WORLD TRADE  
ORGANIZATION  TN/S/23 
28 November 2005 
 (05-5630) 
Council for Trade in Services 
Special Session  
 
 
SPECIAL SESSION OF THE COUNCIL FOR TRADE IN SERVICES 
 
Report by the Chairman to th e Trade Negotiations Committee  
  1. The Special Session of the Council for Trade in Services held a meeting on 31 October, 3 and 
24 November 2005.  The purpose of this meeting wa s to provide for a review of progress and a report 
to the Trade Negotiations Committee in preparation fo r the Sixth Ministerial meeting in Hong Kong.  
2. Many Members continue to express concerns about the lack of progress in the services 
negotiations to date.  For many, the number and quality of the offers submitted so far is deeply 
disappointing.  At present, 69 initial offers have been tabled (representing 93 Members), a total that 
has remained unchanged since July 2005.  Not in cluding least-developed country Members, 23 initial 
offers remain outstanding.  Thirty  revised offers (representing 54 Members) have been circulated.  
Services negotiations rely heavily on a resource-in tensive and time-consuming request-offer process.  
The slow pace at which initial and revised offers ha ve been submitted represents a serious concern to 
many Members. 
3. Over the past weeks the Special Session of the Council has held numerous and intensive 
open-ended consultations with a view  to arriving at a draft Ministerial text on services.  This process 
began formally at the Special Session meeting on 30 September when Members requested that the 
Chairman produce a list of possible elements for the draft Ministerial text on services.  Consultations 
took place at an open-ended informal meeting on 6 Oc tober, and a Note containing an initial list of 
possible elements was circulated in JOB(05)/234 of  13 October.  This list was discussed by Members 
at an open-ended informal meeting held on 17 Octo ber and, on the basis of the suggestions made, I 
issued a revised list of possible elements on 20 October, which was in turn discussed at an open-ended informal meeting on 24 October. 
4. At the request of Members and on the basis of their inputs and suggestions, I then produced 
an initial draft Ministerial text on services cont ained in JOB(05)/262 of 26 October, which was 
discussed at an open-ended meeting on 27 and 28 October.  Comments and suggestions were 
numerous.  The Council held a furt her open-ended informal discussi on on 1 November.  Subsequent 
to these discussions, I produced a revised draft text  circulated on 7 November.  This revision was 
discussed at an open-ended informal meeting on 18 November.  The contents of my original Note have thus gone through four iterati ons of discussions among Members.   
5. At the formal meeting, the Chairpersons of the Working Party on Domestic Regulation and 
the Working Party on GATS Rules reported on the intensive consultations these bodies had been 
engaged in.  The texts developed in both Working Pa rties have been included in the draft Ministerial 
text on services.   
6. As a result of these efforts and the various di scussions and consultations, I am forwarding to 
the Trade Negotiations Committee, under my own responsibility and without prejudice to the 
positions of Members, the draft Ministerial text on se rvices attached to this Report (Annex A).  In my 
view, this text provides solid common ground to move the negotiations forward on the basis of a 
Ministerial agreement in Hong Kong.  With a view to facilitating its integration in the final draft TN/S/23 
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Ministerial Declaration, this draft text is divided in to two parts:  the first should be considered for 
incorporation in the main body of the draft Minister ial Declaration, while the second is proposed as an 
Annex to the Declaration.  
7. In the course of the discussion on the draft text, Members have raised a number of concerns.  
On the paragraphs suggested for incorporation into the main body of the draft Ministerial Declaration 
(Part I to Annex A of this Report), some Members i ndicated that they would have liked to have seen 
reference to the lack of progress in the negotiations to date.  Several also indicated that they would 
have wished to have seen spelt out a level of ambition that included the creation of new market 
opportunities that were commercially meaningful.  Ho wever, these concerns were not shared by all 
Members. 
8. With respect to the operational paragraphs set out  in a proposed draft Annex to the Ministerial 
Declaration on services (Part II to Annex A of this Report), divergent views persist on the issue of setting numerical targets and indicators for commitment s to be negotiated in this round.  As has been 
reflected in earlier reports, a number of differing proposals on numerical targets for new or improved 
commitments have been discussed by the Special Session of the Council over the past weeks.  
Proposals differ, inter alia, with respect to the de gree of flexibility accorded to developing countries, 
the mandatory or voluntary nature of targets, the relationship between the quality of new or improved 
commitments and the numerical target, and, finall y, whether targets would apply individually or 
collectively to Members. 
9. A number of Members stated that numerical targets would help to translate a high level of 
ambition into meaningful commitments for services in the round.  Several Members indicated that 
inclusion of numerical targets in the text of the Ministerial Declaration would be necessary.  Many 
Members expressed strong reservations about numerical  targets, particularly in terms of their 
compatibility with the GATS and the Negotiating Gu idelines, and considered that these proposals 
were no longer a basis for discussion.  Given that the gap between positions remains too wide to be 
bridged, I have not included a refere nce to numerical targets in the draft text.  It will therefore be up to 
Members to consider, at the TNC level or above, whether this issue should be pursued further. 
10. On paragraph 1 of the proposed Annex to the Ministerial Declaration, some Members 
expressed concern that the parameters it contains we re too prescriptive.  At the last discussion a group 
of Members presented an alternative text that would set out less detailed and less specific parameters.  Some other Members believed that the text of the initial paragraph was too vague and should be more 
binding in order to provide sufficient guidance for the next stage in the negotiations.  Other Members 
said that this paragraph was delicately balanced, and th at the equilibrium might be lost if the text were 
altered. 
11. With specific reference to sub-paragraph (c) of  paragraph 1 on Mode 3, a number of Members 
said that this portion of the para graph was unbalanced in comparison to other sub-paragraphs.  They 
took the position that it would be essential to redress this imbalance and reitera ted their suggestions.  
Others, on the contrary, believed the sub-paragraphs were balanced, and stressed that alterations to 
any of the sub-paragraphs woul d require re-balancing elsewhere. 
12. On paragraph 2, many Members stated that th ey did not see the need for a reference to 
Sectoral and Modal Objectives as Identified by Memb ers (Annex B of this Report) to be included in 
the Ministerial Declaration.  Others felt that su ch a reference would be he lpful in providing guidance 
for the negotiations.  It is worth recalling that the pu rpose of this Annex is to provide a compilation of 
sectoral and modal objectives as identified individua lly or by groups of Members.  While it is 
understood that the compilation represents an aggreg ate account of the aspirations and ambitions of 
participants in these negotiations, it cannot be co nsidered exhaustive.  The Annex has no legal 
standing and is without prejudice to positions of Members.  Moreover, the Annex on Sectoral and  TN/S/23 
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Modal Objectives as Identified by Members would be  of an evolving nature so as to allow Members 
to identify further interests. 
13. On paragraph 7 regarding negotiati ons on a plurilateral basis, a number of delegations felt that 
the text could have been phrased in a more bi nding manner.  Other Members took the opposite view 
that certain of its elements were overly prescriptive.   
14. While the concerns expressed by Members are duly noted, I believe that the draft text in 
Annex A provides a sound basis for pursuing the nego tiations to their conclusion.  It attempts to 
bridge gaps between positions on the different elements it cont ains in a manner which, I hope, 
achieves an acceptable balance.  Finally, it will be  imperative that Members engage actively in 
negotiations as early as possible in 2006.  A quick start in the new year is necessary, given the 
particular resource- and time-intensive nature of the services request-offer process as well as the 
substantial negotiating ag enda on rule-making. 
 
