. /.  RESTRICTED  WORLD TRADE  
ORGANIZATION  S/C/W/276 
14 November 2006 
 
 (06-5489) 
Council for Trade in Services  
  
 
- DRAFT - 
 
ANNUAL REPORT OF THE COUNCIL FOR TRADE IN SERVICES  
TO THE GENERAL COUNCIL (2006) 
 
 
1. Since its last report to the General Council, the Council for Trade in Services held five formal 
meetings, on 23 September 2005, 9 Februa ry 2006, 11 April 2006, 22 June 2006 and 
12 September 2006.
1  During this period, the Council addressed the following matters: 
I. TRANSITIONAL REVIEW UNDER SECTION 18 OF THE PROTOCOL ON THE 
ACCESSION OF THE PEOPLE'S REPUBLIC OF CHINA 
2. At its meeting held on 23 September 2005, the Council for Trade in Services conducted and 
concluded the fourth transitional review of the implementation by China of its WTO commitments, 
pursuant to section 18 of the Protocol on the Accession of the People's Republic of China 
(WT/L/432). The Council took note of the report (S/F IN/15) of the Committee on Trade in Financial 
Services, which formed part of the Council's report on this matter to the General Council, contained in 
document S/C/25. 
II. REVIEW ON AIR TRANSPORT UNDER ANNEX ON AIR TRANSPORT SERVICES 
3. In accordance with paragraph 5 of the Anne x on Air Transport Services, the Council for 
Trade in Services is to review pe riodically, and at least every five years, developments in the air 
transport sector and the operation of the Annex wi th a view to considering the possible further 
application of the Agreement in this sector.  In acco rdance with the decision taken at the conclusion of 
the first Review, on 24 October 2003, the Council form ally commenced the second Review at its last 
2005 meeting, i.e. on 23 September 2005.  On 12 September 2006, the Council held the first meeting 
dedicated to the second Review of Air Transport Services (S/C/M/84). 
III. REOPENING OF THE FOURTH PROTOCOL FOR ACCEPTANCE BY THE 
PHILIPPINES 
4. At its meeting on 11 April 2006, following the request of the Philippines contained in 
document S/C/W/268, the Council for Trade in Services decided to reopen the Fourth Protocol to the General Agreement on Trade in Services, relating to basic telecommunications for acceptance by the 
Philippines.  The decision is contained in document S/L/251. 
                                                     
 
1 Reports of the meetings are contained in documents S/C/M/80 to 84 and should be read in 
conjunction with this report.   S/C/W/276 
Page 2  
 
  IV. REQUEST FOR AD HOC OBSERVER STATUS BY THE UNIVERSAL POSTAL 
UNION (UPU) 
5. At its meeting on 11 April 2006, following a request for ad hoc  observer status received from 
the Universal Postal Union (UPU), circulated as JOB(06)/72, the Council for Trade in Services, 
following previous practice, decided to grant ad hoc  observer status to the Universal Postal Union. 
V. NEGOTIATIONS PURSUANT TO ARTICLE XXI 
6. At its meeting of 22 June 2006, the Council for Trade in Services had an exchange of views 
on the issue of modification of specific commitme nts pursuant to GATS Article XXI (S/C/M/83 and 
JOB(06)/214). 
VI. NOTIFICATIONS MADE TO THE COUNCIL PURSUANT TO GATS 
ARTICLES III:3, V:5, AND V:7 
7. At its meetings held on 23 September 2005, 9 February 2006, 11 April and 22 June 2006, the 
Council for Trade in Services took not e of the following notifications: 
(a) Notifications pursuant to Article III:3 of the GATS: 
  Albania    (S/C/N/343-346, S/C/N/349-358) 
  Macao, China    (S/C/N/347-348, S/C/N/347/Corr.1-348/Corr.1) 
  Honduras   ((S/C/N/364)  
 
(b) Notifications pursuant to Article V:7 of the GATS: 
  Mexico and Nicaragua    (S/C/N/359) 
  The European Communities and Chile   (S/C/N/360) 
  Thailand and New Zealand   (S/C/N/361) 
  Morocco and the United States   (S/C/N/362)   Korea and Singapore    (S/C/N/363)  
  The United States and El Salvador  (S/C/N/365)   Honduras, Nicaragua and the United States  (S/C/N/366)  
  El Salvador     (S/C/N/367) 
 
VII. WORK OF THE SUBSIDIARY BODIES 
8. The activities of the subsidiary bodies are refl ected in their respective reports, which are 
annexed to this report, as follows:  
 Annex I  Report of the Committee on Trade in Financial Services (S/FIN/..) 
 Annex II Report of the Working Part y on Domestic Regulation (S/WPDR/..) 
 Annex III Report of the Working Party on GATS Rules (S/WPGR/..)  Annex IV  Report of the Committee on Specific Commitments (S/CSC/..)    
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