RESTRICTED  WORLD TRADE  
ORGANIZATION  TN/S/M/27 
14 November 2007 
 
 (07-4963) 
Council for Trade in Services 
Special Session  
 
 
 
REPORT OF THE MEETING HELD ON 28 SEPTEMBER 2007 
 
Note by the Secretariat1 
 
 
1. The Special Session of the Council for Trade in Services held a formal meeting on 
28 September 2007, chaired by Ambassador Ferna ndo de Mateo of Mexico.  The agenda for the 
meeting, contained in document WTO/AIR/3072, was adopted. 
A. REVIEW OF PROGRESS IN NEGOTIATIONS , INCLUDING PURSUANT TO PARAGRAPH 15 OF THE 
GUIDELINES FOR NEGOTIATIONS AND ORGANIZATION OF FUTURE WORK   
2. The Chair  noted that during this cluster, in additi on to the formal meetings of the Services 
bodies, Members had held a full slate of plurilatera l and bilateral request-offer negotiations, keeping 
in sight the shared goal of preparing an improved set  of offers.  The unresolved issues in agriculture 
and NAMA should not prevent Members from advancing in services as far as possible.   
3. He recalled that at the July meeting of the TNC several delegations had expressed the view 
that Services had to be represented in any interm ediary package containing the agreed modalities on 
Agriculture and NAMA.  Some had referred, explicitly or implicitly, to the need for some kind of text 
on services to be agreed at the same time as the moda lities.  At that meeting of the TNC, delegations 
had requested that the Chair start, early in September,  informal consultations on the best way forward.  
In response to requests for consultations, he ha d invited a group of Ambassadors to one of his 
Enchilada meetings on 13 September.  By way of transparency, he wished to share with delegations 
the essence of the discussion. 
4. Several participants had expressed the view that , as the DDA negotiations moved into a more 
advanced phase with the submission of draft texts by the Chairs of agriculture and NAMA, Members 
needed to think how the services negotiations woul d best be served.  After some discussion and 
clarification it had emerged that at the time of adoption of the modalities on agriculture and NAMA, 
there would be a need for some guidance on services, idea lly in the form of a text to be adopted at the 
same time as the modalities.  At a minimum, such a text would need to contain a new date for revised 
offers as well as the timeframe for a mechanism pursuant to the LD C Modalities.  There were also 
other elements suggested for inclusion in such a text.  However, at this  stage he did not want to start a 
detailed discussion about what elements might or migh t not be taken up.  One of the main conclusions 
that had emerged from that meeting was that Annex C remained the basis for continuing and 
concluding the services negotiations. Anything to  be done would be by way of implementing 
Annex C. 
5. He then invited Members to assess the current st ate of the services negotiations, and the best 
way to organize work in the coming months.  
                                                      
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. TN/S/M/27 
Page 2  
 
  6. The representative of Uganda,
 speaking on behalf of the African Group, stated that this Group 
remained ready to engage constructively in th e services negotiations with a view to achieving a 
successful conclusion of the Round.  As Members revi ewed the work progress in this area of the DDA 
negotiations, it should be based on th e understanding that the review had to be in full accordance with 
the Doha and Hong Kong mandates.  The Afri ca Group again called on demandeur countries to 
recognize and respect the current flexibilities under the GATS and the need for African countries to 
liberalize in line with their individual levels of deve lopment.  The Group also wished to point out that 
Annex C of the Hong Kong Ministerial Declaration remained the basis for the negotiations.  The 
African Group fully supported the LDCs in their requ est for Mode 4 market access, special priority 
for LDCs, and flexibilities in the rules negotiations  – particularly on Domestic Regulation.   
7. The African Group wished to stress the fact that  its main objective in the services negotiations 
was to achieve a developmental outcome that full y supported the mandate of the Doha Development 
Round.  Specifically, the Group wished to focus on pr iority issues such as the Special and Differential 
Treatment proposals, and Mode 4 liberalization as th e areas that would help the Group achieve this 
objective.  For these reasons, the African Group wish ed to see intensification of discussions on these 
issues.  However, the Group wished to point out that the proposals so far tabled on S&D, including 
those submitted by the Group and that were consid ered as central to these negotiations, had not yet 
received due attention from the membership. 
8. Article IV and Article XIX were key elemen ts of the GATS insofar as S&D treatment was 
concerned.  To achieve a developmental outcome in these services negotiations, it was imperative that 
the provisions of these articles be operationalized.  This objective was further strengthened by the 
negotiation guidelines and procedures adopted in 2001 .  The African Group believed that constructive 
discussion on S&D should lead to the implementation of  Article IV, and that this would advance its 
core interests in the services market access negotiati ons.  The Group therefore expected this to come 
out clearly in the future. 
9. Hoping that negotiations in both agriculture a nd NAMA would be advanced, and recognizing 
that the services negotiations had their own dyna mics, the African Group supported the Chair in 
conducting consultations to reach a meaningful result in the services negotiations as well, in 
conformity and in accordance with the GATS fra mework, the Hong Kong Declaration and its 
Annex C.  In this regard, the African Group was rea dy to help the Chair in this task by bringing ideas 
clarifying its positions concerning the issues at stake.  Its concerns were clear and legitimate.  In its 
view any process should be transparent, inclusive,  and take account of the interests of all WTO 
Members 
10. The African Group was of the view that for any result in the services negotiations to be 
considered a positive one, it had to contain a de velopment dimension, recognizing the special 
situation of developing countries and their right to a progressive liberalization.  A positive and 
acceptable result should address, inter alia, the issues  of S&D treatment, the implementation of LDC 
Modalities, and to what extent the actual or the next offers responded to  developing countries' 
requests in sectors and modes of supply of interest to  them.  It was to be ba sed on wider consultations 
that were transparent, all-inclusive and bottom-up.   As well, the development of the services text 
could come up only after the membership had had a clear picture of the full modalities in agriculture and NAMA.  The text should be able to set high le vels of ambition in the three areas of negotiations 
on services, and should not include any new areas outside Annex C, as agreed by ministers in the 
Hong Kong Ministerial Declaration.  For the Africa n Group, any draft text that did not include the 
sectors and modes of supply of export interest to developing countries and LDCs, S&D treatment, 
LDC Modalities including special priority, technical  assistance and capacity building, as well as all 
elements in Annex C, would not be acceptable.  TN/S/M/27 
 Page 3 
 
 
  11. The African Group remained committed to fu ll and constructive engagement in real 
negotiations on services and in helping to achieve  a successful conclusion on the DDA Round that 
was beneficial to all partners. 
12. The representative of the United States  noted that the services negotiations had been 
proceeding for nearly two years based upon the gu idance contained in the Hong Kong Ministerial 
Declaration.  Considerable work had been done to  implement Annex C of the Declaration.  This 
included extensive bilateral engagement and the development of the plurilateral process.  The 
meetings of this cluster had been important to ensure the prominence of services as one of the three 
core market access objectives of the DDA, and to en able Members to continue to pursue a high level 
of ambition for services alongside that of agriculture and NAMA 
13. Looking at the current status of the negotiations, however, the United Stated found that 
Members had not made sufficient progress toward achieving the mandate of progressive liberalization.  Members had yet to indicate a w illingness to reduce the gap between current practice 
and bound commitments in a meaningful way.  More over, Members did not appear to be willing to 
offer new market access opportunities by removing significant impediments, particularly in key 
infrastructure service sectors such as financial services, telecommunications, computer and related 
services, express delivery, energy services and distribution.   
14. Liberalization of these key infrastructure servi ces played an important role in promoting 
development, as had been documented from indivi dual case studies presented in the CTFS such as 
Turkey's success in opening its financial services market, UNCTAD and World Bank Studies documenting the correlation in developing countries between higher rates of economical growth and 
liberalization in sectors such as financial servi ces, the positive effect that liberalization of 
telecommunications services had had in African c ountries and the tremendous growth and job creation 
that opening of the IT sector had had in India.  Pr esentations by private sector groups also explained 
the tremendous job creation potentia l in express delivery and logistics, where developing countries 
using a relatively low level of technology could establish businesses that created local employment 
and created more attractive climates for investment and business growth.  
15. It therefore seemed ironic (and counterproductive) that at this stage of the negotiations, even 
in the face of the overwhelming evidence of th e power of services liberalization in promoting 
development, WTO Members, particularly developing countries, continued to resist giving significant 
indications that they were willing to make subs tantial improvement in their services commitments. 
16. Coming out of the Hong Kong Ministerial two y ears ago, Members had had a plan for moving 
forward based on Annex C and a combination of th e bilateral request/offer and plurilateral request 
process.  It was safe to say that the overall nego tiations had not exactly proceeded according to the 
plan set forth at Hong Kong.  Virtually all deadlines  had slipped, and the pos itions and priorities of 
individual Members had evolved during this time. 
17. With the agriculture and NAMA negotiations progressing toward agreed modalities, the 
services negotiations were at a new juncture.  It th erefore now seemed appropriate to provide further 
guidance regarding the status and direction of the services negotiations. 
18. With this in mind, the United States encouraged the Chair to engage in consultations with a 
view to producing some guidance on the implementa tion of Article 19, the Doha Declaration, and 
Annex C.  The United States did not have a precis e view of the timing for producing such guidance, 
other than that any services guidance should be ca librated with the development of texts in the 
agriculture and NAMA negotiations.  To conclude, th e United States wished to reiterate that it could 
not accept a final market access package for services that was not on a par with agriculture and 
NAMA.  It also supported the Ambassador of Ugan da's call for expediting discussion on the African TN/S/M/27 
Page 4  
 
