. /.  RESTRICTED  WORLD TRADE  
ORGANIZATION  S/WPGR/W/56/Rev.3 
14 November 2007 
 (07-4962) 
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 entrusted with were  put on the agenda of each meeting:  emergency 
safeguard measures (Article X), government procuremen t (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 Viet Nam 2.  Discussions were principally held in informal  in formal  mode. were 
limited during the meetings of July and September 2007.   Issues raised included the relationship to 
market access commitments, modal application, conditi ons of application, causal link, and special and 
differential treatment.  Divergent vi ews continued to be expressed on various  such  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 against the 
background of  on the most recent proposal from the Europ ean 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, 
and MFN application.  No common understanding has been reached yet on  and the scope of the 
negotiating mandate under Article XI II.  A limited number of dele gations intervened under this 
agenda item.4   
                                                      
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) containi ng 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/W/56/Rev.3 
Page 2  
 
  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 reported,  at the April meeting, on the consultations he 
had been asked to undertake on obstacles encounter ed 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.
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.