RESTRICTEDWORLD TRADE
ORGANIZATIONS/C/M/21
12 January 1998
(98-0136)
Council for Trade in Services
REPORT OF THE MEETING HELD ON 26 NOVEMBER 1997
Note by the Secretariat
1. The Council for Trade in Services held a meeting on 26 November 1997.  The agenda for the
meeting is contained in WTO/AIR/734.  In addition, the Chairman made a statement under
Other Business concerning requests for observer status.
A. PROPOSED EXTENSION OF THE DEADLINE OF THE NEGOTIATIONS ON
EMERGENCY SAFEGUARDS MEASURES - COMMUNICATION FROM THE
CHAIRPERSON OF THE WORKING PARTY ON GATS RULES
2. The Chairman drew attention to document  (S/C/W/28) which contained a communication
from the Chairperson of the Working Party on GATS Rules based on her consultations with Members
of the Working Party.  The communication cont ained a draft Decision which provided for the
extension of the negotiations on emergency safeguard measures pursuant to Article X of the GATS
until 30 June 1999.  The Chairman proposed that the Council adopt the Decision.
3. The Council adopted the Decision.
B. REPORTS OF SUBSIDIARY BODIES TO THE COUNCIL FOR TRADE IN SERVICES
4. The Chairman recalled that in fulfilling its own annual reporting requirement to the
General Council, the Council for Trade in Services  requires its subsidiary bodies to submit annual
reports on their respective activities.  He drew attention to the following reports:
- Report of the Committee on Financial Services contained in document (S/FIN/3);
- Report of the Committee on Specific Commitments contained in document
(S/CSC/2);
- Report of the Working Party on GATS Rule s contained in document (S/WPGR/2);
- Report of the Working Party on Professional Services contained in document
(S/WPPS/2).
5. The Chairman suggested that the Council take note of these reports.
6. The Council took note.S/C/M/21
Page 2
C. ANNUAL REPORT OF THE COUNCIL FOR TRADE IN SERVICES TO THE GENERAL
COUNCIL
7. The Chairman introduced document S/C/W/31 which contained a draft of the Annual Report
of the Services Council to the General Council.  He suggested that the Council agree to annex to its
Report the Reports of the subsidiary bodies which we re addressed under Item B of the agenda.  After
delegations had agreed on some changes to the draft report, he proposed that the Council adopt theReport contained in document S/C/W/31 subject to those changes.
8. The Council adopted the Report.
D. NOTIFICATIONS TO THE COUNCIL PURSUANT TO ARTICLE V:7 OF THE GATS
9. The Chairman recalled that Article V of the GATS required Members which were parties to
an economic integration agreement, to notify an y such agreement and any enlargement or any
significant modification thereof to the Council for Trade in Services and to make available all
information concerning the agreement as may be requested by the Council.  The Council may referthe agreement to the Committee on Regional Trade Agreements for examination in terms of its
consistency with the provisions of Article V.  In  this regard, he drew attention to the following
notifications:
- Communication from the European Communities and Their Member States and
Bulgaria (S/C/N/55);
- Communication from Canada and Chile (S/C/N/65);
- Communication from Australia and New Zealand (S/C/N/66).
10. The representatives of Chile, the European Communities
 and New Zealand  briefly introduced
the Agreements.  The representative of the European Communities requested clarification from the
delegations of Australia and New Zealand  concerning the nature of their agreement and whether it
should have been notified under Article VII:4 as a mutual recognition agreement.  The representative
of New Zealand explained that the agreement had been notified under Article V:7 because it built on
the economic integration agreement between Australia and New Zealand, which had already beennotified to the Council under Article V:7.  The Chairman suggested that the Council take note of these
notifications and of the statements made by delegations.
11. The Council took note.
E. THE IMPLEMENTATION OF THE WORK PROGRAMME APPROVED BY MINISTERS
AT THE SINGAPORE MINISTERIAL CONFERENCE: THE EXCHANGE OF
INFORMATION EXERCISE
12. At this meeting, the Council focused its discussion on the exchange of information exercise
which was one of the three sub-items of the Work Programme approved by Ministers at the Singapore
Ministerial Conference.  The Chairman recalled that at its meeting on 25 July 1997, the Council
requested the Secretariat to prepare two papers to be discussed in the context of the exchange ofinformation.  Accordingly, the Secretariat issued two papers, the first entitled “Economic Effects of
Services Liberalization” (S/C/W/26) and the second entitled “A Review of Statistics on Trade Flows
in Services” (S/C/W/27).  The Chairman invited the Secretariat to introduce the two papers.  Some
delegations made comments on the papers, while others said that they would have comments at thenext meeting of the Council.  Participants agreed that both papers represented useful background work
for the exchange of information exercise.S/C/M/21
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13. Regarding the paper entitled “Economic Effects of Services Liberalization,” one delegation
underlined the importance of opening services sectors and the need to revise national legislation to
ensure the attainment of policy objectives.  In th is respect it was important to identify new regulatory
frameworks which would lead to a better allocation of resources.  Another delegation noted that the
paper underscored that on the whole liberalization of services was good for the economy and that
further market openings could be facilitated by another round of negotiations.
14. Regarding the paper on “A Review of Statisti cs on Trade Flows in Services,” delegations
agreed that such paper constituted a valuable collection of available data and that it was important to
continue to improve statistics on trade in services.  However, it emerged from the paper that there
were still major shortcomings in this area and that, with the exception of some limited areas, it would
not be possible to rely on statistics for the next round of negotiations.  One delegation suggested that
the paper on statistics could be improved if inputs on statistics were received from Members on the
basis of a closer analysis of the existing paper.