  Group S&D proposals.  It was close to reaching agre ement on such proposals.  The United States also 
believed that it was important to expedite the c onsultations on LDC Moda lities and on developing a 
mechanism for that implementation.   
19. Finally, with respect to the question of dates for the next cluster, the United States suggested 
that the Chair consult with Members since, in a stat e of flux, a general discussion was needed in terms 
of determining the best dates and whether the form at for those consultations had to be changed. 
20. The representative of Brazil
 noted that, as one more fully-fledged services cluster had been 
concluded, along the format envisaged in the Hong Kong Ministerial Declaration, some serious soul-
searching was in order.  Such a reflection was wa rranted because it seemed clear that these two weeks 
had not been a very efficient use of resources.  Th ere appeared to be a couple of fundamental reasons 
for this.   
21. The first was the overall situation of the Doha Round.  It was easy to score political points 
with domestic constituencies by hammering on how the services negotiations were "lagging".  The 
facts, however, simply did not bear this out.  Th e modalities had been adopted in March 2001, even 
before the Doha Ministerial Conference.  Mandates and timelines had, on the whole, been complied 
with – an achievement which was almost unique in this Round.  
22. Notwithstanding this context, a couple of years a go a chorus of complain ts regarding the level 
of offers thus far on the table had become almost de afening.  It would have been astounding if, within 
a single undertaking structure, demandeurs were satis fied with services offers  when negotiations in 
other areas, most notably agriculture, were stagna nt and bogged down for years.  It was exceedingly 
unrealistic to expect Members to continue put ting new concessions in services on the table in 
exchange for steps that should have been  taken in other areas in March 2003.   
23. Even though we were always  acutely aware of the underlying structural difficulties for 
services to progress in isolation, in Hong Kong we had agreed to a new format – the plurilateral 
approach – along with the additional guidelines co ntained in Annex C.  The year 2006 evidenced 
some concrete advantages in this approach, particularly as it had led to a degree of rationalization of 
requests and to intense and deep technical discussions among sectoral experts.   
24. The second reason was that there seemed to be  some ambivalence, particularly among 
demandeurs, as to what exactly the purpose of the plurilaterals was supposed to be.  This had been 
apparent during the past two weeks, when under th e guise of a plurilateral approach, the exercise 
seemed much more like a bilateral negotiation of  concessions between a group of demandeurs and 
individual targeted Members than a true plurilateral dialogue.  
25. This indicated that there were over-inflated exp ectations as to the results this approach might 
provide.  The format did not lend itself well to  negotiating concessions among Members.  To put 
things in perspective:  if there were a specific gr oup to deal, for example, only with trade in sugar, 
would it be realistic to expect concrete indications of concessi ons by Members regarding tariffs, 
quotas and subsidies in isolation from whatever else was going on in the Round?  It was not.   
26. So basically, we had a situation where both the general status of the Round and the format of 
meetings conspired to work against the desire of demandeurs to see more concrete indications of the 
possible future content of Members' next revi sed offers.  The question to address was how to 
overcome these obstacles. 
27. The obvious answer, which was progress in other ar eas, was outside the mandate of this body.  
One idea had been floated:  the preparation of a new text on services.  Brazil however did not see a 
need for such an exercise from a stric tly technical negotiating point of view:  TN/S/M/27 
 Page 5 
 
 
  (a) There was basic negotiating mandate for services from the Doha Ministerial 
Declaration; 
(b) There were specific modalities for services – request and offer – as approved in the 
March 2001 guidelines and procedures document; 
(c) Members had adopted additional guide lines in Annex C of the Hong Kong 
Ministerial Declaration, along with the new plurilateral approach. 
So essentially, Members had all the substantive guidance needed. 28. Nevertheless, Brazil was sensitive to two sets of concerns that had been expressed.  Firstly, 
there was the issue of procedural elements of the negotiations.  The fact that the timelines approved in 
Hong Kong had been overtaken by events – or by the lack of events to be more precise – was 
definitely something that had to be dealt with.  Se cond, the desire of some Members to be able to 
convince their constituencies that the services negotiations were progressing in tandem with 
agriculture and NAMA areas where work was pro ceeding on the basis of a Chairman's text.  
Understanding this point of view and in light of these concerns, Brazil was prepared to constructively 
engage on the development of such a text.  However,  such an exercise had to be conducted within a 
strict set of parameters in order to avoid even gr eater imbalances in the overall progress of the Round.  
Among these parameters, Brazil wished to highlight at this stage the following: 
(a) firstly there had to be a clear recognition that such a text was of a completely 
different nature than those being discussed in agriculture and NAMA.  Members were 
not drafting modalities for services. 
(b) In dealing with procedural issues, Members needed to be aware that these aspects had 
to be dealt with in a horizontal manner in  order to maintain the harmonious progress 
of all areas of the Round. 
(c) Ministers in the Hong Kong Declaration had already struck the delicate balance 
required for this harmonious progress by carefully specifying the expected sequencing of steps across different areas of  the negotiations, and this balance should 
be preserved. 
(d) No attempt was to be made to alter th e negotiating mandate in terms of approved 
modalities or in terms of level of ambition – these issues had already been adequately 
dealt with at the appropriate level. 
(e) Finally, the text would have to deal with other outstanding elements of the services 
negotiations such as the issue of LDC Modalities, domestic regulation and GATS 
Rules. Under these general parameters , Brazil was willing to proceed with 
discussions on a possible text to be adopte d by Members in the services negotiations 
and to abide by the Chair's judgement as to  the best procedures for initial discussions.  
29. On the question of future meetings, Brazil's pe rception was that the plurilateral format was 
more or less exhausted.  Perhaps a greater focu s on the bilateral approach would be more productive 
at this stage.  In this sense, pe rhaps Members could think of scheduling shorter meetings in the future, 
which could allow for meetings of subsidiary bodi es, bilateral negotiations and informal discussions 
of the possible services text. 
30. The representative of Lesotho
, speaking on behalf of the LDC Group, stated that as Members 
were reviewing progress in the services negotiations , the LDC Group wished to stress the need to TN/S/M/27 
Page 6  
 
  maintain the current flexibilities under the GATS a nd the need for Members to fully implement 
Annex C of the Hong Kong Ministerial Declaration.   In this regard, the LDC Group urged Members  
to give special consideration to sectors and modes of  export interest to LDCs that corresponded to the 
development dimension of the Doha Round.  LDCs ha d clear interest in Mode 4, and requested the 
operationalization of special priority for LDCs.  LD Cs should also be exempted from any disciplines,  
particularly on Domestic Regulation, given their weak regulatory capacities. 
31. The Group's assessment was that th ere had been lack of requisite political will to make market 
access commitments that were of interest to LDCs.  LDCs wished to point out that, since the adoption 
of the LDC Modalities, Members had not shown practical  interest to operationalize the special priority 
for LDCs as spelt out in Article IV:3 of GATS, although many discussions had been held on this 
subject.  Despite LDCs request on Mode 4, there wa s nothing on the table to address their interests. 
32. The proposals so far tabled on S&D treatment  which LDCs considered as central to these 
negotiations, were yet to receive attention from the membership.  In this regard, LDCs considered 
Article IV as a key element, and therefore full y supported the African Group tabled proposals. 
33. The importance of achieving the objectives of Article IV was recognized in its implications 
for and linkages with other elements of the GATS,  such as Article XIX and the negotiating guidelines 
and procedures. 
34. The Group wished to reiterate that LDCs were  fully exempt from mandatory application of 
disciplines that might be developed out of the nego tiations on domestic regula tions.  In this regard, 
there was the need for development-oriented, clear, and precise language  on S&D treatment to 
address LDC concerns.  The Group also expected that the negotiations would address the issue of 
targeted technical assistance, and support for cap acity building so as to develop sector specific 
regulatory capacity. 
35. As the process seemed to be moving towards de velopment of a services text to guide the 
negotiations, the Group wished to stress the importa nce of remaining in the context of Annex C, 
which was carefully negotiated and agreed by Mini sters in Hong Kong.  Any departure from Annex C 
that introduced new elements w ould not be accepted by this Group. 
36. The Group wished to reiterate its commitment to engage in real and fruitful negotiations with 
the aim of achieving the ultimate objective of assu ring development for all, in a manner that was 
beneficial to all partners in the multilateral trading system. 
37. The representative of Indonesia,
 speaking on behalf of Brunei Darussalam, Cambodia, 
Indonesia, Malaysia, Myanmar, the Philippines, Thai land and Vietnam,  noted that this meeting was 
important not only for transparency, but also fo r building consensus around a workable way forward 
in the services negotiations.  ASEAN supported the m eaningful and successful conclusion of the Doha 
Round. As always, this group of Members remained  ready to engage.  But they recalled their 
statement after the resumption of negotiations last year that the reality remained that services alone 
could not produce the equitable ex change of benefits and sacrifices that would deliver a successful 
conclusion to the Round.  While  acknowledging the importance of services, this group of Members 
continued to believe that the nego tiations could only be unblocked when there was a change of heart 
leading to important progress in agriculture and NAMA. 
38. Members had to remain faithful to the principl e of progressive liberalization and the shared 
vision to facilitate the participation of developing countries in the in ternational trade in services, while 
taking account of their economic situa tion and level of development.    TN/S/M/27 
 Page 7 
 
 
  39. Noting the political and economic importance a ttached by some Members to the services 
component of any possible end-game package in  the DDA, this group of Members understood the 
importance of having the discussions Members had ha d this past week, either in bilateral or 
plurilateral settings.  With the exception of Member s that already made advanced commitments under 
their terms of accession, particularly Vietnam wh ich had acceded most recently, this Group had 
participated actively and had tried, to the extent possible, to engage in the focused discussions of 
specific issues or questions in the plurilateral m eetings.  Their capitals also continued to work on 
consulting with stakeholders with a view to s ubmitting their revised and/or final offers at the 
appropriate time.  However, it had been observed th at much of the plurilateral discussion seemed to 
have become a repetition of known positions.   
40. This Group was ready to engage in discussing all possible options for making the work in the 
services negotiations more dynamic, better managed and more efficient.  On the idea of having a 
services text together with full modalities in agri culture and NAMA, the Group firmly believed that 
the GATS, the Negotiating Guidelines and Annex C of the Hong Kong Ministerial Declaration 
provided solid and sufficient parameters for the ser vices component of the DDA.  Any text had to be 
consistent with the following considerations: 
(a) A text in services should follow the releas e of full modalities in agriculture and 
NAMA; 
(b) A text in services should be consistent with the principle of progressive liberalization, 
particularly the flexibilities provided for in Article XIX of the GATS.  It would be highly divisive if elements would be introdu ced that altered the delicate balance in the 
GATS or in Annex C; 
(c) It also had to respect the delicate sequencing achieved in Annex C, which was for the 
submission of revised offers in services to be around 90 days after the agreement on 
agriculture and NAMA modalities; 
(d) In view of paragraphs 4 and 5 of Annex C of the Hong Kong Ministerial Declaration, 
domestic regulation and GATS Rules should be sufficiently addressed in the text.  
From the perspective of this Group in par ticular, in order for a DDA package to be 
acceptable to their constituencies, there woul d have to be a credible outcome in the 
ESM negotiations, and disciplines in domestic regulation; 
(e) Last but not the least, S&D and LDC Modalities could not be excluded from a text in 
services if Members were to remain faith ful to the development dimension of the 
Round. 
41. The Group was prepared to make significant c ontributions to ensure an outcome to the 
negotiations that would allow their ec onomies to develop and prosper.   
42. The representative of Chinese Taipei
 stated that his delegation strongly endorsed the 
contribution of services colleagues over the past two weeks.  First of all, the question of approach 
meant that the services negotiations were by nature  very time-consuming.  Members could not afford 
to wait until the last moment to di scuss the complicated issue of a text .  Services was one of the three 
key negotiations.  To igno re services would jeopardise the success of  the whole Doha Round.  In this 
context, his delegation appreciated the exchange of views with Members either bilaterally or 
plurilaterally or through informal meetings ove r the past two weeks, and it had been a good 
opportunity to give key Members a further reminder of his delegation's concerns. TN/S/M/27 
Page 8  
 
