WORLD TRADE  
ORGANIZATION  RESTRICTED 
S/C/M/95 
27 October 2009 
 (09-5321) 
Council for Trade in Services  
  
 
REPORT OF THE MEETING HELD ON 5 OCTOBER 2009 
 
Note by the Secretariat
1 
  
1. On 5 October 2009, the Council for Trade in Serv ices held a meeting under the Chairmanship 
of Ambassador Fernando de Mateo (Mexico).   
2. Due to an unforeseen engagement, the Chairper son of the Council for Trade in Services, 
Ambassador Agah (Nigeria), could not be present to chair the meeting.  Rule 13 of the Rules of 
Procedure for meetings of the Council for Trade in Services (S/L/15) stipulates that, if the 
Chairperson is absent from any meeting, and if no Vice-Chairperson had been elected, the Council 
shall elect an interim Chairperson for that mee ting.  Accordingly, the Council elected Ambassador 
Fernando de Mateo as interim Chairperson.   
3. The agenda for the meeting was contained in document WTO/AIR/3428. 
4. The representative of Australia said that her delegation wished to add an item of Other 
Business to the agenda, concerni ng the entry into force of the certified EC-25 schedule.  A 
representative of the Secretariat also wished to  make two announcements under Other Business, one 
on the Briefing Session for delegates on the scheduling of commitments to be held the following week 
and another on the e-training services module. 
5. The agenda was adopted, as modified. 
6. The Chairperson asked representativ es to speak at a moderate pace to facilitate interpretation. 
A. ANNUAL  REPORTS  OF THE  SUBSIDIARY  BODIES  TO THE  COUNCIL  FOR  TRADE  IN 
SERVICES 
7. The Chairperson said that, in accordance with  WTO reporting procedures, the Council for 
Trade in Services was to consider the Annual Reports of its subsidiary bodies.  Accordingly, he drew 
attention to the Reports, which had been adopted by the respective bodies:  (i) Annual Report of the 
Committee on Trade in Financial Services (S/FIN/2 2);  (ii) Annual Report of the Committee on 
Specific Commitments (S/CSC/15);  (iii) Annual Report of the Working Party on Domestic 
Regulation (S/WPDR/12);  and (iv) Annual Report of the Working Party on GATS Rules 
(S/WPGR/19).  These reports were factual and self-explanatory.   
8. The representative of India said that paragraph 5 of the WPDR Annual Report stated that 
"several delegations were open to the idea of a r eality check on the disciplines".  He noted, however, 
that there was no consensus on this issue, and added that his delegation wished for consultations to be 
held on the shape of the "reality check" as it was not sure what it implied. 
                                                      
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/C/M/95 
Page 2  
 
  9. The Chairman suggested that the Council take note of the four Reports on the understanding 
that they would be annexed to the Annual Report of the Council and form an integral part of it. 
10. The Council took note of the Annual Reports of its subsidiary bodies. 
B. ANNUAL  REPORT  OF THE  COUNCIL  FOR  TRADE  IN SERVICES  TO THE  GENERAL  
COUNCIL 
11. The Chairperson said that, in accordance with  WTO reporting procedures, the Council for 
Trade in Services should report each year to the Ge neral Council on the activities in the Council, as 
well as in the subsidiary bodies.  The draft Annua l Report of the Council for Trade in Services on its 
activities in 2009 was contained in document S/C/W/305.  The Report was factual and self-explanatory.  As already indicated, the Annual Repo rts of the subsidiary bodies would be annexed to 
the Council's Report for submission to the General Council. 
12. The Council adopted the 2009 Annual Report to  the General Council, as contained in 
document S/C/W/305. 
C. NOTIFICATIONS  PURSUANT  TO ARTICLES  III:3  AND  V:7 OF THE  GATS 
13. Starting with the notifications made pursuant to Article III:3 of the GATS, the Chairperson 
drew attention to:  three notifications received from India and contained in documents S/C/N/497 to 
S/C/N/499;  five more notifications received from New Zealand, circulated in documents S/C/N/503 
to S/C/N/507;  and two more notifications received from Paraguay, contained in documents 
S/C/N/510 and S/C/N/511.  
14. The Council took note of the notifications made. 
15. Turning to the notifications made pursuant to  GATS Article V:7 (Economic Integration), the 
Chairperson drew attention to the nine notifica tions received from:  Nicaragua and The Separate 
Customs Territory of Taiwan, Penghu, Kinmen an d Matsu, circulated as document S/C/N/500;  
Panama and The Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu, contained in 
document S/C/N/501;  Peru and Singapore, circulat ed as document S/C/N/502;  Peru and Canada, 
contained in document S/C/N/508;  China and M acao, China, in document S/C/N/265/Add.3;  
Colombia and Chile, in document S/C/N/509;  Japan  and Switzerland, in document S/C/N/512;  China 
and Hong Kong, China, in document S/C/N/264/Add.3;  and, recently, Japan and Viet Nam, contained 
in document S/C/N/513. 
16. The Council took note of the notifications, a nd referred the agreements notified to the 
Committee on Regional Trade Agreements for examination. 
D. COMPLIANCE  WITH  GATS  NOTIFICATION  REQUIREMENTS 
17. The Chairperson recalled that discussions on th is issue had been ongoing in the Council since 
its meeting in April.  Two papers had been pr esented at that meeting:  a communication from 
Switzerland, contained in document S/C/W/297, on "Compliance with notification requirements under 
the GATS";  and a Note prepared by the Secretariat, in JOB(09)/10/Rev.1, which provided a statistical 
account of the notifications made under relevant GA TS provisions.  The Council had agreed to revert 
to this agenda item at that meeting.   
18. No statements were made  under this agenda item.  S/C/M/95 
 Page 3 
 
