RESTRICTED  WORLD TRADE  
ORGANIZATION  S/C/W/288 
2 November 2007 
 (07-4778) 
Council for Trade in Services  
  
 
- DRAFT -  
 
ANNUAL REPORT OF THE COUNCIL FOR TRADE IN SERVICES 
TO THE GENERAL COUNCIL (2007) 
  
1. Since its last report to the General Council, the Council for Trade in Services held four formal 
meetings, on 30 November 2006, 1 Marc h 2007, 7 June 2007 and 2 October 2007.
1  During this 
period, the Council addressed the following matters: 
I. TRANSITIONAL REVIEW UNDER SECTION 18 OF THE PROTOCOL ON THE 
ACCESSION OF THE PEOPLE'S REPUBLIC OF CHINA 
2. At its meeting held on 30 November 2006, the Council for Trade in Services conducted and 
concluded the fifth transitional review of the implementation by China of its WTO commitments, 
pursuant to section 18 of the Protocol on the Accession of the People's Republic of China 
(WT/L/432).  The Council took note of the report (S/FIN/17) of the Committee on Trade in Financial Services, which formed part of the Council's report on this matter to the General Council, contained in 
document S/C/27. 
II. REVIEW OF AIR TRANSPORT UNDER THE ANNEX ON AIR TRANSPORT 
SERVICES 
3. In 2007, the Council for Trade in Services held  two meetings dedicated to the second review 
of air transport as mandated by the GATS Annex on Air Transport Services, on 1 March and on 
2 October.  Reports for these meetings are cont ained in documents S/C/M/87 (dated 10 April 2007), 
and S/C/M/89 (to be issued shortly).  
4. At the March meeting, the Council addressed de velopments in the sector with relation to 
bilateral Air Services Agreements on the basi s of the Secretariat Quantitative Air Services 
Agreements Review (QUASAR) methodology and database (S/C/W/270/Add.1).  The European 
Communities submitted a communication presenting the ma in developments in the sector in the EC 
since 2000 (S/C/W/280).  Members reverted to repair and maintenance services on the basis of a 
Secretariat note (S/C/W/279), that had been requested  by the delegation of Costa Rica at the previous 
review meeting.  Members' discussions of the ope ration of the Air Transport Annex were mainly 
stimulated by a submission by Australia, EC, Ne w Zealand, Switzerland, Norway (JOB(06)/237) 
which proposes extending the scope of the GATS to  ground handling and airport operation services. 
5. At the October meeting the Council addressed, on the basis of the Secretariat note contained 
in document S/C/W/270/Add.2, developments in the following aviation areas:  plurilateral Air 
Services Agreements;  economic and financial situa tion of scheduled passenger airlines;  low-cost 
carrier services;  non-scheduled passenger services;  regional air transport services;  general aviation 
                                                     
 
1 Reports of the meetings are contained in documents S/C/M/85 to 89 (to be issued shortly) and should 
be read in conjunction with this report. S/C/W/288 
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  services;  air cargo services;  slots;  alliances and c ooperation amongst airlines;  ownership;  and other 
significant economics and regulatory developments.  The Council also reverted to QUASAR, on the 
basis of a communication from Australia (JOB(07) /136) and a Secretariat note outlining possible 
improvements to the methodology (S/C/W/284).  As  for the agenda item on the operation of the 
Annex, a communication by Canada and the United States (JOB(07)/143) provided the basis for the 
debate.  No decision was taken as to further steps for the review, and the Chairman was mandated to 
hold informal consultations in this regard. 
III. NOTIFICATION FORMAT FOR REGIONAL TRADE AGREEMENTS 
6. At its meeting on 1 March, the Council for Trade in Services considered a new format for the 
notification of regional trade agreements (RTA s), including those under Article V of the GATS, 
recommended by the Committee on Regional Trade Agreements (WT/REG/16) at its 44
th Session.  At 
the request of the Council, the Secretariat prepared  a draft decision for the purpose of adopting the 
proposed new format for RTAs and formally modifying the existing Guidelines for Notifications 
under the GATS , contained in S/L/5, as far as notifications  made pursuant to GATS Article V:7 were 
concerned.  This draft decision, circulated in doc ument S/C/W/282, was considered by the Council at 
its meeting on 7 June 2007.  The Council agreed  to revert to it at its next meeting. 
IV. NOTIFICATION PURSUANT TO GATS ARTICLE XXI 
7. At its meeting on 7 June 2007, the Council for Trade in Services considered a notification 
from the United States made pursuant to GATS Arti cle XXI (Modification of schedules), regarding a 
modification to its Schedule of Specific Commitmen ts  (GATS/SC/90).  The exchange of views on 
this issue is contained in document JOB(07)/87. 
V. NOTIFICATIONS MADE TO THE COUNCIL PURSUANT TO GATS 
ARTICLES III:3, V:7, AND VII:4 
8. At its meetings held on 30 November 2006,  1 March 2007 and 7 June 2007, the Council for 
Trade in Services took note of the following notifications. 
(a) Notifications pursuant to Article III:3 of the GATS 
  Switzerland       S/C/N/376-384 + 396  
  Armenia       S/C/N/389   Bolivia        S/C/N/390   
(b) Notifications pursuant to Article V:7 of the GATS 
  Honduras       S/C/N/368/Rev.1 
  Guatemala       S/C/N/369 
  Jordan and Singapore      S/C/N/370   Japan and Malaysia      S/C/N/371   United States, Guatemala, Honduras,       El Salvador and Nicaragua     S/C/N/372 
EFTA States and the Republic of Korea    S/C/N/373 
  Costa Rica and Mexico      S/C/N/374 
United States and the Kingdom of Bahrain   S/C/N/375 Brazil (on behalf of MERCOSUR)    S/C/N/388 + Corr.1 United States, the Dominican Republic,     El Salvador, Honduras, Nicaragua and Guatemala  S/C/N/391 
  Panama and Singapore     S/C/N/392  S/C/W/288 
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    India and Singapore      S/C/N/393 
Brunei Darussalam, Chile, New Zealand and Singapore  S/C/N/394 
(c) Notifications pursuant to Article VII:4 
  Switzerland       S/C/N/395 + Corr. 1 
 VI. WORK OF THE SUBSIDIARY BODIES 
9. The activities of the subsidiary bodies are refl ected in their respective reports, which are 
annexed to this report, as follows:  
 Annex  I Report of the Committee on Trade in Financial Services (S/FIN/...) 
 Annex  II Report of the Committee on Specific Commitments (S/CSC/...) 
 Annex  III Report of the Working Party on Domestic Regulation (S/WPDR/...) 
 Annex  IV Report of the Working Party on GATS Rules (S/WPGR/...)   
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