RESTRICTED  WORLD TRADE  
ORGANIZATION  S/WPGR/M/59 
2 October 2007 
 
 (07-4181) 
Working Party on GATS Rules  
  
 
REPORT OF THE MEETING OF 17 SEPTEMBER 2007 
 
Note by the Secretariat
1 
  
1. The meeting was chaired by Ms. Shaista Sohail, from Pakistan.  The agenda for the meeting, 
contained in WTO/AIR/3064, included the follo wing items:  emergency safeguard measures, 
government procurement, subsidies, date of the ne xt meeting, and other business.  The agenda was 
adopted
. 
I. NEGOTIATIONS ON EMERGENCY SAFEGUARD MEASURES (ARTICLE X) 
2. The Chairperson  recalled that the group of proponents had introduced earlier this year a room 
document proposing rules regarding the use of emergency safeguard measures in services.  At the last meeting of the Working Party, they had indicated that  they would provide further input in the light of 
comments received.  
3. The representative of the Philippines
 said that the informal exchanges that his group of 
delegations had convened since the last meeting had been very useful and productive.  The group was 
continuing to explore new ideas and levels of ambition.  Unfortuna tely, they had been unable to 
obtain final clearance from their capitals for the revised room document that they had intended to distribute today.   
4. Discussions continued in informal mode.   
5. The Chairperson
 invited the Working Party to take note  of comments made.   
II. NEGOTIATIONS ON GOVERNMENT PROCUREMENT (ARTICLE XIII) 
6. The Chairperson  invited further comments in relation to  the latest proposal from the European 
Communities, contained in S/WPGR/W/54, which proposed the text of an annex to the GATS on government procurement in services.   
7. The representative of the European Communities
 recalled that his delegation's various 
proposals had been discussed at length and that answers to many technical questions had been 
provided.  The economic importance of government procurement had been underscored, notably for 
developing countries.  Facilitating access of foreign service suppliers to procurement markets would 
bring important benefits in terms of quality-price ra tio (i.e., better value for money), would strengthen 
competitiveness, bring better governance, and help fight corruption.  Further, the EC proposal 
provided ample flexibility.  Members were free to d ecide which sectors to open.  Also, the proposed 
rules would only apply to specified sectors.  These rules, in addition, were nothing new since they 
were largely borrowed from economic integrati on agreements.  Another element of flexibility 
                                                      
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/WPGR/M/59 
Page 2  
 
  concerned developing countries: the proposal included a number of provisions on special and 
differential treatment, for example on transition pe riods for implementation.  His delegation was 
willing to move forward, and he reiterated the i nvitation to other delega tions to engage into 
substantive discussions.  He acknowledged that the topic involved complex and technical issues, but 
his delegation was open to provide further in formation to interested Members.     
8. The Chairperson
 invited the Working Party to take note  of comments made.   
III. NEGOTIATIONS ON SUBSIDIES (ARTICLE XV) 
9. The Chairperson  recalled that at the last meetin g a number of dele gations had made 
comments in relation to the informal communi cation from Hong Kong, China and Mexico on non-
actionable subsidies, contained in JOB(07)/27.  Sh e indicated that the delegation of Hong Kong China 
recently made available a room document that provided preliminary views in response to the first 6 
questions listed in paragraph 6 of JOB(07)/27.  The representative of Hong Kong, China could not be 
present today, but comments from other delegations were welcome. 
10. The representative of the United States  asked, as he had done at the previous meeting, how 
Members could possibly analyze whether any particular action should be a green-lighted subsidy if 
the nature of the disciplines from which they were  being exempted was unknown.  For example, if 
after discussions in the Working Party, Members decided that a countervailing duty was not suitable 
in the context of services, but that a reporting re quirement was appropriate, then there might be very 
little need for green-lighted exemptions.  On the othe r hand, if something much more restrictive were 
agreed upon, then Members might take an opposit e view.  The communication raises interesting 
issues, but the discussion was premature since one needed first to understand the nature of any 
disciplines being contemplated.  
11. The representative of Thailand  thought that subsidies would be a critical issue in the future.  
Often rules came in reaction to events in the trad ing environment.  The de legations of Mexico and 
Hong Kong, China had brought forward these issu es and there was now an opportunity to do 
something about it.  It was a very complex topic, and developing countries faced particular challenges 
in this regard.  In that context, he noted that UNCTAD had done research on subsidies in the last years 
and proposed, so as to inform th e debate, to have an UNCTAD representative make a presentation at 
the next meeting of the Working Party.  The representative of China  supported this proposal.   
12. The representative of the United States  said that her delegation w ould have reservations about 
inviting an outside speaker to address the Working Part y.  This might be done in seminars, but not in 
the current context.     
13. The representative of Mexico  noted that his delegation had significant interest in further 
discussions on the topic of subsidies.  JOB(07)/27, which Mexico had sponsored, aimed at fostering a 
discussion on the applicability to services of subs idy-related concepts used in other WTO 
Agreements.  Although it was not possible to do so at this meeting, his delegation would circulate 
shortly its preliminary answers to questions liste d in JOB(07)/27.  He hoped such issues could be 
discussed in forthcoming meetings.     
14. The representative of India  said that, since papers for both subsidies and ESM were 
forthcoming, it seemed premature to get into substa ntive discussions at this stage.  Comments might 
best be made at a later time.  The representative of the Philippines  indicated that the intention of his 
group of delegations was, should clearance be obtai ned, to circulate the revised proposal well in 
advance of the next formal meeting of the Working Party so as to allow for consultations and for an 
informal meeting, as might be appropriate.    S/WPGR/M/59 
Page 3 
 
 
  15. The Chairperson  said that she would hold informal consultations in relation to the proposal to 
invite UNCTAD to address the Working Party, wh ere reservations had been expressed, as well as on 
the forthcoming communications on subsidies a nd ESM.  The representative of the United States  said 
that she had not understood that the prop osal for the presentation involved an UNCTAD 
representative.  She was looking forward to obtai ning clarifications in the consultations.  The 
Chairperson  proposed that the Working Party take note  of comments made.   
IV. DATE OF NEXT MEETING 
16. The Chairperson  suggested that the next formal meeting be held during the next cluster of 
services meetings, subject to the usual consultations.    
V. OTHER BUSINESS 
17. No items were raised under this agenda item.   
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