_______________ 
  TN/S/23 
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ANNEX A 
 
PART I 
  
DRAFT MINISTERIAL TEXT 
(Services) 
 
 
1. The negotiations on trade in services shall pr oceed to their conclusion with a view to 
promoting the economic growth of all trading part ners and the development of developing and least-
developed countries (LDCs), and with due respect fo r the right of Members to regulate.  In this 
regard, we recall and reaffirm the objectives and principles stipulated in the GATS, the Doha Declaration, the Guidelines and Procedures for the Negotiations on Trade in Services adopted by the 
Special Session of the Council for Trade in Services on 28 March 2001, as well as Annex C of the 
Decision adopted by the General Council on 1 August 2004.    
2. We urge all Members to participate actively in these negotiations towards achieving a 
progressively higher level of liberalization of trad e in services, with appropriate flexibility for 
individual developing countries as provided for in Ar ticle XIX of the GATS.  Negotiations shall have 
regard to the size of economies of individual Members.  We recognize the particular economic 
situation of LDCs, including the difficulties they face , and acknowledge that they are not expected to 
undertake new commitments.  We recognize the speci al situation of recently acceded Members who 
have undertaken extensive market ac cess commitments at the time of accession.  This situation will be 
taken into account in the negotiations. 
3. We are determined to intensify the negotiati ons in accordance with the above principles and 
the Objectives, Approaches and Timelines set out in A nnex [...] with a view to expanding the sectoral 
and modal coverage of commitments and improving their quality.  In this regard, particular attention 
will be given to sectors and modes of supply of  export interest to developing countries.  
 TN/S/23 
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PART II 
 
Annex [...]  
Negotiations on Trade in Services  
 
 Objectives  
1. In order to achieve a progressively higher level of liberalization of trade in services, with 
appropriate flexibility for individual developing c ountry Members, we agree that Members should 
strive to ensure that their new and improved commitments adhere to the following objectives: 
(a) Mode 1 
(i) commitments at existing levels of market access on a non-discriminatory 
basis across sectors of interest to Members  
(ii) removal of existing requirements of commercial presence  
(b) Mode 2 
(i) commitments at existing levels of market access on a non-discriminatory 
basis across sectors of interest to Members 
(ii) commitments on mode 2 where commitments on mode 1 exist 
(c) Mode 3 
(i) commitments on enhanced levels of  foreign equity participation 
(ii) removal or substantial reduction of economic needs tests 
(iii) commitments allowing greater flexibility on the types of legal entity 
permitted 
(d) Mode 4 
(i) new or improved commitments on the cat egories of Contractual Services 
Suppliers, Independent Professionals a nd Others, de-linked from commercial 
presence, to reflect inter alia : 
- removal or substantial reduction of economic needs tests 
- indication of prescribed duration of stay  and possibility of renewal, if any 
(ii) new or improved commitments on the categories of Intra-corporate 
Transferees and Business Visitors, to reflect inter alia :     
- removal or substantial reduction of economic needs tests 
- indication of prescribed duration of stay  and possibility of renewal, if any  TN/S/23 
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(e) MFN Exemptions 
(i) removal or substantial reduction of exemptions from most-favoured-nation 
(MFN) treatment  
(ii) clarification of remaining MFN exempti ons in terms of scope of application 
and duration  
(f) Scheduling of Commitments 
(i) ensuring clarity, certainty, comparability and coherence in the scheduling and 
classification of commitments through adherence to, inter alia , the 
Scheduling Guidelines pursuant to the Decision of the Council for Trade in Services adopted on 23 March 2001 
(ii) ensuring that scheduling of any remaining economic needs tests adheres to 
the Scheduling Guidelines pursuant to the Decision of the Council for Trade 
in Services adopted on 23 March 2001. 
2. In order to provide guidance for the requ est-offer negotiations, the sectoral and modal 
objectives as identified by Members may be considered.
1 
3. Members shall pursue full and effective impl ementation of the Modalities for the Special 
Treatment for Least-Developed Country Members in the Negotiations on Trade in Services 
(LDC Modalities) adopted by the Special Session of the Council for Trade in Services on 3 September 2003, with a view to the beneficial and meaningful integration of LDCs into the 
multilateral trading system. 
4. Members must intensify their efforts to c onclude the negotiations  on rule-making under 
GATS Articles X, XIII, and XV in accordance w ith their respective mandates and timelines: 
(a) Members should engage in more focused di scussions in connection with the technical 
and procedural questions relating to the operation and application of any possible 
emergency safeguard measures in services.   
(b) On government procurement, Members should engage in more focused discussions and 
in this context put greater emphasis on proposals by Members, including on proposals 
for a possible framework for government procurement. 
(c) On subsidies, Members should intensify their efforts to expedite and fulfil the 
information exchange  required for the pur pose of such negotiations, and should engage 
in more focused discussions on proposals by Members, including the development of a 
possible working definition of subsidies in services. 
5. Members shall develop disciplines on domestic  regulation pursuant to the mandate under 
Article VI:4 of the GATS before the end of the current round of negotiations.  We call upon Members 
to develop text for adoption.  In so doing, Member s shall consider proposals and the illustrative list of 
possible elements for Article VI:4 disciplines.
2 
                                                 
