./.RESTRICTEDWORLD TRADE
ORGANIZATIONS/WPGR/W/35
3 November 2000
(00-4831)
Working Party on GATS Rules
DRAFT
REPORT OF THE WORKING PARTY ON GATS RULES
TO THE COUNCIL FOR TRADE IN SERVICES
1. In 2000, the Working Party on GATS Rules has held four formal meetings to date.  Minutes
of the meetings are contained in documents (S/WPGR/M/26-29).  A fifth meeting is scheduled on
30 November 2000.  In each meeting, the Working Party considered all three negotiating mandates:
emergency safeguard measures (Article X);  government procurement (Article XIII);  and subsidies
(Article XV).  Written contributions, both formal and informal, made by delegations have supported
the debate under the three items.
I. NEGOTIATIONS ON EMERGENCY SAFEGUARD MEASURES UNDER GATS
ARTICLE X
2. Differing views continued to be expressed regarding the desirability of an emergency
safeguard mechanism (ESM) in services, but Members agreed to leave this question aside for the time
being and to concentrate on feasibility issues.  In order to structure the debate, the Chairpersoncirculated an illustrative list of themes which could usefully be discussed, without prejudice to the
final outcome of the negotiations (Job No. 1979/Rev.1).  The list includes issues such as the definition
of "domestic industry" and the issue of "acquired rights", the modal application of a safeguard
mechanism, the concept of "like service", the identification of indicators and criteria for determining
injury and causality, the possible forms of a safeguard measure, the questions of compensation and
special and differential treatment, situations justifying safeguard action and relevant procedural
matters.  All issues were examined in both form al and informal meetings.  The Working Party also
examined a Concept Paper which was introduced in March by Thailand on behalf of the ASEAN
Members (S/WPGR/W/30).  The Paper contains elements of a possible emergency safeguard
mechanism in services.
3. The Working Party is also considering the ex tension of the negotiating deadline for this
subject-matter, which is currently set for 15 December 2000.
II. NEGOTIATIONS ON GOVERNMENT PROCUREMENT UNDER GATS
ARTICLE XIII
4. Discussions have continued on definitional issues as well as on possible multilateral
disciplines in this area.
III. NEGOTIATIONS ON SUBSIDIES UNDER GATS ARTICLE XV
5. The Working Party has continued to consider the need for and possible scope of disciplines
on subsidies which may have trade-distortive effects.  In March, Argentina and Hong Kong, China
presented a communication discussing relevant issues and identifying a number of topics for further
work (S/WPGR/W/31).  At the request of the Working Party, the Chairperson circulated a Checklist
of issues, whose purpose is to help to address in a more systematic manner relevant questions underS/WPGR/W/35
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this agenda item (Job No. 4519/Rev.1).  Members agreed to take up one item at each successive
meeting.  The first item on the list ("Definition of a Subsidy in Services (including relevance of the
definition in the Agreement on Subsidies and Countervailing Measures")) was discussed in
September.
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