RESTRICTED  WORLD TRADE  
ORGANIZATION  TN/S/M/34 
15 March 2010 
 (10-1354) 
Council for Trade in Services 
Special Session  
 
 
 
REPORT OF THE MEETING HELD ON 9 FEBRUARY 2010 
 
Note by the Secretariat1 
 
 
1. The Special Session of the Council for Trade in Services held a formal meeting on 9 February 
2010, chaired by Ambassador Fernando de Mateo of Mexico.  The agenda for the meeting, contained 
in document WTO/AIR/3501, was adopted. 
A. IMPLEMENTATION OF THE MODALITIES FO R THE SPECIAL TREATMENT FOR LEAST -DEVELOPED 
COUNTRY MEMBERS IN THE TRADE IN SERVICES NEGOTIATIONS  
2. The Chair  said that at the informal meeting of the Special Session two weeks earlier, the 
consultative group led by Norway had presented the draft text of an LDC waiver, on which it had 
been working from some months.  Members had welc omed the tabling of the text, and had expressed 
some preliminary views on its contents.  It was clear from the discussion that a number of issues remained to be resolved.  For that reason, the Chair had offered to organise a series of open-ended 
informal meetings to go through each part of the dr aft.  In preparation for those discussions, he had 
proposed as well that Members make written comments or drafting suggestions.  He now wanted to 
hear any views delegations had on the substance of the draft waiver , and how work could be taken 
forward on this important topic. 
3. The delegation of Bangladesh
 wished draw the attention of Members to paragraph 23(i) of 
Annex F of the Hong Kong Ministerial Declarati on, concerning the Understanding in Respect of 
Waivers of Obligations under the GATT 1994.  Bang ladesh pointed out that requests for waivers by 
LDCs under Article IX of the WTO Agreement, a nd the Understanding in Respect of Waivers of 
Obligations under the GATT 1994, shoul d be given positive considerati on and a decision taken within 
60 days. 
4. Bangladesh then asked that its statement ma de in the informal session on 26 January be 
recorded in the minutes.  In this statement, Bangl adesh said that the services negotiations were a vital 
element of Doha Round for LDCs in general, a nd Bangladesh in particular, as the services sector 
contributed more than 50 per cent of GDP in individual LDC economies. But the share of world trade in services of all 49 LDCs was less than 0.5 percent. That was why in Doha LDC Ministers had pledged to address the marginalization of LDCs in  multilateral trade. In Hong Kong, Ministers had 
committed to pursue full and effective implementa tion of LDC modalities in services for beneficial 
and meaningful integration of LDCs into the multila teral trading system.  It was necessary to promote 
the economic growth and welfare of LDCs, and obtain a developmental outcome from the Doha 
Round. 
                                                     
 
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/34 
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  5. To address the marginalized status of LDCs in world trade in services, the concept of "special 
priority" had been enshrined first in GATS Article IV.3 in 1995 – 14 years previously.  This special 
priority was again underscored in the Negotiating Guidelines (S/L/93) agreed in 2001. The LDC 
Modalities in 2003 expanded the idea, and indicated  the need for an appropriate mechanism to 
implement special priority.  In Hong Kong, LDC Mi nisters had gone one step  further by giving a 
dateline for agreeing on a mechanism to operationalize special priority. 
6. The WTO Secretariat had issued a note setting out the pros and cons of three options to give 
effect to special priority, or preferences, to LD Cs.  These three options were a waiver, an amendment 
to the GATS, and interpretation.  A waiver was not  the best option for LDCs, because it did not create 
an automatic and binding obligation on Members to  grant special priority, or preferences to LDC 
services suppliers.  It simply gave Members an in strument to deviate from the MFN obligation in 
favour of LDCs.  But LDCs had agreed to a waiv er option for the sake of compromise. However, 
LDCs believed that the waiver would create an enabling environment for LDC services suppliers, as 
was the case for goods under the Enabling Clause. 
7. Bangladesh thanked Norway, with their active par ticipation of some other Members, for helping 
LDCs to craft language on a waiver.  Members were urged to agree to the draft waiver, and engage 
with LDCs as soon as possible.  GATS Article IV:3 was not only a market access question, it was also 
a developmental issue. 
8. The delegation of Hong Kong, China
 wished to highlight some points arising from the draft text 
of the waiver, and wished that its statement made in the informal session on 26 January be recorded in 
the minutes.  In this statement, it said that the LDC modalities were a key component of the Doha 
Round.   Hong Kong, China fully supported the effort to fulfil the mandate on LDC modality 
negotiations and, in the light of the specific circ umstances and development stage of LDCs, priority 
should be given to LDC Members in respect of th e liberalization of market access in sectors and 
modes of supply of export interest to them. 
9. In terms of specific comments on the draft LD C waiver, Hong Kong, China noted that two 
options for paragraphs were presented.  Comparativ ely speaking, the first option cast a wider scope in 
that it was not specific as to which GATS obliga tions the MFN waiver applied, whereas the second 
approach limited the waiver to “application of measures described in Article XVI [i.e. Market 
Access]” of the GATS.  The first approach provide d greater flexibility, although in practice an MFN 
exemption for market access should have already cove red many instances of preferential treatment.  
The practical difference between the two approach es might not be very significant, and further 
discussion aimed at resolving this would be usef ul.  Separately, Hong Kong, China also found the 
wording “to the extent necessary” in the first option desirable, as this provided a benchmark to better 
define the obligations to be waived.  On the ot her hand, Hong Kong, China had a stronger preference 
for the formulation referring to “all least-developed country Members”.   
10. Hong Kong, China said that a systemic concern re mained that the formulation of the waiver 
should achieve the least inconsistency with the MFN principle, while at the same time fulfilling the 
mandate.  It was important that, to the extent possibl e, notifications of preferential treatment afforded 
to LDCs should be made before im plementation.  Like all Marrakesh  Agreement Article IX waivers, 
Hong Kong, China also preferred that the LDC waiver be subject to annual review. 
11. Hong Kong, China hoped that the work on LDC m odalities could be expedited to complete the 
remaining negotiations on the specific principles a nd characteristics of the waiver, noting that this 
could be a complicated and long process.  The draf t LDC waiver provided a useful basis for Members 
to take forward the discussion.  Me mbers needed to exerci se flexibility to strike a deal which should 
be within their reach before long.    TN/S/M/34 
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  12. The delegation of Zambia, on behalf of the LDC group , wished to make several remarks.  First 
and foremost, it was important for Members to consid er the waiver request with a back-drop of the 
special circumstances and difficulties that LDCs  had and continue to experience in gaining 
meaningful benefits from global trade in general, a nd trade in services in particular, with real impact 
on job creation and poverty reduction. 
13. Secondly, the proposed request for a waiver was a great concession made by the group from the 
initial position it took in March 2006:  a permanent solution applicable on a mandatory basis.  What 
LDCs were seeking was merely a simple instrume nt to facilitate the creation of an enabling 
environment for Members to grant preferential market access to LDCs.  A waiver did not create obligations.  Members would retain full discretion as to whether or not they wished to provide 
preferential treatment and, if any so decided, it w ould be up to the Members to determine the form in 
which such treatment would be provided.  Therefor e, there was no reason at this stage for controlling 
the manner in which preferences were granted,  since there was no obligation to grant such 
preferences.  It was for this reason that the request  was made by the LDC group kept the scope broad, 
allowing those Members that decided to grant pr eferences to choose the form in which such 
preferences would be granted.   
14. Thirdly, this was a temporary arrangement merely aimed at assisting LDCs increase their 
participation in global trade, whose implementation w ould be monitored by all the Members.  Last but 
not least, it was worth stressing that LDCs collectiv ely accounted for less than half a percentage point 
of global trade in commercial services, a figure so small to have real impact on global markets for commercial services.  In light of these points,  the group called upon all Members to consider 
positively the request made by LDCs to create an  enabling environment for granting preferences in 
the area of trade in services. 
15. The delegation of Zambia, on behalf of the LDC group then requested that the statement made 
during the informal meeting of 26 January be reflected in the records of the present meeting.  In that 
statement the LDC group thanked Norway for ta king leadership in assisting the LDC group to 
advance discussions on modalities for the special treat ment of LDCs, with a view to establishing an 
appropriate instrument for according special treat ment to services sectors and services suppliers of 
LDCs. The discussions of the small group had resu lted in a draft waiver, which was intended to 
address several problems faced by LDC economies. 
16. It was important to understand, fi rst and foremost, that the need  to enhance LDC participation 
in global trade in general, and trade in services in particular, went beyo nd economic considerations. 
