WORLD TRADE S/WPGR/2
26November 1997
ORGANIZATION (97-5218)
Working Party onGATS Rules
ACTIVITIES OFTHE WORKING PARTY ONGATS RULES
Report totheCouncil forTrade inServices
TheWorking Party onGATS Rules heldsixformal meetings in1997. Ineachmeeting, the
Working Party considered allthree negotiating mandates: emergency safeguard measures under
Article X,government procurement under Article XIIIandsubsidies under Article XV.
Negotiations onemergency safeguard measures under Article XoftheGATS
Differing views havebeenexpressed byMembers withregard tothedesirability ofdeveloping
anemergency safeguard mechanism under theGATS. Substantive discussions arecontinuing onthe
subject without prejudging theposition ofanydelegation inrespect ofthedesirability, feasibility or
form ofanypossible emergency safeguard mechanism. Several Members responded onavoluntary
basistoaseries ofwritten questions onemergency safeguard measures (contained inS/WPGR/W/15).
OthersubmissionsonthesubjectofsafeguardswerealsoreceivedfromMembersduring1997(circulated
asdocuments S/WPGR/W/17, 18,19,22and23).
Inthelastthree meetings, theWorking Party hasfocused onfourkeyquestions identified by
theChairperson inaninformal note(dated 3June1997): (i)Onwhose behalf would emergency
safeguard action betaken? (ii)Inwhatcircumstances would emergency safeguard action betaken and
what would bethepurpose ofsuchaction? (iii)What approach should beadopted inrespect of
injury/adverse effects, andtherelevant causal linkbetween injury/adverse effects andcommitments
under theGATS? (iv)What measures would betaken under theemergency safeguard mechanism?
Aresome measures deemed more suitable thanothers? Attherequest ofMembers, theSecretariat
prepared anotewhich focused onthesecond question, containing hypothetical examples ofsituations
inwhich emergency safeguard action maybetaken (circulated asS/WPGR/W/24).
Since Members recognized thatthere stillremained many points tobeconsidered inorder to
conclude thisnegotiation, theydecided topropose totheCouncil forTrade inServices toextend the
application ofthefirstsentence ofparagraph 1andparagraph 2ofArticle XuntiltheendofJune1999,
notwithstanding thesecond sentence ofparagraph 1andparagraph 3ofArticle X.
Negotiations ongovernment procurement under Article XIIIofGATS
Progress wasmade intheinformation gathering exercise onnational procurement regimes.
Thetwenty-one responses received sofartothequestionnaire onnational procurement regimes were
circulated asaddenda todocument S/WPGR/W/11. TheSecretariat prepared asynthesis ofthefirst
nineteenresponsestothequestionnaire(issuedasdocumentS/WPGR/W/20).Theinformationgathering
exercise hasprovided abasis fornegotiations ondisciplines. Anindicative tabulation relating
questionnaire responses topossible elements ofmultilateral disciplines waspresented inaChair'snote
(dated 21February 1997) andhasformed thebasisforthecommencement ofastructured consideration
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ofthese elements. Theneed tocoordinate work withtheWorking Group onTransparency in
Government Procurement wasemphasized byseveral delegations.
Negotiations onsubsidies under Article XVofGATS
Atitsmeeting of23January 1997, theWorking Party approved aquestionnaire tofacilitate
theinformation exchange, mandated byArticle XV,onsubsidies related totrade inservices. Two
responses tothequestionnaire havebeenreceived sofar(circulated asdocuments S/WPGR/W/16/Add.1
andAdd.2). Some delegations alsoexpressed theneedtocontinue thetechnical analysis ofsubsidies
related totrade inservices.