RESTRICTED  WORLD TRADE  
ORGANIZATION  S/C/M/77 
16 February 2005 
 (05-0642)  
  
Council for Trade in Services  
 
 
 
REPORT OF THE MEETING HELD ON 9 FEBRUARY 2005 
 
Note by the Secretariat1 
  
1. The Council for Trade in Services held a meeting on 9 February 2005 chaired by 
Ambassador Peter Brño (Slovak Republic).  The ag enda for this meeting is  contained in document 
WTO/AIR/2488. 
2. The Chairman
 said that under Other Business, he intended to make two brief statements 
regarding the chairpersons of the subsidiary b odies to the Council for Trade in Services for 2005 and 
the date of the next formal meeting of the Council.     
3. The Chairman  suggested that the agenda be adopted as circulated with the addition of the 
items raised under Other Business.  
4. The Council so agreed . 
A. NOTIFICATIONS  MADE  TO THE  COUNCIL  PURSUANT  TO ARTICLES  III:3  AND  V:7 
OF THE  GATS 
5. The Chairman  drew the Council's attention to  nine notifications pursuant to Article III:3 
(Transparency) by Hong Kong, China, contained in  documents S/C/N/312-320.  He proposed that the 
Council take note of these notifications. 
6. The Council so agreed . 
7. The Chairman  also drew the Council's attention to three joint notifications pursuant to Article 
V:7 (Economic Integration).  The first, contained in document S/C/N/309, was made by EFTA States 
and Chile.  The second, contained in document S/ C/N/310, was from the United States and Australia. 
And the third, contained in document S/C/ N/311, was made by Thailand and Australia. 
8. The representative of Australia  informed the Council that the United States-Australia Free 
Trade Agreement had entered into force on 1 Janua ry 2005.  The Agreement set out comprehensive 
commitments in a range of areas including trad e in goods and services, investment, government 
procurement, intellectual property, electronic commerce and competition policy.  The Agreement 
bound liberal access for Australia and United St ates service suppliers in sectors including 
professional, business, education, environmental, financial and transport services.  The Agreement 
also provided for the establishment of a workin g group on professional services and a financial 
services committee as a forum to further progress i ssues in these important services areas.  The 
Agreement's negative list appro ach illustrated both Parties' strong support for services trade 
liberalization and transparency. In addition, as part  of the Agreement, both Parties had agreed to a 
                                                      
1 This document has been prepared under the Secret ariat's own responsibility and without prejudice to 
the positions of Members and to their rights and obligations under the WTO. S/C/M/77 
Page 2 
 