The LDC group was composed of countries, the v ast majority of whose people lived below the 
poverty line, with limited or no access to basic services. It was disheartening to note that, despite the recognition of the pivotal role trade in services could play in lifting millions out of poverty, the share 
of LDC trade in commercial services amounted to less than half a percentage point (at 0.44 per cent) 
in  2008. 
17. Second, the LDC group believed that promotion of LDC services and services suppliers through 
the creation of an enabling environment could contribute towards achieving socio-economic development objectives aimed at reducing poverty,  upgrading welfare, improving universal 
availability and access to basic services, a nd in ensuring sustainable development. 
18. Third, the Group believed that the creation of an enabling environment through adoption of a 
waiver as part of an ‘early harvest’ would not only facilitate effective access of LDCs’ services and 
service suppliers to developed country markets and to markets of developing countries in a position to 
do so, at the time of concluding the Round, but woul d also act as an important catalyst for investment 
promotion. An early harvest in the form of a waiver  decision would be in line with the mandate given 
by Ministers during sixth Ministerial Conference to  ‘expeditiously’ develop appropriate mechanisms TN/S/M/34 
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  for according special priority to services and modes of supply interest to LDCs, and the Chairman’s 
element paper of July 2008, which outlined the need  to complete negotiations on the waiver before 
revised offers were submitted.  
19.  Fourth, the decision to go along with the proposal  for a waiver was a great concession made by 
the group from the initial position presented before th e Membership.   Lastly, it was important to 
recognize that the LDC group had undertaken to define elements of the draft waiver with the aim of 
creating an enabling environment that was stable and predictable. An environment that facilitated 
export trade, in a transparent and inclusive manne r for all LDCs, with an in-built transparency 
mechanism and within a timeframe that would assist individual LDCs develop the necessary capacities to increase their partic ipation in world trade as envisaged under GATS. The LDC Group 
was confident that Members would build on the po litical momentum and progress made thus far by 
engaging positively with a view to a dopting the draft waiver expeditiously. 
20. The delegation of Japan
 said that the LDC modalities in services were an important element of 
the overall DDA outcome.  In this context, the discu ssion of the issue required wide participation of 
the Members, as it could have legal implications for the entire Membership.  Therefore, Japan 
welcomed the Chair's initiative to provide an o pportunity to discuss the issue in an open-ended 
manner. 
21. Norway and members of the Norway group need ed to be thanked for providing a textual 
platform to discuss LDC modalities in services.  Japan was not a member of the Norway group, 
shared the same concerns over the difficulties faced by LDCs, as were mentioned in the preface of the 
draft paper. Japan wished to constructively partic ipate in the discussion, and in this regard had a 
number of technical questions. 
22. First, the issue of "rules of origin".  At the past Enchilada meetings, it was explained that the 
definition of LDC services suppliers  would be the same as in Article XXVIII of the GATS.  If this 
were the case, there needed to be more discussions on possible cases, especially with regard to modes 
1 and 2.  Any service suppliers owned or cont rolled by non-LDC entities needed to receive 
preferential treatment under the LDC modalities mech anism, as long as they could claim to have 
properly-registered business operations in LDCs.  It  was important to know how this point could be 
addressed. 
23. Second, the issue in paragraph 1 of the draft waiv er.  Japan wanted to know how the first option 
of paragraph 1 provided coverage in areas other than market access, such as national treatment, 
additional commitments or domestic regulation.  At  the last Enchilada, an example had been given 
that the reduced fee for an application could be such  a case.  Japan would wish to have an illustrative 
list of examples in this regard. 
24. Third, the term "immediately and unconditionally" in paragraph 1 of the draft waiver.  At the 
Enchilada, an explanation was given that this was the same language as in GATS Article II.  
However, Article II sets out the MFN principle, a nd the waiver mechanism in question here was the 
converse of MFN.  If the waiver mechanism could be seen as analogous to Article II, from Japan's 
point of view, it should be the opposite of "immediatel y and unconditionally".  But if this issue were 
an outcome of the long consideration on special  and differential treatme nt elements among the 
Norway group members, then Japan  would like to give positive consid eration to this result, pending 
additional information in this regard. 
25.  Fourth, the notification provision under paragraph 2 of the draft waiver.  Japan noted that there 
were some services which did not have CPC numbers.  Therefore, there needed  to be flexibility in 
identifying CPC numbers.    TN/S/M/34 
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  26. Fifth, the words "certain, secure and predictabl e market access" in paragraph 3 of the draft 
waiver.  Japan wished to know how that descripti on of market access differed from the usual meaning 
of market access. 
27. Sixth, the consultation mechanism with affected  Members.  At the Enchilada, an explanation 
was given that this consultation mechanism was not compulsory.  However, the word "shall" was used 
in this context.  If the voluntary nature of cons ultative process was indeed an element of the draft 
paper, the word "shall" should be replaced with a nother word, such as "should" or "may".  The same 
could be said with regard to the scope of such a consultation.  The curre nt language said "such 
consultation shall examine the possibility of action for a satisfactory adjustment of the matter".  It 
reads as if it were compulsory in the consultation to examine the possibility of action for adjustment.  
In this regard, Japan took the view that in order to  be consistent with the enabling nature of this 
waiver mechanism, the consulta tion mechanism should also be in the same line.  Members 
implementing this LDC waiver should maintain their discretion to amend or withdraw the preferential 
treatment as the need arose.  If not, implementing a waiver could be a very risky action. 
28. Seventh, the words "undue difficulties to trade"  in paragraph 4 of the draft waiver.  Japan 
wished to know of examples in which there were "undue" difficulties. 
29.  Eighth, the period of 15 years set out in paragr aph 4 of the draft waiver.  Japan thought that 15 
years was too long, if compared to the 10 years required in the analogous LDC waiver for trade in goods.  However, Japan remained flexible in this regard. 
30. The delegation of the European Union
 remained firmly committed to working towards a 
solution that facilitated the integration of LDCs in to global trade in services.  The implementation of 
LDC modalities was an important element in the en tire DDA services package.  The EU attached an 
importance to LDC modalities equal to the other elem ents outlined in the Chairman's Report of July 
2008, especially market access.  These elements required that the completion of the services 
negotiations should progress in parallel.  Members n eeded to carefully consider which was the best 
way to implement the LDC modalities.  If Members wi shed to create an effect ive mechanism, such a 
mechanism needed to match the object ives that Members, in particular the LDCs, wanted to achieve.  
The EU needed to understand better the needs and inte ntions of LDCs that had led to the draft waiver 
that the small group had proposed.  It would be important to discuss examples of the kinds of 
preferences LDCs were seeking in order to make  sure that the mechanism being developed was 
appropriate. 
31. The EU had analysed the draft text which the sm all group had prepared.  Before being able to 
take a position on the text it would need to have more clarity on a number of questions on both the 
substance and legal issues.  Some of these questions  had already been raised at the dedicated session 
on 26 January, and it would be useful to hi ghlight some of the more important ones. 
32. On the two options for paragraph 1 of the dr aft waiver, the EU wondered which forms of 
preferential treatment, other than market access,  LDCs would envisage.  The EU wanted to 
understand the thinking that had led to the proposing of two alternative formul ations.  It would be 
necessary to identify concrete examples of the possi ble preferences, to assess the merits of the two 
options.  This question on forms of treatment lin ked to paragraph 4, and the question of how to 
establish the sectors and modes of supply of export inte rest to LDCs.  In this context, the EU recalled 
previous attempts by the EU and others to assess th e sectors and modes of supply which would be of 
interest to LDCs.  The EU also had concerns about the link of the term "unconditionally", in 
paragraph 1 with paragraph 2, wh ich explicitly provided for the possibility of attaching terms and 
conditions to the preferential treatment.  The EU  understood the motivation for including the term 
"unconditionally", but needed to make sure that  the drafting was not ambiguous, as Members might 
well want to attach conditions to the granting of preferences. TN/S/M/34 
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  33. In paragraph 3 of the draft waiver, the EU w ondered about the meaning of "certain, secure and 
predictable market access to all LDCs", and how this formulation linked to the consultation 
requirements which were included, not only in the sa me paragraph, but the same sentence.  On the 
duration of the waiver in paragraph 5, the 15 y ears were bracketed, and the EU wondered what the 
intentions of LDCs, and how this related to the fo rmulation of "certain, secure and predictable market 
access" were already stipulated.  On paragraph 6,  the EU thought it was important to look more 
closely at the links with the UN graduation pro cess.  This list of issues and questions was not 
exhaustive, but an illustration of what the EU mi ght be asking later.  The EU looked forward to 
responses from the LDC group, and we welcomed i ndications on how to take the process forward. 
