  
 
S/C/22 
2 December 2004 WORLD TRADE  
ORGANIZATION   
 (04-5252) 
  
Council for Trade in Services  
 
 
 
 
ANNUAL REPORT OF THE COUNCIL FOR TRADE IN SERVICES  
TO THE GENERAL COUNCIL (2004) 
 
 
1. Since its last report to the General Council, th e Council for Trade in Services has held six 
formal meetings on 5 December 2003, 1 March 2004,  15 March 2004, 25 March 2004, 24 June 2004 
and 23 September 20041.  During this period, the Council addressed the following matters: 
I. PROPOSALS FOR A TECHNICAL REVIEW OF GATS PROVISIONS  
- ARTICLE XX:2 
2. At its meeting on 25 March 2004, the Council considered the report (S/C/W/237) by the 
Chairman of the Committee on Specific Commitm ents (CSC), which summarized the technical 
discussions held in the CSC on issues arising from the scheduling of commitments in accordance with 
Article XX:2.  At its meeting on 24 June 2004, it was agreed that the Council would revert to this item 
upon a specific request. 
II. REQUEST FOR A WAIVER FROM SPECIFIC COMMITMENTS UNDER THE 
GATS PURSUANT TO PARAGRAPHS 3 AND 4 OF ARTICLE IX OF THE MARRAKESH AGREEMENT ESTABL ISHING THE WORLD TRADE 
ORGANIZATION 
3. At its meetings held on 5 December 2003 and 1 March 2004, the Council examined Albania's 
waiver request (S/L/148 and S/L/148/Rev.1) regard ing the postponement of the implementation of its 
GATS commitments in international public voice telephone services.  At its meeting on 1 March 
2004, the Council approved Albania's waiver request and adopted the report (S/C/21) to the General 
Council. The draft decision, attached to the re port, was forwarded to the General Council for 
adoption. The General Council adopted the decisi on on 17 May 2004, which was issued in document 
WT/L/567.   
III. TRANSITIONAL REVIEW UNDER SECTION 18 OF THE PROTOCOL ON THE 
ACCESSION OF THE PEOPLE'S REPUBLIC OF CHINA 
4. At its meeting held on 5 December 2003, the Council conducted and concluded the second 
transitional review of the implementation by Chin a of its WTO commitments, pursuant to section 18 
of the Protocol on the Accession of the People's Republic of China (WT/L/432). The Council took 
note of the report (S/FIN/11) of the Committee on Trad e in Financial Services, which formed part of 
the Council's report on this matter to the Gene ral Council, contained in document S/C/20.  
                                                     
 
 1 Reports of the meetings are contained in documents S/C/M/69, S/C/M/70, S/C/M/71, S/C/M/72, 
S/C/M/73 and S/C/M/74.  These should be read in conjunction with this report.   
 S/C/22 
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IV. NEGOTIATIONS ON EMERGENCY SAFEGUARD MEASURES UNDER ARTICLE 
X OF THE GATS – DEADLINE FOR THE NEGOTIATIONS 
5. At its meeting on 15 March 2004, the Council considered the communication (S/C/W/236) 
from the Chairman of the Working Party on GATS Ru les, which proposed to extend the deadline of 
the negotiations on emergency safe guard measures under Article X.  The Council adopted the Fifth 
Decision on Negotiations on Emergency Safeguard Measures (S/L/159), which extended negotiations 
on this matter.  The Decision stipulates that the result s of these negotiations shall enter into force on a 
date not later than the date of entry into fo rce of the current round of services negotiations.  
V. IMPLEMENTATION OF ARTICLE VII OF GATS 
6. At its meetings on 5 December 2003, 25 March 2004, 24 June 2004 and 23 September 2004, 
the Council continued to discuss issues relating to  the implementation of Article VII of the GATS 
based on a submission from India (JOB (03)/120).  The Council has agreed to revert to this item at its 
following meeting. 
VI. REVIEW OF MFN EXEMPTIONS 
7. At its meeting on 24 June 2004, the Council a ddressed the second review of MFN exemptions 
in accordance with the decision adopted at the conclu sion of the previous review.  At its meeting on 
23 September 2004, the Council agreed that the s econd review would be conducted in dedicated 
sessions, the first of which would be held on 30 November 2004. 
VII. DERESTRICTION OF DOCUMENTS 
8. At its meeting on 23 September 2004, the Coun cil held discussions in informal mode 
regarding the European Communities' request for th e continued restriction of parts of the report 
(S/C/M/73) of the Council's meeting of 24 June 2004. The Council agreed to revert to this item at its 
following meeting. 
VIII.  NOTIFICATIONS MADE TO THE COUNCIL PURSUANT TO GATS 
ARTICLES III:3, V:5, V:7 AND VII:4. 
9. At  its meetings held on 5 December 2003, 25 March 2004, and 24 June 2004, the Council 
took note of the following notifications: 
(a) Notifications pursuant to Article III:3 of the GATS: 
  Japan      (S/C/N/234) 
  Bolivia      (S/C/N/235-236)   Armenia     (S/C/N/237)   China      (S/C/N/238-261) 
  Former Yugoslav Republic of Macedonia   
    (S/C/N/266-270 & S/C/N/266/Corr.1-270/Corr.1)   Switzerland     (S/C/N/271-296)   The Separate Customs Territory of    Taiwan, Penghu, Kinmen and Matsu  (S/C/N/300-301) 
 