  43. With respect to the future, a text on service s was definitely needed to provide further 
guidance to Members.  It had been two years sin ce the negotiating mandate contained in Annex C had 
been established.  It was time to take stock of wh at had already been implemented in an operational 
light since then.   The outside world and the memb ership also needed to recognize the importance of 
services in the current Round and the need to make su re that progress in services was as important as 
that in agriculture and NAMA.  His delegation supported the Chair's consultations with Members 
concerning what kind of elements should be include d in the text based on Annex C, and a timeline of 
the next cluster of meetings.  His delegation a ppreciated the Chair's leadership and would work 
carefully with the Chair to ensure that a Doha Round Agreement would be achieved, which delivered 
a substantial outcome on services.  
44. The representative of Australia
 stated that the past two weeks had been useful.  The visit of 
the Global Services Coalition had allowed industr y representatives from quite a few Members to 
underline their expectations for a substantial servic es outcome as part of this Round.  That was an 
important message for the discussion that Members were currently having.  His delegation also 
appreciated the plurilateral meetings over the past  two weeks and a constructive approach in the 
robust engagement from delegations.  It hoped that de legations would be in a better position to engage 
with their domestic constituents/agencies, to review  their position and their preparation for revised 
offers.  This had been an important  objective of the plurilateral process. 
45. Australia had chaired plurilateral meetings on le gal services and air transport.  The latter 
would be taken up the following week.  In lega l services, Members were mainly looking at the 
possibility for foreign lawyers to practice foreign an d international law in some viable fashion – in 
that area some progress had been seen.  South Africa for instance had now fully met the expectations 
of the plurilateral process.  But overall the level of  response had been reasonably patchy and there was 
still some way to go.  Nevertheless, it had to  be acknowledged that the plurilateral process was 
probably nearing the end of its immediate utility and th at was not in any way to diminish the fact that 
it had always been the case that bilateral discussi ons were the real engine of these negotiations.  
Australia also looked forward to engaging on sp ecific proposals for S&D treatment at the earliest 
opportunity as fully as it was able. 
46. On a services text, Australia agreed that by the time of finalization of agriculture and NAMA 
modalities, Members needed to be in a position to discuss such text.  Australia supported the Chair's 
efforts to commence consultations on what that might contain.  It did have some importance for Australia in describing the potential of the outcome on services.  It would be important for its 
engaging with our domestic constituencies and for its  overall political engagement with the Round.  
Any such text was not about changing the mandate  – or changing the approach – and it was to be 
firmly anchored in Annex C, which remained th e basis of continuing or concluding the services 
negotiations.  Australia appreciated the construc tive way in which Members had been engaging on 
this subject.  They could be reassured that Austra lia understood the points that they had been making.  
Australia supported the Chair's cons ultations on this issue and would engage in those consultations.  
With respect to timing, Australia was open, but it th ought that Members might need to be prepared for 
re-engagement on some of these issues in the second half of November.  
47. The representative of Hong Kong, China
 stated that this meeting was very timely, and gave 
delegations the opportunity to express their views on the way forward in the near term.  More than 
seven months had elapsed since the Round had been fo rmally and fully resumed in  February this year.  
Having revived the momentum for negotiations, Me mbers now found themselves facing the challenge 
of how to sustain this momentum to bring it to a fruitful conclusion.  In this respect, Hong Kong, China appreciated the Chair's efforts in holding in formal consultations and Members' hard work to 
converge the focus of the services cluster over the past two weeks on to Members' responses to the 
plurilateral requests and bi lateral consultations.   TN/S/M/27 
 Page 9 
 
 
  48. Hong Kong China was glad to see Members' sense of engagement and their efforts to improve 
specifics on possible further liberalization, particul arly in the midst of so many unknowns.  As 
coordinators of the plurilateral request on l ogistics and related services as well as that on MFN 
exemptions, Hong Kong China had found such meetings  quite useful in so far as it had understood 
more about Members' latest thinking, though some of them had been more encouraging than others 
and as had been alluded to by earlier speakers, the positive moves of some was conditional on the 
overall balance of the negotiations in other areas of  the Round.  On occasions where there had been a 
lack of visible progress, it had learnt more about the constraints on and the sensitivities of recipient Members.  Such specific information would f acilitate ongoing pursuit of the requests for further 
liberalization in whatever formats might be considered appropriate from now on. 
49. As always, being predominantly a services economy, Hong Kong, China wished to see early 
and substantive progress on the services front.  This w as a key pillar of this Round of negotiations for 
Hong Kong, China.  While reckoning that services s hould proceed in tandem with developments in 
other areas of negotiations, Hong K ong, China had to get ready for the moment when it was needed to 
shift gears to speed up the process.  It relied on the goodwill of the general membership to reach an 
ambitious and balanced outcome of the services ne gotiations that would benefit various stages of 
development.  Members needed evermore the hard wo rk of the Chair to canvass their views, to put 
together a coherent process to give shape to th e substance emerging from Members' interactions. 
50. Annex C of the Hong Kong Ministerial Declaration set out the objectives of and approaches 
to the services negotiations, and it was somethi ng Hong Kong, China was firmly holding onto.  
Annex C should form the basis of continuous work  on services.  Noting the developments since the 
adoption of Annex C nearly two years ago and the la pse of the timelines contained therein, there was 
a practical need to update the timeframe for th e services negotiations, including the timing for 
submission of the next round of revised offers.  Hong Kong, China saw merit in having an instrument 
of some kind, be it a text or in any other form , to underline the importance of services and to update 
the road map for the various strands of the services negotiations and GATS rules and domestic 
regulations development in the im plementation of Annex C.  While  no one had a crystal ball which 
could tell the best date for the move, having a services  text available by the time that the revised texts 
on agriculture and NAMA were issued would signif y the vital importance of services as one of the 
three pillars of the Round for market access. 
51. The substance of the services instrument certainly mattered and it was of critical importance 
that it be well supported.  The elements to be contai ned therein needed to be worked out carefully and 
thoroughly.  That said, the basic elements we re already spelt out in Annex C (including the 
development of disciplines on domestic regulation, GA TS rules and the timing for next revised offers) 
should be covered.  Concrete work also needed  to be done on S&D and LD C modalities.  Hong Kong, 
China was ready to work with the Chair in devel oping the content of the services instrument through 
an inclusive and positive process.   
52. The representative of Ecuador
 thanked the Chair for his ongoing efforts in seeking progress 
and consensus in the services negotiations by holdi ng various meetings and consultations.  Ecuador 
had had two weeks of intense plurilateral meetings wh ich had, to a certain extent, made it possible for 
Ecuador to determine the red lines that countries ha d in this negotiations.  Nevertheless, Ecuador 
thought that it was possible for developed countries to  make substantial progress, particularly in areas 
of interest to developing countries.  In this regard , Ecuador maintained its interest as demandeurs in 
Mode 4, financial services and tourism.  Ecuador's  schedule as a result of its accession to the WTO 
was sufficiently broad and therefore deserved the atten tion of Members.    On the other hand, in the 
area of domestic regulation, Ecuador felt it could re ap benefits as a result of this Round if developed 
countries would develop and implement a regulatory framework which was transparent.  In this 
context, progress that had been made thus fa r could bring these negotiations to a constructive 
outcome.  Ecuador's future openness in these nego tiations and the negotiations on a services text TN/S/M/27 
Page 10  
 
  would depend on the commitments and ambitions of developed Members in other areas of the Doha 
Round, particularly in agriculture.  With regard to the questions about dates for the next cluster and a 
proposed negotiating text, the Chair's consultations had to bear in mind the release of the revised 
agriculture and NAMA texts and the later negotiatio ns so that Members could establish the necessary 
balances in these negotiations.  Finally, there was no need for new mandates or modalities in services, 
since the instructions for this negotiating group ha d been clearly established in the July Framework 
and the Hong Kong Ministerial Declaration.   
53. The representative of Cuba
 supported the statement made by Uganda on behalf of the African 
Group.  Something could be done in the area of servi ces, but Cuba did not have the sectors to sign up 
to.  While there were isolated examples that liberalization improved the quality of services and 
allowed for the inclusion of countries in intern ational markets, there were many examples of 
liberalization and deregulation wh ich had had negative consequences for the most vulnerable sectors. 
54. Members had to remember the preamble of the Marrakesh Agreement and be very cautious in 
the services negotiations.  Members had agreed on flexibility for countries lagging behind – responding to their development needs – and this  flexibility was a necessary condition for future 
negotiations in services.  It was said that a failu re in these negotiations would have a huge cost for 
developing countries.  It was a fact that developi ng countries had always borne the most substantial 
costs.  In this Round as in the Uruguay Round, in eliminating the most substantial distortion which 
was brought about by measures maintained by countries in agriculture, developing countries had to make concessions which they would not ha ve done in a national programme focusing on 
developments.  The concerns of developing countries could be understood.  Competition and 
liberalization was not just a fact of trade but rather a complex process which could often lead to 
negative results from a trade and economic point of vi ew as well as at a political and social level.  
Therefore, talking about balance in the negotiations  did not make sense if advantages for developing 
countries were not guaranteed, such as S&D treatment a nd flexibilities.  This meant that there was an 
obligation to look at the sectors and modes of supply. 
55. Cuba wished to reiterate some key ideas.  First, it rejected any attempt that would aim to 
update or modify the Hong Kong mandate.  This text  reflected a balance between all the areas of the 
negotiations.  There was no need for a new text.  No r was there any reason to set new requirements or 
to change the deadlines and the pe riods agreed for offers.  The negotiations on key elements in 
regulations were not making any progress despite th e fact that they were absolutely crucial for 
developing countries.  Given the fact that ther e was no improvement in offers from developed 
countries with regard to modes and sectors of inter est to developing countries, there was no reason for 
any additional enthusiasm with rega rd to further market access.  To conclude, Cuba was expecting 
certain developing countries to express their interest  to protect basic services and sectors which were 
to be addressed as the provision of these services ha d a major impact at a social and environmental 
level and was also important for sustainable develo pment.  This was, for example, the case for water 
which was of great interest to developing countries. 
56. The representative of India
 thanked the Chair for his steadfast  leadership.  In India's view, it 
was a most opportune time to review the progress that  had been made and where to head for in the 
next few weeks.  The current round of discussions had provided some useful insight into the positions 
of Members, especially regarding the plurilateral requests.  However, India was clearly witnessing a process of diminishing returns.  The stage of clarif icatory discussions was over.  Clarifications needed 
to be converted into offers soon.  India's assess ment was that there was a clear imbalance in the 
responses.  By and large, developing countries had been more forthcoming in their responses than 
developed countries.  On the issues of most con cern to India, Mode 4 and cross border supply, the 
responses had been specially disappointing.  Under such circumstances, Member s needed to consider 
carefully the utility of further clusters.  If Members did agree to go ahead with them, the emphasis had  TN/S/M/27 
 Page 11 
 