 
  E. SECTORAL  DISCUSSIONS 
19. The Chairperson recalled that, at its June me eting, the Council had addressed the first three 
Background Notes produced by the Secretariat on serv ices sectors and modes of supply, namely on 
tourism services;  telecommunication services;  and computer and related services.  As indicated in the airgram, there would be an opportunity to revert to these sectors at the end of deliberations of that 
item. 
20. For that meeting, four new topics were up for di scussion, namely:  modes 1 and 2;  mode 4;  
architectural services;  and construction and related engineering services.   
21. At the outset, he recalled that the Secretaria t Notes were intended to provide a basis for 
Members' discussions in the Council on sectors and modes of supply.  The Notes should not be the 
sole focus of the deliberations.  Accordingly, he  encouraged delegations to offer their own written 
submissions, contributions and comments on the sectors and modes under discussion.  
22. In line with the practice adopted at the June m eeting, the substantive part of the debate under 
that agenda item would be held in informal mode .  The presentations of the Notes prepared by the 
Secretariat and by international organisations, and the statements of any delegations wishing to place 
their interventions on record would be incorporated in  the minutes of the meeting.  As record of the 
substantial part of the informal debate, in stead, the Chairman would produce, under his own 
responsibility, a non-attributable summary.  The su mmary would be circulated shortly after the 
meeting, and subsequently recorded in the minutes of the meeting.   
23. He also recalled that in June the Council had agreed that, for that meeting, the Secretariat 
would invite the Organisation for Economic Co-operation and Deve lopment (OECD), the 
International Organisation for Migration (IOM) an d the International Union of Architects (UIA), 
which were not observers to the Council, to shar e with Members any relevant work that they had 
produced for the sectors and modes under discussion. 
24. The rules of procedure stipulated that observe rs should normally be invited to speak after 
Members.  However, given the nature of the delib erations and for the sake of a better structured 
debate, the Chairman proposed that the three intern ational organisations be given the opportunity to 
briefly introduce their contributions immediately af ter the Secretariat had pr esented its own papers, 
and before opening up the floor for general discussion.  The Council agreed. 
1. Modes 1 and 2 (Background Note by the Secretariat, S/C/W/304) 
25. By way of introduction to the Secretar iat Background Note on modes 1 and 2, a 
representative of the Secretariat said that the growth  of internet and other communication technologies 
had lead to an increasing importance of cross-borde r supply.  In 2007, the amount of cross-border 
trade was estimated to be US$3.3 trillion, on a BOP b asis.  This was an increa se of nearly 20 percent 
over the levels of the previous year.   
26. The breadth of sectoral coverage of cross-borde r supply was extensive.  Two of the largest 
components of cross border trade were transport a nd travel.  The fastest growing segments of cross 
border supply were financial services, computer se rvices, insurance and othe r business services.   
27. Since many of the affected sectors were addressed  in separate Notes, the current Note put its 
main emphasis on "other business services".  Many such services were often commonly referred to as 
business process services or back-office support services.   These had become more extensively traded 
in recent years, following a corporate trend in s ub-contracting certain non-core activities, such as S/C/M/95 
Page 4  
 
