. /.  RESTRICTED  WORLD TRADE  
ORGANIZATION  S/WPGR/W/56/Rev.2 
9 November 2007 
 (07-4866) 
Working Party on GATS Rules  
  
 
- REVISED 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 procurem ent (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, In donesia, Malaysia, Myanmar, the Philippines, 
Thailand and Vietnam.  Discussions in formal mode were limited during the meetings of July and 
September 2007.   Issues raised included the relationship to market access commitments, modal 
application, conditions of application, causal link, and special and differential treatment.  [Divergent 
views continued to be expressed on such aspects as  the desirability and feasibility of emergency 
safeguard measures .] [Divergent views continued to be exp ressed on the various aspects raised 
in relation to emergency sa feguard measures, including 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 on the most recent proposal from the European  Communities, concerning a legal text 
for an Annex to the GATS on government procurem ent (S/WPGR/W/54).  Issues raised included the 
possible benefits of opening procurement markets, pro cedural rules, special and differential treatment, 
MFN application and, to a lesser extent,  the scope of the negotiating mandate under Article XIII.  
A limited number of delegations in tervened 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 reporte d, at the April meeting, on the consultations 
                                                      
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/Rev.2 
Page 2  
 
  he had been asked to undertake on obstacles encount ered by Members in sharing information as per 
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   
__________ 
 
  
                                                     
 
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.