(b) Notifications pursuant to Article V:5 of the GATS: 
The European Communities   (S/SECRET/8) 
   S/C/22 
 Page 3 
 
 
(c) Notifications pursuant to Article V:7 of the GATS: 
  The United States and Chile   (S/C/N/262) 
  The Unites States and Singapore   (S/C/N/263)   China and Hong Kong, China   (S/C/N/264)   China and Macao, China   (S/C/N/265) 
  El Salvador and Chile    (S/C/N/299) 
  Korea and Chile    (S/C/N/302)   The European Communities   (S/C/N/303)  (d) Notifications pursuant to Article VII:4 of the GATS: 
Australia     (S/C/N/297) 
Japan      (S/C/N/298)  
IX. WORK OF THE SUBSIDIARY BODIES 
10. The activities of the subsidiary bodies are refl ected in their respective reports, which are 
annexed to this report as follows: 
 Annex I  Report of the Committee on Specific Commitments (S/CSC/10) 
 Annex II Report of the Committee on Trad e in Financial Services (S/FIN/12) 
 Annex III Report of the Working Party on Domestic Regulation (S/WPDR/7)  Annex IV  Report of the Working Party on GATS Rules (S/WPGR/14) 
 
 
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ANNEX I 
 
 
WORLD TRADE  
ORGANIZATION  S/CSC/10 
25 November 2004 
 (04-5141) 
Committee on Specific Commitments   
   
 
ANNUAL REPORT OF THE COMMITTEE ON SPECIFIC COMMITMENTS  
TO THE COUNCIL FOR TRADE IN SERVICES (2004) 
 
 
1. Since its the annual report of 2003 to the Council for Trade in Services, the Committee on 
Specific Commitments held four formal m eetings:  on 4 December 2003, 22 March 2004, 
23 June 2004, and 28 September 2004.
2  In the reporting period, the Committee addressed three items:  
consideration of issues relating to Article XX:2 of the GATS;  classification issues;  and scheduling issues. 
I. CONSIDERATION OF ISSUES RELATING TO ARTICLE XX:2 OF THE GATS 
2. As mandated by the Council for Trade in  Services (Regular Session), the Committee 
addressed issues relating to paragraph 2 of Ar ticle XX of the GATS at its meetings of 
4 December 2003, and 22 March 2004.  Inputs to substantive discussions were provided by a 
Chairman's note (JOB(03)/213) and a communi cation from Switzerland (JOB(03)/214).  A large 
number of delegations participated in the discu ssions which revealed continuing differences on the 
legal interpretation of the overlap between Ar ticles XVI and XVII of the GATS.  While some 
delegations believed that a clear and consistent inte rpretation of the overlap was possible, others had 
doubts.  Several delegations expressed an interest in further exploring a practical solution in the 
context of the ongoing services negotiations.  It was al so noted by some delegations that any solution 
should not affect existing commitments and th at the relationship between existing and new 
commitments needed to be examined.  Following the meeting of 22 March 2004, the Chairman 
submitted a factual report on the discussions to the Council for Trade in Services (S/C/W/237). 
II. CLASSIFICATION ISSUES 
3. The Committee addressed a proposal by Indo nesia on the classification of energy services 
(S/CSC/W/42) at all meetings during the reporting period.   
4. The Committee also continued discussing issues re lated to Legal Services.  At the request of 
Members, documents by the International Bar Associ ation (IBA) ("Resolution in Support of a System 
of Terminology for Legal Services for the Pu rposes of International Trade Negotiations" - 
JOB(04)/17) and the Organization for Econom ic Co-Operation and Development (OECD) 
("Managing Request-Offer Negotiations under the GATS:  the Case of Legal Services" - JOB(04)/77) 
were circulated.  At the meeting of 28 Septembe r, a representative of the OECD presented the latter 
document to the Committee.   
                                                     