 
  to be on bilateral consultations to enable Member s to get a clearer idea of the positions of specific 
trading partners. 
57. For India, an ambitious outcome in services was even more important at this stage.  India's 
position in agriculture was largely defensive because of its subsistence farming.  In NAMA, India had 
been providing effective market access to its trad ing partners.  It was only in services that India 
expected some gains.  India's offers were well know n to its trading partners , but this Round could not 
conclude without a substantial res ponse on issues of the greatest interest to developing countries.  On 
a services text, while India had an open mind on it, the objectives of such a text had to be clear.  In agriculture and NAMA, the objective was quite clear,  to get modalities on negotiations in place.  In 
services there were modalities agreed in Hong Kong.   Hence, any services text would necessarily have 
to outline how these modalities were converted into market access offers.  A services text would 
outline steps to operationalize th e guidance contained in Annex C of the Hong Kong Ministerial 
Declaration.  This would include all Members clea rly outlining how they intended to meet the broad 
objectives for each of the sectors and modes stated in Annex C.  In particular , developed countries had 
to do more than developing countries, and to come  forward with clear signals to provide market 
openings in sectors and modes of interest to devel oping countries.  India, for its part, would not be 
found wanting to respond to most of the requests put to it.  India already had an ambitious revised 
offer on the table and would look to improve it,  conditional on the responses to its requests. 
58. In addition, as pointed out by Uganda and Lesotho, full and effective implementation of LDC 
Modalities for the special treatment of LDC Members w as to constitute an integral part of the text.  
The date for next offers would also form part of this text.  Further, more intensive engagement on 
GATS rules under Articles X, XIII and XV, leading to improved rules would continue.  Needless to 
say, negotiations were to be guided by the releva nt provisions of GATS including Article XIX which 
provided for appropriate flexibility for developing countries. 
59. On domestic regulation, the WPDR had been work ing very hard on a Chair's draft, which had 
gone through two readings.  While divergences re mained, there were many areas of agreement as 
well.  He presumed that the Chair of the WPDR wo uld now take the next logical step, bringing out a 
revised text, which would have a high ambition, a nd at the same time would take the concerns of 
Members on board.  This was a difficult task, but a t ask that needed to be done if Members were to 
impart certainty and predictabilit y to the market access opening. 
60. Finally, India wished to reiterate what had been said in its statement to the TNC in July 2007.  
This was a negotiation which involved give-and-take , not take-and-take.  India expected to see 
genuine responses from its major trading partners.  Without clear signals in this regard, India was 
doubtful whether it would be able to realise the shar ed objective of an ambitious outcome.  For some 
at least, the lack of an ambitious outcome in ser vices would seriously, perhaps fatally, impact the 
prospects of an early conclusion of the Round. 
61. The representative of Japan
 stated that he commended the Ch air's leadership in implementing 
the clusters of meetings.  He thought there was ne ed to further expedite work.  Services was an 
important element of the DDA, and there was a ne ed for ambitious and concrete results.  When 
Agriculture and NAMA chairs produced their revised te xts, there needed to be a reflection of tangible 
progress in services as well.  It was a good idea to have a services text, which would provide negotiators with useful guidance.  Japan appr eciated the open-mindedness and flexibility of many 
developing country Members in this regard.  As  for content, the Chair had the responsibility to 
produce this text through consultations with Memb ers.  Japan wished however to suggest that 
Members: 
(a) reaffirm that Annex C was fundamental th eir willingness to implement its contents 
fully; TN/S/M/27 
Page 12  
 
  (b) take stock of progress made in the two years since Hong Kong; 
(c) focus on developing country concerns – flex ibility for developing countries, enhanced 
negotiations on service rules – in par ticular domestic regulations, and the 
development of LDC modalities; and 
(d) provide timing on the submission of revised offers (for example, that it should be 
within two months from agreement on Agriculture and NAMA modalities). 
62. For the next cluster, the delegate for Japan  thought it important that the meetings be 
particularly meaningful.  One way would be to look at the level of the participants.  In his view, senior 
people had a somewhat better understanding of techni calities than many experts believed, and it was 
perhaps a good idea from time to time to have senio r people present. The next meeting should in his 
view take place some time in November.  Last week, there were discussions about a signalling 
conference.  This was perhaps not a multilateral meeting,  but if that kind of meeting were to be held at 
the time of agreement on Agriculture and NAMA moda lities – to indicate revised offer level – Japan 
was ready to participate.    
63. The representative of New Zealand
 stated that her government supported an ambitious and 
balanced outcome across all three market access pillars of the Doha Round negotiations.  On services, 
Members needed to be ready to move in step w ith other key areas of the Round once modalities were 
agreed in those areas.  In thei r services offers to date, New Zeal and had made a genuine effort to 
improve on its Uruguay Round commitments – and to do so in a way which responded directly to 
requests which had been received from other Members.   New Zealand's next offer would continue to 
reflect that approach. 
64. New Zealand believed that the plurilateral process ha d been a useful one.   In terms of its own 
interests, including in the area of private education services, New Zealand did not always hear what it 
would have liked.  But there were also some encour aging signals.  One thing in particular which the 
plurilateral process had helped to highlight was the gap between many Members' existing 
commitments and their actual level of openness.   There needed to be progress towards closing that 
gap from the next round of offers.  Such progress – for New Zealand – would be a key determinant of 
ambition in this negotiation.  In Annex C of th eir Hong Kong Declaration, Ministers instructed 
negotiators to develop disciplines on domestic regu lation before the end of the current round of 
negotiations.   There was a need to intensify work to  fulfil that mandate.   In particular New Zealand 
didn't want to see the considerable effort to date result in disciplines which diluted what had already 
been agreed in Art. VI:4.  There was a need also to intensify work to develop methods for the full and 
effective implementation of LDC modalities. 
65. Members were now confronted with a key challe nge in terms of how they wanted to define 
more precisely the parameters of the services contribu tion to the final package.  This was particularly 
so in respect of the services elements that Me mbers expected to accompany the agriculture and 
NAMA modalities.  New Zealand fully supported the Chair and appreciated his efforts, including 
through the Enchilada process, to help Members find a way forward.   New Zealand supported the 
Chair's initiation of consultations on the preparation of a draft text on the way forward on services – 
with a view to a draft text being circulated at th e time that the revised papers for agriculture and 
NAMA were circulated.  This draft text should be consistent with the objectives of Annex C. 
66. The representative of Singapore  wished to reiterate a point made by the Ambassador of 
Indonesia with respect to ASEAN's collective support  for the meaningful and successful conclusion of 
the Doha Round.  A number of pl urilateral and bilateral meetings had taken place over the past couple 
of years, including those that had occurred over the past fortnight.  There were some positive indications of improvements in offers, which was always a welcome development.  However, the  TN/S/M/27 
 Page 13 
 
 
  problem continued to lie in defining what exac tly constituted a meaningful outcome in services.  
There was no common definition as to what was a break through in services.  As a result, there was no 
choice but to build a breakthrough in a botto m-up manner, based on the expectations and 
contributions of each individual Member. 
67. Singapore therefore believed that, in order to develop an outcome that would deliver on 
expectations, a draft text would be a useful step fo rward.  It could help to provide direction to the 
services negotiations.  In this connection, Sing apore welcomed the Chair's efforts to begin 
consultations with Members on such a text.  Howeve r, there was a need to respect Annex C and the 
Hong Kong Declaration.  As affirmed by ASEAN co lleagues, as well as others, there should be no re-
writing of Annex C.  Annex C provided the parameters  that Ministers set out for the negotiations.  It 
was also very clear on the sequencing of the out comes in Agriculture, NAMA and Services, and it 
was important to abide by it.  In the context of the overall progress in the negotiations, Members needed also to begin reflecting on the various tim eframes, including on the submission of revised 
offers that had since expired.  For the next revised  offers, there should be a sufficient interval – at 
least 4 to 6 weeks from the breakthrough in Agri culture and NAMA – for Members to prepare and 
table their revised offers.  Singapore wished to participate in consultations on a services text. 
68. The representative of Norway
 stated that a useful cluster had taken place during the previous 
couple of weeks.  Thanks to a tremendous effort by the coordinators of the plurilateral requests, 
negotiators were able to go deeply into many sect ors and modes – in fact, in many cases, too deeply, 
since time was often too short.  Nevertheless, and also thanks to many bilaterals, Norway now had a 
clearer picture of market access than before.  Linki ng this to the Chair's Enchilada consultations, the 
question now was how best to prepare the work in the coming weeks and months.  In Norway's view, 
it would be useful if the Chair could lead the work to create a roadmap, or platform as Norway had called it earlier, for the final negotiations in ser vices.  The underlying idea behind the concept of a 
roadmap was to try to capture the progress made si nce the Hong Kong Ministerial, and thus "update" 
Annex C so as to make it an operational basis for th e end game of the negotia tions.  Annex C and the 
objectives stated therein were obviously the point of departure for a platform for further work.  But, as 
many had pointed out, much had happened since Hong Kong almost two years ago, and this needed to 
be reflected: 
(a) The most obvious element of Annex C which was out-of-date was, literally, the dates.  
Some agreement on a date for the submission of final offers had to be agreed and 
reflected in the text. 
(b) Substantial work had been done in areas lik e domestic regulation, rules, S&D and the 
LDC modalities, and progress on these importa nt elements had to be reflected. 
(c) The evolution in market access negotiations  since Hong Kong needed to be captured 
in some way, transformed and fed into final offers and schedules. 
(d) It was also relevant to refer to ministerial involvement of sorts at the appropriate time. 
69. The end result of the services negotiations woul d be an essential part of a single multilateral 
undertaking which would contribute to economic grow th and welfare of all trading partners.  In 
Norway's view it was therefore important to ensure that all sectors and modes, and all elements of essential interest to all participants, be taken care of. 
70. The representative of Pakistan
 thanked the Chair and complimented his leadership. The 
recently-concluded cluster and the series of enchilada meetings were very useful. She also appreciated 
the role of the coordinators of the various plurila teral requests, and agreed with Norway that the TN/S/M/27 
Page 14  
 