1 As attached to the Report by the Chairm an to the Trade Negotiations Committee on [...] 
November 2005, contained in document TN/S/23, as well as any future revisions thereof. 
2 As attached to the Report of the Chairman of the Working Party on Domestic Regulation to the 
Special Session of the Council for Trade in Services on 15 November 2005, contained in document 
JOB(05)/280. TN/S/23 
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 Approaches
 
6. Pursuant to the principles and objectives above , we agree to intensify and expedite the 
request-offer negotiations, which shall remain the main method of negotiation, with a view to 
securing substantial commitments.  
7. In addition to bilateral negotiations, we agree that the request-offer negotiations should also 
be pursued on a plurilateral basi s in accordance with th e principles of the GATS and the Guidelines 
and Procedures for the Negotiations on Trade in Serv ices.  The results of such negotiations shall be 
extended on an MFN basis.  These negotiations w ould  be organized in the following manner: 
(a) Any Member or group of Members may present requests or collective requests to other 
Members in any specific sector or mode of supply, identifying their objectives for the 
negotiations in that sector or mode of supply. 
(b) Any Member or group of Members who have made such requests in a specific sector or 
mode of supply, together with Members to  whom such requests have been made, and 
any other interested Member, shall enter into  plurilateral negotiations to consider such 
requests. 
(c) Plurilateral negotiations should be organised w ith a view to facilitating the participation 
of all Members, taking into account the lim ited capacity of sma ller delegations to 
participate in such negotiations. 
8. Due consideration shall be given to proposals on trade-related concerns  of small economies. 
9. Members, in the course of negotiations, sha ll develop methods for the full and effective 
implementation of the LDC Modalities, including expeditiously: 
(a) Developing appropriate mechanisms for accord ing special priority including to sectors 
and modes of supply of interest to LDCs in accordance with Article IV:3 of the GATS and paragraph 7 of the LDC Modalities. 
(b) Undertaking commitments, to the extent possi ble, in such sectors and modes of supply 
identified, or to be identified, by LDCs th at represent priority in their development 
policies in accordance with paragraphs 6 and 9 of the LDC Modalities. 
(c) Assisting LDCs to enable them to identi fy sectors and modes of supply that represent 
development priorities. 
(d) Providing targeted and effective technical as sistance and capacity building for LDCs in 
accordance with the LDC Modalities, particularly paragraphs 8 and 12. 
(e) Developing a reporting mechanism to facilitate the review requirement in paragraph 13 
of the LDC Modalities.  
10. Targeted technical assistance should be provided through, inter alia , the WTO Secretariat, 
with a view to enabling developing and least-devel oped countries to participate effectively in the 
negotiations.  In particular and in accordance with paragraph [...] on Technical Assistance in the Hong 
Kong Ministerial Declaration, targeted technical  assistance should be given to all developing 
countries allowing them to fully engage in the fi nal phase of the negotiation.  In addition, such 
assistance should be provided on, inter alia , compiling and analyzing statistical data on trade in 
services, assessing interests in and gains from services  trade, building regulator y capacity, particularly 
on those services sectors where liberalization is  being undertaken by developing countries.  TN/S/23 
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 Timelines  
11. Recognizing that an effective timeline is necessar y in order to achieve a successful conclusion 
of the negotiations by [...], we agree that the negotiations shall adhere to the following dates: 
(a) Any outstanding initial offers shall be submitted as soon as possible. 
(b) Groups of Members presenting plurilateral requests to other Members should submit 
such requests by [February 2006] or as soon as possible thereafter. 
(c) A second round of revised offers shall be submitted by [date]. 
(d) Final draft schedules of commitments shall be submitted by [date]. 
(e) Members shall strive to complete the require ments in 9(a) before the date in 11(c). 
 Review of Progress  
12. The Special Session of the Council for Trade in Services shall review progress in the 
negotiations and monitor the implementation of th e Objectives, Approaches and Timelines set out in 
this Annex. 
 
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  TN/S/23 
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ANNEX B 
  
SECTORAL AND MODAL OBJECTIVES AS IDENTIFIED BY MEMBERS 
 
 
The purpose of this Annex is to provide a comp ilation of sectoral and modal objectives as identified 
individually or by groups of Members.  While it is  understood that this Annex represents an aggregate 
account of the aspirations and ambitions of particip ants in this round of negotiations, it cannot be 
considered exhaustive.  The Annex reflects only active interests that one or more dele gations intend to 
pursue in individual negotiating areas, and does not c ontain qualifications or concerns that have been 
expressed in this context.   
This compilation does not, nor is it intended to, represent in any way consensus among Members on 
any of the objectives identified.  The Annex h as no legal standing and is without prejudice to 
positions of Members. 
In order to provide structure to the objectives identified under each sector and mode, bullet points 
have, to the extent possible, been orga nized according to the following headings: 
Scope of commitments (sectoral or modal) Limitations for reduction or elimination Regulatory issues and additional commitments for negotiation MFN Exemptions for reduction or elimination   
Scheduling issues to be addressed 
During the successive discussions on the identification of sectoral and modal objectives in the Special 
Session of the Council for Trade in Services, Members have made references to certain joint as well 
as individual submissions which represent their views on various issues.  A list of those submissions 
is attached.  It should be understood that the c ontents of this Annex cannot substitute for those 
submissions. 
 
