WORLD TRADE  
ORGANIZATION  WT/MIN(05)/27 
16 December 2005 
 (05-6100) 
MINISTERIAL CONFERENCE 
Sixth Session Hong Kong, 13 - 18 December 2005 Original:   English 
 
   
PROPOSED ALTERNATIVE TEXT ON  SERVICES – ANNEX C TO THE 
 DRAFT MINISTERIAL TEXT  
 
Communication from Malawi
 
 
  The following communication, dated 16 December 2005, has been received from the Minister 
of Trade and Private Sector Development of Ma lawi and Current G90 Spokesperson on Trade in 
Services.   
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ALTERNATIVE ANNEX C (SERVICES)
1  BY THE G-90 (ACP, 
AFRICAN UNION AND LDCS)  
  
Objectives
 
 
1. In order to achieve a progressively higher leve l of liberalization of trade in services, with 
appropriate flexibility for individual developing coun try Members, we agree that Members, to the 
extent possible, should strive to ensure  that any negotiated commitments reflect: 
 
(a) improvements in all four modes of supply both in terms of market access and national 
treatment and in particular Mode 4 liberalizati on in categories delinked from commercial presence; 
 (b) extended coverage of sectors beyond those committed under the Uruguay Round, particularly 
in sectors of export interests to developing countries; 
 (c) reduction of exemptions from most favoured -nation treatment and economic needs tests 
across sectors and modes of supply; and,  (d) clarity, certainty, comparability, and coheren ce in the scheduling and classification of specific 
commitments in adherence to, inter alia , the Scheduling Guidelines pursuant to the decision of the 
Council for Trade in Services adopted on 23 March 2001.  2. Members shall pursue full and effective im plementation of the Modalities for the Special 
Treatment for Least-Developed Country Members in the Negotiations on Trade in Services 
(LDC Modalities) adopted by the Special Session of the Council for Trade in Services on 
3 September 2003, with a view to the beneficial and meaningful integration of LDCs into the 
multilateral trading system. 
                                                     
 
1 This proposal builds on an earlier one submitted by the ASEAN Group. WT/MIN(05)/27 
Page 2  
 
 3. Members must intensify their efforts to c onclude the negotiations on rule-making under 
GATS Articles X, XIII, and XV in accordance w ith their respective mandates and timelines: 
 (a) Members should engage in more focused di scussions in connection with the technical and 
procedural questions relating to the operation and application of any possible emergency safeguard 
measures in services.   
 (b) On government procurement, Members should e ngage in more focused discussions and in this 
context put greater emphasis on proposals by Members.  
(c) On subsidies, Members should intensify their efforts to expedite and fulfil the information 
exchange  required for the purpose of such ne gotiations, and should engage in more focused 
discussions on proposals by Members, including the development of a possible working definition of subsidies in services.  
4. Members shall develop disciplines on domes tic regulation pursuant to the mandate under 
Article VI:4 of the GATS before the end of the cu rrent round of negotiations and prior to finalizing 
negotiations on market access.  We call upon Members to develop text for adoption.  In so doing, 
Members shall consider proposals and the illustrativ e list of possible elements for Article VI:4 
disciplines.
2 
  Approaches
 
 
5.          Pursuant to the principles and obj ectives above, we agree to intensify and expedite the 
request-offer negotiations, which shall remain the main method of negotiation, with a view to 
securing substantial commitments. In addition to b ilateral negotiations, request-offer negotiations may 
also be pursued on a plurilateral basis in accord ance with the principles and flexibilities of the GATS 
and the Guidelines and Procedures for th e Negotiations on Trade in Services. 
 6. Due consideration shall be given to proposal s on trade-related concer ns of small economies. 
 7. Members, in the course of negotiations, sh all develop methods for the full and effective 
implementation of the LDC Modalities, including expeditiously: 
 (a) Developing appropriate mechanisms for accord ing special priority including to sectors and 
modes of supply of export interest to LDCs in  accordance with Article IV:3 of the GATS and 
paragraph 7 of the LDC Modalities. 
 
(b) Undertaking commitments in such sectors and m odes of supply identified, or to be identified, 
by LDCs that represent priority in their developm ent policies in accordance with paragraphs 6 and 9 
of the LDC Modalities.  (c)  Assisting LDCs to enable them to iden tify sectors and modes of supply that represent 
domestic and export development priorities. 
 (d) Providing targeted and effective technical assistance and capacity building for LDCs in 
accordance with the LDC Modalities, particularly paragraphs 8 and 12.  
(e) Developing a reporting mechanism to facilitate the review requirement in paragraph 13 of the 
LDC Modalities.  
                                                     
 
2 As attached to the Report by the Chairman of the Working Party on Domestic Regulation to the 
Special Session of the Council for Trade in Services on 15 November 2005, contained in document 
JOB(05)/280.  WT/MIN(05)/27 
 Page 3 
 
 
 (f) Due to their special economic situation, partic ularly their development, trade and financial 
needs, LDCs are not expected to undertake new commitments 
 8. Targeted technical assistance should be provide d through, inter alia, the WTO Secretariat, 
with a view to enabling developing and least-devel oped countries to participate effectively in the 
negotiations.  In particular and in accordance with pa ragraph [...] on Technical Assistance in the Hong 
Kong Ministerial Declaration, targeted technical assistance should be given to all developing countries allowing them to fully engage in the nego tiations.  In addition, such assistance should be 
provided on, inter alia, compiling a nd analyzing statistical data on trade in services, assessing interests 
in and gains from services trade, building regulator y capacity, particularly on those services sectors 
where liberalization is being undertaken by developing countries. 
 
 Timelines
 
 
9. Recognizing that an effective timeline is necess ary in order to achieve a successful conclusion 
of the negotiations, we agree that the negotia tions shall adhere to the following dates: 
 (a) Any outstanding initial offers, and plurilateral  requests from a group of Members, if any, shall 
be submitted as soon as possible.  (b) A second round of revised offers shall be submitted by [date]. 
 
(c) Final draft schedules of commitments shall be submitted by [date].  (d) Members shall strive to complete the requi rement in 8(a) before the date in 10 (d). 
  Review of Progress 
 
 
10. Members, as part of the review of progress, are committed to complete an assessment of trade 
in services in overall terms and on a sectoral basis, with special reference to whether or not market access liberalisation to date has re sulted in the economic growth of  all trading partners and the 
development of developing countries, as pa rt of the work programme for 2006.  
 
 
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