  payroll, personnel functions and cust omer support, to outside suppliers .  The Note also signalled some 
of the classification issues that had arisen in the wake of this trend. 
28. The representative also pointed out that it was largely unavoidable that two characterizations 
of "other business services" were referred to in  the Note.  For GATS purposes, the reference was to 
the "other business services" sub-sector as define d by W/120.  For statistical purposes, however, the 
category similarly named, which was used for the Balance of Payments, covered most of the same 
activities as the W/120 sub-sector, but also included some professional services.  
29. The Secretariat representative stressed that th e Background Notes represented research efforts 
and did not claim to exercise authority or provide  an interpretation of the GATS and of Members' 
commitments.  The Notes had not been produced to be the focus of the Council's discussion but just 
one of many inputs to Members' deliberations.  In  this sense, the Secretar iat welcomed receiving 
Members' comments and observations. 
30. As previously agreed, the Council conducted the rest of the discussions in informal mode.  
The Chairperson produced the fo llowing summary of the main poi nts raised during the informal 
discussions on modes 1 and 2 (also contained in JOB(09)/134). 
31. Some representatives observed that cross-border supply remained an important aspect of the 
negotiations.  One added that issues such as consumer  confidence and data protection would help to 
ensure continued growth.  Another representativ e recalled his government's interest in new 
commitments that matched the current situation on the ground, thus closing the gap between the 
commitments and commercial reality.  It was also noted that cross-border trade in activities not tradable in the past could contribute to economic development.  
32. Regarding classification, one representative mentioned the gap between business language 
and GATS terminology.  It might be interesting to compare the main revenue streams as recorded by 
businesses with the services classifications being nego tiated about.  Another representative also felt 
that the current classification scheme may not provide  the framework needed, so more thought should 
be given to such issues. 
33. Regarding data, a representative remarked that the bulk of cross-border exports still involved 
the United States and European Communities so it would be interesting to know more about barriers to trade and markets with future growth opportunities.  It also might be interesting to explore how the 
benefits of outsourcing were shared between source  markets and the export destinations.  He also 
wondered about the availability of information on  whether substitution effects were taking place as 
cross-border supply increases – was there any evidence,  for example, that trade in modes 1 and 2 was 
supplanting trade under mode 4.  
34. One representative noted that for some activiti es there still remained a question of feasibility 
of mode 1 supply, and there were also many sens itivities about consumer issu es.  Another participant 
cautioned that, while protection of consumers and ac curate information were important, any related 
measures should be appropriate.  Commenting on the possible linkages between modes 1 and 2, a 
representative recommended against eliminating any di stinction because national legislation may still 
distinguish between these modes.  He added that these essential modes had a pparent links to other 
modes of supply.  
2. Mode 4 (Background Note by the Secretariat, S/C/W/301) 
35. A representative of the Secretariat introduced the Background Note on mode 4, contained in 
documents S/C/W/301.  He said that mode 4 was an area of significant interest to many WTO 
Members.  The precise scope of this mode of suppl y, however, was the subject of some debate.  The  S/C/M/95 
 Page 5 
 
 
  definition and coverage of mode 4, therefore, we re discussed in some detail in the Background Note, 
in an attempt to dispel possible misundersta ndings, significantly expanding on the corresponding 
section in the 1998 Note.  He stressed that it was not for the Secretariat to interpret the GATS and that 
this was the exclusive prerogative of Members.  Ho wever, the Secretariat was involved in technical 
assistance activities, consulted with experts both with in and outside of the WTO, and considered the 
reading and understanding of the Agreement as one of  its responsibilities.  The representative felt that 
it was important to put its reading of the coverage of mode 4 across to Members.  In this regard, 
delegations' comments and views were highly welc ome, as a common understanding on the coverage 
of mode 4 would be particularly useful. 
36. It was also noteworthy that the thinking on th e statistical measurement of mode 4 trade had 
evolved considerably over the previous 10 years.  As  a result, the statistical information available and 
presented in the Note, though scarce, was also more pe rtinent.  One interesting element that emerged 
was that world exports of services, where mode 4 is deemed to be an important component, had exhibited a higher growth  rate, over 2000-2007, than exports  of total commercial services. 
37. The potential economic implications of mode  4 liberalisation, both empirically and 
theoretically on origin and destination countries, were discussed in section V of the Note.  In spite of a 
number of methodological difficulties, empirical studies showed that the overall gains from mode 4 liberalisation were likely to be significant.  This  was also because the current obstacles to mode 4 
trade were considerable, as discussed in section VI .  Finally, section VII of the Note provided a 
detailed analysis of the horizontal mode 4 commitm ents undertaken and MFN exemptions listed.  The 
analysis highlighted that the degree of mode 4 access currently bound in schedules was, overall, rather 
shallow. 
38. The Chairperson indicated that the World Migr ation Report 2008, a contribution relevant to 
mode 4, had been received from the International Organization for Migration, for distribution to 
Members. 
39. The Council conducted the rest of the discussion in informal mode.  The Chairperson 
produced the following summary of the main points raised during the informal discussions on mode 4 
(also contained in JOB(09)/134). 
40. About twenty delegations made interventions on the Secretariat Background Note on mode 4.  
They generally noted the importance of this mode of supply, for developing and developed countries 
alike.  Numerous Members stated that they ha d a strong interest in securing improved mode 4 
commitments in the DDA negotiations.   
41. The usefulness of the definitional part of the Note  was frequently stressed.  It helped to clarify 
the scope of mode 4 and, in particular, the exclus ion from its coverage of foreigners employed by 
national services companies.  One delegation, howeve r, expressed reservations about the Secretariat's 
reading of the relevant GATS provisions. 
42. The challenges related to the statistical measur ement of mode 4 were highlighted by a number 
of delegations, and the efforts undertaken both multila terally and nationally to improve data collection 
were praised.  Some delegations noted that mode 4 accounted for less than 5 per cent of total services 
trade, but the share was far higher in some sectors. 
43. Many delegations emphasized th e benefits of liberalising m ode 4 trade, and referred to 
potential win-win outcomes for origin and destinati on countries, especially in light of the temporary 
nature of mode 4 movements.  Pointing to the methodological difficulties associated with available 
empirical work on mode 4, however, one delegatio n cautioned that it was difficult to conclude, as 
stated in the Note, that "the overall gains to be  expected from mode 4 liberalisation are likely to S/C/M/95 
Page 6  
 