_______________ 
 
1. LEGAL SERVICES  
Members have identified individually or in groups the following objectives: 
 Scope of commitments (sectoral or modal) 
• minimum viable commitments to allow fo reign lawyers and law firms to provide 
legal advisory services in foreign and intern ational law directly, and in domestic law 
(host country law) through commercial a ssociation or employment of domestic 
lawyers, and to facilitate mobility of  legal service suppliers under mode 4 
• identification of specific legal services by using terminology to define "legal advisory 
services";  "legal representational services";  "legal arbitration and conciliation/mediation services";  and "legal services" 
• maximum number of Members committing on legal services, including through 
encouraging appropriate terminology to qua lify the scope of commitments concerning 
"domestic law (host country law)"; "f oreign law"; and "international law"  TN/S/23 
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 Limitations for reduction or elimination 
• commercial presence and residency requiremen ts for modes 1 and 2, particularly for 
the practice of foreign law and international law 
• nationality and prior residency requirements particularly for the practice of foreign 
law and international law  
• limitations on establishment as a branch, particularly for the practice of foreign law 
and international law 
• discriminatory limitations on the form of establishment 
• limitations that prevent partnership or other forms of commercial association or 
collaboration between foreign lawyers/la w firms and domestic lawyers/law firms 
• limitations that prevent recruitment of la wyers admitted/licensed to practice domestic 
law 
• quantitative restrictions on the number of offi ces that can be established, in particular 
economic needs tests (ENTs) 
• limitations on the use of professional title as authorized by the foreign or domestic 
jurisdiction 
• limitations on mobility of legal service suppliers in mode 4 
 
2. O
THER PROFESSIONAL SERVICES  
Members have identified individually or in groups the following objectives: 
 Scope of commitments (sectoral or modal) 
• more commitments in modes 1 and 2 for all categories 
• unimpeded cross-border trade for all categories  
• horizontal mode 4 commitments for all categories, with a special emphasis on 
professionals on contract, includi ng independent professionals  
• mode 1 and mode 4 commitments for engineers  
 Limitations for reduction or elimination 
• joint venture and equity restrictions in mode 3  
• barriers such as ENTs or federal and sub -federal regulations on mode 4 suppliers 
• barriers for independent professionals 
 
3. COMPUTER AND RELATED SERVICES  
Members have identified individually or in groups the following objectives: 
 Scope of commitments (sectoral or modal) 
• all activities and all modes of supply within the sector 
• the whole sector at the two-digit level (CPC 84)   TN/S/23 
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• full commitments reflecting the current situation in which trade barriers are not 
common 
 Limitations for reduction or elimination 
• removal or elimination, in particular, of: 
- unbound entries in mode 1 
- foreign equity limits 
- residency requirements 
- establishment prerequisites 
 Scheduling issues to be addressed 
• exploration of possibility of an "understandi ng" on scheduling at the 2-digit level and 
its legal form, if any 
 
4. OTHER BUSINESS SERVICES  
Members have identified individually or in groups the following objectives: 
 Scope of commitments (sectoral or modal) 
• inclusion of 'Other business services', in pa rticular:  management consulting services, 
advertising services,  market research services, maintenance and repair of equipment services, technical testing and analysis services, beauty and physical well-being 
services, spa services, specialty design services, and trade fair and exhibition 
organization services          
 
5. P
OSTAL AND COURIER SERVICES  
Members have identified individually or in groups the following objectives: 
 Scope of commitments (sectoral or modal) 
• all postal and courier services no longer subject to monopoly 
• courier and express delivery services 
• all segments not under universal service obligations   
 Limitations for reduction or elimination  
• market access limitations on services ope ned to competition under modes 1 and 2 
and, in particular, mode 3     
• scope of monopoly or exclusive rights 
• measures discriminating against or otherwise impeding foreign market participation  
 Regulatory issues and additiona l commitments for negotiation 
• anti-competitive practices, including cross-subsidies 
• universal service obligations 
• independence of  regulators 
• licensing practices and procedures TN/S/23 
Page 14  
 
• relation between GATS and UPU legal instruments 
 MFN Exemptions for reduction or elimination  
• elimination of MFN exemptions on postal services and related transport services  
 Scheduling issues to be addressed 
• exploration of use of a new classification scheme that better reflects commercial and 
regulatory situations   
• possibility of a common approach reducing uncertainty about the status of different 
suppliers and clarifying the scope of comm itted services, including elements such as: 
- full description of committed activities 
- clear delineation between competitive and reserved services - neutral classification to ensure that commitments on competitive areas apply  to all suppliers, including postal entities - clarification of any relationship w ith commitments in other sectors (e.g. 
 transport) 
 