 
 "ratchet" mechanism that would bind future liberaliz ing measures in cross-border trade in services, 
financial services and investment into the existing Ag reement.  The text of the Agreement and related 
documentation were available at the websites of the USTR and the Department of Foreign Affairs and 
Trade of Australia.   
9. Turning to the Thailand-Australia Free Trad e Agreement (TAFTA), the representative of 
Australia  stated that this Agreement also had entered into force on 1 January 2005.  A comprehensive 
free trade agreement as well, covering trade in goods, services and investment, TAFTA liberalized 
and facilitated trade and investment between the Parti es. In addition to the core commitments to trade 
liberalization, TAFTA also contained provisions  on customs procedures, quarantine, food and 
industrial standards, electronic commerce, compe tition policy and intellectual property. Services 
commitments in TAFTA were based on the positive list approach with GATS commitments forming 
an integral part of the services provisions containe d in the Agreement.  Under TAFTA, Australia had 
made services commitments in the following sector s: business services including legal, accounting, 
landscape architectural, computer and computer-re lated, engineering and mining-related services; 
communications services; environmental services; construction services; financial services; transport 
services; and automotive repair services.  Recognizing the importance of continuing services 
liberalization, the Agreement also required both pa rties to conduct further negotiations on services 
and investment issues within three years from the Agre ement's entry into force.  Australia reaffirmed 
its willingness to contribute to the process of exam ination of both of the notified agreements in 
accordance with the procedures agreed upon in th e Committed on Regional Trade Agreements.  
10. The representative of the United States  noted that the Free Trade Agreement between her 
country and Australia would accord substantial acce ss across a number of sectors, subject to a few 
exceptions.  This Agreement covered a wide ra nge of sectors including  but not limited to: 
telecommunications services, financial services, distribution services, express delivery services, 
computer and related services, audiovisual services, entertainment services, energy services, 
construction and engineering services, tourism, advertising services, professional services, 
environmental services, education and training services.  The Agreement also set out a predictable 
framework for investors by including a number of provisions in the areas of investment.  Her 
delegation looked forward to the implementation of the Agreement.  Her delegation looked forward to 
this Agreement's implementation and operation.  
11. The Chairman  proposed that the Council take note of  the three joint notifications and the 
statements made, and that the notified agreemen ts be referred to the Committee on Regional Trade 
Agreements for examination of their consistency with the provisions of Article V of the GATS. 
12. The Council so agreed . 
B. IMPLEMENTATION  OF ARTICLE  VII OF THE  GATS 
13. The Chairman  recalled that this item had been kept on the agenda of the Council since July 
2003 and that  many issues had been raised and di scussed under this item.  Although no discussion 
was held at its previous meeting, the Council had agr eed to revert to this item at the request of India.  
The Chairman noted that a number of delegations had expressed their interest in further discussions 
under this item and that at the previous meeti ngs, discussions had tended to focus on the following 
issues: (1) improving notifications under Article VII;  (2) delegated authority; (3) transparency; (4) 
information sharing.   
14. Referring to his delegation's informal submissi on under this item, the representative of India  
reiterated that his delegation attached a crucial importance to the issues ra ised, especially in the 
context of their potential implications for facilitati ng recognition of qualification  His delegation also 
had outlined several specific issues on which discussi ons could focus.  He indicated that his capital S/C/M/77 
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 had been working on a paper regarding these speci fic issues in the hope that this paper could 
contribute to discussions at the Council's next mee ting.  He invited other delegations to make 
comments or suggestions on how discussions  could move forward under this item.  
15. The Chairman  proposed that the Council take note of th e statements made and revert to this 
item at its following meeting. 
16. The Council so agreed . 
C. OTHER  BUSINESS 
17. Referring to his remarks at the beginning of the meeting, the Chairman  reminded Members  
that in accordance with the rules of procedure (WT/L/31 and S/L/15), the outgoing chairperson of the 
Council would normally conduct consultations on the appointment of the new chairpersons of its 
subsidiary bodies, and the election of the new chairpersons of the subsidiary bodies was to take place at the first meeting of the year and was to take effect  at the end of that meeting.  He recalled that for 
this purpose, he had indicated at the Council's prev ious meeting that he w ould conduct consultations 
on the list of new chairpersons of the subsidiary bodi es at the beginning of this year. He noted that the 
election of the new chairpersons of the subsidiary bodies normally took place after the General 
Council had appointed the new chairpersons of the sectoral councils and other bodies. Noting that the 
General Council would not make this appointment until 15 February 2005, he informed the Council 
that the election of the new chairpersons of the subsidiary bodies could not take place during this 
services cluster. He, however, indicated that he w ould continue to hold consultations on this matter 
with a view to proposing a slate of names at the Council's meeting on 23 February 2005 so that the 
election of the new chairpersons of the subsidiary bodies could take place at the beginning of the next 
meeting of these bodies. 
18. With respect to the Council's next meeting, the Chairman
 said it was expected to take place 
during the next cluster of services meetings. The ex act date for the meeting would be communicated 
to delegations in due course.  
19. The Chairman  suggested that the Council take note of  the statements made and adjourn the 
meeting. 
20. The Council so agreed . 
__________