 
2 Reports of these meetings are contained in documents S/CSC/M/31, S/CSC/M/32, S/CSC/M/33, and 
S/CSC/M/34.  They should be read in conjunction with this report.   S/C/22 
 Page 5 
 
 
III. SCHEDULING ISSUES 
5. During the reporting period, the Committee addressed two communications from Brazil, 
containing preliminary questions on initial offers (JOB(03)/189 and JOB(04)/12).   
6. The Committee further addressed communications from Hong Kong, China (JOB(04)/81 and 
JOB(04)/133), and Chinese Taipei (JOB(04)/82) wh ich discussed a number of scheduling questions.  
At the request of Members, the Secretariat prepared a list of documents related to the revision of the 
Scheduling Guidelines in 2001 (JOB(04)/97). 
 
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ANNEX II 
 
 
WORLD TRADE  
ORGANIZATION  S/FIN/12 
26 November 2004 
 (04-5158) 
Committee on Trade in Financial Services  
 
  
 
ANNUAL REPORT OF THE COMMITTEE ON TRADE IN FINANCIAL SERVICES TO 
THE COUNCIL FOR TRADE IN SERVICES (2004) 
 
 
1. Since its last annual report to the Council fo r Trade in Services (S/FIN/10), the Committee on 
Trade in Financial Services has held four formal  meetings, on 1 December 2003, 23 March, 25 June, 
and 28 September 2004
3.  In this period, the Committee addressed the following matters: the 
acceptance of the Fifth Protocol to the General Agreement on Trade in Services; technical issues; recent developments in financial services trade; and a proposal regarding the GATS and the Annex on 
Financial Services by Antigua a nd Barbuda, Belize, the Fiji Islands , Guyana, Papua New Guinea, The 
Maldives, Solomon Islands and St Kitts and Nevis.  Additionally, the OECD presented a document on 
the management of requests and offers in insu rance services, and the Committee carried out the 
second transitional review of the implementation by China of its WTO commitments, pursuant to 
section 18 of the Protocol on the Accession of the People's Republic of China. 
I. ACCEPTANCE OF THE FIFTH PROTOCOL TO THE GATS 
2. Three Members have not yet accepted the Protoco l:  Brazil, Jamaica, and the Philippines.  At 
the Committee's invitation, some Members provided pe riodically information on the situation of their 
domestic acceptance procedures. Some delegations  expressed their concern that these countries had 
not yet accepted the Fifth Protocol. 
II. TECHNICAL ISSUES 
3. No specific issues were raised by Member s under this agenda item in the period under 
consideration. In the meeting held on 25 June 2004, the Chairperson asked Members to discuss ideas 
for future work on the basis of an annotated agenda contained in JOB(04)/72. 
III. RECENT DEVELOPMENTS IN FINANCIAL SERVICES TRADE 
4. During the period under consideration, Me mbers continued their consideration of a 
communication from Malaysia entitled "Challenges in the Financial Services Sector" (S/FIN/W/28). 
Members also addressed a communication from Norway on marine and energy insurance 
(Job(04)/80), and a room document from Turkey on e-insurance initiatives by Turkish insurance 
companies.  At the meeting held on 28 Septem ber 2004, Mexico made a presentation on the legal 
framework for the modernization of the Mexican financial system. 
                                                     