6. T
ELECOMMUNICATION SERVICES   
Members have identified individually or in groups the following objectives: 
 Scope of commitments (sectoral or modal) 
• broad coverage of the sector in a technology-neutral manner 
• significant commitments in all modes of supply   
• work with LDCs and developing country Members to find ways to encourage new 
and improved offers and pr ovide technical assistance to support this process  
Limitations for reduction or elimination 
• exclusive rights 
• ENTs 
• restrictions on the types of legal entity permitted 
• limitations on foreign equity 
Regulatory issues and additional commitments for negotiation   
• commitment to all provisions of the telecommunications Reference Paper  
MFN Exemptions for reduction or elimination  
• elimination of MFN exemptions  
Scheduling issues to be addressed 
• ways to improve clarity and certainty in vi ew of scheduling- and classification-related 
concerns 
  TN/S/23 
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7. AUDIOVISUAL SERVICES  
Members have identified individually or in groups the following objectives: 
Scope of commitments (sectoral or modal) 
• more commitments with respect to the production, distribution and projection of 
motion pictures/videos, sound recording, a nd the production and distribution of tv 
programmes   
• commitments on modes 1 to 3 that reflect the level of de facto  openness   
MFN Exemptions for reduction or elimination  
• elimination of MFN exemptions  
Classification issues to be addressed 
• need to update the classification to ensure  that offers reflect market realities  
- the term "home video entertainment" (defined to include, inter alia , video 
 tapes and optical discs) should be  substituted for "video tapes"  
- distribution of motion pictures and home video entertainment should be 
 clarified to mean "licensing for exhib ition, broadcast or other transmission" 
- radio and tv services should be divided into two new sub-sectors: "radio and 
 tv production services" and "radio and tv distribution services" - "radio and tv distribution services" should be clarified to mean "licensing of 
 radio and tv programmes" 
• broadcast transmission services relating to the networks over wh ich radio and tv 
programming is distributed should not be considered an audiovisual service, but a communication service covered elsewhere 
 
8. C
ONSTRUCTION AND RELATED ENGINEERING SERVICES  
Members have identified individually or in groups the following objectives: 
Limitations for reduction or elimination 
• foreign equity limitations  
• joint venture and joint operation requirements  
• discriminatory licensing or registration procedures  
• restrictions on the types of projects that can be undertaken by foreign service 
suppliers 
• restrictions on the movement of natural persons  
 
9. DISTRIBUTION SERVICES  
Members have identified individually or in groups the following objectives: 
Scope of commitments (sectoral or modal) 
• commitments in all four sub-sectors (commission agents' services, wholesale trade 
services, retailing services and franchising) in modes 1, 2 and 3 TN/S/23 
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• exclusions for sensitive products should be minimized  
• better access in particular under mode 3 in wholesale and retail trade   
Limitations for reduction or elimination 
• foreign equity limitations    
 
10. E
DUCATION SERVICES  
Members have identified individually or in groups the following objectives: 
Scope of commitments (sectoral or modal) 
• secondary, higher/tertiary and other education services  
• bindings that reflect actual levels of liberalization 
Limitations for reduction or elimination 
• restrictions on the use and import of educational materials, including material 
supplied online  
• "unbound" entries in mode 2  
• commercial presence requirements linked to the provision of distance learning 
• lack of accreditation possibilities for online education services 
• joint venture and minimum foreign equity requirements, where these restrict twinning 
arrangements and other institute -to-institute arrangements  
• inability of foreign institutions to establish  branch campuses within local institutions 
• restrictions preventing foreign institutions  from directly marketing education services 
and/or recruiting students 
• limitations on the ability to run onshore education programmes in collaboration with 
local partners 
• restrictions on repatriation of funds by joint-venture educational establishments  
• restrictions on the movement of education service suppliers  
• limits on the number of foreign nationals represented on the board of educational 
institutions 
Regulatory issues and additional commitments for negotiation  
• recognition of qualifications 
Scheduling issues to be addressed 
• remove references to quality and qualifi cation requirements if these are neither 
discriminatory nor limit market access 
  TN/S/23 
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11. ENERGY SERVICES  
Members have identified individually or in groups the following objectives: 
Scope of commitments 
• meaningful commitments, based on CPC, for all activities composing the energy 
services sector and across all modes of supply 
• commitments in the oil and gas sector, e.g., for exploration services, services 
incidental to mining, technical testi ng and analysis, and toll refining services 
• ownership of natural resources is out side the scope of the negotiations 
Regulatory issues and additional commitments for negotiation  
• need to ensure, inter alia , access to energy, reliability of supply, protection of 
consumers and the environment ('right to regulate') 
Scheduling issues to be addressed 
• use of the Scheduling Guide for Energy Services (JOB(03)/89) tabled by some 
Members for scheduling commitments on energy and energy-related services in the 
WTO  
• the absence of a specific energy services section in W/120 should not prevent the 
scheduling of commitments as the Scheduling Guidelines (S/L/92) provide sufficient 
flexibility  
 
12. ENVIRONMENTAL SERVICES  
Members have identified individually or in groups the following objectives: 
Scope of commitments 
• high levels of market access across sub-sectors, as far as possible 
• mode 1 commitments for as many sub-sectors as possible, in particular advisory 
services 
• objective of full commitments for mode 2 
• ambitious commitments for mode 3, removi ng barriers on commercial establishment;  
if exclusive rights are awarded, foreign supplie rs should be able to participate in the 
tender and operation of the service 
• mode 4 commitments to ensure mobility of service suppliers such as remediation 
specialists, conservationists and geomatic professionals 
• commitments across all sub-sectors listed in CP C Prov., i.e. 9401 to 9409, taking into 
account the interplay with related servic es, such as construction, engineering, 
technical testing, and analysis and management consulting services 
 TN/S/23 
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13. F
INANCIAL SERVICES  
Members have identified individually or in groups the following objectives: 
Scope of commitments (sectoral or modal) 
• commitments on commercial presence (mode 3) for all financial services 
• commitments on modes 1 and 2 in appropri ate sub-sectors (e.g. financial services 
addressed to sophisticated customers, li ke reinsurance, asset management, and 
securities; marine and energy insurance services; provision and transfer of financial information and financial data processing) 
Limitations for reduction or elimination 
• limitations on the right to establish new and to acquire existing companies 
• limitations on legal form  
• limitations on foreign ownership (i.e. free dom to establish in the form of wholly-
owned subsidiaries, joint ventures or branches) 
• non-discriminatory limitations such as monopolies, numerical quotas or ENTs and 
mandatory cessions 
• discrimination in the applicati on of laws and regulations  
Regulatory issues and additional commitments for negotiation  
• transparency in the development and appli cation of laws and regulations, transparent 
and speedy licensing procedures  
Scheduling issues to be addressed 
• use of the definitions in the GATS Annex on Financial Services  
• clarification of the distinction between modes 1 and 2 
 