  exercise had lent much more clarity to the ma rket access negotiations.  On the way forward, she 
agreed with the African group that Annex C w as sacrosanct and needed to be built on.   
71. With respect to a services text, Pakistan t hought that important issues where progress needed 
to be captured were:  LDC Modalities, Domestic Regul ation, a date for revised  offers, and any other 
progress needed to be reflected in a possible text.  Pakistan had been actively working on its revised 
offer, and attempting to meet the demands of its tr ading partners. It was important to ensure that 
progress was made in making market access commitments in all four modes of supply and sectors of interest to developing countries. The ambition ag reed upon in Annex C needed to be maintained. 
72. The representative of Korea
 commended the coordinators of the plurilateral meetings for their 
efforts over the past couple of weeks, in particular  their excellent preparatory work which enabled all 
to have focused discussions during the meetings.  He  also wished to congratulate the co-sponsors of 
the plurilaterals on tourism for successfully organi zing a new plurilateral discussion.  Turning to the 
issue of the services text, Korea assumed that a se rvices text would be prepared under the leadership 
of the Chair in line with the development of Ag riculture and NAMA modalities.  Korea believed that 
in order to obtain a balanced outcome in all three market access pillars, there was a need to translate 
what the service negotiating group had achieved thr ough numerous bilaterals and plurilaterals into 
something more visual and tangible.  A services text would also provide a useful opportunity for stock-taking on what had been accomplished so far, and sketch out the way forward.   
73. Although the substance of a services text was basically the Chair's responsibility, Korea had 
some preliminary ideas: 
(a) the text should not be a replacement of A nnex C;  rather Annex C should remain the 
basis of the negotiations and should be built upon. 
(b) the text should capture all the important elements of the services negotiations in a 
balanced manner.  It had to cover not only the market access element, but also 
developments in domestic regulations and rules. 
(c) the text should present a clear picture of the way forward, with timelines for the 
second revised offer being one of the essential elements.   
(d) the text should emphasize the developmenta l aspect of the services negotiations.  In 
this respect, the text should give full cons ideration to the implementation of the LDC 
modalities. 
74. As regards the next steps to be taken, Korea re mained flexible as to the timing and the format 
of the meetings as long as they facilitated progress and ensured maximum, substantive results in the 
services negotiations. 
75. The representative of the European Communities
 wished to comment on the assessment of the 
cluster that was about to be concluded.  In the bilateral and plurilateral meetings (including in the 
plurilateral groups on distribution, environmental a nd energy services areas, and mode 3, for which 
the EC was the coordinating Member), the EC ha d heard more detailed a nd more substantiated 
explanations about the existing legislative and regulatory framework and political sensitivities.  
Unfortunately, these explanations were primarily a bout why improvements in future offers were not 
possible.  The picture of the services negotiations after the cluster was possibly more precise, but certainly not any more positive than before.  It w as also a concern to hear that, four years after 
bilateral requests were exchanged and a year and a half after plurilateral requests, no indication could 
be provided in certain areas due to domestic consultations.  The EC therefore welcomed the 
engagement over the past two weeks, but could not identify significant signs of progress.  On  TN/S/M/27 
 Page 15 
 
 
  substance, the cluster did not bring Members much cl oser to the substantive outcome that was needed 
in order to complete the Round successfully, and to se ll its results to our stakeholders.  The cluster did 
not bring Members much closer to a balanced out come across the three market access pillars, and it 
did not reduce the gap between the commitments offered and the liberalization prevailing on the 
ground let alone on create new market access opportunities.   Much efforts needed to be made in the 
next offers to address this situation. 
76. On the issue of a possible services text, the EC  supported the idea and encouraged the Chair 
to carry out he necessary preparatory work and consu ltations with a view to developing a paper to be 
presented at the time of the adoption of Agriculture and NAMA modalities.  A text was needed for several reasons.  First, there was a political reality  – the Doha mandate singled out the three market 
access areas of the negotiations.  Negotiators were  working hard to agree on detailed modalities in 
two of these areas.  Since agreement was needed on a balanced package, it was obvious that when 
such an important step was being taken in the DDA,  services also needed to be addressed.  Experience 
showed that a services text was prepared at each major stage in the negotiations with the aim of 
moving the services negotiations forward and providi ng further guidance.  This practice should 
continue as negotiators approached  the breakthrough which will would lead to the final stage of the 
DDA.  Second, there was a need to take stock of  the various aspects of the services negotiations 
almost two years after the Hong Kong Ministerial.   As many other delegations had stated, work 
should be based on the existing texts in the area of services, including of course on Annex C and on its implementation since the Hong Kong Ministeria l.  Third, the services text was a natural 
complement to the idea that had been already floated of a ministerial signalling meeting with a view 
to enable ministers, when they gather to make ke y decisions in Agriculture and NAMA, to be able to 
judge what will be done in the area of the services offers.  In conclusion, the EC fully supported the 
idea of producing a services text, and welcomed cons ultations by the Chair with a view to discussing 
the best possible date for the next cluster. 
77. The representative of Chile
 reiterated the great importance that his country placed on the 
services negotiations, in which it wished to see an ambitious outcome.  With regard to the current 
stage of negotiations, Chile's position was based on what had happened in the last two weeks of 
plurilateral meetings, and was very similar to the po sition it held last April.  There was still a great 
deal more to be done to achieve results in market access.  However, he str essed that the plurilateral 
process had been extremely useful.  It had allowed negotiators to inform ourselves of the regulatory 
situation of the Members with regard to sectors and requested modes.  It was also useful to establish 
the difficulties that some Members had to comply w ith the collective requests.  However, he believed 
that this format had been exhausted, and it was now time to move to the next stage.  The bilateral 
format was perhaps the request/offer format that was now most appropr iate instrument to achieve the 
objective all aspire to.  In almost all of the plurila teral meetings that Chile had participated in as 
requestor or requestee, it had indicated a clear will to present a liberalizing offer that made a 
significant contribution to the negotiations.  Ch ile's approach had always been a positive one, 
including in those areas in which it had certain difficulties. 
78. With regard to a services text, he believed th at the current stage of negotiations required a 
new roadmap which must contain dates for revised o ffers.  The roadmap needed also to contain and 
respect the guidelines and parameters in Annex C of the Hong Kong Ministerial Declaration, which 
continued to be fully in effect.  It also needed to take into account the plurilateral work that was 
established in Annex C, and consider negotiations  on domestic regulation and rules, and their 
evolution since Hong Kong. 
79. The representative of Canada  began by providing his country 's views on what had happened 
during past few weeks.  First, there were 20 plus plurilateral meetings held over the course of these 
two weeks, including two coordinated by Canada  on financial services and architecture.  Canada 
noted that there was good participation from most de legations during those meetings, including on the TN/S/M/27 
Page 16  
 
  exchange of detailed information based on technical qu estions that had been sent to recipients and co-
sponsors.  Also, on the bilateral front, the Canadi an delegation was active in working with other 
delegations to clarify technical issues.  In this c ontext, Canada wished to welcome Nigeria's recent 
offer, and looked forward to continue  to work with them on its elements. 
80. Turning to the issue of a services text, Ca nada supported the idea of the Chair holding 
consultations on the kind of text on services th at might be finalized in conjunction those on 
Agriculture and NAMA modalities.  It was not known wh en this would be, but it was important to be 
ready.  There were three reasons why a services text was desirable.  First, for technical reasons, there 
was a need to refresh the timelines, in particular th e date for revised offers.  Second, Members needed 
to take stock of where the negotiations were, almo st two years past Hong Kong.  A lot had happened, 
including the implementation of the plurilateral request process.  This process had importantly 
demonstrated the diverse ambition of both develo ped and developing Members alike in services.  
Canada did not necessarily share India's assertion re garding the relevant enga gement by developing 
and developed Members.  Canada had also been working on the dom estic regulation text, which was 
close to being a consolidated document on which to  base real negotiations.  Developments on other 
elements of Annex C, such as LDC modalities and t echnical assistance needed also to be noted.  
Third, Members needed to confirm their ambition in  the negotiations.  Four rounds of plurilateral 
meetings had been held over two years.  Wh ile services negotiators would never have the 
mathematical certainty that colleagues in Agricu lture and NAMA had with respect to forecasting 
outcomes, the plurilateral meetings had given the ser vices negotiations some predictability in terms of 
what could currently be expected in revised offers.  It was not necessarily a pretty picture.  What had 
been revealed, unfortunately, was that few Member s were living up to the ambition of Annex C.  
Canada believed that discussion of a text at the time of modalities would ensure that progress in 
services, or lack of it, as revealed by the projections that could be drawn from the plurilateral process, would be fully factored into the overall assessments that would need to be made on market access. 
81. The representative of Argentina
 said at the outset that his delegation was fully committed to 
the services negotiations.  In his view, they were moving forward at a reasonable pace, bearing in 
mind the other areas of the negotiations.  The revise d services offers, together with Annex C of the 
Hong Kong Ministerial Declaration, contained much more clarity on outcome compared to either 
Agriculture, NAMA or Rules.  In services, it was di fficult to come up with something new after six 
years of negotiations.  In the overall negotiations, it was Agriculture that remained at the crux.  The 
services negotiations were important but for his dele gation they weren't the key to finding a successful 
outcome to the Doha Negotiations.  Although good resu lts in services could help development and be 
beneficial to many countries, it did not deserve the same degree of priority.   
82. Argentina had participated actively in the recent  bilateral and plurilate ral meetings, and were 
in 16 meetings as demandeurs.  Despite some progress, it was clear that the plurilateral negotiation process had now been exhausted.  First, because  what was being said in each cluster was being 
repeated.  Second, the plurilateral discussions could not become real negotiations.  They were simply 
"sessions" allowing delegations to determine the limit s and areas for manoeuvre of different countries.  
They could not go beyond that.   Delegations had gi ven clarity with regard to their red lines and with 
regard to the room for manoeuvre that they had to make improvements.  It was not the case that these 
plurilateral sessions had not given rise to clear signals  for demandeurs with regard to the limits that 
countries had, and the room for manoeuvre that they had in these sectors. 
83. On the issue of a possible services text, it appeared  that delegations wished to negotiate on a 
text rather than on concessions.  If that were the id ea, then Argentina would enter into negotiations on 
a text, despite its views that this was not the right  way to proceed.  What was the objective of having a 
text?  Annex C of the Hong Kong D eclaration clearly stated the negotiating modalities, and there was 
very little that could be added at this stage.  Ar gentina did no have any substantive proposals as to the 
content of a potential text, but this certainly could not go beyond Annex C of the Hong Kong  TN/S/M/27 
 Page 17 
 
