. /.  RESTRICTED  WORLD TRADE  
ORGANIZATION  S/WPGR/W/56 
30 October 2007 
 (07-4697) 
Working Party on GATS Rules  
  
 
 
- DRAFT - 
 
ANNUAL REPORT OF THE WORKING PARTY ON GATS RULES  
TO THE COUNCIL FOR TRADE IN SERVICES (2007) 
 
 1. Since its annual report for 2006, the Working Party on GATS Rules held three formal 
meetings:  on 19 April 2007, on 4 July 2007, and on 17 September 2007.
1  The three negotiating 
mandates the Working Party is entr usted with were put on the age nda of each meeting: emergency 
safeguard measures (Article X), government procuremen t (Article XIII), and subsidies (Article XV).  
One informal meeting was also held, as well as various informal consultations.   
I. NEGOTIATIONS ON EMERGENCY SAFEGUARD MEASURES (ARTICLE X) 
2. At the meeting of 19 April, delegations exchanged views on the basis of a room document 
proposing legal text on the use of emergency sa feguard measures in services, presented by the 
delegations of Brunei Darussalam, Cambodia, Indon esia, Malaysia, the Philippines, Thailand and 
Vietnam.  Discussions in formal m ode were limited during the meeti ngs of July and September 2007.  
Issues raised included the relationship to market access commitments, modal application, conditions 
of application, causal link, and special and differe ntial treatment.  Divergent views continued to be 
expressed on such aspects as desirability and feasibility.2 
II. NEGOTIATIONS ON GOVERNMENT PROCUREMENT (ARTICLE XIII) 
3. At the meetings of April, July, and Septembe r 2007, delegations exchanged views against the 
background of the most recent proposal from the Eu ropean Communities, concerning a legal text for 
an Annex to the GATS on government procuremen t (S/WPGR/W/54).  Issues raised included the 
possible benefits of opening procurement markets, pro cedural rules, special and differential treatment, 
MFN application, and the scope of the negotiating mandate under Article XIII.  A limited number of 
delegations intervened under this agenda item.3   
III. NEGOTIATIONS ON SUBSIDIES (ARTICLE XV) 
4. At the meetings of April and July 2007, delegations discussed a Secretariat Note that 
compiled information on subsidies contained in  TPR reports (S/WPGR/W/25/Add.5), as well as an 
informal communication from Hong Kong, China and Mexico on non-actionable subsidies in trade in services (JOB(07)/27).  The Chairperson also reported,  at the April meeting, on the consultations he 
had been asked to undertake on obstacles encounter ed by Members in sharing information as per 
                                                     
 
1 Reports of these meetings are contained in documents S/WPGR/M/57, S/WPGR/M/58, and 
S/WPGR/M/59.  They should be read in conjunction with this report.   
2 Discussions on emergency safeguard measures are reflected in paragraphs 2-30 of S/WPGR/M/57, 
paragraphs 12-14 of S/WPGR/M/58, and paragraphs 2-5 of S/WPGR/M/59. 
3 Discussions on government procurement are reflected in paragraphs 31-37 of S/WPGR/M/57, 
paragraphs 8-11 of S/WPGR/M/58, and paragraphs 6-8 of S/WPGR/M/59.   S/WPGR/W/56 
Page 2  
 
  Article XV:1.  At the meeting of  September 2007, discussions conc entrated on a room document from 
Hong Kong, China that provided additional view s on non-actionable subsidies on the basis of 
questions raised in JOB(07)/27.
4   
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4 Discussions on subsidies are reflected in paragraphs 38-59 of S/WPGR/M/57, paragraphs 2-7 of 
S/WPGR/M/58, and paragraphs 9-15 of S/WPGR/M/59.