RESTRICTEDWORLD TRADE
ORGANIZATIONS/WPGR/M/28/Corr.1*
11 August 2000
(00-3291)
Working Party on GATS Rules
REPORT OF THE MEETING HELD ON 7 JULY 2000
Note by the Secretariat
Corrigendum
Please note the following changes, requested by the delegation of Brazil:
Paragraph 28 should read:
"28. The representative of Brazil said that document W/25/Add.1 indicated the existence
of subsidy practices in various services sectors (tourism, air and maritime transport, financial
services, audiovisual);  subsidies might also exist in sectors such as postal services,
construction, R&D and advertising.  It was possible to identify certain patterns in subsidy
programmes, associated with the level of development of countries;  for example, subsidies in
tourism were generally granted by developing countries through tax incentives, while
subsidies in the audiovisual sector seemed to be mostly granted by developed countries.Work should concentrate on subsidies that were contingent upon export performance and that
had an effect on international trade in services, even though no precise information was
available for the time being.  Subsidies affecting competition in third markets should also be
taken into account.  Brazil agreed with others that work should focus on a list of topics
including definitional issues , MFN, national treatment, likeness, mode specificity of
subsidies, possible exceptions, and possible use of countervailing measures. However, the
issues should not be considered in a strictly sequential manner, but altogether. Discussions
should not be limited at their initial stage, to definitional issues, for example, the definition
of subsidies, but also consider the other aspects that were mentioned. "
Paragraph 42 should read:
"42. The representative of Brazil said that paragraph 1 of the EC paper went too far since
Article XIII of the GATS only mandated Members to have multilateral negotiations on
government procurement in services, but did not prejudge the result.  He shared other
delegations' doubts regarding the applicability of Articles III and VI to government
procurement.  The application of Article III:1 might be envisaged, but not III:3, which applied
only if there were specific commitments.  Th e same comments would apply to Article VI,
paragraphs 1, 3, 5 and 6;  moreover, any disciplines developed under GATS Article VI:4 in
the WPDR could apply only to scheduled sectors.  His delegation did not view the mandate
of Article XIII as necessarily conducive  could not go along with suggestions to consider
eventual  to market access negotiations for government procurement because this would be
outside the scope of the mandate of Article XIII .  Work on transparency should concentrate in
the WGTGP."
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*  In English only.  Please note that the changes are indicated in bold and italics.