  remain significant".  Two Members observed that 'b rain drain' was not necessarily a concern in the 
case of mode 4, given the temporary nature of the associated movements.  Another delegation disagreed that mode 4 had a role to pl ay in reducing irregular migration.   
44. Numerous Members pointed to the many obstacles that apply to mode 4 trade:  Economic 
Needs Tests conducted in the absence of clearly define d criteria;  vague definitions for the categories 
of persons included in schedules;  the limited num ber of commitments for categories de-linked from 
commercial presence;  the bias in favour of highly-sk illed persons;  the impact of domestic regulatory 
measures;  the lack of recognition of qualifications  (one delegation noted, however, that while Mutual 
Recognition Agreements facilitated tr ade, they could also be trade-distortive) and visa and work-
permit-related requirements.  One delegation observed that most of the obstacles to mode 4 trade 
mentioned in section VI of the Note were outside  the scope of commitments.  Another Member 
disagreed that wage-parity requirements and obliga tions on foreign suppliers to provide training to 
national workers were discriminatory in effect.  Another sought clarifications from the Secretariat with regard to the assertion in the Note that "t he schedules of Caribbean and African countries in 
particular tend to include relatively vague entries". 
45. Amongst the issues that some delegations would have liked to see further developed in the 
Note were:  the negotiating history of mode 4;  the impact of demographic tre nds;  the implications of 
Preferential Trade Agreements for mode 4 GATS commitments;  Mutual Recognition Agreements, 
including those notified under Article VII, and their main characteristics;  the different strategies 
deployed to combat 'brain drain' of health pr ofessionals;  and an analysis of the conditional DDA 
offers, the plurilateral process, and the Signalling Conference. 
46. Several delegations expressed their gratitude to  the International Organization for Migration 
for making available its World Migration Report 2008. 
47. A representative of the International Organizati on for Migration apologised for arriving at the 
end of the discussion on mode 4.  She thanked Memb ers for the opportunity to attend the meeting, and 
the Secretariat for its updated Note on mode 4, wh ich had definitely advanced the thinking on the 
issue.  The Note was useful in clarifying some diffi cult concepts as well as the scope of mode 4 trade.  
Mode 4 involved a very limited type of moveme nt, much narrower than migration as a whole and 
even narrower than temporary labour migration,  which was the most common form of migration 
taking place today.  The Note contained a useful di scussion of how mode 4 mi ght be quantified and of 
the barriers restricting trade through this mode of  supply.  The Note also illustrated how mode 4 
should be placed within the context of domestic regulatory schemes for immigration, which were 
largely developed for different purposes, outside th e context of the GATS negotiations, and which, as 
a result, were ill-placed to accommodate mode 4 concepts. 
48. With regard to trends that had emerged in the migration area, she highlighted the higher 
degrees of mobility, as detailed by the World Migrat ion Report 2008.  Much more of the mobility was 
for shorter-term, temporary stays, which implied th at more of the migration taking place today was 
potentially relevant for mode 4.  At the policy le vel, the focus of the discussion was on how mobility 
could be facilitated and how its poten tial development benefits could be reaped.  She noted that the 
2009 UNDP Human Development Report was, for the fi rst time, focused on mobility and the potential 
development gains associated with greater movement  of people.  Significant barriers to entry still 
remained and in some cases these had been strengt hened in recent months, but not as much with 
respect to temporary movements.  As the Secretar iat Note pointed out, there was a high need for the 
temporary movement of persons, at all skills levels, to fill vacancies in  many markets, and not only in 
developed countries.  Finally, she indicated that  more and more governments, and not only in 
traditional immigration countries, were looking into creating schemes to manage the movement of persons and developing the administrative struct ure needed to facilitate such movements.  S/C/M/95 
 Page 7 
 