 
  Declaration.  Annex C was the umbrella of everythi ng, and not a basis to work on.  A potential text 
would have to be inclusive, transparent and it woul d have to be top-down.  If the Council were to 
decide that such a text were n ecessary, then the Chair's role woul d be to listen to Members and 
propose something only if there were enough suppor t on a potential proposal.  Argentina would not 
accept any text that would amend the modalities a nd the negotiating guidelines.  Annex C had not 
been fully tested.  The results of the negotiati ons had to be balanced globally, and in services 
Members were losing sight of the key principle of progressive liberalization.  Paragraph 24 of the Hong Kong Ministerial Declaration referred to a level of ambition at a comparable high level to that 
in Agriculture and NAMA.  Only ministers – not th e services Council nor its Chair – could alter that 
balance. 
84. Argentina would nonetheless participate in any consultations to draft a services text. 
However, these consultations had to be open and any final product had to be brief.  They would 
simply indicate some dates and refer back to A nnex C of the Hong Kong Ministerial Declaration.  
There could be no type of assessment in it, beca use that would entail the risk of entering into 
negotiations within other negotia tions.  An assessment was something done by each Member and each 
delegation.  There were 151 Members, so it would be very difficult for all of these Members to 
embark on an assessment of the services negotiations which could then be incorporated into a text.  If 
this text were to come about, it would be under the responsibility of the Members. 
85. The representative of Mexico
 stated that it was taking an activ e part in the negotiations.  His 
delegation had participated in 18 plurilateral meetings, and during the two weeks had noted the 
positive contribution that had been made, giving clar ity to ideas and to the sensitivities that existed on 
determining a date for revised offers.  There was st ill a lot of work to be done, and after the cluster 
there would be a need to intensify bilateral nego tiations to find means of making progress.  Mexico 
welcomed the Chair's Enchilada process, and wanted  these negotiations to be intensified with the 
different Members and groups.  Now was the appropria te time to work on a text which would make a 
contribution to giving political visibility to the ser vices negotiations.  The text needed to be based on 
Annex C of the Hong Kong Ministerial Declaration, and incorporate necessary points such as 
flexibilities for developing countries, and a date fo r submitting revised offers.  The text needed to 
include the scope of the negotiations on domestic regulations.  Mexico thought that, after the 
consultations, the draft of a text with clear obj ectives would serve as a political tool to place the 
services negotiations in their proper context – as one of  the three pillars of the negotiations of this 
Round, and to maintain a balance w ith the other areas of negotiations. 
86. The representative of Colombia  stated that his delegation welcomed the Chair's interest in 
giving Members a direction for a successful outco me for the services negotiations.  The Agriculture 
and NAMA market access negotiations already had texts, which were presently under discussion.  
Indeed, the Agriculture text would soon be in its sec ond version.  In the interest of ensuring that the 
results of the services negotiations were in balanc e with the other negotiations which were currently 
making progress, Colombia agreed that the Chair s hould initiate consultations to draft a services text. 
Colombia would prefer that the services text follo w the parameters for negotiations laid down in the 
GATS in the negotiating and scheduling guidelines, and in the Doha, Hong Kong and July Package 
mandates.  Colombia would also want to highlight  the importance of the negotiations in domestic 
regulation, which should make progress in parallel with those on market access. 
87. The representative of Uruguay  supported the consultation process on a services text, which it 
had no doubt would be open, transpar ent and, above all, inclusive.  It was important that the mandates 
and guidelines contained in Article IV and XIX of  the GATS, the Doha Declaration, Annex C of the 
Hong Kong Declaration, and the guidelines that were  approved in 2001, should be implemented in an 
integral manner, and not be re-ope ned and re-examined.  On the issue of dates, there was a close link 
between date and quality of offers.  It was important for the Chair to bear this link in mind, since all 
Members wanted the best quality of offers possible. TN/S/M/27 
Page 18  
 
  88. The representative of Egypt
 indicated that Egypt wanted to  associate itself with the African 
Group statement delivered by the Ambassador of Uga nda.  All African countries were attached to the 
services component as a pillar of the Doha work programme, and Egypt continued to embrace the 
service negotiations in a positive and constructive spir it, in the light of the Hong Kong Declaration.  
Egypt had participated positively in  bilateral meetings with a capital-based officials in a number of 
services sectors, clearly reflecting the importance of the negotiations for it.  Egypt had a positive 
evaluation of this cluster – the plurilateral meeti ngs were constructive, informative, and further 
encouraged Members to exchange views and expertise.   
89. However, bilateral meetings had to be given a greater role as the main method of negotiation.  
There was a time constraint in the plurilateral m eetings which did not allow Members to be involved 
in detailed discussions.  While some Members might  see the necessity for a text on services once they 
had agreed modalities in Agriculture and NAMA, Egypt would not be in a position to accept any 
content in such a text that would be cons idered as a new mandate or modalities on services 
negotiations.  Some major concern had to be highlig hted in this regard.  Annex C of the Hong Kong 
Declaration had to guide all of the coming negotia tions.  Special and differential treatment was an 
area of great importance to the developing countries a nd LDCs, so much more effort had to be made 
to enable developing countries and LDCs to incr ease their participation in the services negotiations, 
and to facilitate their access into th e markets of high interest to them.  Different levels of development 
among Member countries had to be taken into cons ideration by developed countries.  That was 
reflected in the granting of a flexible timeframe  for developing countries in implementing their 
commitments.  It was important to clarify whether the text would be linked to progress on text on 
other negotiating tracks – NAMA and Agriculture – or whether it would be separate text.  The African 
Group statement was clear on what it would expect in such guideless.  In this context, Egypt would 
only welcome language that would reaffirm the existing mandate preserving the balance in the 
negotiations and its development objective, with an  indication on a new date for the submission of 
revised offers. 
90. The representative of China  fully supported the statements made both by the African Group 
and the LDC Group.  With regard to the assessment  for the past two weeks, in addition to a few 
bilateral meetings, the Chinese Delegation had been h eavily involved in the plurilateral talks.  In 
plurilateral sessions Members had exchanged views in great depth on various technical issues and expressed clearly if there were a possibility for an improved offer, in accordance with the plurilateral 
requests.  China's assessment of th is process led it to ask if there was a need to conduct another round 
of plurilaterals in the near future.  After all, bilateral negotiations played a central role in the 
negotiations, and the plurilateral process was comple mentary to the bilaterals.  On a services text, 
China did not see the urgent need of having one, but if other Members favoured such an idea, it could go along.  Having said that, any services text need ed to follow strictly the services negotiations 
modalities provided in the guidelines and procedures fo r the negotiations on trade in services and in 
Annex C of the Hong Kong Ministerial Declaration.   The text also needed to highlight the 
development nature of the Doha round.  Theref ore, it was necessary to emphasise clearly that 
substantively improved commitments in sectors and m odes of interest to developing Members, such 
as mode 4, was vital to the success of the round.  It was also urgent to develop a mechanism to 
implement the LDC modalities.  The flexibility pledged to developing Members in Art. XIX of GATS needed to be translated into concrete wording taking into account their level of development and 
regulatory capacity.  Members needed also to co mplete the consideration of S&D proposals as 
expeditiously as possible.  Furthermore, recently  acceded Members had made extensive and deep 
commitments in services sectors.  The situation of recently acceded Members called not only for sympathetic attention, but also had to be taken into account when Members requested them to make 
further commitments.  This point needed to be refl ected in a services text.  Lastly, on possible dates 
for a next cluster, the Chair should hold consultations with Members.  TN/S/M/27 
 Page 19 
 
