marke t access negotiations. The Chairman would continue to consult with Members on future 
work of the Committee.    
_______________  S/C/50 
 
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S/WPDR/19  
 
25 November 2016  
(16-6490) Page: 1/2 
   
ANNUAL REPORT OF THE  WORKING PARTY ON DOM ESTIC REGULATION  
TO THE COUNCIL FOR TRAD E IN SERVICES (2016)  
Since its Annual Report of 2015 to the Council for Trade in Services1, the Working Party on 
Domestic Regulation (WPDR) held four formal meetings, respectively on 15 October 2015, 
17 March, 16 June, and 6 October 201 6.2 During the period covered by this report,  the Working 
Party continued with its work on domestic regulation disciplines pursuant to GATS Article VI:4.    
 
1  DEVELOPMENT OF REGUL ATORY DISCIPLINES UN DER GATS ARTICLE VI: 4 
1.1.  The focus of the discussion at the me eting on 15 October 2015 was on inclusion of a possible 
transparency element in an outcome at the Tenth WTO Ministerial Conference in Nairobi.  While 
some delegations suggested that such an outcome was desirable and could be built around 
transparency eleme nts of previous WPDR Chair draft texts, other delegations were not convinced 
that transparency in domestic regulation was an issue that should be included in a Nairobi 
outcome.  
1.2.    During the meeting of the Working Party on 17 March 2016, delegations were in  agreement 
that further work should take place on the basis of the full mandate of the Working Party under 
Article VI:4.  Delegations expressed general readiness to engage on substance. Several 
delegations stated that a first step towards engagement could be a discussion on objectives and 
desired outcomes.  
1.3.  At the meeting of 16 June 2016, on the basis of a proposal by a group of Members 3, many 
delegations engaged in a discussion of experiences with domestic regulation barriers, Members' 
objectives, possible  elements to be included in future domestic regulation disciplines, and the way 
forward in the work of the WPDR.  Upon request by Members, the Chairperson prepared an 
informal summary of possible elements for inclusion in disciplines on domestic regulation  that were 
mentioned by Members at the meeting.4 
1.4.  During the meeting of 6 October 2016, the Working Party addressed two communications by 
Members: one communication by a group of Members provided text proposals on "Administration 
                                                
1 S/WPDR/18, dated 15 October 2015.  
2 The reports of the formal meetings are contained in documents S /WPDR/M/65 - 68 and should be read 
in conjunction with this report.  
3 JOB/SERV/231/Rev.1, dated 13 June 2016; Communication from Australia; Chile; China; Colombia; 
Hong Kong, China; the Republic of Korea; Mexico; New Zealand; Norway; the Russian Federation ; Singapore; 
Switzerland; the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu; and Turkey - Elements for 
Discussion.  
4 JOB/SERV/236, dated 28 June 2016; Informal Summary by the Chairperson - Possible Elements of 
Domestic Regulation Disciplin es mentioned at the Meeting of the Working Party on Domestic Regulation on 
16 June 2016.  S/C/50 
 
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  of Measures"5, while the ot her communication, by India, present ed a "Concept Note for an 
Initiative on Trade Facilitation in Services .6   
_______________  
 
 
 
 
                                                
5 JOB/SERV/239, dated 27 September 2016; Communication from Australia, Chile, Colombia, the 
European Union, Mexico, Norway, the Republic of Korea,  and the Separate Cu stoms Territory of Taiwan, 
Penghu, Kinmen, and Matsu – Domestic Regulation – Administration of Measures. A revision to the 
Communication to include Japan and Peru among the co -sponsors was issued on 31 October 2016, 
JOB/SERV/239/Rev.1.  
6 S/WPDR/W/55, dated  27 September 2016; Communication from India - Concept Note for an Initiative 
on Trade Facilitation in Services . S/C/50 
 
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S/WPGR/27  
 
23 November 2016  
(16-6424) Page: 1/2 
   
ANNUAL REPORT OF THE  WORKING PARTY ON GAT S RULES  
TO THE COU NCIL FOR TRADE IN SER VICES (2016 ) 
 