 
  3. Architectural services (Background Note by the Secretariat, S/C/W/303) 
49. Before addressing architectural services, a representative of the Secretariat said that he would 
respond to the questions raised on all the Notes at the end of the discussion.  Nonetheless, he wished 
to stress, in reply to the comment about offers and the DDA developments not being addressed in the 
Notes, that this had been a deliberate decision of the Secretariat, in order to keep the discussions in the 
regular Council separate from the discussions of negotiating issues in the Special Session. 
50. Turning to architectural services, he said th at technological changes were accelerating the 
internationalization of many aspects of this sector.  It was difficult, however, to trace the change in 
trading patterns in current statistics, as there remain ed a lack of comprehensive, world-wide data on 
trade in architectural services, primarily due to gaps in reporting. 
51. While creative solutions had helped to overcome certain regulatory constraints, time-
consuming procedures and difficulties associated w ith the recognition of foreign qualifications 
continued to impede international trade in this  sector.  Mutual Recognition Agreements might seem 
the appropriate solution;  however, they could be onerous and time-cons uming to negotiate.  
Consequently, greater cooperation between re gulators and academic institutions was undoubtedly 
required.    
52. Although architecture was subject to less-re strictive GATS commitments than most 
professional services, most commitments had been made nearly 15 years earlier, and consequently might not reflect current conditions of access.  Even  in the absence of additional policy adjustments, 
there might be significant scope for im proving scheduled levels of access. 
53. The Chairperson indicated that the Council had received a contribution from the International 
Union of Architects on the sector, which was contained in JOB(09)/129.   
54. A representative of the International Union of  Architects (UIA) thanked the Council for the 
invitation to attend the meeting.  He was accompan ied by the Secretary-General for the Architects' 
Council of Europe.  His remarks would focus on three areas:  the Background Note by the Secretariat;  
the UIA's work related to the GATS;  and the UI A's requests for consideration of the Council.   
55. On the Background Note, he said that it was an accurate account of the sector.  He concurred 
with the three conclusions and said that the UIA appr eciated the numerous references to its work.  He 
had noted three subjects not covered in the Note.  First, domestic regulation of the architectural 
profession was increasingly tied to applicants for lic ensure holding:  (a) a degree from an accredited 
school of architecture;  and (b) meeting professiona l internship requirements.  Second, once licensed, 
architects were increasingly being required to partake in continuing professional education in order to 
maintain their licence and membership in professi onal bodies.  Third, the WPDR's programme as it 
related to the regulation of the ar chitectural sector was not included. 
56. Further, on the UIA's work related to the GATS, he said that since 1995, the UIA had 
identified needs and produced products to support an d enhance architectural education, practice and 
regulation.  Much of this work had been stimul ated by the GATS.  The UIA viewed itself as an 
international leader among the regulated professions in  providing international standards for the use of 
its 124 national member sections.  By the early 1990s , the architectural profession in many countries 
had been experiencing a significant increase in intern ational trade in architectural services.  It had 
become apparent that there were no accepted glob al standards for the profession.  The UIA had 
responded with pioneering initiatives.  They included:  the UIA Accord on Recommended 
International Standards of Professionalism in the Architectural Practice;  the UNESCO-UIA Charter 
on Architectural Education and the UNESCO-UIA Validation System for Architectural Education;  
the UIA Recommendation on Mutual Recognition Agreem ents;  the UIA proposed "Draft Disciplines S/C/M/95 
Page 8  
 