 
3 Reports of these meetings are contained in documents S/FIN/M/43 to 46.  They should be read in 
conjunction with this report.  S/C/22 
 Page 7 
 
 
IV. THE GATS AND THE ANNEX ON FINANCIAL SERVICES - INTERNATIONAL 
REGULATIONS AND FINANCIAL SERVICES 
5. In the period under consideration, Members continued their consideration of the proposal 
submitted by Antigua and Barbuda on behalf of Antigua and Barbuda , Belize, Fiji, Guyana, Papua 
New Guinea, Maldives, Solomon Islands, and St. Kitts and Nevis (S/FIN/W/29/Rev.1).  
V. TRANSITIONAL REVIEW UNDER SECTION 18 OF THE PROTOCOL ON THE 
ACCESSION OF THE PEOPLE'S REPUBLIC OF CHINA 
6. At its meeting on 1 December 2003, the Comm ittee carried out the second transitional review 
of the implementation by China of its WTO commitm ents, pursuant to section 18 of the Protocol on 
the Accession of the People's Republic of Chin a.  The report submitted by the Committee to the 
Council for Trade in Services on this matter is contained in document S/FIN/11.   
VI. PRESENTATION BY THE OECD 
7. At the invitation of the Committee, at the meeting held on 23 March 2004, the OECD 
presented a document entitled "Managing Request-Offe r Negotiations Under the GATS: the Case of 
Insurance Services", which is part of a join t project between OECD and UNCTAD to develop 
checklists for the preparation of requests and offers in different sectors.  
 
_______________ 
 
 
 
 
 
 S/C/22 
Page 8  
 
ANNEX III 
 
 
WORLD TRADE  
ORGANIZATION  S/WPDR/7 
26 November 2004 
 (04-5148) 
Working Party on Domestic Regulation  
   
ANNUAL REPORT OF THE WORKING PARTY ON DOMESTIC REGULATION  
TO THE COUNCIL FOR TRADE IN SERVICES (2004) 
 
 
1. Since the annual report of 2003 to the Counc il for Trade in Services, the Working Party on 
Domestic Regulation (WPDR) held four fo rmal meetings and one informal meeting
4.  Both formal 
and informal papers have been submitted to the Work ing Party.  The formal papers were submitted by 
the Secretariat,5 Australia,6 Colombia,7 and  Mexico.8  Informal papers were submitted by Australia;9  
the Chairperson;10  Hong Kong, China;11  New Zealand;12  the Secretariat;13  and the United States. 14 
2. At the formal meeting on 31 March 2004, Members approved the appointment of 
Mr. David Cairns of the United Kingdom as the new WPDR Chairperson, replacing the previous 
Chairperson, Mr. Johannes Bernabe of the Philippines.   
I. ORGANIZATION OF FUTURE WORK 
3. At the formal meeting on 24 June, 2004, the Chairperson  gave an overview of the informal 
WPDR meeting held on 8 June 2004.  He reporte d that there had been a good discussion, based on a 
Chairperson's Note (JOB(04)/63 dated 26 May 2004).  
4. Members confirmed they wished to make progress in the Working Party in the Round and 
during the year, and that the approach should be conc rete, practical and deal with substance.  There 
was no need to prejudice the approach, especially in re gard to horizontal versus sectoral disciplines.  
A number of Members believed that some elements  for regulatory disciplines were missing, and they 
were encouraged by others to fill the gaps by co ming forward with papers.  Regarding the next stage 
of negotiations, there were some differences of vi ew on when the Working Party would be ready.  
There was, however, the general view that further progress would depend on receiving new 
                                                      