Since its 2015 annual report to the Council for Trade in Services1, the Working Party on GATS 
Rules  (WPGR) held four formal meetings respectively on 14  October  2015, and 17 March, 16 June 
and 5 October 2016.2 The three neg otiating mandates the Working Party is entrusted with – 
namely emergency safeguard measures ( GATS Article X), government procurement (Article XI II) 
and subsidies (Article XV) − were put on the agenda of each of these meetings. In addition, in 
February 2016 , the Working Party held an open -ended informal consultation to discuss a proposal 
by the European Union on  future work on government procurement . In all three areas, progress  on 
substance remained limited due notably to the overall context of the negotiat ions.  
 
1  NEGOTIATIONS ON EMER GENCY SAFEGUARD MEAS URES (ARTICLE X)  
1.1.  During the period covered by this report,  the group of proponents on emergency safeguard 
measures (ESM) – the 'Friends of ESM'3 – re-affirmed their continued interest in pursuing work in 
this area in accordance with the built -in mandate of GATS Article X. They invited comments from 
delegations on the dedicated discussion on safeguard -type provisions in bilateral and regional 
trade agreements that the Working Party had held in late 2013 and 201 4. They also recalled their 
2007 proposal in favour of establishing rules for the use of emergency safeguard measures 
contained in JOB(07)1554, and suggested resuming technical discussions on statistical sources and 
indicators that could be used in service s safeguard investigations5. However, no delegation took up 
these suggestions, and Members did not engage in any substantive work on the subject.  
2  NEGOTIATIONS ON GOVE RNMENT PROCUREMENT ( ARTICLE XIII)  
2.1.  In October 2015, the Working Party discussed a proposal  for future work on government 
procurement tabled by the European Union6 suggesting that Members exchange information on 
how they treated foreign -owned or -controlled established  service suppliers7 in their government 
procurement practices, as compared to their domestic suppliers. Further to such an exchange of 
information among Members, the EU delegation had suggested inviting the Secretariat to examine 
how possible discrimination with respect to government procurement was dealt with in Members' 
bilateral and regional trade and/or investment agreements. In subsequent meetings, delegations 
discussed the purpose of the proposal as well as the need to clarify its contours. The EU delegation 
                                                
1 Annual Report of 2015 contained in document S/WPGR/26, dated 15 October 2015.  
2 Reports of these meetings are contained in documents S/WPGR/ M/88 to 91, and should be read in 
conjunction with this report.  
3 Comprising the following nine delegations: Brunei Darussalam, Cambodia, Indonesia, Lao People's 
Democratic Republic, Malaysia, Myanmar, Philippines, Thailand and Viet Nam.  
4 Communication f rom Brunei Darussalam , Cambodia , Indonesia, Malaysia , Myanmar, the Philippines, 
Thailand  and Viet Nam of 19 October 2007, "(Draft) Annex on Article X Emergency Safeguard Measures" . 
5 At its March 2011 meeting, the Working Party had discussed the question o f the availability of 
disaggregated, mode -specific statistics in the context of emergency safeguards.  The debate was introduced by 
two presentations by WTO Secretariat experts . The report of the meeting is contained in document 
S/WPGR/M/73.  
6 Communicatio n by the European Union entitled "Proposal for Future Work on Government 
Procurement", document JOB/SERV/215, dated 25 September 2015.  
7 These refer to suppliers supplying services through the establishment of a commercial presence in the 
territory of anot her Member,  or 'mode 3'.  S/C/50 
 
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  informed Members that, based on the comments received, they were refle cting on the best way 
forward regarding their proposal.  
3  NEGOTIATIONS ON SUBS IDIES (ARTICLE XV)  
3.1.  Discussions in this area have stood at an impasse for some time with no new ideas or 
approaches being put forward. More conceptual work would ideally be needed t o better understand 
how and in which sectors subsidies we re provided , and what effects they might have  on trade in 
services .  
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