34. The delegation of Turkey
 strongly supported the provision of effective market access in sectors 
and modes of supply of export interest to LDCs . Turkey had already accorded full duty-free, quota-
free treatment to LDCs for industrial goods since 2006. 
35. Turkey considered the draft waiver as an im portant step forward in implementing the LDC 
modalities, and thanked the drafting  group led by No rway for their work. Turkey was still studying 
the text and consulting with its pa rtners. Turkey was of the view that Members needed to produce a 
meaningful and practical instrument, beneficial to  LDCs, but not detrimental to other Members and 
open and fair trade.  Having said that, Turkey was of the view that the second alternative for 
paragraph 1 provided a more clear-cut description and straightforward framework for the implementation of preferential and mo re favourable treatment for LDCs. 
36. The delegation of Chinese Taipei
 welcomed the draft recommendation on the LDC waiver from 
Norway and others.  Like other de legations, its view was that the draft waiver could serve as a basis 
for further negotiations.  Chinese Taipei suggested hold ing informal consultations at a technical level, 
to clarify or modify words or sentences of concern in the draft text, as raised by Members.  Chinese 
Taipei encouraged Members to step up efforts to  complete negotiations on this issue before the 
revised offers were submitted, so as to comply w ith the sequencing of the timelines as set out in 
paragraph 11(e) of Annex C of the Hong Kong Ministerial Declaration. 
37. The delegation of China  said that The Hong Kong Minister ial Declaration had provided that 
Members should pursue full implementation of the m odalities for the special tr eatment for LDCs in 
the negotiations in trade in services.  China belie ved that an effective implementation mechanism of 
the LDC modalities would facilitate the increased par ticipation of LDC Members in trade in services, 
and help them to address the challenges in the process of  liberalization, allowing them to be integrated 
into the world economy.  China supported the establish ment as early as possible of this mechanism.  
China appreciated the continuous efforts of the LDC Members, and other Members (in particular 
Norway) in putting forward the valuable draft text, which served as a good basis for a technical 
discussion.  China urged Members to intensify the t echnical discussions in order to achieve consensus 
on a waiver agreement in the near future.  With re gard to the substance of the draft text, China had 
taken note that the first option of paragraph 1 implied a wider scope, which might involve some 
complicated factors.  China would continue to reflect on Members' views on this issue, and try to get a 
clearer assessment on it. 
38. The delegation of Brazil  reiterated its engagement in the discussions on the issue of the 
implementation of the modalities for the special treatm ent for LDCs, in order to arrive at an agreed 
text as soon as possible.  It refrained from making sp ecific comments at that stage, but was looking 
forward to the technical consultations to discuss in detail the draft text of waiver. 
39. The delegation of Colombia  said that, as it had stated on previous occasions, the LDC waiver 
was very important, and it would be waiting to pa rticipate in technical discussions in this area.  TN/S/M/34 
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  40. The delegation of Nepal  said that it supported the statement made by the coordinator of the 
LDC group. 
41. The delegation of Morocco , speaking on behalf of the African group, said that it attached great 
importance to all development-related issues, especia lly to initiatives aimed at facilitating the African 
continent's integration, and that of LDCs, into international trade.  The African group gave its 
unconditional support to the initiative, and was open to any discussions and consultations in this 
respect. 
42. The delegation of Bangladesh  supported the statement made by the delegation of Zambia. 
43. The Chairman  suggested that the Council take note of all the statements made, and revert to this 
item at its next meeting.  It was so agreed .  
B. WORK OF SUBSIDIARY BODIES - REPORTS BY CHAIRPERSONS  
44. The Chairman  said that the four subsidiary bodies had met recently and, in the interest of 
transparency, that he would call on any Chair of a subsidiary body who wished to do so to report on 
recent progress in their discussions. 
45. The Chair of the Committee on Specific Commitments , reported that, since his last report to the 
Special Session in November 2009, the Committee had held, that morning, a formal meeting.   
46. At the meeting, delegations had intervened actively under the agenda item regarding the 
relationship between old and new commitments.  Th is was very encouraging.  Three delegations 
(Australia, Switzerland and Japan) had submitted pr oposals under this item, which provided ideas on 
how to address the relationship between old and ne w commitments from different angles.  Australia 
had proposed language to be include d in the protocol.  Switzerland had invited Members to consider 
an approach with a view to reaching an agreemen t on protocol language.  Japan had suggested that 
certain mechanisms be designed to deal with Memb ers' concerns on commitments, after the entry into 
force of the protocol.  Despite their differenc es, these proposals served a common objective, which 
was to ensure that the level of treatment provide d by existing commitments would not be undermined 
after the schedules annexed to the protocol replaced the schedules currently in force.  A number of 
delegations had made substantive comments on these proposals.  A few interesting ideas were raised, 
and some issues clarified during the discussion.  The Committee had also briefly touched upon the issue of how to proceed with the verification exercise at the end of the Round. 
47. While a divergence of views continued to exist as to  the best way to preven t rollbacks, the Chair 
believed that the open and thoughtful discussion had set  a good basis for future work.  In particular, 
the discussion would stimulate Members to reflect further on outstanding issues under the item.  He 
would therefore hold consultations with delegati ons, building on the discussion at the meeting. 
48. There had been no discussion on scheduling and classification issues.  
49. The Chair of the Committee on Trade in Financial Services
, reported that the Committee had 
held a formal meeting on 4 February. 
50. There was no news to report on the acceptance of  the Fifth Protocol to the GATS, which had 
still to be accepted by Brazil, Jamaica and the Philippines.  
51. The Committee had been considering three proposals for work in different areas:  a proposal on 
e-finance, submitted by Pakistan; a proposal to or ganize a workshop on trade in non-life insurance 
services submitted by the United States; and two propo sals to discuss the eff ects of the crisis, one TN/S/M/34 
Page 8  
 
  submitted by Argentina, Ecuador, I ndia, and South Africa last year, and another one put forward by 
the United States at the formal meeting.    
52. At the meeting, the Committee had finally deci ded to go ahead with Pakistan's proposal on e-
finance, which called for (1) the organization of a dedicated discussion on the issue; (2) the 
preparation of a background Note by the Secretar iat; and (3) a discussion on the need to modify the 
current classification of financial services to cater for recent developments in this area. 
53. The Committee had also decided ad referendum  to hold a dedicated discussion on the effects of 
the financial crisis on trade in financial service s with the participation of other international 
organizations and experts, as well as a workshop on trade in non-life insurance services.  If there were 
no objection to either event by 26 February, the decision would be considered as confirmed.   
54. The Chair wished to express his appreciation and gratitude to all delegations for the 
constructive approach shown in th e consideration of these proposals, which would help advance the 
Committee's work.   Due to the late circulation of the Secretariat's sectoral paper on financial services, and the fact that Members had not had sufficient time to consider it, the Committee had decided to 
postpone discussion of this paper until the next meeting of the Committee.  
55. Under Other Business, the delegation of Panama had referred to recent tax measures by 
Ecuador, adopted in December 2009,  which would affect financia l transactions with Panama.  
Ecuador had taken note of Panama's statement.  
56. The Chair of the Working Party on Domestic Regulation
, reported that since her last report in 
November 2009, the Working Party had held one informal meeting, on 14 and 15 December 2009, 
and one formal meeting, on 2 February 2010.   The substance of both meetings was devoted to 
technical discussions on the development of disciplines on domestic regulation pursuant to Article VI:4 of the GATS. 
57. During the informal meeting in December, th e Working Party had focussed on the outstanding 
chapters of the Chair's draft of 20 March 200 9, addressed a document by three delegations on the 
issue of "disguised restrictions on trade in services" (JOB (09)/182), and revisited a proposal by a group of Members on four central chapters of the disciplines – Licensing Requirements, Licensing Procedures, Qualification Requirements, and Qualification Procedures. 
58. During the formal meeting of 2 February 2010 , technical discussions had continued – in 
informal mode – on the Development Chapter of th e Chair's draft, as well as on the use of various 
"soft-law" obligations in the Chair's draft.  Prel iminary discussions were also held on two new Room 
Documents containing text proposals: one of th e proposals was submitted by three delegations and 
concerned the issue of the appropriate language for pa ragraph 2.  The other proposal was a revision of 
an earlier proposal by a group of Members on Licensing and Qualification Requirements and 
Procedures. 