15. Regarding the exchange of information exercise and the other items included in the Singapore
work programme some delegations said that it was important that the Council resume work on them
in early 1998.  One delegation suggested that with respect to the exchange of information it would
have been desirable to continue to follow a proced ure, such as the one which had been used until then,
based on documents prepared by the Secretariat on subjects proposed and identified by Members.Another delegation supported this approach, but noted that it should also include inputs coming
directly by Members.  It was noted that the task of the Council in the next year was to begin the work
mandated by Articles VI:4 and XIX of the GATS in a more structured manner.  Some delegations
suggested that the Chairman should hold informal consultations on all such matters and that a
Chairman's paper be prepared on the structure of the exchange of information.  The Chairman
suggested that the Council take note of the statements made and revert to this item at a future meeting.
16. It was so agreed.
F. THE FOURTH PROTOCOL TO THE GENERAL AGREEMENT ON TRADE IN
SERVICES - STATEMENT BY THE CHAIRMAN ON THE STATUS OF
ACCEPTANCES
17. The Chairman recalled that the Fourth Protocol to the General Agreement on Trade in
Services was open for acceptance until 30 November 1997.  The Protocol stipulated that it would
enter into force upon acceptance by all Members concerned.  A Note by the Chairman had been
issued in document S/L/40 indicating the status of  acceptances as of 14 October 1997.  The Note was
subsequently revised in document S/L/40/Rev.1 reflecting the situation as of 12 November 1997.  Heinformed participants that as of the day of the meeting (26 November 1997) only 31 Members had
accepted the Fourth Protocol which meant that 38 acceptances were still required so that the Protocol
could enter into force.  He urged those Members concerned who had not yet accepted the Protocol to
do so as soon as possible.  In addition, he pointed out that those Members who had signed the
Protocol subject to ratification, or ad referendum, needed to complete their “acceptance” procedures
before 30 November 1997.  The delegation of Japan expressed concern about the status of
acceptances and urged all Members concerned to accept the Protocol on time.  Several delegations
announced that they would be in a position to accept the Fourth Protocol in the following days and
before the deadline of 30 November.S/C/M/21
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18. The Chairman informed participants that an informal meeting of the Council would take place
on 4 December 1997.  The purpose of such meeting was to take stock of the final status of
acceptances on 1 December 1997.  He also reminded Members of the terms of the Protocol which
stipulated that if by 1 December 1997 the Protocol  had not been accepted by all Members concerned,
it was for those Members who had accepted it to decide on its entry into force and that such groupwould not include those Members which had signed subject to ratification or ad referendum.
G. SUBMISSION OF SCHEDULES IN BASIC TELECOMMUNICATIONS
19. The Chairman recalled paragraph 6 of the Decision on Commitments in Basic
Telecommunications (S/L/19) which stipulated that Members which had not annexed to the Fourth
Protocol Schedules of Commitments or Lists of Exemptions from Article II in Basic
Telecommunications could submit them, for approval by the Council, prior to 1 January 1998.  He
noted that while it was within the rights of any Member to submit improvements or additions to its
commitments under the GATS at any time, the only  purpose of this paragraph in the Decision was toallow Members to introduce MFN exemptions in Basic Telecommunications prior to 1 January 1998.
20. He then drew attention to the Schedule of Suriname contained in document S/C/W/29 which
had been submitted to the Council for approval.  The representative of Japan noted that the position of
his delegations in the informal consultations for th e establishment of procedures for the rectification
and modification of schedules under Article XXI of  the GATS, was that Article XXI and the relevant
procedures would apply to both improvements a nd withdrawals of commitments.  He added, however,
that since such procedures had not yet been agreed by the Council his delegation would for the time
being follow the existing procedures for submission of a schedule before the Council.  The
representative of the Netherlands Antilles informed the Council that her government was reviewing its
offer in basic telecommunications and that they would submit a schedule in due course.
21. The Chairman suggested that the Council approve the Schedule of Commitments of Suriname
relating to Basic Telecommunications subject to the regular certification procedure.22. It was so agreed.
H. COOPERATION BETWEEN THE INTERNATIONAL TELECOMMUNICATION UNION
AND THE WTO
23. The Chairman drew attention to document  S/C/W/30 entitled “Cooperation between the
International Telecommunication Union and the WTO” and asked the Secretariat to introduce the
document.  The Secretariat informed the Council th at a request for a cooperation agreement with the
WTO had been received form the International Telecommunication Union and that a decision on such
an agreement could only be taken by Members at the level of the General Council.  Delegations asked
the Secretariat to prepare a background paper including an analysis of existing cooperation
agreements between the WTO and other international intergovernmental organizations.
I. OTHER BUSINESS
24. The Chairman drew attention to two letters from the Arab Financing Programme and the
Organization of the Islamic Conference, requesting observer status in the Council for Trade in
Services.  These letters had been circulated to Members.  He recalled that a list containing two groups
of international intergovernmental organizations had been circulated in document S/C/W/19, which
was considered by the Council for Trade in Services at its Meeting of 5 March 1997.  At that meetingS/C/M/21
Page 5
the Council had agreed to grant observer status  on a regular basis to the four international
intergovernmental organizations in the first group: namely UN, UNCTAD, IMF and the World Bank.
Regarding those organizations in the second group, it had been agreed that it would be more
appropriate to decide on those requests in the light of the outcome of the  informal consultations
which were taking place at the level of the General Council.  The Chairman suggested that the
Council take note of these two new  requests and th at they be considered by the Council along with
the second group of organizations listed in S/C/W/19 at a future meeting, in the light of the outcome
of the consultations of the General Council.
25. It was so agreed.
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