14. H
EALTH SERVICES  
Members have identified individually the following objectives: 
Limitations for reduction or elimination 
• Limitations relating to non-portability of  insurance schemes under modes 1 and 2 
15. TOURISM SERVICES  
Members have identified individually or in groups the following objectives: 
Scope of commitments (sectoral or modal) 
• full commitments on market access and national treatment for:  Hotels and restaurants 
(CPC 641-643);  Travel agencies and tour operators services (CPC 7471);  Tourist guides services (CPC7472);  Other;  Fishing license services (CPC 91131);  Hunting license services (CPC 91131);  and Spa services (CPC 97029)   TN/S/23 
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Limitations for reduction or elimination 
• horizontal limitations affecting commercial presence (eliminate or make explicit 
reference that they do not apply to tourism services) 
• restrictive conditions for purchase, lease or use of real estate  
• requirements for commercial establishment or presence under modes 1 and 4 
• nationality or residency requirements 
• ENTs, especially in mode 3 
• limitations on the participation of foreign capital  
• requirements to establish specific types of legal entities       
Regulatory issues and additional commitments for negotiation  
• ensuring that immigration authorities f acilitate the movement of tourists 
• recognition of professional qualifications acqui red in the territory of another Member 
on the basis of equivalency of education, and use of qualification recognition methods 
• facilitation of the temporary entry of natural persons supplying services with respect 
to visa and temporary residency provisions 
• elimination of anti-competitive practices and unfair competition 
• access on a commercial basis to computer reservation systems/global distribution 
systems subject to transparent, reasonable and objective criteria 
• cooperation for the sustainable development of tourism 
MFN Exemptions for reduction or elimination  
• elimination of sector-specific MFN exem ptions applicable to all sectors  
 
16. MARITIME TRANSPORT SERVICES  
Members have identified individually or in groups the following objectives: 
Scope of commitments (sectoral or modal) 
• commitments according to the Maritime Model Schedule and on sectors listed therein 
• commitments based on existing or improved offers as provided by decision 
S/L/24         
• commitments on a range of Maritime auxiliary services (modes 1, 2 and 3) 
Limitations for reduction or elimination 
• eliminate in particular the following lim itations concerning International freight 
transport (less cabotage) (CPC7212) in modes 1, 2 and 3: 
- cargo reservations  
- restrictions on foreign equity participation  - nationality requirements of board members  - preferential taxation  
- restrictions on right of establishment 
- restrictions on vessel registration  TN/S/23 
Page 20  
 
Regulatory issues and additional commitments for negotiation 
• access to and use of port services 
• access to and use of services necessary for the conduct of multimodal transport 
operations 
MFN Exemptions for reduction or elimination  
• elimination of MFN exemptions 
 
17. A
IR TRANSPORT  
Members have identified individually or in groups the following objectives: 
Scope of commitments (sectoral or modal): 
• commitments on all air transport services covered by the GATS, including ground 
handling (note:  there is no agreement among Members on the precise scope of application of the GATS to this sector)  
 
18. O
THER TRANSPORT SERVICES  
Members have identified individually or in groups the following objectives: 
Scope of commitments (sectoral or modal) 
• commitments in road, rail and pipelines transport services    
Limitations for reduction or elimination 
• reduction or elimination of restrictions in mode 3 for road and rail transport 
MFN Exemptions for reduction or elimination  
• elimination of MFN exemptions regarding road transport 
 
19. LOGISTICS SERVICES  
Members have identified individually or in groups the following objectives: 
Scope of commitments (sectoral or modal) 
• commitments according to the Freight L ogistics Checklist proposed by some 
Members (TN/S/W/20) 
• no substantial limitations on right to comme rcial establishment (mode 3) in Core 
freight logistics services (Part 1 of the check list), with reference to particular modes 
of transport as necessary 
• no substantial limitations on modes 1, 2 a nd 3 for a range of modes of transport 
instrumental to logistics services in Frei ght transport services (Part II(1) of the 
checklist) 
• no substantial limitations for mode 3 and in other modes of supply, as appropriate, for 
a wide range of activities in Other related logistics services (Part II(2)of the checklist)  TN/S/23 
 Page 21 
 
 
• commitments on Non-core freight logistics services, as far as practicable (Part III of 
the checklist) 
Regulatory issues and additional commitments for negotiation  
• acceptance of electronic versions of trade administration documents 
• entitlement to supply listed freight logisti cs services (from services auxiliary to all 
modes of transport , freight transport, co urier services and distribution services) in 
combination, subject to measures necessar y to prevent anti-competitive behaviour 
• assurance that procedures and formalities su ch as documentary requirements, customs 
clearance, customs inspection, and el ectronic processing are not unnecessarily 
burdensome  
 