 
  91. The representative of Nigeria  expressed his support for the statement made on behalf of the 
African Group by the Ambassador of Uganda.  He al so wished to inform the Council that Nigeria had 
recently submitted an initial offer of commitments in  services pursuant to paragraphs 15, 47 and 49 of 
the Doha Ministerial Declaration, the flexibility provi ded for in Art. IV and XIX of GATS, and in the 
context of the DDA.  Nigeria was committed to th e WTO, and believed that the multilateral trading 
system could assist it in its development efforts.   All the negotiating areas of the Doha round – 
agriculture, NAMA, and services – were very important .  Nigeria, like many other developing country 
Members, had carried out much aut onomous liberalization or reforms in a number of sectors such as 
energy, transportation, telecommunications, banking and insurance.  Nigeria's strategy was to lock in 
these reforms in the multilateral process, with th e hope to further their positive effects on the 
economy.  When compared to its commitments in the Uruguay round, Nigeria had been able to 
achieve substantial improvement in  sector coverage (from 4 sectors to 9), as well as eliminate many 
limitations.  The high ambition presented by the offer was Nigeria's contribution to moving the WTO process forward.  Nigeria was aware, however, that  as generous as the offer was, Members would still 
ask for more.  Some concerns had been raised by delegations with respect to certain provisions in a 
number of sectors at both the plurilateral and bila teral meetings in the last few days.  Nigeria 
welcomed such observations, and requested these Members to communicate their comments in writing so that they could be examined in the o ngoing domestic consultations in preparation for a 
revised offer.  On the other hand, Nigeria th anked those Members that had written or openly 
expressed appreciation of Nigeria's efforts, includi ng Canada, at a time when it appeared that no one 
was willing to move.  
92. The representative of Switzerland
 stated that the plurilaterals had reached their limits and, in 
any case, the bilateral approach was preferable for market access negotiations.  Switzerland fully 
supported the drafting of a services text, to be read y by the time the revised texts on agriculture and 
NAMA were tabled.  As to content, the text had fi rst to be based on, and preserve the integrity of, 
Annex C.  Second, the text should send a clear political message on the level of ambition, reflected by 
the requests that had been tabled.  Third, the te xt should contain a timeline for improved offers.  
Fourth, the text should be comprehensive and all in clusive – there should be no a priori exclusion of 
any modes of supply or any sectors.  Fifth, refere nce had to be made to the issue of domestic 
regulation, including the latest developments.  Finally, Switzerland wished to recognise the 
specificities and the needs of recen tly acceded Members, and to thank Nigeria for tabling its recent 
offer. 
93. The representative of Mauritius  fully supported the statement made by Uganda, and also those 
of developing countries, especially India and Brazil.   He appreciated the concern shown for African 
countries – as well as for other developing countri es – from the EC, the US and some other developed 
countries.  Nevertheless, his delegation worried about  some issues.  He felt, wrongly perhaps, that 
there was not enough balance between the different  components of the services negotiations.  Too 
much focus was placed on mark et access, and not enough on domestic regulation, rules, LDC 
modalities, and the special procedures for specif ic commitments.  For example, the Enchilada 
meetings had focussed almost entirely on market a ccess.  With respect to market access, there had 
been some 20 plurilaterals, but with very few of c oncern to developing countries.  Even in the two or 
three sectors where vulnerable developing countries had an interest, unfortunately the response had 
been disappointing.  Basic principles had to be r espected, including progressive liberalisation whereby 
Members opened up in sectors and modes of particular interest to developing countries.  Up to now, 
little progress had been made in the market access negotiations. 
94. Mauritius was also deeply apprehensive about  rumours of an attempt to modify the 
negotiating mandate.  Members had to stick with what their ministers had decided in the Doha 
Mandate and in the Hong Kong Declaration.  A few Members wanted to make even developing 
countries commit to the existing level of liberaliza tion.  This was unfair for developing countries, 
especially the vulnerable ones.  On domestic regul ation, Mauritius had othe r concerns.  Although a TN/S/M/27 
Page 20  
 
  number of proposals had been made under the va rious groupings to wh ich Mauritius belonged 
(African, ACP, SVE), very few had been retained.  As  well, there had been furt her attempts to dilute 
what had been already diluted, rightly perhaps, by the WPDR Chair in his text.  Mauritius appealed to 
Members to understand that although developing count ries were very vulnerable, they were making 
best efforts and wanted to be in the game.  But they lacked capacity, especi ally African countries.  
Concerning the process, Mauritius agreed that there s hould be timeframes but wished to point out that 
other Members should understand that developing count ries had constraints, and all this would have 
to be taken into consideration. 
95. The representative of Venezuela
 stated that any initiative taken in the near future would have 
to be linked to the mandate agreed by ministers in Annex C of the Hong Kong Ministerial 
Declaration.  Any proposed Chair consultation had therefore to be focused initially on asking 
Members how suitable an initiative was and, only if it were, to ask what content the consultations 
should have.  The lack of a services text was not  the reason why the negotiations on services were 
now stalled.  The solution to the problem was to be  found in Annex C.  As well, any attempt to push 
forward the negotiations in services had to be done only after agreement was reached in Agriculture 
and NAMA. 
96. The representative of Costa Rica   stated that the plurilateral and bilateral meetings had been 
very useful in finding out the details of the limits and sensitive areas of other Members.  Costa Rica's 
interest in the bilateral meetings concerned, in particular, tourism.  With regard to preparing a 
roadmap, Costa Rica would join a consensus, but wished to emphasi ze that Annex C was agreed by 
ministers in HK, and should continue to be the basis for any discussion of a services text.  In 
particular, any text would have to respect the prin ciple of progressive liberalization and flexibility for 
developing countries.  It would have to be focused  on this mandate via a working schedule, consider 
progress made in other areas of negotiation, and a void reinterpretation of the negotiating mandate. 
97. The representative of Barbados , speaking on behalf of sm all and vulnerable economy 
delegations, believed that any outcome  or text should only move forward in the context of the overall 
Doha negotiations outcome package.  On this basi s, she could envisage a consultation process that had 
to be multilaterally driven.  Any small-group consultations conducted by the Chair, would have to be 
representative, transparent, and inclusive, with regular open-ended multilateral briefing sessions to 
keep Members updated.  She acknowledged that a services text would need to take account of 
developments since in Hong Kong, and include  new timelines for revised offers and the 
implementation of LDC modalities.  She also believed  that the developments within the negotiations 
on domestic regulation, as well on GATS rules, would have to be appropriately reflected.  It was 
import however, that the objectives and approaches c ontained in Annex C should continue to be the 
substantive guiding principles for the outcome of th e services negotiations, and that there could be no 
deviation from this principle.  On this basis, one could reiterate that market  access negotiations should 
take into account sectors and modes of interest to developing countries, particularly as reflected in 
their requests.  Particular attention would have to be paid to flexibilit y accorded to developing 
countries under GATS Art. XIX:2 for opening fewer sect ors, liberalizing fewer type of transactions 
and progressively extending market access in line with  the country's developmen t situation.  Finally, 
she wished to underscore the im portance that should attach to pa ragraph 8 of Annex C, that due 
consideration should be given to proposals on trade-related concerns of small economies. 
98. The representative of Guatemala  stated that Annex C of the Hong Kong Declaration 
contained a very important balance, and was an ag reed basis for negotiation on trade in services.  In 
the area of market access, Annex C clearly est ablished objectives and areas of interest for all 
Members.  These objectives, together with procedures for the presentation of revised offers, gave Members a good guideline to prepare their revised offers.  Along the same lines, the implementation 
of the objectives of Annex C had to take into account basic principles such as:  pay special attention to 
modes of supply of interest for the exports of developing countries; ensure there was a level of  TN/S/M/27 
 Page 21 
 
 
  progressive liberalization with appropriate flexib ilities for developing countries, commensurate with 
that provided in Art. XIX of the GATS.  Her delega tion held that any text on services had to reiterate 
the elements already contained in the Hong Ko ng Declaration and included in Annex C, and 
incorporate elements that would help to prepare a nd for the final stage of negotiations, with timelines 
and dates for revised offers.  She also agreed that a services text would need to incorporate elements 
that updated the implementation of the various para graphs of Annex C relative to rules and modalities 
for LDCs.  With regard to market access, Guatem ala attached special importance to the commitments 
on mode 4.  That was why it urged other countries to make consider good offers in this very important 
mode for developing countries.  Finally, Guatemal a could associate itself fully with the declaration 
made by Barbados on beha lf of small economies. 
99. The representative of South Africa  welcomed Nigeria's tabling of  its offer, and supported the 
statement made by the African Group.  On the issu es the Chair raised for guidance, he had made a 
statement during the last Special Session that was st ill relevant to and an appropriate response to the 
Chair's question.  First, the level of ambition had already been agreed in Annex C of the Hong Kong 
Declaration  Second, the timing and sequencing of the negotiations had been agreed in the Doha 
mandate.  Third, a balanced services package had to address the development dimension of the Round 
and include progress in sectors and modes of interest to developing countries, including LDC modalities.  On the plurilateral process, he tha nked Australia for mentioning the positive contribution 
made in this process by South Africa, which had ma de a significant set of commitments and offers in 
the Uruguay round and in the current negotiations.  Ho wever, he did not want South Africa's level of 
commitments to be seen as a benchmark for any group of countries, particularly developing countries.  
They had been a unique set of historical, political  and economic reasons for South Africa's schedule 
of commitments looking the way that it did, and he would dissuade any Member or group of Members 
from holding it up as an example to be followed by other developing countries.  Finally, he urged 
developed countries to provide leadership by making significant offers, both in the plurilaterals and in 
the sectors and modes of supply of interest to developing countries. 
100. The Chair
 said that he had heard that this cluster had been extremely important, and in which 
various topics had been covered.  Although ther e had been a significant number of plurilateral and 
bilateral meetings, some delegations had said th at the plurilateral meetings and plurilateral 
negotiations had reached a stage wher e they no longer served a useful purpose.  He said that he had 
also heard there was a need to change the format for th e next cluster, and to this end that he needed to 
carry out consultations that were inclusive and tran sparent.  The Chair also stated that he sensed a 
certain support for a services text, and some delegations  listed certain elements they wished to see in 
such a text.  Delegations also wished the Chair to  carry out consultations on how the development of a 
text should proceed.  In the next couple of weeks, the Chair said he intende d to hold an open meeting 
of an informal nature of the Council to discuss thes e issues.  He also said he heard that services were 
not being negotiated in isolation, but was part of a whole, linked to the other negotiations.   
101. The representative of Venezuela  said that he wished to clarify a point arising from the Chair's 
conclusion.  He wished his disagreement to be reco rded with the Chair's stat ement that the proposed 
drafting of a services text had the majority support of Members.  It was simply not correct to say that 
the majority of Members wanted the drafting of a text. 
102. The Chair  replied that he had seen substantial suppor t for the idea of having a text, and that 
the text was simply a container to put in ideas to be later developed.  What was probably needed as a 
minimum in the text was a date for when offers s hould be submitted.  Other elements for insertion in 
the text would emerge from discussions. 
103. It was so agreed .  TN/S/M/27 
Page 22  
 