59. With regard to the next steps in the Working Pa rty, it was the Chair's intention to produce an 
annotated text over the following few weeks.  This text would take account of  the discussions that had 
taken place in the Working Party during the previous  year, and would reflect all proposals and text-
related views that had been expressed in that period.   It was the Chair's hope that this document would 
assist Members in addressing the many outstanding issues in the negotiations on horizontal 
disciplines.   
60. As concerned a possible contribution to the stock- taking at the end of March, if so required, it 
was the Chair's intention to convene a meeting on 8 March 2010, at which Members would have an 
opportunity to assess the state of play of the negotiati ons in the Working Party.  The discussion at this  TN/S/M/34 
 Page 9 
 
 
  meeting would provide the basis for an input to the overall assessment on services, which would be 
undertaken in the CTS Special Session.   
61. The Chair of the Working Party on GATS Rules  said that, since his last report to the Special 
Session, the Working Party had met in formal session on 1 February 2010.  
62. On the subject of subsidies , after several months of consu ltations, the Working Party had 
endorsed a Work Programme to facilitate the exch ange of information on subsidies (JOB/SERV/1).  
The Chair wished to thank Members for their ha rd work and support in formulating this work 
programme. 
63. The work programme contained three main el ements.  First, betw een March-July 2010, 
Members would, wherever possible, submit to the Secretariat their written replies to the questions 
contained in document S/WPGR/W/16.  It would be  up to the reporting Member to select the number 
of sectors and scope of measures to include.  Second, all submissions to the Secretariat would be compiled and circulated at the end of July 2010  for a discussion at a dedicated meeting of the 
Working Party after the summer break.  Third, Me mbers were encouraged to use the information 
exchange exercise to provide information on trade pr oblems encountered due to subsidies, if any, on a 
non-attributable basis. The ultimate objective of  Article XV was to negotiate disciplines on any 
distortive effects on trade in services, and the info rmation exchange exercise would lend itself to this 
task.   
64. The work programme provided a useful basis for reviving work on subsidies, but it did not 
preclude any other initiatives or ideas which Members wi shed to bring to the table.  For instance, a 
communication from Switzerland on export subsidies ha d recently been received, and the Working 
Party would be taking up this subject at future meetings. The Chair also had heard indications by 
Members of their wish to pursue further work on th e definition and identification of trade-distortive 
effects of subsidies in services. 
65. On emergency safeguard measures and government procurement, since the Chair's last report, 
there had been no new developments. The Chai r understood that the proponents on emergency 
safeguard measures were for the time being study ing the comments received on the concept of 
"domestic industry".  With respect to governme nt procurement, the Chair awaited word from 
Members whether further technical work was required.
 
66. The Chair  suggested that the Council take note of the reports made.  It was so agreed . 
C. REVIEW OF PROGRESS IN NEGOTIATIONS , INCLUDING PURSUANT TO PARAGRAPH 15 OF THE 
GUIDELINES FOR NEGOTIATIONS ; AND ORGANIZATION OF FUTURE WORK  
67. The Chair  said that Members were cl ose to completing their first services cluster of 2010.  
Although the lack of progress in other areas of  the Round made it far from easy to maintain 
momentum in the services negotiations, he trusted th at work over the previous few days had been 
fruitful.  
68. A week of Senior Officials' meetings was to ta ke place the following week, with a further week 
of meetings to start on 22 March.  This would lead up to the stock-taking exercise called for by 
Ministers at their last meeting in December.  As Members would recall, this was in the context of Ministers reaffirming the need to conclude the Round in 2010. At present, the structure of the 
stocktaking and the nature of inputs expected from negotiating groups was not yet clear.  It would therefore be difficult for Members to decide at the present meeting on how to proceed in this regard. 
However, the Chair wished to h ear assessments by delegations of the progress made so far in the 
services negotiations, and how practically work shou ld be organized over the following six weeks. TN/S/M/34 
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  69. The Chair said that one idea that Members might wish to consider was to plan for a further 
Special Session in mid March, in which Members di scussed whether and, if so, how input should be 
provided to the stocktaking exercise.  At that poi nt, Members would be in a better position to decide 
on an appropriate course of action.   
70. The delegation of Chinese Taipei
 recalled that, at the 7th WTO Ministerial Conference, 
Ministers had reaffirmed the need to conclude th e Round in 2010, and for a stocktaking exercise to 
take place in the first quarter of 2010.  Being one of the three market  access pillars, services 
negotiations needed to be part of this stocktaking exercise.  Members perhaps needed to discuss at the 
next Special Session in March the form and content, when nature of the overall stocktaking exercise 
had become clearer. 
71. Chinese Taipei recalled the discussion at the previous  week’s services cluster, particularly in the 
area of domestic regulations, where there had be en very constructive and positive engagement by 
Members.  Chinese Taipei, together with seven other Members, had circulated a revised room 
document, aimed at streamlining and consolidating possible discip lines on licensing and qualifications 
requirements, and procedures.  This documen t was generally well received by Members, 
notwithstanding that some issues required further clarification or discussion.  It was hoped that the 
Chair would reflect the contents of this document in her “annotated text”, as a part of the progress 
report for the stock-taking exercise in March.   
72. The delegation of New Zealand  wished to make brief comments on the past cluster, and future 
work.  Over the cluster New Zealand had participated  in a raft of bilateral, friends and regular body 
meetings – including the coordinati on of friends of education services.  On bilaterals, New Zealand 
was aware that the cluster was the last chance pr ior to the March stocktaking, so had taken the 
opportunity to meet with some delegations that they had not previously or recently met with.  As with 
the previous clusters, these meetings involved some cl arification on the content of next offers, but also 
some discussion on what the next few months might hold for services and the negotiation more 
generally.  Like others, New Zeal and neither observed nor offered much clarity on the situation.  
What was more clear was that the work in friends  groups had been useful, and it was important to 
continue and finalize this technical work (which wa s coming to an end), so that Members were in the 
best position, and had the right resources at their fingertips, to provide the most appropriate and 
compelling input to the stocktaking.  The form of th e input – there was still time to decide – would be 
influenced to some extent by the work of othe r negotiating groups, and the emerging form of the 
stocktaking.  At the very least, Members would n eed an opportunity closer to the time, perhaps the 
second week of March, to provide this input to th e Chair, so that it could be properly taken into 
account in any reporting process. 
73. On domestic regulation, the friends group had co ntinued work on their proposal (of which New 
Zealand was a co-sponsor) and made efforts to take into account various comments from other 
delegations.  New Zealand was pleased to see co-spons orship of the proposal expanded in the meeting 
the previous week, and welcomed others to join who also had responded positively to the proposal.  
New Zealand looked forward to the recent progress be ing captured in the Domestic Regulation Chair's 
annotated text. 
74.  The delegation of Norway  had seen some progress overall in th e negotiations.  However, since 
July 2008 there had been only modest progress in  the market access negotiations, and there was a 
need to look for new ways to move forward with th e negotiations if the Round was to be finished in 
2010.  
75. Norway had had good bilateral meetings as well as friends' meetings during the cluster. Norway 
had also witnessed some positive developments in the subsidiary bodies – a willingness to 
compromise to move forward – notably in the areas of financial services and  domestic regulation.   TN/S/M/34 
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  76. Norway appreciated that agreement was reached in the Working Party on Domestic Regulation 
to prepare an annotated text on domestic regulati on before the stocktaking in March, which would 
help facilitate and enlighten the discussion at the Seni or Officials level. In Norway's view a Chair’s 
annotated text was a realistic approach with regard to moving the negotiations in this area forward. It 
would also be useful should there be a Ministerial in the near future.  
77. On the way forward, Norway said that the stocktaking should encompass both the market 
access negotiations and the rules-based areas of negotiations in services: GATS rules, Domestic Regulations and LDC modalities. The Chair’s roadmap from July 2008 might provide a useful basis for taking stock of all these areas.  The stockt aking granted Members an opportunity to build 
momentum. It could be the first concrete step of  the services negotiations since July 2008.  Members 
needed to be ready to provide the Chair with the relevant inputs for th is exercise.  To ensure relevant 
and timely inputs, however, more clarity about th e objectives and format of the stocktaking was 
needed as soon as possible. 
78. Norway said that services should be focused on th e stocktaking in the same way as agriculture 
and NAMA, and that a strong message on services needed  to be sent.  As time drew closer to the 
stocktaking, more clarity needed to be found, and it would therefore be useful to have another Special 
Session closer to the time of the stocktaking, i.e. during early to mid March. Members could then provide the relevant inputs to the Chair in the manne r most suited for the format of the stocktaking. 