20. MODES 1 AND 2 
Members have identified individually or in groups the following objectives: 
Scope of commitments 
• development of a possible list of commercially meaningful and clearly specified 
sectors/sub-sectors to allow for targeted commitments, including, inter alia , in 
professional services, business services, other business services, computer and related services, research and development services, tourism, part of education services, with the possible sensitivity of cross-border tr ade in some sectors to be recognized 
• mode 1 commitments in sectors such as telecommunications, transport, postal and 
courier, distribution, and financial services 
• similar levels of commitments in modes 1 and 2 whenever possible 
Limitations for reduction or elimination  
• in commercially meaningful sectors, bind existing levels of liberalization, in 
particular by removing commercial presence requirements and discriminatory measures  
• consideration of other restrictions such as hor izontal limitations (especially subsidies)  
Scheduling issues to be addressed 
• possibility to capture technological deve lopments, including through two-digit 
classification and specific listing of new activities 
• use of plurilateral approaches, su ch as model schedules or checklists 
MFN Exemptions for reduction or elimination   
• address MFN exemptions 
 TN/S/23 
Page 22  
 
21. M
ODE 3 
Members have identified individually or in groups the following objectives: 
Scope of commitments 
• commitments should reduce limitations to the fullest extend possible;  bindings shall 
not be more restrictive than applicable language 
• commitments should include, in principle, the right to establish new and acquire 
existing companies 
Limitations for reduction or elimination  
• restrictions on foreign equity particip ation, in particular below 51 per cent 
• elimination or relaxation of restrictions on type of legal entity and of joint venture 
requirements 
• elimination of discriminatory ENTs 
• right to acquire real estate connected w ith the establishment of commercial presence 
Scheduling issues to be addressed 
• commitments to be drafted in a clear, transparent and precise manner 
• concise indication of any inconsis tencies with Articles XVI and XVII 
• clear indication of the criteria for ENTs according to the Scheduling Guidelines     
 
22. MODE 4  
Members have identified individually or in groups the following objectives: 
Categories of natural persons 
• commitments to be undertaken in all main categories:  Business Visitors (BVs); Intra-
corporate Transferees (ICTs); Contractual Service Suppliers (CSSs); Independent Professionals (IPs); Others 
• commitments on each of the main categories to be based on common definitions and 
parameters and to provide for specific market access conditions 
• coverage of commitments to be extended to better cover categories of persons not 
linked to commercial presence (CSSs and IP s), with adequate sectoral coverage 
• commitments on ICTs to be extended  
• commitments on Installers to be undertaken 
• scope of commitments to be extended to lower skilled workers 
Limitations for reduction or elimination  
• economic needs/labour market tests (LMTs);  if not possible, specify non-
discriminatory and objective criteria in the schedule 
• quantitative restrictions;  where quotas cannot be removed, increase quotas  TN/S/23 
 Page 23 
 
 
• measures preventing longer periods of stay tailored to the specific needs of each 
category of natural persons 
• non-renewal of periods of stay 
• excessive formalities where renewal is permitted 
• citizenship and residency requirements 
• pre-employment conditions;  where removal is not feasible, period of prior 
employment with home country juridical person to be clearly specified and not to exceed a particular time period 
• labour market conditions, incl uding wage parity requirements (without prejudice to 
other employment laws, such as minimum wage requirements) 
• discriminatory tax treatment 
Regulatory issues and additional commitments for negotiation 
• transparency of entry procedures and provi sion of information relevant to entry, 
temporary stay and work authorization for each of the categories of natural persons scheduled 
• administrative procedures affecting entry and stay, especially regarding visas 
• recognition and qualification requirements 
Scheduling issues to be addressed 
• commitments on the basis of common categories, using similar terminology and 
parameters 
• sector-specific commitments to complement the horizontal section and bind deeper 
levels of liberalization 
• transparency of commitments:  templates fo r providing readily available information 
on a voluntary basis TN/S/23 
Page 24  
 
 
List of Submissions by Members 
 
A. Legal Services 
Communication from Australia, Canada, Chile, the European Communities, Japan, Korea, New 
Zealand, Singapore, the Separate Customs Territo ry of Taiwan, Penghu, Kinmen and Matsu, and the 
United States, Joint Statement on Legal Services , TN/S/W/37, 24 February 2005. 
 Communication from Australia, Canada, Chile, the European Communities, Japan, New Zealand, 
Switzerland, the Separate Customs Territory of Ta iwan, Penghu, Kinmen and Matsu, and the United 
States, Legal Services – Objectives for Further Li beralization and Limitations to be Removed , 
JOB(05)/276, 7 November 2005.     
 
B. Computer and Related Services  
Communication from Australia, Canada, Chile, the Eu ropean Communities, Hong Kong China, India, 
Japan, Korea, Mexico, New Zealand, Norway, Singapor e, the Separate Customs Territory of Taiwan, 
Penghu, Kinmen and Matsu, and the United States,  Joint Statement on the Negotiations on Computer 
and Related Services , TN/S/W/38, 25 February 2005. 
 Communication from the European Communities, Coverage of CPC 84 – Computer and Related 
Services,  TN/S/W/6, 24 October 2002. 
 
C. Postal and Courier Services 
Communication from Australia, the European Communities, Hong K ong China, Japan, New Zealand, 
Switzerland, and the United States,  Guidelines for Scheduling Comm itments Concerning Postal and 
Courier Services, Including Express Delivery , TN/S/W/30, 17 February 2005.  
 
Communication from the European Communities,  Proposal for a Reference Paper , TN/S/W/26, 
17 January 2005.  D. Telecommunications Services   
Communication from Australia, Canada, the Eur opean Communities, Japan, Hong Kong China, 
Korea,  Norway,  Singapore, the Separate Custom s Territory of Taiwan, Penghu, Kinmen and Matsu, 
and the United States,  Liberalization of Telecommunications Services, TN/S/W/50, 1 July 2005.  
Communication from Australia, Canada, the Eur opean Communities, Hong Kong China, Japan, 
Korea, Norway, Singapore, Switzerland, the Separa te Customs Territory of Taiwan, Penghu, Kinmen 
and Matsu, and the United States, Statement on Telecommunications Services at the Special Session of 
the Council for Trade in Services on 30 September 2005, JOB(05)/253, 18 October 2005. 
Communication from Australia, Canada, the Eur opean Communities, Hong Kong China, Japan, 
Korea, Norway, Singapore, Switzerland, the Separa te Customs Territory of Taiwan, Penghu, Kinmen 
and Matsu, and the United States, Statement on the Quality of Telecommunications Offers at the 
Special Session of the Council for Trade in Services on 1 July 2005 , JOB(05)/252, 18 October 2005. 
  TN/S/23 
 Page 25 
 
 
E. Audiovisual Services 
Communication from Hong Kong China, Japan, Mexico, the Separate Customs Territory of Taiwan, 
Penghu, Kinmen and Matsu, and the United States, Joint Statement on the Negotiations on 
Audiovisual Services,  TN/S/W/49, 30 June 2005. 
 
