. /.   WORLD TRADE  
ORGANIZATION  S/WPGR/17 
16 November 2007 
 (07-4994) 
  
  
 
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 entrusted with were  put on the agenda of each meeting:  emergency 
safeguard measures (Article X), gove rnment procurement (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 exch anged views on a room document proposing legal 
text on the use of emergency safeguard measures in services, presented by the delegations of Brunei Darussalam, Cambodia, Indonesia, Malaysia, Myan mar, the Philippines, Thailand and Viet Nam.
2  
Discussions were principally held in informal mode.  Issues raised included the relationship to market 
access commitments, modal application, conditions of application, causal link, and special and 
differential treatment.  Divergent views conti nued to be expressed on various aspects such as 
desirability and feasibility.3 
II. NEGOTIATIONS ON GOVERNMENT PROCUREMENT (ARTICLE XIII) 
3. At the meetings of April, July, and Septembe r 2007, delegations exchanged views on the most 
recent proposal from the European Communities, con cerning a legal text for an Annex to the GATS 
on government procurement (S/WPGR/W/54).  Issues raised included the possible benefits of opening 
procurement markets, procedural rules, special and differential treatment, and MFN application.  
No common understanding has been reached yet on the scope of the negotiating mandate under Article XIII.
4   
III. NEGOTIATIONS ON SUBSIDIES (ARTICLE XV) 
4. At the meetings of April and July 2007, de legations 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 she 
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 Outside the period of reference of this annual report, a WPGR meeting is due to be held on 
29 November 2007 at which the above mentioned delegations intend to present a communication JOB 07/155 
(circulated on 19 October 2007) containing a revised version of the room document.  
3 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. 
4 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/17 
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.
5  Members expressed various views on the issues raised. 
 
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5 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.