4 Reports of these meetings are contained in documents S/WPDR/M/24 – 27.  They should be read in 
conjunction with this report. 
5 S/WPDR/W/26, dated 12  November 2003, and S/WPDR/W/27, dated 2  December 2003, respectively. 
6 S/WPDR/W/28, dated 22  June 2004. 
7 S/WPDR/W/29, dated 7  July 2004. 
8 S/WPDR/W/30, dated 24  September 2004. 
9 JOB (04)/137, dated 24 September 2004. 
10 JOB (04)/63 dated 26 May 2004. 
11 JOB(04)/24, dated 31 March 2004. 
12 JOB(03)/219, dated 3 December 2003, and JOB(04 )/136, dated 24 September 2004, respectively. 
13 JOB(03)/126/Rev.2, dated 17 June 2004;  JOB(02)/20/Rev.8, dated 16 September 2004;  and  
JOB(03)/126/Rev.3, dated 16  September 2004, respectively. 
14 JOB(04)/128, dated 15 September 2004.  S/C/22 
 Page 9 
 
 
submissions, the discussion of those submissions, and whether Members in the WPDR agree on how to proceed.  The dates in the Chairper son's paper were therefore indicative. 
5. Regarding the involvement of re gulators, delegations welcomed the Workshop on Domestic 
Regulation  (see below), and the benefits it had brought to  regulators, negotiators, and industry.  Some 
Members expressed interest in holding regional even ts.  There was agreement that the WPDR should 
consider such events at a late r stage, and that it was necessar y to take into account the overall 
programme of events.  With respect to technical work, delegations indicated general interest in 
compiling a bibliography on domestic regulation, as well as in listing the elements of free trade agreements relating to  domestic regulation. 
II. DEVELOPMENT OF REGULATORY DISCIPLINES UNDER GATS ARTICLE VI:4 
6. With respect to the development of any necessary disciplines on domestic regulation, the 
Working Party further examined Japan's informal paper, Draft Annex on Domestic Regulation  
(JOB/(03)/45/Rev.1, dated 2 May), as well as the paper from the European Communities, Proposal 
for Disciplines on Licensing Procedures (S/WPDR/W/25, dated 10  July 2003).  The Working Party 
also further discussed the informal paper by Singapore, GATS Article VI:5 and its relation to the 
future Article VI:4 Disciplines  (JOB(03)/113, dated 11 June 2003).   
7. The Working Party discussed an inform al paper by Hong Kong, China, entitled Relationship 
of Regulatory Disciplines with National Treatment  (JOB (04)/24, dated 31 March 2004).   
8. Members commented on a formal paper by Colombia (S/WPDR/W/29 dated 7 July 2004),  
entitled Examples of Measures Relating to Administrati ve Procedures for Obtaining Visas or Entry 
Permits .  The delegation of Mexico submitted a formal paper on technical standards, Mexico's 
Experience of Disciplines on Technica l Standards and Regulations in Services  (S/WPDR/W/30 dated 
24 September 2004), which also received comments.  The delegation of the United States submitted 
an informal paper, Proposal for Transparency Discip lines in Domestic Regulation (JOB(04)/128), on 
15 September 2004 which also received preliminary comments. 
9. The Working Party discussed a paper by the Secretariat, entitled " Necessity Tests" in the WTO 
(circulated as document S/WPDR/W/27, dated 2 D ecember 2003).  Members also further reviewed 
the measures, including the additional examples pr ovided by delegations, listed in the informal 
Secretariat paper on Examples of Measures to be Addressed by Disciplines under GATS Article VI:4  
(the latest version is JOB(02)/20/ Rev.8, dated 16 September 2004).   
III. DEVELOPMENT OF DISCIPLINES FOR PROFESSIONAL SERVICES 
10. The Secretariat updated its compilation of the r esults of the consultati ons with international 
professional organizations concerning  the potential suitability of the Disciplines on Domestic 
Regulation in the Accountancy Sector  (S/L/64, dated 17 December 1998) for other professions.  The 
most recent version is JOB(03)/1 26/Rev.3, dated 16 September 2004. 
11. Members extensively commented on an informal paper by New Zealand, Implementation of 
Article VI:6 Obligations in Engineering Services  (JOB(03)/219 dated 3 December 2003.  The 
Working Party also discussed th e formal paper  by Australia, Professional Recognition in Australia  
(S/WPDR/W/28, dated 22 June 2004).  Members ma de further comments on the informal paper 
submitted by India on recognition issues (JOB (03)/192, dated 30 September 2003).   
12. 
No further comments were made on the informal Secretariat paper Synthesis of Results to 
Date of the Domestic Consultations in Professional Services  (the most recent version is 
JOB(02)/204/Rev.1, date d 21 February 2003).   S/C/22 
Page 10  
 