The objective was to capture the developments in  the services negotiations since July 2008, and 
thereby provide a basis upon which these could be assessed. 
79. The stocktaking provided a tool for moving forward in negotiations. It was not an end in itself. 
Members also needed to start looking to post-stocktaking, if they were to finalize the Round in 2010. 
Gaps between existing market access and WTO commitments had to be identified and closed. In order to achieve this, Members needed to explore ideas on how to speed up the negotiations. Norway would 
continue to work bilaterally, as it believed this provi ded a constructive way forward. Norway was also 
open to revisiting the plurilateral approach where this  might be relevant and u seful.   There had been a 
political mandate from the Ministerial Conference to  conclude the Round in 2010.  There had been 
some progress in the market access negotiations, and Members should build on this as they looked for 
new ways to speed up the negotiations.  
80. The delegation of Japan
 wished to begin with an assessment of the current cluster meetings.  
There had been some progress in the market access pa rt.  It was Japan's understanding that 26 friends' 
meetings had been held (of which Japan had held  two: construction and maritime transport) and 
attended 13 of them.  In every friends' meeting th at Japan attended, there were good discussions for 
preparation for a stock-taking exercise at the end of March.  Japan, as proponents of the sectoral 
friends' groups, were trying to send a clear and simp le collective message to all the Members that 
some progress was made, especially in the Signaling Conference, but that at the same time, this needed to go farther since there were still big ga ps between what had been obtained and what the 
friends' groups wanted. 
81. Japan wanted to accelerate the preparation pr ocess for the March stocktaking exercises, to 
discuss further and improve the collective messages sector-by-sector.  Concerning bilateral consultations, Japan had held seven .  Japan was able to further clarify what the signals were, and 
which trading partners went beyond the signals.  Concerning the LDC modalities, Japan did not wish 
to repeat what had been said before, but wanted to  discuss the issue in an open-ended manner.  Japan 
did not forget the importance of making progr ess to make appropriate disciplines on domestic 
regulation.  This time, Members could come to a consensus that the Chair would issue an annotated 
text.  This was big progress.  As for future wo rk, Japan understood that there would be a Special 
Session on 15 March.  This was a targeted date fo r each of the friends' meetings.  Japan wished to TN/S/M/34 
Page 12  
 
  give a substantial input to the Chair and Senior O fficials and then, based on guidance and instructions 
from the stocktaking exercise, it would like to continue and accelerate the negotiations. 
82. The delegation of South Africa
 wished to convey its views on the present cluster, and on the 
services negotiations in general. On the rules nego tiations, it believed that the Chair’s proposed work 
programme was a constructive way forward in terms of the negotiations on subsidy disciplines. While 
acknowledging that the initial information-sharing exer cise had elicited a less than optimal response, 
this should not prevent Members from persisting in the quest for the establishment of such disciplines.   
Like others, South Africa took the view that the ma in focus should be on those subsidies that were 
trade distorting.  Subsidies per se were not bad polic y instruments, and they played a valuable role in 
all countries, developed and deve loping,  Generally, these subsidies addressed a range of economic, 
social, environmental and development purposes and,  as a developing country, South Africa certainly 
did not want these disciplines to constrain its po licy flexibility to address legitimate development 
objectives. However, considering the Article XV manda te, one could not simply proceed on the basis 
that services subsidies had no trade-distorting effect s, and to do so would be naïve and irresponsible. 
South Africa believed therefore that the information-sh aring exercise would be a valuable first step in 
generating greater transparency and clarity on this i ssue. It needed to be stressed, however, that the 
exercise would only add value to deliberations if all Members, particularly those that dominated 
services trade, were active participants in this process. 
83. On domestic regulation, South Africa was concer ned that the valuable progress achieved in the 
Chair’s text of March 2009 was unravelling. This text had achieved a fair compromise, reflecting a 
balance of the views of Members. While acknowledgi ng that elements of the text could be improved 
upon, to completely re-open the text to new proposals by Members would be a waste of the years of 
painstaking work that went into developing this text, and would constitute a serious setback for the 
negotiations. 
84. On the LDC waiver, South Africa welcomed th e positive spirit with which Members embraced 
the first draft, and extended its gratitude to No rway and the LDCs for their commendable efforts. 
South Africa looked forward to working constructivel y with all Members in making the waiver a real 
tool for economic development in all LDCs. 
85. On market access, South Africa took the firm view  that considerable progress had been made in 
taking the negotiations forward. Throughout the bi lateral and plurilateral processes, the Enchilada 
meetings and, more recently, the Signalling Confer ence, developing countries had displayed their 
commitment to achieving a credible outcome.  However, developing countries continued to see a lack 
of ambition from demandeur countries in making commitments in sectors and modes of supply of 
export interest to developing countries, and this w as particularly evident in modes 1 and 4.  Even 
more concerning was the fact that some of the largest demandeur countries continued to drive down 
the ambition in the agriculture negotiations, while  simultaneously calling for increased ambition in 
services. This did not bode well for a successful c onclusion of the Round, and South Africa called on 
these Members to respect in full the mandate  that received from Ministers in Doha. 
86. The delegation of Switzerland  said that it had participated in various bilateral meetings and had 
also in some of the friends' groups.  Participation in both types of meetings had been useful and 
interesting.  Like other delega tions, Switzerland was continuing to hold bilateral meetings, and was 
maintaining a dialogue with various partners.  Switzerland intended to continue participating also in 
friends' meetings.  It would try to ensure that between meetings there was less repetition in the 
discussions, which reflected the gene ral atmosphere in the Round. 
87. Switzerland had participated in the meetings of  several subsidiary groups.  There was much 
activity, which was a positive sign.  The delegations  who had ideas, submitted them, defended them,  TN/S/M/34 
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  and the debates that took place were often very subs tantial.  The attitude prevailing in the various 
groups was very positive.  The problem was that ther e was no movement in terms of specific results.   
88. Members were facing the same situation when it came to market access.  For two years there 
had been no development in terms of consensus- building.  That was worrying because, work in 
services could not be brought to a conclusion in a sh ort period of time.  Having said that, the various 
groups that had been meeting had succeeded to th e extent possible under the circumstances.  
Switzerland had participated in the meeting of th e Committee on Trade in Financial Services, and it 
was encouraging to see how constructively and c ooperatively most of the delegations making 
proposals had seen them supported by Members, even if only on a provisional basis and subject to 
confirmation.  In the Committee on Specific Commitm ents, Members continued to converge, at least 
as far as the understanding of the subject was concerned. 
89. The Working Party on Domestic Regulation had gi ven a lesson to all – to discuss subjects even 
if they were very thorny.  Switzerland welcomed th e fact that, for several successive meetings, it had 
been possible to discuss substance.  Until the end of the previous year, substantive discussions had 
been systematically set aside through an agenda that did not list them.  Perhaps it was thought that 
certain subjects were too difficult to be discussed, a nd that it was better simply to leave papers on the 
table.  However, the experience which delegations had had in recent meetings had shown that it was 
always better to try and commit oneself to a di scussion, even if the opinions expressed were 
contradictory.  It was better than taking a waiting position.   
90. In the Working Party on GATS Rules, Switzerland agreed that the work programme was viable 
and useful.  It would be helpful to make commitm ents in the GATS on the exchange of information, 
and would echo those who had brought out the importa nce of showing that this commitment was met 
by delegations who played a central role in trade in services.   
91. On the process in general, Switzerland believed that in the next couple of phases of work, 
Members would need to clarify and establish in wh ich way the Special Session would be organizing 
its contribution to the stocktaking process.  In this connection, it was desirable to ensure that some 
consultation meetings were provided for. 
92. The delegation of Hong Kong, China  had experienced a busy February services cluster.  
Members were continuing with their negotiations, an d at the same time were giving thought as to how 
to prepare for the stocktaking exercise at end March.  
93. On the market access front, Members had engage d in various formats during the cluster to 
clarify signals and identify gaps, including in bila teral consultations and sectoral services groups.  
While there was still much ground to cover in or der to keep in step with the pace of other 
negotiations, there was still some momentum on the serv ices side.  It was important now to determine 
how Members could distil what was doable and achie vable from the signals.  For that, each Member 
had critically to review the extent of its own signalled commitments, and prepare to exercise the 
political will when the moment came to forge a tangi ble deal. The fundamental consideration was that 
there should be no backtracking.  Hong Kong, China was fully prepared for further positive 
engagement in order to consolidate any emerging consensus on this, and to take the negotiations 
forward to their conclusion. 
