WORLD TRADE  
ORGANIZATION  RESTRICTED 
S/CSC/M/61 
16 November 2011 
 (11-5900) 
Committee on Specific Commitments   
  
 
REPORT OF THE MEETING H ELD ON 2 NOVEMBER 2011 
 
Note by the Secretariat
1 
 
 
1. The Committee on Specific Commitments (C SC) held a meeting on 2 September 2011, 
chaired by Mr. Robert Prochazka from Austria.  The agenda for the meeting, contained in 
WTO/AIR/3839, was adopted.  
A. A DOPTION OF THE ANNUAL REPORT TO THE COUNCIL FOR TRADE IN SERVICES  
2. The Chairman first drew attention to the dr aft annual report of the Committee which was 
contained in document S/CSC/W/58.  Noting that the report was factual and self-explanatory, 
reflecting the work the Committee had done during th e past eleven months, he suggested that the 
Committee adopt the report . 
3. It was so agreed. 
B. CLASSIFICATION ISSUES  
4. The Chairman said that at the request of Memb ers, the Committee would continue to examine 
classification issues relevant to environmental a nd audiovisual services.  After the meeting, 
discussions on computer and related services and tel ecommunications would continue in the format of 
small-group consultations.   
5. He recalled that the Committee had discussed classification issues relevant to environmental 
services at the last meeting, based  on the Secretariat's informal Note (JOB/SERV/84).  Delegations' 
interventions had addressed specific questions suggest ed in the Note.  The summary of the discussion 
(JOB/SERV/88) had been circulated to Members unde r his responsibility.  Noting that Members had 
diverging views on a number of issues, he suggested further discussions with a view to obtaining a better understanding of these issues. 
6. After informal discussions on environmental servi ces, the Chairman informed the Committee 
that he would consider holding small group consultations on this sector during the next cluster.   Any 
Member wishing to be included in the c onsultations was invited to approach him
.   
7. Turning to audiovisual services, the Chairm an recalled that the Committee had examined 
classification issues relevant to this sector in the me etings of last June and September, based on the 
Secretariat's informal Note (JOB/SERV/76).  In the meeting of last September, some delegations had made detailed interventions raisi ng a few important points which merited either confirmation by a 
wider membership or further considerations.  He dr ew Members' attention to these points listed in the 
Annotated Agenda.   
                                                      
1 This document has been prepared under the Secret ariat's own responsibility and without prejudice to 
the positions of Members and to their rights and obligations under the WTO. S/CSC/M/61 
Page 2  
 