  B. 
PROPOSALS RELATING TO THE NEGOTIATIONS UNDER ARTICLE XIX  OF THE GATS 
104. The Chair  noted that no new proposal had been s ubmitted under this agenda item since the 
last meeting in July.  He suggested that the C ouncil revert to this item at its next meeting. 
105. It was so agreed .  
C. IMPLEMENTATION OF THE MODALITIES FOR THE SPECIAL TREATMENT FOR LDC S IN THE 
TRADE IN SERVICES NEGOTIATIONS  
106. The ambassador of Lesotho, on behalf of the LDC Group, stated that implementation of the 
modalities for the special treatment for LDCs was ve ry important.  The collective share of LDCs in 
world trade in services was very small, and implem entation of the LDCs modalities was particularly 
relevant.  The modalities were intende d to ensure beneficial and meani ngful integration of LDCs into 
the multilateral trading system.  The LDCs welcom ed the good will and support expressed by many 
Members when they were discussing the first agenda item.  Those Members supported LDCs by stating that LDC modalities should form an integral part of the final outcome in the services negotiations.  The LDC Group had submitted a proposal on special priority one and a half years ago.  
Since then, it had remained the only submission on the table that addressed this issue of great 
importance to LDCs.  The submission should be used  as the basis for devel opment of the envisaged 
text and, in this regard, he hoped that others sh ared his views on the text, and built on the good will 
other Members had expressed.  In closing, he tha nked the EC for the recent bilateral on the matter, 
and encouraged other Members to engage  with the LDC Group on their proposal. 
107. The representative of Bangladesh
 said that he associated hims elf fully with the statement 
made by Lesotho on behalf of the LDC Group.  Every time the Chair convened a meeting, the LDCs 
made a statement, Members listened to it, the Secr etariat faithfully reflected it in the minutes – but 
nothing tangible happened to address LDC country's  main concern, which was market access.  It 
seemed that there was nothing new on the table regarding the LDCs' submission of a revised collective request on mode 4, and the special prior ity mechanism.  LDCs were not asking for any new 
commitments, since Annex C was still remain the main parameter of GATS negotiation – what they 
wanted was implementation of the LDC modalities.   All the deadlines mentioned in Annex C had 
been missed, and there was a need to fix new deadlin es, inter alia for the sp ecial priority mechanism 
under LDC modalities.  If special priority did not mean preferential market access for LDC services 
suppliers, of what benefit would special priority be  to LDCs?  LDCs wanted market access, and that 
was possible only through special priority.  GA TS Article IV:3, the LDC modalities, Hong Kong 
Annex C, all mentioned special priority for LDCs.  If special market access was possible for LDCs for 
goods exports with respect to GATT obligations, th en special priority w as also possible for LDC 
services exports with respect to the MFN clause.  LDCs were flexible on process, but wanted a 
definite outcome that would enhance their market access in services.  Before this session, the EC had 
held a bilateral with the LDC group.  Although the EC position seemed unchanged, LDCs continued 
to seek active engagement with the EC and ot her Members, and sought their suggestions on 
reasonable texts and amendments.  There needed to be an intensive and dedicated session on LDC 
special priority, by enchilada or any format that Members wanted. 
108. The representative of the EC
 stated that he took the issue of LDC modalities very seriously 
and, as indicated by the previous speakers, continued to dialogue with LDC countries.  It was important that Members take this issue into account when revised offers were prepared.  As indicated, 
the EC had proposed a specific mechanism to assess  the provision in the services offers of special 
priorities in sectors and modes of supply of interest to LDCs.  The EC believed that the collection of 
information on how offers would provide special pr iority to LDCs would be a good start, while of 
course remaining within the limits of what was legally possible.  TN/S/M/27 
 Page 23 
 
 
  109. The Chair  suggested that the Council take note of the statements made and revert to this item 
at its next meeting.   
110. It was so agreed . 
D. CONSIDERATION OF PROPOSALS ON S&D  TREATMENT PROVISIONS  
111. The representative of the African Group  stated that the group had prepared a revised proposal 
on S&D.  The group however was s till conducting technical consultations , and hoped that in the next 
few days a revised proposal would be submitted.  If  that were not the case then, a revised proposal 
would definitely be submitted before the next CTS session. 
112. The Chair  suggested that the Council take note of the statement made and revert to this item 
at its next meeting.   
113. It was so agreed .   
E. ASSESSMENT OF TRADE IN SERVICES  
114. Noting that no delegation was seeking the floor under this item, the Chair  suggested that the 
Council revert to this item at its next meeting. 
115. It was so agreed.  
F. WORK OF THE SUBSIDIARY BODIES – REPORTS BY THE CHAIRPERSONS  
116. The Chair of the Working Party on Domestic Regulation  reported that, since the last meeting 
of the Special Sessions of the Council for Trad e in Services, the Working Party on Domestic 
Regulation (WPDR) had held one fo rmal meeting, on 17 September 2007.  At that meeting,  he had 
reported to Members about his informal consultati ons on the text of possible regulatory disciplines, 
pursuant to Article VI:4 of the GATS, that he had circulated on 18 April 2007. 
117. While the 18 April 2007 text did not represent a point of arrival in these negotiations, it was a 
shared view among Members that it constituted an accep table basis for negotiations.  Consultations on 
the text had been taking place since April 2007, a nd had focused on all the elements of possible 
Article VI:4 disciplines.  In these consultations, de legations had engaged in paragraph-by-paragraph 
negotiations with a constructive spirit.  A first reading of the entire text was completed on 17 
September 2007. 
118. This drafting exercise had the objective of bridging gaps among delegations on the specific 
text of each provision in the disciplines, and to prepare the ground for the elaboration of a revised draft of possible regulatory disciplines pursuant to Artic le VI:4 of the GATS.  Clearly much work still 
lay ahead, not only on the negotiation of the text of each provision in the disciplines, but also on key 
systemic issues, such as the form a nd legal status of the disciplines. 
119. The Chair wished to point out that, while these text-based negotiations had taken the form of 
"Room F" type informal consulta tions, he had attempted to ensure  maximum transparency in this 
process by consulting the entire spectrum of the memb ership, and by circulating paper copies of the 
notes of these meetings. 
120. In the coming days and weeks he intended to  consult Members on the possible next steps 
ahead, including a revision of the draft text he had prepared last April, based on the negotiations 
which had taken place in the past months.  TN/S/M/27 
Page 24  
 
  121. Concluding on an upbeat note, he believed th at while much work s till lay ahead, the WPDR 
negotiations were generally in good shape.  What  was done in the WPDR could not be taken in 
isolation from the broader services negotiations or the overall DDA Round.   It was his belief, 
however, that should the overall negotiations accelerat e again towards a conclusion, the text of the 
Article VI:4 disciplines could be finalized in tim e for Members to meet any new deadline for the 
conclusion of this Round. 
122. The Chair of the Working Party on GATS Rules
 reported that he was pleased to report on the 
formal meeting that was held on 17 September.  On that occasion, the demandeurs in each of the three 
areas reiterated their positions and informed the Wo rking Party of the development of new negotiating 
proposals.  Other delegations did not engage  in substantive discussions of the issues. 
123. On emergency safeguard measures, the group of proponents informally shared with the 
Working Party some of the modifications being contemplated to their earlier proposal on this topic.  They indicated that they would hope to circulate such revised text shortly.   
124. On government procurement, the proponents reite rated the benefits they saw in elaborating 
rules in the GATS on government procurement, and in  the flexibility of their proposed Annex on this 
topic.    
125.  On subsidies, consideration was given to a room document from Hong Kong, China 
that provided preliminary answers to questions rais ed in an earlier communication on what could be 
non-actionable subsidies in services.  The possibility to invite UNCTAD to present the results of its 
research on subsidies was raised, and he would u ndertake consultations in  this regard.    
126. The Chair of the Committee on Specific Commitments
 reported that the level of activity of 
the Committee remained on the whole very  low.  At  its September meeting, the only brief substantive 
discussion concerned an informal paper on the classification of distribution services, as used by the European Communities in negotiations on preferential trade agreements.  At the June meeting, there 
were no substantive interventions whatsoever.  Th e last discussion on scheduling issues, one of the 
standard items on the Committee's agenda, dated back  to June 2006.  The last substantive discussion 
on the relationship of old and new commitments t ook place at the informal meeting of 26 January 
2007.   
127. This obvious lack of interest in exchanging views on issues of substance was remarkable, 
particularly as Members highlighted the need for clarity, certainty, comparability and coherence in the 
scheduling and classification of commitments in Annex C of the Hong Kong Ministerial Declaration.   
128. As Members knew, the Committee on Specific Commitments was conceived as a technical 
body to address and clarify scheduling and classifi cation issues.  It appeared that Members were 
preferring to address these issues in their bilate ral request-offer negotiations.  While a bilateral 
approach might help resolve problems of immedi ate negotiating interest, it would  certainly not 
promote coherence and comparability of entries across schedules.  In his view, it would be a pity if the Committee was not used to a ddress scheduling issues for which the scheduling guidelines might 
not provide an immediately obvious answer.    
129. Similarly, with regard to the discussions  on the relationship between old and new 
commitments, Members seemed to be confident th at the discussion had been exhausted for the time 
being, and that the issue would be resolved in  the context of drafting the legal instrument 
incorporating the results of the ne gotiations.  However, further discussion might not be without merit.  
Highlighting just two points in this regard, the Chair said that it appeared that  the extent to which pre-
existing commitments would be used as interpretativ e tools had not so far been genuinely analyzed 
and clarified.  Even more importantly, Member s had so far refrained from any discussion on what  TN/S/M/27 
 Page 25 
 
 
  would constitute a situation in which new commitm ents would accord less favourable treatment than 
old commitments.  The Chair remembered the view e xpressed that the nature of  a rollback was in the 
eye of the beholder, but he begged to differ, and saw intrinsic value in establishing in advance the kind of situations which would give rise to successful legal recourse.   
130. However, given the current lack of momentum in the Committee, the Chair had at present no 
intention of convening any formal meeting.  He would continue to consult on future work with 
delegations.   
G. 
OTHER BUSINESS  
131. The Chair  suggested that the Council take note of all the statements made before he adjourned 
the meeting. 
132. It was so agreed . 
 
 
__________