94.  In this connection, Hong Kong, China also encouraged Members, co-sponsors and recipients 
alike, to react positively to the key plurilateral re quests on sectoral market access.  They were among 
the major building blocks of the final product of th e services negotiation, but significant gaps had yet 
to be filled in many of these requests. TN/S/M/34 
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  95. On the horizontal rule-making front, Hong Kong, China was pleased to see things moving 
ahead.  The technical discussion on the draft disciplines in domestic regulation had been useful.  There were new proposals seeking to improve the draf t, and also other attempts to revisit some 
controversial but fundamental aspects of the disci plines.  The task undertaken by the Chair of 
Working Party on Domestic Regulation to produce an annotated text would certainly help to 
consolidate the negotiation process.  Hong Kong, Chin a also looked forward to the discussion at the 
next Working Party meeting foreseen for 8 March. 
96. On GATS Rules, Hong Kong China was encouraged that the Working Party had endorsed a 
work plan for information exchange on subsidies. Th is was a critical first step that Hong Kong, China 
and other Members had proposed and argued for sin ce 1999. It was important for Members to fulfil 
their obligation under GATS Article XV, as well as  the mandate from the Hong Kong Ministerial 
Declaration that called for speedy work in this aspect.  Hong Kong, China thanked the Working Party 
Chair for his leadership in helping to forge th e consensus, and urged Members to respond to the 
information exchange exercise proactively. 
97. With respect to the stocktaking exercise, Hong Kong China thought it could be a positive factor 
in achieving a higher level of clarity and certain ty in the services package at around the time of 
expected modalities in agriculture and NAMA.  Hong Kong, China had suggested that Members 
might consider shortening the time for the submissi on of revised offers and draft final schedules, and 
wanted to encourage Members to signal the same preparedness, so that Members could jointly 
energise the process beyond the stock-take. 
98. In terms of the format and instruments for services  negotiation to be featured in the stocktaking 
exercise, Hong Kong China was open to suggestions  and ideas.  A further meeting in March to 
consider these would be timely.  Some sort of high -order state-of-play papers to capture the current 
status of the negotiations might be a useful starting point.  But whatever form it took, Hong Kong, China did not think Members should take stock just fo r the sake of it.  There were still various gaps in 
the services negotiations, and Members should look at them closely and pin them down, so that they 
knew better in what areas and with what strengt h Members needed to work together towards a 
conclusion. 
99. The delegation of Australia
 welcomed the opportunity to engage  in bilateral and technical rules 
discussions during the previous week, and reiterated that it wanted an ambitious services outcome.  Australia's services exporters demanded this, and th ey would judge the outcome based on the level of 
ambition achieved.  On 17 March, the Australian Services Roundtable, one of Australia's peak 
industry bodies, was holding a services summit in it s Parliament House, where they would discuss a 
roadmap for the Australian services industries.  Industry would be keen to know what progress had 
been made in Geneva over the past week or so. 
100. Australia also wanted a strong services outco me because Members could not realise the 
development dividend of Doha without an ambiti ous services package.  Australia has emphasised in 
the negotiations that any outcomes on agricu lture and NAMA could not be secured without 
competitive, efficient services markets – the linkage s between services and the other market access 
pillars were well recognized and were real. 
101. Having said that, Australia wanted to give its im pressions of the past week, based on the dozen 
or so bilaterals held and other meetings in whic h Australia had participated.  A theme emerging from 
bilateral meetings was that progress in the service s negotiations had been far too slow, and that 
Members had to focus more on how to re-energ ize the negotiations, as well as advance work on 
technical rules.  Those Members who had engaged w ith Australia would know that it was looking for 
ways to move forward – for some Australia had mo ved into territory that was outside their comfort  TN/S/M/34 
 Page 15 
 
 
  zones.  But Australia's view was that if all Memb ers were feeling comfortable, then they were not 
doing their job to maximize the benefits of the Doha Round. 
102. On market access, most if not all would agree that the best way to breathe oxygen into the 
services negotiations was to make progress on agriculture and NAMA.   That was a given, but what else could Members do to halt the sagging interest in services market access negotiations?  Australia 
was willing to consider all ways to build conf idence and momentum, including through revitalising 
plurilateral approaches.   
103. The work of the various sectoral groups during th e week had been very welcome in clarifying 
the state of play in the various sectors, and could be an important tool for Members to help assess the 
state of play in various sectors.  On technical work, Australia was pleased to see the level of 
engagement on domestic regulation and looked forward to the circulation of the Chair's annotated 
text.  This should be a factual document recording proposals that had been made, and the discussions 
which had taken place.  Australia also welcomed the new energy on services subsidies, and the work 
programme that was being developed there by the Chair of the Working Party on GATS Rules. 
104. On the stocktaking and way forward, Australia  wished to make the following observations.  
Senior officials were to meet the following week , and again in March before the stocktaking, and 
Members should ensure that services would be high on the Senior Official's agenda over the coming 
weeks.  Additionally, it would be useful if th e services Special Session could meet before Senior 
Official's meeting in March, when Members would have a better idea of the shape of the stocktaking 
exercise.  Australia also understood that a servic es Special Session was scheduled for 17 March, and 
welcomed the opportunity to provide guidance.  On the nature of the guidance, Australia's view was 
that any assessment of state of play in the services negotiations should be short and factual.  
Ultimately, the assessment of the negotiations in  the stocktaking process would be a matter for 
delegations to make, perhaps at minist erial or senior officials level.   
105. The delegation of India
 said that it had participated in six bilaterals, a nd coordinated the 
plurilateral groups on modes 2 and 4.  Friends' group s had met and made an assessment of the state of 
play.  They were useful meetings but there w as very little new.  One might try and see how these 
meetings could be used as inputs to the stocktak ing – but there India would be cautious.  All the 
friends' groups would be providing the Chair with inputs at some appropriate time.  These inputs 
might by asymmetrical.  The inputs would be only those of the co-sponsors – not of the recipients (including for mode 4).  For example, in financial services, if India had something to say it would not be reflected in the inputs that the Chair would receive .  If the Chair were to receive further inputs into 
the stocktaking, India would strongly urge that recipien ts have a say as well in the state of play in any 
particular plurilateral group.  Even co-sponsors were deemed recipients – except in the mode 4 group. 
106. India was happy with the Special Session in mi d-March, but would be happier if it was held 
closer to the WPDR meeting on 8 March and other working party meetings, because spreading it over 
2 weeks would be very burdensome for its delega tion.  India was happy with the progress made in 
GATS rules – the information exchange programme  on subsidies was welcome.  India however 
wanted all Members to participate.  The bulk of services trade was carried out between OECD countries.  If that bulk was not captured by the info rmation exchange on subsidies, there would be no 
point to the exercise. 
107. On domestic regulation, the annotated text was a second-best for India, but that this in no way 
reflected the ambition.  The text was to be only a factual compilation.  India wished to echo what the 
delegate from South Africa had said – that the Ma rch 2009 text had been arrived at not out of a 
vacuum, but after years of negotiations.  While Indi a did not have any problems with new proposals, 
the key word was "new".  The March 2009 text was the result of a number of proposals.  If Members 
put those proposals in new bottles, then there was no point in those proposals.  There was an ambition TN/S/M/34 
Page 16  
 
  captured in March 2009, which India believed reflected a fair balance.   The text took on board the 
concerns of all Members, and if that text were to  unravel then one would probably be happier with the 
current Article VI of GATS rather than to have an y disciplines.  On financial services, Members had 
made some good progress, and it was to be hope d that Members could carry forward the work 
programme that had been agreed.   
108. The delegation of China
 said that on market access, due to the closeness of the cluster to the 
lunar New Year holiday, China was not able to send a larger delegation to Ge neva, and did not have 
sectoral experts attending the meetings. As a result, China had not engaged in extensive consultations 
with other Members, though some brief bilateral discussions had been held  on the margin of the 
cluster. China looked forward to having broader and d eeper consultations with its trading partners in 
the next cluster, and hoped that its counterparts w ould bring more meaningful offers to the table. 
China also insisted that a bala nce between services and goods negotiations, in particular NAMA and 
the agricultural sector, must be achieved. 
109. With regard to rule-making, China did no t see much progress from the cluster, though 
Members, including China, conducted active discu ssions to push forward the negotiations, and 
achieved more clarity on certain technical issues through submission of proposals and the ensuing 
discussions. China hoped that the stocktaking session in March could help energize and guide the discussion in the coming months.  Specifically on do mestic regulation, China believed that Members 
had reached the crucial stage of formulating and cons olidating texts to reflect progress in this area. On 
subsidies and emergency safeguards, progress was not as visible, but China would continue to 
participate in a constructive spirit. 
