WORLD TRADE  
ORGANIZATION  TN/S/33 
26 May 2008 
 
 (08-2445) 
Council for Trade in Services  
Special Session  
 
 
ELEMENTS REQUIRED FOR THE 
COMPLETION OF THE SERVICES NEGOTIATIONS 
 
Report by the Chairman  
 
 
1. Following the circulation of my informal Report of 13 February 2008 contained in JOB(08)/5, 
I have continued informal consultations on elem ents required for the completion of the services 
negotiations, and which could be reflected in a possible text for adoption by Members. 
2. A preliminary discussion of my informal Report took place at an informal consultation held 
on 28 February 2008.  At that meeting, delegations agreed to circulate in writing any drafting 
suggestions on the elements, in order to prepar e for a further consultation on 7 March.  Written 
drafting suggestions were circulated by the following  groups of Members:  Australia et al ("Group 
A"), Brazil et al ("Group B"), Chile et al ("Group C"), ACP, ASEAN, SVEs, and RAMs.1   T o  
facilitate further discussion, the Secretariat compile d these drafting suggestions in a room document 
dated 6 March 2008.  
3. Based on the written suggestions and comments received from delegations, I have undertaken 
to modify certain of the elements of my informal Report, in order to propose language that could attract a consensus among Members.  This proposed  language appears in the draft Annex to this 
Report.  I have maintained brackets in paragraph 4 of the Annex, where further discussion is needed. 
4. Paragraphs 7 and 8 of the Annex re fer to dates that will be decided at the time of the expected 
agreement on modalities in agriculture and NAMA.  I have not thought it productive at this point to 
modify these draft elements. 
5. Paragraph 12 of the Annex refers to the special situation of RAMs.  The ultimate treatment of 
this issue may eventually be decided on a horizontal basis. 
6. Throughout my consultations, three Members ha ve continued to express disagreement with 
the drafting of a text in services.  In their view, the principles and essential elements to conclude the 
negotiation had already been agreed, and there was no mandate for any negotiating text, nor a 
consensus to draft one.  
 
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1 The composition of the first three groups is: Group A : Australia, Canada, the European Communities, 
Japan, Korea, New Zealand, Norway, Chinese Ta ipei, Switzerland and the United States; Group B : Brazil, 
China, India, Pakistan and South Africa; and Group C : Chile, Peru, Singapore, Turk ey, and Hong Kong, China. TN/S/33 
Page 2  
 