F. Construction and Related Engineering Services 
Communication from Australia, Canada, Egypt, th e European Communities, Guatemala, Japan, 
Korea, Mexico, Norway, New Zealand, Singapore, Switzerland, Turkey, the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu, and the United States, Joint Statement on 
Liberalization of Construction and Related Engineering Services , JOB(05)/130, 30 June 2005. 
 
G. Energy Services 
Communication from Australia, Canada, the Europ ean Communities, Japan, Norway, the Separate 
Customs Territory of Taiwan, Penghu, Kinm en and Matsu, and the United States, Statement on 
Liberalization of Energy Services , Council for Trade in Services – Special Session, Room Document, 
1 July 2005. 
 Communication from Chile, the European Commun ities, Japan, and the United States, Proposed 
Guide for Scheduling Commitments on Energy Se rvices in the WTO, JOB(03)/89, 12 May 2003. 
 
H. Environmental Services 
Joint Statement from Australia, Canada, the Europ ean Communities, Japan, Norway, Switzerland, the 
Separate Customs Territory of Taiwan, Penghu, Ki nmen and Matsu, and the United States, Room 
Document, Joint statement on the level of ambition for environmental services , Council for Trade in 
Services – Special Session, Room Document, 17 October 2005.  I. Financial Services 
Communication from Australia, Bahrain, Canada, th e European Communities, Japan, Norway, Oman, 
Panama, Singapore, Switzerland, the Separate Cu stoms Territory of Taiwan, Penghu, Kinmen and 
Matsu, and the United States, Liberalization of Financial Services , TN/S/W/43, 8 June 2005. 
 Communication from Brazil, Electronic Commerce and Financial Services , JOB(05)/103, 
13 June 2005. 
 
J. Tourism Services 
Communication from Brazil, Colombia, the Dominican  Republic, El Salvador, India, Indonesia, 
Nicaragua, the Philippines, and Thailand, Review of Progress in Negotiations, including pursuant to 
paragraph 15 of the Guidelines for Negotiations , TN/S/W/23, 29 September 2004. 
 
K. Maritime Transport Services 
Statement by Japan, Common Views on Negotiation Objectives  on Maritime Transport Services, by a 
"Group of Members Interested in Maritime Transport Services" , 17 October 2005. 
 L. Logistics Services 
Communication from Australia, Hong Kong China,  Liechtenstein, Mauritius, New Zealand, 
Nicaragua, Switzerland, and the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu, 
Logistics Services , TN/S/W/20, 25 June 2004. 
 TN/S/23 
Page 26  
 
Communication from Australia, Hong Kong China, Japan, Switzerland and the Separate Customs 
Territory of Taiwan, Penghu, Kinmen and Matsu, Objectives for Liberalization of Logistics Services , 
JOB(05)/264, 27 October 2005.  
M. Modes 1 and 2 
Non-Paper from India, Mexico, New Zealand, a nd the Separate Customs Territory of Taiwan, 
Penghu, Kinmen and Matsu, Cross-Border Supply of Services – St atement of Objectives for the 
Negotiations , Council for Trade in Services – Special Session, Room Document, 17 October 2005. 
Communication from Chile, Hong Kong China, India and Mexico, Discussion Paper on Relevant 
Issues for Liberalization of Cross-Border Supply in GATS Negotiations , JOB(05)/214, 29 September 
2005. 
Communication from Australia, Chile, Hong Kong Chin a, India, Mexico, and the Separate Customs 
Territory of Taiwan, Penghu, Kinmen and Matsu, Joint Statement on the Cross-Border Symposium 
Held by the WTO in April, 2005 , JOB(05)/90, 1 June 2005. 
 
N. Mode 3 
Non-Paper by Australia, Canada, the Eur opean Communities, Japan and Switzerland, Benchmark for 
Mode 3 ; 31 October 2005. 
  Communication from Australia, Canada, the Eur opean Communities, New Zealand, Norway, 
Switzerland; The Importance of Mode 3 Commitments , Council for Trade in Services – Special 
Session, Room Document, 1 July 2005. 
 
O. Mode 4  
Communication from Argentina, Bolivia, Chile, Ch ina, Colombia, Dominican Republic, Egypt, 
Guatemala, India, Mexico, Pakist an, Peru, Philippines and Thailand, Proposed Liberalization of Mode 
4 under GATS Negotiations , TN/S/W/14, 3 July 2003. 
Communication from Argentina, Bolivia, Brazil, Ch ile, Colombia, India, Mexico, Pakistan, Peru, 
Philippines, Thailand and Uruguay", Categories of Natural Persons for Commitments under Mode 4 
of the GATS , TN/S/W/31, 18 February 2005. 
Communication from Bulgaria, Canada, the European Communities and Romania, Mode 4:  A 
Common Approach to Scheduling , TN/S/W/32, 18 February 2005. 
Communication from Argentina, Brazil, Chile, China, Colombia, Dominican Republic, Egypt, 
Guatemala, India, Mexico, Pakist an, Peru, Philippines and Thailand, Mode 4:  Transparency Issues, 
JOB(04)/142, 29 September 2004.  
 
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