110. The delegation of Turkey
 believed that Members should intensify their work in view of the 
March stocktaking.  The cluster had been quite us eful in this regard.  Turkey had held several 
bilaterals during which they reviewed progr ess in market access made since the Signalling 
Conference.  Turkey had confirmed its previous  signals, and provided in formation on its revised 
offers.  Even though the recovery in world ec onomy and trade was gaining traction, many Members 
were still under great pressure to the keep the mo mentum and counter unemployment.  Under these 
circumstances, it was not easy to sustain open markets, but so far the WTO had successfully 
prevented an outbreak of protectionism.  Members should continue to keep their markets open and 
their signals blinking.  Turkey did not support the convening a services Special Session in March before the stocktaking as proposed by the Chair.  In terms of rule-making, Turkey believed that 
progress had been made in Working Party on Dom estic Regulation, and with the issuance of the 
annotated text in advance of stocktaking, Members could work on it.  Turkey recognized the balance 
between market access and disciplines, but believed that progress in one could create momentum for the other. 
111. The United States
 agreed with those who had urged for an ambitious outcome in the services 
negotiations.  It had been a long- standing position of the United States.  As far as the progress of the 
previous week on market access was concerned, th e United States had participated in a number of 
friends' meetings.  While important work had been  done, not much had changed the US assessment of 
the market access negotiations from the last meeting in late 2009.  The services machinery was still 
idling along.  It would need to refuel at some stage and move forward.  Friends' groups were preparing for that day. 
112. The United States had attended a number of bilate ral meetings, but was disappointed that there 
was not a more substantial engagement with certain  key trading partners.  What was important about 
that, was that it made it difficult to work throug h issues, to think creatively about approaches that 
might produce a strong, politically-acceptable outcome .  In the other services areas, the United States 
remained engaged, and saw work in those areas pro ceeding.  Further progress in those areas had to be 
considered in light of the overall progress in the negotiations, particularly with respect to market  TN/S/M/34 
 Page 17 
 
 
  access.  In the rules area, it was worth noting th at the Chair's proposed work programme on an 
information exchange on subsidies also called on Members to identify particular problems 
experienced in the area of services subsidies.  That  particular part of the Chair's call should not be 
downplayed. 
113. There was a lot of discussion on how services woul d feed into the March stocktaking.  It 
remained unclear how best to portray the status of the services negotiations, but the United States 
remained open to ideas that would help contribute to the March stocktaking.  What was clear was that, 
at the end of the day, meaningful services mark et access remained an essen tial component of the 
negotiations. 
114. The European Union  said that it had come to Geneva with a full team, and was prepared to 
address all issues of the negotiations.  Unfortunately , the European Union had experienced a lack of 
enthusiasm in the market access negotiations, whic h was reflected in the limited participation of 
capital-based experts from some countries.  It w as not easy to organize an agenda of bilateral 
meetings, as some Members did not see value in engaging in such meetings.  Nevertheless, the European Union 
had conducted bilateral meetings with half  of those Members, and thanked those who 
had been willing to meet.  Those bilateral meeti ngs had allowed Members to continue the work begun 
in the November cluster on clarifying their understandi ng of the signals, but there had been almost no 
progress in addressing the outstanding requests.  Th e numerous friends' groups had undertaken some 
interesting work in their meetings.  The Europ ean Union chaired 5 of them (on air transport, 
environmental services, distribution services, energy and mode 3), and participated in 13 in total.  Most groups had engaged in a useful comparison of  notes on both signals and other indications, which 
had allowed these groups to assess the progress made  towards meeting the respective collective 
requests.  Friends would now see how best this work could be used for the overall assessment.  
Members were obviously all looking towards the stoc ktaking.  They needed guidance from the Senior 
Officials process starting the following week on the fo rmat and the shape of the stocktaking event.  
This exercise would include much more than ser vices, and Members would need to depend largely on 
progress in agriculture and NAMA. 
115. The delegation of Argentina
 had held a full week of intense meetings, some of them productive.  
As to progress in the various subsidiary bodies, progr ess in rules continued to be  slow despite the fact 
that the Chairman's work programme had been a pproved.  Also, it still remained to be seen what 
Members' involvement would be, as mentioned by India.  A concrete proposal from Switzerland on 
export subsidies in services had not been enthusi astically received by some Members.  Those 
Members who refused to discuss rules were those who were requesting market access and ever more 
ambitious disciplines in domestic regulation.  Some of these Members had also been reluctant to study 
evidence related to the distortion produced  by services that they said were needed. 
116. In market access meetings, Argentina had been willing to meet with its trading partners.  
Nevertheless progress in the rest of the Round had meant that any progress in these meetings had not 
been substantive.  Argentina therefore did not see any logic in any requests asking for negotiations to 
be speeded up.  What needed to be speeded up w as Members' flexibilities in other areas of the Round  
of interest to developing countries, such as agricu lture.  Argentina was confident that the Senior 
Officials meetings in the upcoming days would gi ve necessary guidance to make progress in services, 
taking into account the interests of all Members.  Argentina was looking forward to the future meeting of the services Special Session, where it would be able to give its input for the Chair's Report during 
the March stocktaking. 
117. The delegation of Brazil
 remained committed to the successf ul conclusion of the services 
negotiations, and agreed that they were an essential pa rt of the DDA.  However, the state of play in 
agriculture and NAMA still made it difficult for Braz il to re-open negotiations in market access for 
services, taking into account that mandates and timelines had been met.  Brazil believed that it had TN/S/M/34 
Page 18  
 
  provided enough clarification on its own signals , and on the fact that their confirmation was 
conditional on the overall balance of the Round.  Br azil's next step in this respect depended on 
progress in agriculture and NAMA, which pointed to the conclusion of the modalities in the draft text 
of 2008.   
118. Brazil was satisfied with the discussions on GATS rules, and was glad that it was possible to 
approve the Chair's work programme related to in formation exchange on subsidies.  On Domestic 
Regulation, Brazil reiterated its full engagement to r each an agreed text.  The annotated text would be 
merely factual, and would help Members reach  the necessary convergence to conclude the 
negotiations.  However, like South Africa, Brazil t hought that re-opening the draft text of March 2009 
might constitute a set back in the negotiations on domestic regulation. 
119. The delegation of Pakistan
 had been hopeful for a meani ngful cluster of meetings.  
Unfortunately, perhaps for the first time, Pakistan had the feeling that nothing meaningful had come 
out of the cluster.  However, Members were still e ngaged in various fora, but the area of concern was 
market access.  Everyone knew that services was th e victim of sequencing – that agriculture and 
NAMA went first.  Services would remain second for some time.  However, Pakistan would try to 
make it first as soon as possible, because for countri es like Pakistan, services was quite important.  In 
the area of domestic regulation, Pakistan was one of the delegations that had asked for a bracketed 
text by the Chair.  However, in order to reach  a compromise, the Pakistan was content with an 
annotated text, and the planned March meeting was an opportunity to share the state of play. 
120. In the Working Party on GATS Rules, Pakistan w as satisfied with the a pproach of the current 
Chair, and the process on information exchange.  It hoped that all Members would engage in that 
process.  For the stocktaking, it was true that there was no stock at the present time.  For some 
Members the signals given in the Signalling Conference were dead stock (for some not more than livestock).  It was the Chair who had to create some stock, and Pakistan would assist in this.  There was a sense of dilution of whatever had been achiev ed up to July 2008.  Pakistan had heard the words 
"backtracking", and also shared some of those sen timents.  Due to the time lag – waiting for NAMA 
and agriculture – Members were probably going to lose whatever had been achieved.  There needed to 
be some form of preservation exercise 
121. The delegation of Canada
 had mixed views with regard to the progress achieved thus far.  In the 
case of the subsidiary bodies, Canada felt that there had been some good developments.  Members 
had achieved agreement in the CTFS, or quasi ag reement, on the three proposals on the table, and 
Canada looked forward to those discussions.  On domestic regulation, Canada also thought that the 
annotated text would help Members identify and bri dge gaps going forward.  On subsidies, Canada 
would contribute positively to the work plan that the Chair had proposed.   
