. /.   WORLD TRADE  
ORGANIZATION  S/WPGR/16 
23 November 2006 
 (06-5660) 
  
  
 
ANNUAL REPORT OF THE WORKING PARTY ON GATS RULES  
TO THE COUNCIL FOR TRADE IN SERVICES (2006) 
 
 1. Since its annual report for 2005, the Working Party on GATS Rules held four formal 
meetings:  on 21 September 2005,  on 10 February 2006, on 10 April 2006, and on 21 June 2006.
1  
The three negotiating mandates the Working Party is entrusted with were put on the agenda of each 
meeting: emergency safeguard measures (Article X), government procurement (Article XIII), and 
subsidies (Article XV).   
2. In the lead-up to the Hong Kong Ministeria l Conference, the Chair of the Working Party 
undertook various informal consu ltations and convened three inform al meetings with a view to 
suggesting text on GATS Rules for the draft Minister ial Declaration.  The Chairperson submitted its 
report to the Special Session of the Council for Tr ade in Services, including an assessment of the 
status of work and a recommendation regarding the relevant section of the Ministerial Declaration 
(JOB(05)/273).  Paragraph 4 of A nnex C to the Ministerial Declarat ion contains guidance on the three 
GATS Rules topics.    
I. NEGOTIATIONS ON EMERGENCY SAFEGUARD MEASURES UNDER GATS 
ARTICLE X 
3. At the meeting of September 2005, delegations exchanged views on possible ways forward in 
the light of the report of a workshop held in Indonesia on ESM, and engaged in discussions on the 
topic of safeguard-type entries in schedules.  At th e meetings of February and April 2006, delegations 
discussed a room document from the delegations of Brunei Darussalam, Indonesia, Malaysia, 
Myanmar, the Philippines, and Thailand, which offered thoughts on the issues of domestic industry, vested rights, determination of injury, modal issu es, and special and differential treatment.     
4. At the meeting of June 2006, delegations pursued their discussion on issues relating to 
emergency safeguard measures in the light of a Note from the Secretariat that provided a summary of main views expressed in the Workin g Party since the last extension of the negotiations in March 2004 
(JOB(06)/165).  Delegations also discussed the defi nition of domestic industry on the basis of a room 
document from the delegations of Brunei Da russalam, Indonesia, Malaysia, Myanmar, the 
Philippines, and Thailand.  Divergent views continue d to be expressed on the various aspects raised in 
relation to emergency safeguard measures,  including desirability and feasibility.
2 
II. NEGOTIATIONS ON GOVERNMENT PROCUREMENT UNDER GATS 
ARTICLE XIII 
5. At the meetings of September 2005, February  2006 and April 2006, delegations continued 
their discussion of a communication from the Eur opean Communities, which touched upon such 
                                                      
1 Reports of these meetings are contained in documents S/WPGR/M/53, S/WPGR/M/54, 
S/WPGR/M/55 and S/WPGR/M/56.  They should be read in conjunction with this report.   
2 Discussions on emergency safeguard measures are reflected in paragraphs 4-41 of S/WPGR/M/53, 
paragraphs 2-16 of S/WPGR/M/54, paragraphs 3-21 of S/WPGR/M/55, and paragraphs 2-26 of S/WPGR/M/56. S/WPGR/16 
Page 2  
 
  issues as special and differential treatment, non-discr imination, thresholds, va luation of contracts, 
technical specification and qualification of s uppliers, procurement met hods, time periods, tender 
documentation, and contract award (S/WPGR/W/52).   
6. At the meeting of June 2006, delegations exch anged views in the light of a communication 
from the European Communities that  proposed a legal text for an Annex to the GATS on government 
procurement (S/WPGR/W/54).  Other questions rai sed included the relationship to the plurilateral 
Government Procurement Agreement and MFN applica tion.  A number of delegations continued to 
reiterate that, in their view, the negotiating manda te under Article XIII did not entail market access 
issues, while others thought that these were covered.
3   
III. NEGOTIATIONS ON SUBSIDIES UNDER GATS ARTICLE XV 
7. At the meeting of September 2005, delegations continued their discussion in the light of the 
communication from Chile, Hong Kong China, Mexi co, Peru, and Switzerland (JOB(05)/96) on a 
provisional definition of subsidy for the purpose of the information exchange.  At the meeting of 
February 2006, delegations discussed a comm unication from Switzerland (S/WPGR/W/16/Add.5), 
which provided a response to the questionnaire releva nt to the information exchange required under 
Article XV:1. 
8. At the meeting of April 2006, delegations  continued deliberations on the information 
exchange, as well as on the provisional definition of subsidy, including on the basis of a Note from 
the Secretariat (JOB(05)/4/Add.1) that provided an update on the synthesis of views expressed on that 
issue.4  A number of delegations c ontinued to express concerns rega rding the lack of progress on the 
information exchange.  The Working Party asked the Chairperson to conduct consultations on 
obstacles encountered by Members in sharing of in formation required for the purpose of negotiations 
under Article XV.       
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3 Discussions on government procurement are reflected in paragraphs 57-62 of S/WPGR/M/53, 
paragraphs 35-42 of S/WPGR/M/54, paragraphs 22-31 of S/WPGR/M/55, and paragraphs 38-53 of S/WPGR/M/56.   
4 Discussions on subsidies are reflected in paragraphs 42-56 of S/WPGR/M/53, paragraphs 17-34 of 
S/WPGR/M/54, paragraphs 32-44 of S/WPGR/M/55, and paragraphs 27-37 of S/WPGR/M/56.