  on Domestic Regulation in the Architectural Sector";   and participation in the development of the 
"Canberra Accord" for the mutual recognition of  national accreditation systems for schools of 
architecture. 
57. The UIA had two requests to the Council.  The first was based on GATS Article VII.  
Paragraph 5 provided for WTO Members working "i n cooperation with releva nt intergovernmental 
and non-governmental organizations towards the establishment and adoption of common international 
standards and criteria for recognition and common inte rnational standards for the practice of relevant 
services trades and professions".  Meeting the WT O definition of a relevant non-governmental 
organization, the UIA requested that the UIA Acco rd and the UNESCO-UIA Charter for Architectural 
Education be recognized under Article VII and r ecommended to WTO Members.  Both documents 
embodied the profession's quality standards on a global basis.  They were relevant to the interests of 
the Council.   
58. The second request was based on GATS Article VI.  The UIA asked that the Working Party 
on Domestic Regulation and the Council take definitive action re garding the development of a 
discipline encompassing architectural services.  The UIA, motivated by the engagement with the 
WPDR, had been attentive to the work with the accountancy sector.  The UIA had responded to the 
invitation with interest and enthusiasm.  They had viewed those disciplines as being adaptable to the 
architectural sector.  The UIA was now concerned with  the policy shift from the sector-specific to the 
horizontal approach to domestic regulation discip lines.  The prolonged wait for a substantive product 
to emerge from the Working Party that was relevant to architectural regulation was disconcerting.  It 
would be of interest as to whether the horizontal ap proach to all regulated professions would serve as 
an effective application to national architectural re gulation.  Should the WPDR turn its attention to 
sector-specific disciplines, the UI A requested that it consider the UIA's 2006 "Draft Disciplines on 
Domestic Regulation in the Architectural Sector".   The document had the endorsement of the only 
international, non-governmental, architectural organization. 
59. The representative concluded by noting that  the current economic recession had, and 
continued to have, an enormous negative impact on the architectural profession.  However, this was 
not a reason to stop what the UIA or the WTO were about.  The two organizati ons had a fourteen year 
shared history.  The UIA was positioned to serve a role to build and maintain bridges between the WTO and the international architectural community in  matters related to trade in, and the regulation 
of, architectural services. 
60. The Council conducted the rest of the discussion in informal mode.  The Chairperson 
produced the following summary of the main points raised during the informal discussions of 
architectural services (also contained in JOB(09)/134). 
61. With respect to the Note on architectural ser vices, Members thanked the Secretariat for the 
comprehensive coverage of the sector.  Some delega tions asked why the Secretariat Note did not also 
include engineering services, as was the case with its  previous Note on this sector.  Many delegations 
mentioned the lack of statistical data, as noted by the Secretariat, and wished that more information 
was available regarding developing countries.  So me Members offered to provide national statistics, 
and one suggested that the Secretariat send a surv ey to Members asking for data.  One delegation 
enquired about more data on architectural trade by modes of supply, if possible.  
62. Delegations pointed out the benefits of archit ectural liberalization for the liberalization of 
associated sectors, such as construction and related engineering services, as well as the benefits for 
developing countries in terms of technology transfer, tr aining, etc.  They noted that remaining barriers 
to architectural trade included both market access  restrictions, such as nationality requirements and 
limitations on foreign direct investment, as well as domestic regulatory barriers, notably the non- S/C/M/95 
 Page 9 
 
 
  recognition of qualifications.  One delegation wished to have more information on the impact of new 
technologies on mode 1 supply. 
63. Many delegations emphasized the trade impact of  domestic regulation in the sector, as noted 
in the Secretariat Note.  Some delegations also noted the importance of non-discriminatory regulation 
for protecting consumers.  Others emphasized the n eed for transparency, for example with respect to 
licensing requirements and procedures.  Some delegati ons highlighted the important role of the APEC 
Architect Framework, as described in the Secret ariat Note.  Several de legations supported the 
comments of the International Union of Architects (UIA) with regard to lack of progress on sectoral 
disciplines in the Working Party on Domestic Regul ation (WPDR), and noted the inclusion of draft 
disciplines for architecture into the documentation provided by the UIA. 
64. Some delegations would have liked to see more detailed analysis of the specific commitments 
undertaken by Members in architectural services, for example regarding mode 2, as well as a table 
listing MFN exemptions.  One delegation, while noting the difficulties associated with negotiating 
mutual recognition agreements (MRA s) as described in the Secret ariat Note, nonetheless considered 
that MRAs were the path Members should ultimately pursue.  
4. Construction and related engineering servic es (Background Note by the Secretariat, 
S/C/W/302) 
65. By way of introduction to the paper on cons truction and related engineering services, a 
representative of the Secretariat said that the constr uction industry constituted one of the largest single 
sectors in many economies.  It accounted for 5 per ce nt of world GDP on a value-added basis, and for 
an even higher share of employment.  World constr uction output had reached US$4.8 trillion in 2007.  
A large proportion of this activit y remained local or national. 
66. Internationally supplied construction services typi cally related to large-scale, technologically 
sophisticated projects, so-called 'big-ticket' project s, such as airports, harbours, petroleum, chemical 
or power-generation plants or major infrastructur e upgrades.  The international construction sector 
consisted primarily of multinational contract ors who competed among themselves, and with 
contractors that performed work primarily in the co untries in which they were based.  Customers of 
international construction services were generally large private cor porations and governments, i.e., 
sophisticated buyers.  As shown in Subsections IV.B, C, and D of the Note, the international 
construction sector was increasingly global, with c ontractors from developed, but increasingly also 
from emerging and developing economies.   
67. As a result of the Uruguay Round and subsequent accessions, a total of 90 Members 
(counting EC Member States individually) had made commitments in at least one of the five sub-
sectors of construction and related engineering services.  This repr esented roughly 60 per cent of the 
WTO Membership. However, there were significant variations in the actual coverage of commitments. 
68. A significant number of barriers remained in place.  They affected principally mode 3 and/or 
mode 4.  This was despite the fact that attracti ng new foreign investment in the construction sector 
was critical for countries' infrastructures and for securing investment for future economic growth.   
69. The Council conducted the rest of the discussion in informal mode.  The Chairperson 
produced the following summary of the main points raised during the informal discussions of 
construction and related engineering ser vices (also contained in JOB(09)/134). 
70. Reflecting the shared interest among both de veloped and developing Members for new and 
improved commitments in this sector, 14 delegations took the floor to discuss the Secretariat's Note S/C/M/95 
Page 10  
 