122. From Canada's perspective, the outcome on market access left much to be desired.  On the one 
hand, there had been over a dozen bilateral mee tings on market access with key trading partners, 
which proved useful in clarifying previous signals of  flexibility – both in the context of the July 2008 
Signalling Conference and various bilateral and pl urilateral meetings.  Fewer Members, however, 
were open to discussing additional areas where an improved offer might be possible beyond previous 
signals of flexibility.  In the majority of cases, this impasse was not a function of not having done the 
necessary homework in capital, but rather a lack of willingness to engage in this level of discussion 
due to broader dynamics in the negotiations.  In short, although Members were prepared to clarify 
their previous signals, they were not prepared to ne gotiate.  The most disturbing trends that had been 
visible during the week were the large gaps that  still remained in the level of openness of many 
Members' services regimes, and their willingness to bind this in the form of trade commitments, let alone provide for genuine new market access.  If Memb ers were to reach a satisfactory level of clarity 
and certainty on potential elements of a final servi ces package, then Members would need to find 
creative ways to move negotiations forward, especia lly with regard to market access.  For Canada,  TN/S/M/34 
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  there remained much work to be done to arrive at a satisfactory result, given that a number of its key 
market access requests remained unmet by key trad ing partners.  As othe r delegations had noted, 
services liberalization offered good opportunities for promoting economic growth and prosperity, and 
was complementary to liberalization of other areas in  international trade.  Services remained a key 
pillar of the DDA, and Members needed to engage  constructively with a view to achieving a high 
level of ambition.  Canada looked forward to the upcoming stocktaking exercise, and to meeting with 
Members again in the context of the next services cluster. 
123. The delegation of Chile  said the climate in market access negotiations in services was cold.  
There had been much progress, not much forward m ovement.  Pakistan had already indicated that 
Members had gone through the motions of holding a cluster, as on previous occasions.  For Chile, the 
current situation in the market access negotiations was a source of concern.  Services constituted one 
of the most important areas of negotiation in the Doha Round.   
124. Chile was open to working in a constructiv e manner to determine how the market access 
negotiations could contribute to the stocktaking ex ercise, as indicated also by others.  It was 
premature to define clearly how this contribution could be made.  Some signals might be seen as of 
the following week, with the Senior Officials in Geneva.  The stockt aking was just one stage in the 
process.  As Norway had said, it was important that Members take advantage of this time to determine 
how they would carry forward with the market ac cess negotiations, and exit the chilly climate which 
was currently prevalent in the ma rket access negotiations.  Members needed to be creative and think 
about how they could revitalize the process – maybe through plurilaterals. 
125. With reference to domestic regulation, Chile welcom ed the preparation of the annotated text.  It 
was not an optimum outcome, but could be a tool with  which to make progress.  The text needed to be 
factual. Chile disagreed with delegations who ha d said that the presentation of new proposals could 
constitute an element that could cause Members to b ackslide in the process.  To the contrary, Chile 
believed that the proposals that had been brought forward were taking Members in the right direction 
– toward the achievement of a major outcome in this area.  The March 2009 text had left aside a 
certain number of elements and concepts which fo r Chile were essential and basic, and which had to 
be present in any results achieved on domestic regula tion.  Chile would work with others in the 
upcoming stages.  A meeting of the Special Session in  mid-March could serve to  define better the way 
in which the services negotiations could contribute to the stocktaking exercise. 
126. The delegation of Singapore  said that services was an integral  part of the DDA package.  The 
lack of progress in the other areas of the Round in creased the difficulty of achieving substantive 
progress in services.  The current cluster had been u seful in enabling a frank exchange of views at the 
bilateral and plurilateral levels.  There had been so me positive developments in the subsidiary bodies.  
In the Working Party on Domestic Regulation, the annotated text could be a positive contribution to 
the stocktaking exercise.  Developments in the Committee on Trade in Financial Services and in the 
Working Party on GATS Rules were positive too.  On the March stocktaking, Singapore would 
support a Special Session in March to discuss input to the stocktaking, by giving more clarity and 
guidance to future work. 
127. The delegation of Colombia  said that services were an essential component of its economy.  
The services negotiations were complementary in mo st cases to goods areas, and Colombia needed to 
complete them fully and successfully.  Lack of progress in other areas indeed made it difficult to make progress in services.  However, it was due to these linkages with the other areas of the 
negotiations that it was appropriate that services shou ld make progress in step with those other areas.  
Even countries with smaller economies, such as LDCs , who had a lesser share of trade in services, 
had a considerable interest in developing services in their economies.  Colombia appealed to the 
Membership to take into account the importance of services in order to make progress in the 
negotiations.   TN/S/M/34 
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  128. Colombia had participated in most of the friends' groups for various sectors and modes of 
supply.  Information had been gathered which woul d be a valuable continuation to the negotiations.  
Despite the fact that Colombia had not participated mu ch in bilaterals, it had heard with interest that 
those Members that had done so felt that the bila teral process was now experiencing fatigue, and that 
the negotiating process could be revitalized  through a plurilateral mechanism.   
129. With respect to domestic regulation – a topic of vital importance to Colombia – a consensus 
solution had been reached on the drafting of an an notated text by the Chair, which Colombia had 
accepted as a compromise solution.  In this text, Co lombia wished to see reflected the very broad and 
rich discussion that had been held around the text th at the previous Chairman had developed in March 
2009, and which could be improved upon.  If the current text were on the table for approval, 
Colombia would probably prefer to stay with GATS Article VI.  Colombia appealed to delegations 
who believed that this was what the outcome of th e negotiations should be, and asked them to see that 
there were other delegations that had needs in this area. 
130. With respect to GATS rules, it was a considerab le achievement to agree on a work programme 
on subsidies.  Colombia had reacted positively to wh at had been planned in the work programme, and 
hoped to be able carry it out its part within th e timeframes and in the conditions that had been 
suggested by the Chair.  In r esponse to comments by another delegation that any particular problems 
with respect to subsidies should be an important component of the work programme, Colombia could 
agree, but not on the condition that this was a pre-requisite for delegations to provide the 
corresponding information. 
131. On the stocktaking exercise, the Chair's propo sal was a good one.  There needed to be an 
additional Special Session meeting in mid-March to c onsider what kind of input could be given to the 
stocktaking. 
132. The delegation of Egypt
 said that, with respect to the rule-making negotiations, it was 
committed to achieving progress in developing the necessary disciplines on domestic regulation, while taking into consideration th e developmental aspect.  Without this developmental aspect, Egypt 
would face a challenge in complying with domestic re gulation disciplines, given the wide variation in 
administrative and regulatory capabilities betwee n developed and devel oping Members.  On 
subsidies, Egypt believed that efforts to reach a common definition should take place simultaneously 
with the process of information exchange, in order to  ensure that a definition was arrived at based on 
updated and practical information.  Egypt supporte d the Chair's work programme on subsidies.   
133. Egypt had experienced fruitful bila teral consultations with some of its major trading partners, 
where it had discussed various technical issues regard ing subsidies, domestic regulations and market 
access.  Egypt had highlighted that market access indications made during the Signalling Conference 
were conditional upon reaching an agreement in agri culture and NAMA in 2008, and were made in a 
different negotiating context altogether.  The signals were also contingent on benefits to be bestowed 
on developing countries in services and other negotiati ng tracks.  Egypt was concerned about the level 
of ambition of requests by developed countries with respect both to domestic regulation and market 
access.  This reflected a tendency to ignore both th e development dimension at the heart of the DDA, 
and the flexibilities granted to developing countries under the GATS.  Finally, on the organization of 
future work, Egypt welcomed the idea of havi ng a dedicated session of the Working Party on 
Domestic Regulation to discuss the annotated text, as  well as the meeting of the Special Session in 
preparation for the stocktaking exercise. 
134.  The Chair
 said that, with respect to LDCs, there had been a  number of questions and 
observations.  He said that he would continue with  consultations, both formal and informal, on this 
issue to try to arrive at a final r esult on the waiver.  With respect to  the reports of the Chairs of the 
subsidiary bodies, these were a reflection of the progress in the negotiations, which had been  TN/S/M/34 
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  marginal.  On the question of inputs for the stockt aking process, India had mentioned the risk of an 
unbalanced exercise, because of a preponderance of  inputs from the proponents of plurilaterals 
requests over the recipients.  However, the Chair wi shed to reassure all delegations that he would 
listen to and assess all inputs in a fully objective manne r.  On the matter of the stocktaking, there was 
a mandate for it, concerning not just market access but the other negotiating issues, including also 
LDC modalities, domestic regulation, and GATS rules.   This would need preparation, and the Chair 
would consult on the process.  By mid-March, he would organize a Special Session to pinpoint what 
approach would be taken for the stocktaking exercise. 
135. The Chair  suggested that the Council take note of the st atements made, and revert to this item at 
the next meeting.  It was so agreed . 
D. OTHER BUSINESS  
136. Since there was no other business, the Chair  adjourned the meeting. 
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