  ANNEX
 
 
Elements Required for the Completion of the Services Negotiations 
 
– DRAFT – 
 
1. Members recall and reaffirm the negotiating mandates and objectives as stipulated in GATS 
Articles IV and XIX, the Doha Ministerial Declar ation, the Hong Kong Ministerial Declaration, the 
Guidelines and Procedures for the Negotiations on Tr ade in Services adopted by the Special Session 
of the Council for Trade in Services on 28 Marc h 2001, and the Decision of the General Council 
adopted on 31 July 2004.  Members reiterate that th e negotiations shall be in tensified and proceed to 
their conclusion in accordance with  the Objectives and Approaches set out in Annex C of the Hong 
Kong Ministerial Declaration. 
2. Members recall that the request-offer approach  is the main method of negotiation in the 
current Round and that, prior to the Hong Kong Mi nisterial Conference, such negotiations had been 
proceeding on a bilateral basis.  Members further recall that, pursuant to paragraph 7 of Annex C of 
the Hong Kong Ministerial Declaration, in addition to bilateral negotiations, request-offer negotiations 
were also pursued on a plurilateral basis.  Accord ingly, 21 collective requests were submitted by co-
sponsors to other groups of Members in th e following sectors and modes: Air Transport; 
Architectural, Engineering and Integrated Engineer ing Services; Audiovisual Services; Computer and 
Related Services; Construction Services; Distributio n Services; Education Services; Energy-Related 
Services; Environmental Services; Financial Servic es; Legal Services; Logistics Services; Maritime 
Transport Services; Postal and Courier Services; Services Related to Agriculture; Telecommunication 
Services; Tourism Services; Cross-Border Supply (Modes 1 and 2); Mode 3; Mode 4; and MFN Exemptions.  On the basis of these requests, 21 re lated plurilateral groups convened four rounds of 
meetings.  Since the Hong Kong Ministerial Conference,  participants also held  six rounds of bilateral 
request-offer meetings. 
3. Members have participated actively in the request-offer negotiations.  They exchanged 
indications of possible new commitments that might be reflected in the next round of revised offers, in 
response to various individual and collective request s.  Some Members considered that the progress 
achieved to date in the services negotiations was sat isfactory compared to other areas of the DDA.  
Others took the view that so far progress fell well s hort of responding adequately to their requests.  
Members shared the view that substantial efforts we re needed to reach a successful conclusion of the 
negotiations.  They acknowledged that the outcome of the request-offer negotiations would eventually 
have to be assessed by each participant, including in relation to other areas of the single undertaking. 
4. Members reaffirm that the services negotiations are an essential part of the DDA. They 
recognize that an ambitious and balanced outcome in  services would be integral to the overall balance 
in the results of the DDA single undertaking.  Accordingly, the negotiations shall aim at a 
progressively higher level of liberalization of trade in services with a view to promoting the economic 
growth of all trading partners, and the development of developi ng and least-developed countries.  
There shall be no a priori exclusion of any service sector or mode of supply.  With due flexibility for individual developing countries, Members should to the maximum extent possible expand the sectoral and modal coverage of their commitments and improve their quality by making deeper or full 
commitments. In doing so, they shall be guided by paragraph 1 of Anne x C of the Hong Kong 
Ministerial Declaration.  [Negotiations must be driven by the same level of ambition and political 
will as reflected in the agriculture and NAMA modalities .  While respecting the existing 
structure and principles of the GATS, Membe rs shall respond to bilateral and plurilateral 
requests by offering commitments that substant ially reflect current levels of market access and 
national treatment and provide new market access and national treatment in cases where 
significant trade impediments exist.]   In this regard, particular attention shall be given to sectors and  TN/S/33 
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  modes of supply of export interest to developing countries.  [ Members reiterate that the next offers 
shall provide market access in sectors and modes of supply of export interest to developing 
countries, such as Modes 1 and 4,  as indica ted in bilateral and plurilateral requests, in 
accordance with Article IV of the GATS.]  
5. In accordance with paragraph 5 of Annex C of the Hong Kong Ministerial Declaration, 
Members are called upon to develop disciplines on do mestic regulation pursuant to the mandate under 
Article VI:4 of the GATS before the end of the current Round of negotiations .  Members welcome the 
progress achieved since the Hong Kong Ministerial Conference and, in particular, that the negotiations have moved into a text-based phase.  In light of the extensive and constructive 
discussions that have taken place, Members call up on the Working Party on Domestic Regulation to 
intensify its work and finalize text for adoption.  Me mbers invite the Chairman to continue to consult 
on drafting revisions, with a view to developing and adopting text before the end of the negotiations. 
6. Members reaffirm their commitment as made in the Hong Kong Ministerial Declaration to 
conclude negotiations on GATS Rules pursuant to Artic les X, XIII, and XV, in accordance with their 
respective mandates and timelines.  Members take note of the efforts made since Hong Kong, 
including through the submission of specific and conc rete proposals, to facilitate consideration and 
engagement in all three areas.  Members recognize the importance attached by some delegations to 
the objectives and principles contained in these proposal s.  While there has been more focused work, 
efforts must be stepped up for enhanced engagement  with the objective of advancing the work in the 
three areas as expeditiously as possible. 
7. In order to conclude the negotiations in a time ly fashion, Members shall submit revised offers 
by [..........]. 
8. Final draft schedules of commitments  shall be submitted by [.........]. 
9. Members shall fulfil the requirement laid out in paragraph 9 (a) of Annex C of the Hong 
Kong Ministerial Declaration regarding the develo pment of appropriate mechanisms for according 
special priority to LDCs.  They shall strive to do so prior to the submission of revised offers. 
10. Members shall continue to give due considera tion to proposals on trade-related concerns of 
small economies. 
11. Members shall complete the consideration of proposals on special and differential treatment, 
referred to the Special Session of the Council for Trade in Services by the Special Session of the 
Committee for Trade and Development, with a view to making clear recommendations for a decision 
by the General Council prior to the conclusion of the DDA negotiations. 
12. Members recognize the special situation of recently-acceded Members who have undertaken 
extensive market access commitments  at the time of accession.  This situation will be taken into 
account in the DDA negotiations. 
 
13. Members recall and reaffirm that targeted technical assistance as agreed in paragraph 10 of 
Annex C of the Hong Kong Ministerial Declaration is intended to enable developing countries and 
LDCs to participate effectively in the negotiati ons.  In this regard, Members request the WTO 
Secretariat to prepare, prior to the submission of revised offers, a comprehensive report of technical 
assistance activities it has carried out in services since the Hong Kong Ministerial Conference, to 
enable Members to identify further required activiti es, on the basis of which the Secretariat, in 
consultation with Members, could prov ide a roadmap for future efforts. 
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