  on Construction and Related Engineering Services .  Several representatives confirmed that the 
construction industry represents an important share of GDP and employment, as well as a significant 
source of export revenue.  The magnitude and econom ic weight of South-South and regional trade 
was acknowledged.    
71. The central importance of liberalising furt her mode 3 was widely stressed.  Some 
representatives added that mode 4 and mode 1 also  needed to be addressed.  Indeed, increasingly 
complex engineering and construction processes, a nd the growing integratio n of construction and 
design services, caused the industry to adopt ever more modally-integrated supply methods.     
72. Three delegations suggested that further work  be conducted on classification issues regarding 
respectively: the treatment of CPC 5115 ('Site preparation for mining') and its relationship with 
'services incidental to mining', 'engineering services re lated to construction', a nd the coverage of sub-
sector CPC 5179 ('Other building completion and finishing work').   
73. Several delegations stressed the importance of domestic regulation for the sector in ensuring 
that scheduled market access conditio ns translate into effective opportu nities for foreign participants.  
Other areas of possible future work mentione d by Members were subsidies and government 
procurement. 
5. Sectors discussed at the previous meetin g (Tourism services;  Telecommunication 
services;  Computer and related services) 
74. A representative of the Secretariat introduced  the Addendum to the Secretariat Background 
Note on tourism services, contained in document S/C/W/298/Add.1, which had been produced at the 
request of Members.  The Addendum consisted of  four main sections:  travel warnings;  anti-
competitive practices;  tourism value chains;  and mo de 4 and domestic regulation.  He hoped that the 
Addendum responded to the needs expressed  by Members at the June meeting. 
75. The Council conducted the rest of the discussion in informal mode.  The Chairperson 
produced the following summary of the main points ra ised during the informal discussions of tourism 
services (also contained in JOB(09)/134). 
76. The Secretariat also presented, as requested by  Members, an Addendum to the sectoral Note 
on tourism services, focusing on travel warnings, an ti-competitive practices, tourism value chains, and 
mode 4.  The Addendum was well received, and de legations acknowledged the balanced treatment of 
several sensitive issues.  One Memb er wished to see more information on the role of codes of 
conduct, as applied by the private sector.  Another delegation said more reflection was needed on the 
issue of travel warnings, and wished to see advi sories issued at the international level.  One 
representative urged that the UNWTO Guidelines on Travel Advisories , as described in the 
Addendum, be taken into account by Members. 
77. No interventions were made on telecomm unication services and computer and related 
services. 
6. Further comments 
78. A representative of the Secretariat responded to the points raised by Members.  Starting with 
modes 1 and 2, he said that, as concerned substituti on effects between modes 1 and 2 and mode 4, no 
specific statistical information was available.  Ne vertheless, the symposium on mode 4 held in 2008 
had shown that significant complementarities existed across modes.  For instance, the services supplied by a software specialists might involve elem ents of three, if not all four modes.  Such 
business models were increasingly frequent.  He adde d that the situation concerning statistics was not  S/C/M/95 
 Page 11 
 