IV. WPDR WORKSHOP ON DOMESTIC REGULATION 
13.   At the formal meeting on 31 March 2004, the Chairperson
 asked the Secretariat to give a 
brief summary of the Workshop on Domestic Regulation , held at the request of the Working Party in 
Geneva from 29 to 30 March. 
14.   The Secretariat  representative said the objective of the Workshop  was to bring together and 
inform regulators, trade negotiators, and other re levant officials of the background and progress to 
date of the work taking place in the WPDR.  There were between 300 and 350 participants.  
Discussions focused exclusively on technical and le gal aspects, and did not attempt to duplicate the 
discussions taking place in the Working Party.  With financial assistance from the Government of Flanders, the WTO financed 97 capital-based partic ipants from developing countries.  There were 
18 presentations at the Workshop , including from UNCTAD, the OECD, representatives of domestic 
and international professional associations, academics and the Secretariat.  All presentations were posted on the WTO website.   
15. Delegations thanked the donors, the speakers, th e Chairperson, and the Secretariat, and made 
many specific comments, as recorded in th e Report on the meeting (S/WPDR/M/25).   
 
_______________ 
  S/C/22 
 Page 11 
 
 
ANNEX IV 
 
 WORLD TRADE  
ORGANIZATION  S/WPGR/14 
25 November 2004 
 (04-5143) 
Working Party on GATS Rules   
   
ANNUAL REPORT OF THE WORKING PARTY ON GATS RULES  
TO THE COUNCIL FOR TRADE IN SERVICES (2004) 
 
 1. Since its annual report for 2003, the Work ing Party on GATS Rules held five formal 
meetings: on 2 December 2003, on 10 and 15 Marc h 2004, on 24 March 2004, on 23 June 2004, and 
on 20 September 2004.
15  While the meeting of 10 and 15 Marc h was specifically devoted to the issue 
of the deadline for the negotiations under Article X, the three negotiating mandates the Working Party 
is entrusted with were put on the agenda of th e other meetings: emerge ncy safeguard measures 
(Article X), government procurement (Article XIII),  and subsidies (Article XV).  The Working Party 
also held a number of informal meetings. 
I. NEGOTIATIONS ON EMERGENCY SAFEGUARD MEASURES UNDER GATS 
ARTICLE X 
2. At the meeting of December 2003, discussi ons focused on the hypothetical example of an 
emergency situation provided by a group of delegations from ASEAN16, as well as on a non-paper 
earlier submitted by the delegation of Switzerland which analyzed avenues available under a "no ESM 
scenario".  At the meeting of 10 and 15 March, the Working Party agreed on the content of a draft 
decision on the extension of the negotiations pursuant to the mandate under Article X17, which was 
later adopted by the Counc il for Trade in Services.18  In subsequent meetings, delegations discussed 
an informal communication from the group of ASE AN Members (JOB(04)/4), which provided further 
thoughts on an emergency safeguard mechanism.  Members expressed divergent views on various 
aspects, including regarding desirability and feasib ility.  To facilitate discussions, the Chairperson 
compiled a list of main questions raised (JOB(04)/ 49).  Focal issues of interest included situations 
justifying a safeguard, link to progressive liberaliz ation, the concept of limited window, domestic 
industry and acquired rights, injury  determination, applicable measures and modal issues, duration 
and compensation, surveillance, a nd special and differential treatment .19     
                                                      
15 Reports of these meetings are contained in documents S/WPGR/M/45, S/WPGR/M/46 (and corr.1), 
S/WPGR/M/47, S/WPGR/M/48 and S/WPGR/M/49.  They sh ould be read in conjunction with this report.  
16 Brunei Darussalam, Indonesia, Malaysia, Myanmar, the Philippines and Thailand.    
17 As reflected in S/C/W/236. 
18 As reflected in S/L/159. 
19 Discussions on emergency safeguard measures are reflected in paragraphs 5-22 of S/WPGR/M/45, in 
S/WPGR/M/46 and S/WPGR/M/46/Corr.1, paragraphs 2-38 of S/WPGR/M/47, paragraphs 46-47 of 
S/WPGR/M/48, and paragraphs 39-58 of S/WPGR/M/49.   S/C/22 
Page 12  
 