  8. The Committee then informally discussed audiovisu al services.  At the end of the discussion, 
the Chairman said that he would hold small group consultations on audiovisual services during the next cluster as well.   Again, he invited  Members wishing to be included in the consultations to 
approach him. 
9. Regarding which sector should be examined next , he recalled that during the consultations 
undertaken by his predecessor, a proposal with br oad support was to examine classification issues 
relevant to energy services.  Noting that there was no objection to this proposal, he suggested that the 
Secretariat prepare an informal not e to assist the Committee's discussion. 
10. Finally, he suggested that the Committee take not e of the statements made and revert to this 
agenda item at the next meeting
. 
11. It was so agreed. 
C. SCHEDULING ISSUES  
12. The Chairman recalled that the Committee had c ontinued its examination of scheduling issues 
related to economic needs tests (ENT s) for mode 4 at the last meeting.  ENTs were referred to in 
subparagraphs (a) to (f) of Article XVI:2 of th e GATS as one form of quantitative limitations on 
market access.  The Scheduling Guidelines provide d that ENT-related entries in schedules should 
indicate the main criteria on which the test was based.  However, most ENT-related entries in 
schedules were inconsistent with the Scheduling Guid elines.  Lack of transparency on the operation of 
ENTs also undermined the predictability of commitments.   
13. With respect to ENTs for mode 4, delegations ha d been invited to consider:  (i) what kind of 
measures might qualify as an ENT for mode 4, (ii)  which elements would constitute the criteria for 
assessing "economic needs" under this mode, and (iii)  how relevant measures should be scheduled in 
a manner consistent with the Scheduling Guidelines.  Several delegati ons had identified labour market 
tests as a type of measures that qualified as an ENT for mode 4.  It had also been pointed out that most 
entries related to labour market tests needed to be  specified in order to be consistent with the 
Scheduling Guidelines.  Another interesting point made in the discussion had been the distinction 
between measures in the form of ENTs and regulator y measures.  It had been noted that unspecified 
and unclear ENTs might blur the line between qua ntitative limitations and regulatory measures that 
fell under Article VI of the GATS.  Believing that there was still scope for discussions, he invited 
Members to exchange views.   
14. The representative of Canada recalled that her delegation had made a detailed intervention at 
the June meeting and looked forward to the views of  other Members on ENTs.  She reiterated that one 
of the key issues with respect ENTs was that too much information could also obscure the specific 
criteria used by Members in the applications of ENTs.  The goal should be to strike a balance and 
provide an adequate degree of specification and pr ecision without adding unnecessary information.  
Regarding the question raised in the Annotated Agen da as to how to make a distinction between an 
unspecified ENT and a regulatory measure, she ad mitted that it was not a simple question as shown 
by the extensive discussions that had taken place in the Working Party on Domestic Regulation.  
Therefore Members needed to be careful in est ablishing the relationship between ENTs and other 
regulatory measures.  For the purpose of the current discussions in the Committee,  she referred to the 
Annex on Movement of Natural Pe rsons which specifically indicated that "Agreement shall not 
prevent a Member from applying measures to regula te the entry of natural persons into, or their 
temporary stay in, its territory, including those me asures necessary to protect the integrity of, and to 
ensure the orderly movement of natural persons across, its borders, provided such measures are not 
applied in such a manner as to nullify or impair th e benefits accruing to an y Member under the terms 
of a specific commitment."  Again, it was a qu estion of achieving balance between the right to  S/CSC/M/61 
 Page 3 
 
 
  regulate and the need for transparency.  Members c ould eventually consider an alternative mechanism 
aimed at increasing the transparency of commit ments and the regulatory environment.     
15. The representative of India recalled that the Committee had had a good discussion on the 
subject at the last meeting.  India had made a detailed intervention pointing out various examples of 
unclear and vague ENTs in  Mode 4 without finger pointing at any specific Member.  Concerned about 
the existence of imprecise ENTs, Members had supporte d further work in this area.  Noting a general 
consensus on this issue, he suggested that Members consider how best to carry this discussion forward 
with a view to achieving greater transparency, reducing discretion and ensuring the certainty and 
predictability of commitments.  India was willing to  work with other Members in a constructive way 
to move forward in this regard.   
16. The question had been raised in  the Annotated Agenda whether an unclear ENT entry in the 
schedule could qualify as a limitation in the sense of Ar ticle XVI.  In his view, an unclear ENT would 
defeat the very purpose of taking a binding commitment as it would be impossible to verify compliance with the commitment.  While Article XV I did allow for scheduling limitations in the form 
of ENTs, the Scheduling Guidelines further clarifie d that "... in case of access limitations, such as 
numerical ceilings or economic needs tests, th e entry should describe each measure concisely 
indicating the elements which make it inconsistent  with Article XVI. Regarding economic needs tests 
the entry should indicate the main criteria on which the test is based, e.g. if the authority to establish a 
facility is based on a population criterion, the criteri on should be described concisely."  Thus, it was 
not enough to say that "an ENT is required" without explaining precisely what that test would entail. 
17. The representative of Chile stated that his government did not apply ENTs as it was not 
convinced.  He called for a more open and liberal approach to deal with ENTs.  
18. The Chairman suggested that the Committee take  note of the comments made and revert to 
this item at its next meeting. 
19. It was so agreed. 
D. OTHER BUSINESS  
20. There was no intervention under this item.  The Chairman adjourned the meeting. 
__________