 
  even across sectors and modes.  In this regard, offe rs by delegations to cont ribute national statistical 
information were very welcome.  As for th e question on the gap between business language and 
GATS terminology, he said that staying in touch with business realities was essential and that it was 
helpful to discuss such issues, including with dom estic constituencies, and, possibly, to involve the 
Secretariat. 
79. With regard to comments on the mode 4 pa per, the representative said that the overall 
approach to the sectoral papers was that they w ould not deal with DDA issues, give the different 
nature of the discussions in the regular Council an d in the Special Session.  Clearly, there was a 
natural link in substance, but the primary focus of  the Council's exercise was not the negotiations.  As 
for the question on the scope of mode 4, the Bac kground Note contained the Secretariat's reading of 
the GATS.  Any divergent views by Members were welcome, along with the underlying reasons.  It 
was necessary to arrive at a common understanding on  the scope of mode 4, and any dissenting views 
were useful to the debate.  With respect to wage -parity requirements and training requirements, it was 
up to Members to decide whether to list such measur es as limitations in their schedules, and the Note 
passed no judgement on their conformity.  Finally, as concerned the mode  4 commitments of 
Caribbean and African countries, the representative i ndicated that the Note alluded to entries in 
schedules along the lines of "foreigners are required to obtain a work permit".  In such cases, it was unclear if the entries indicated the existence of lim itations or just reflected procedural requirements.  
More information in this sense would be useful to the Secretariat. 
80. Turning to architectural services, the representativ e said that there was scarcity of statistical 
information, but that any national contributions woul d be useful and welcome.  References were also 
made to the importance of domestic regulation and th e issues discussed in the WPDR for architectural 
services, but also other business services.  Finally,  as concerned the question on MFN exemptions in 
architectural services, he drew delegations' attenti on to paragraph 45 of the Secretariat Note which 
contained relevant information.  With respect to  construction services and the question raised about 
the overlap of CPC code 5115 with services incidental to mining, he said that this was another 
example of an area where interaction with the Secret ariat would be useful to clarify and rectify some 
points in the Notes. 
81. By way of general comment, he said that the S ecretariat would not be preparing revisions of 
the Notes, but would use the comments received to  enhance their accuracy before the Notes were 
issued as a future publication.  He invited delega tions to follow-up with relevant colleagues in the 
Trade in Services Division (Lee Tuthill for modes 1 and 2, telecommunication services and computer 
and related services;  Dale Honeck for tourism and architectural services;  Antonia Carzaniga for 
mode 4;  Claudia Locatelli for construction and rela ted engineering services), either individually or 
through Friends Groups. 
82. The Chairperson thanked Members for their cont ributions.  He recalled that, as agreed, he 
would be producing a summary, under his own res ponsibility, of the main issues raised.  This 
summary would be circulated rapidly (in document JOB(09)/134), and subsequently recorded in the 
minutes of the meeting.  The minutes would also contain the presentations of the various papers 
circulated.  He said that the Council would not revert to this item at its next meeting, but at its first 
meeting of 2010, presently scheduled for February.  
F. OTHER BUSINESS  
83. The representative of Australia said that, as stated at previous meetings, her delegation 
remained concerned about the time that had been taken for entry into force of the certified EC-25 
schedule.  The schedule had still not entered in to force.  Australia called on the European 
Communities to provide an update on the national ra tification processes and the proposed entry into 
force.  The representative of China supp orted the statement made by Australia. S/C/M/95 
Page 12  
 
  84. The representative of the European Communities recalled the statement made by her 
delegation at the Council meeting held on 2 April 2009 and 23 June 2009, as reflected in the minutes 
of those meetings (documents S/C/M/93 and 94).  She indicated that 15 EC Member States out of the 25 concerned had completed their national ratificatio n procedures, and that no new ratifications had 
been concluded over the previous three months. 
85. A representative of the Secretariat said that, at the request of various delegations, a 'Briefing 
Session on Scheduling of Commitments' was being or ganised on 16 October.  It was a one-day event 
that focused in particular on 'scheduling issues', i. e., on the basic rules that governed the interpretation 
of existing services commitments and the schedul ing of new/improved commitments in the DDA.  
The programme had been coordina ted with all delegations that had indicated an interest in 
participating.  But latecomers were also welcome.  He invited any delegations  wishing to attend, but 
which had not yet received the programme and the background presentation, to contact the Trade in 
Services Division.   
86. The representative was also pleased to inform de legations that the Secretariat had launched, 
on 21 September, a six-week E-Training Course on the GATS for government officials nominated by 
their relevant ministries.  The main purpose of th e course was to introduce participants to all aspects 
of the GATS, as well as the main principles and c oncepts involved in the scheduling of specific 
commitments.  The course was interactive and tutore d by colleagues in the Services Division.  So far, 
this first "trial run" had proven to be popular an d there were over 120 participants registered.  E-
training courses were increasingly being introduced  to reach out to a larger audience than was 
possible through face-to-face technical assistance activities.  They were also gradually being used in 
WTO trade-related technical assistance as a pre-requi site for more advanced training.  He invited 
delegations wishing to receive more information to  contact Hoe Lim, who is the liaison person for the 
course in the Services Division. 
87. The meeting was adjourned. 
__________