II. NEGOTIATIONS ON GOVERNMENT PROCUREMENT UNDER GATS 
ARTICLE XIII 
3. At the meetings of Decem ber 2003 and March 2004, delegations  continued their discussion of 
an earlier communication from the European Comm unities on a proposed framework for government 
procurement of services under the GATS (S/WPGR/W/ 42).  They also considered an informal 
communication from Singapore (JOB(03)/216), which listed a number of issues and questions for 
further discussion in the light of the proposal by th e European Communities.  At the meetings of June 
and September 2004, discussions focused on a ne w communication from the European Communities 
(S/WPGR/W/48), which provided examples of how commitments and MFN exemptions relating to 
government procurement could be incorporated in the GATS.  The delegation of Hong Kong, China 
circulated an informal communication (JOB(04)/130) , which listed questions relating to the proposal 
from the European Communities.   Many questions and issues were raised, including the application 
of the MFN obligation, the relationship to the GP A, modal application, scheduling approaches, the 
possibility of distinguishing between goods and services,  link to development, and procedural rules.  
As requested, the Secretariat prepared a Note on Government Procurement-Related Provisions in 
Economic Integration Agreements (S/WPGR/W/49).  
4. A number of delegations con tinued to reiterate that, in their view, the negotiating mandate 
under Article XIII did not entail market access issues, while others thought that these were covered.  
Some delegations drew attention to  the General Council's decision, in the July Package, that there be 
no negotiations on the Singapore issue of transparen cy in government procurement, while others 
pointed out that the July Package also called on Me mbers to intensify efforts to conclude the rule-
making negotiations, includi ng those on Article XIII.
20     
III. NEGOTIATIONS ON SUBSIDIES UNDER ARTICLE XV OF THE GATS 
5. Delegations first focused on an informal  communication from Chile (JOB(03)/218), which 
provided anonymous examples of subsidies that might distort trade in services.  Delegations tended to 
concentrate on the first example, which raised issu es relating to export subsidies.  Members also 
discussed an informal communication from the dele gation of Chinese Taipei on the definition of 
subsidies in services (JOB(04)/78).  At the last  meeting, discussions focused on an informal 
communication from the delegation of Hong Kong, China that put forward some thoughts on the possible way forward on aspects such as the informat ion exchange, other sources of information about 
subsidies, the definition of subsidy, and trade dist ortion (JOB(04)/127).  Noting the lack of progress in 
that area, some delegations called for a target date to be set for the exchange of information pursuant 
to Article XV, while others raised doubts about the pr ecise meaning of Article XV in that regard.  The 
importance of working on a definition of subsidy was stressed, as well as the need for discussing 
concrete negotiating proposals.  It was also recommended to address different aspects of the negotiations in tandem.  As requested, the Secretar iat produced four Notes, which were subsequently 
discussed: Overview of Subsidy Disciplines Relating to Trade in Services in Economic Integration 
Agreements  (S/WPGR/W/46), List of Publications from International Organizations Relating to 
Subsidies in Services  (S/WPGR/W/47), Subsidies for Services Sectors: Information Contained in 
WTO Trade Policy Reviews  (S/WPGR/W/25/Add.4), and Limitations in Members' Schedules Relating 
to Subsidies  (S/WPGR/W/13/Add.2) . 
21 
__________  
                                                      
20 The discussions on government procurement are reflected in paragraphs 23-33 of S/WPGR/M/45, 
paragraphs 39-53 of S/WPGR/M/47, paragraphs 26-45 of S/WPGR/M/48 and paragraphs 2-38 of 
S/WPGR/M/49. 
21 The discussions on subsidies are reflected in paragraphs 34-52 of S/WPGR/M/45, paragraphs 54-80 
of S/WPGR/M/47, paragraphs 5-25 of S/WPGR/M/48, and paragraphs 59-80 of S/WPGR/M/49.  