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The WTO negotiations on trade in services gathered pace with the
adoption of the negotiating guidelines and procedures and the
completion of the stocktaking exercise by the Special Session of the
Services Council at its meeting of 28-30 March.
“Agreement
on the guidelines marks the fulfilment of a key element in the
negotiating mandate,” said Mike Moore, WTO Director-General. “The
way is now open for governments to move forward from the rule-making
phase of the negotiations — though that work will also continue —
into the market access phase, on the basis of Members' negotiating
proposals.
“One
significance of the guidelines should not go unnoticed,” Mr Moore
emphasised. “Governments have unequivocally endorsed some of the
fundamental principles of the GATS: Governments’ right to regulate
and to introduce new regulations on the supply of services in pursuit
of national policy objectives; their right to specify which services
they wish to open to foreign suppliers and under which conditions; and
the overarching principle of flexibility for developing and
least-developed countries.”
At
the end of the 3-day meeting, the Chairman of the Services Council,
Ambassador Sergio Marchi of Canada, praised Member governments for the
thoroughly positive and constructive spirit in which they had
completed the stocktaking of the first year of negotiations. They had
in general expressed strong satisfaction with the work done so far,
together with the determination to complete outstanding tasks. The
large number of negotiating proposals submitted — some 70 proposals
by more than 40 Members — with the promise of many more to come, was
an indication of commitment which had been welcomed by many
delegations.
With
regard to the future work programme, the Council had agreed to hold
negotiating sessions in May, July and October, during which, in
addition to its standing agenda, the Council would consider the
negotiating proposals in detail. Further meetings would be held in
December and in March 2002, at which point the Council would review
progress in the negotiations.
Attached
is the text of the Guidelines and Procedures for the Negotiations on
Trade in Services as agreed on 28 March 2001.
Guidelines
and procedures for the negotiations on trade in services back
to top
Adopted
by the Special Session of the Council for Trade in Services on 28
March 2001
I
Objectives and Principles
Pursuant
to the objectives of the GATS, as stipulated in the Preamble and
Article IV, and as required by Article XIX, the negotiations shall be
conducted on the basis of progressive liberalisation as a means of
promoting the economic growth of all trading partners and the
development of developing countries, and recognizing the right of
Members to regulate, and to introduce new regulations, on the supply
of services. The negotiations shall aim to achieve progressively
higher levels of liberalization of trade in services through the
reduction or elimination of the adverse effects on trade in services
of measures as a means of providing effective market access, and with
a view to promoting the interests of all participants on a mutually
advantageous basis and to securing an overall balance of rights and
obligations.
The
negotiations shall aim to increase the participation of developing
countries in trade in services. There shall be appropriate flexibility
for individual developing country Members, as provided for by Article
XIX:2. Special priority shall be granted to least-developed country
Members as stipulated in Article IV:3.
The
process of liberalization shall take place with due respect for
national policy objectives, the level of development and the size of
economies of individual Members, both overall and in individual
sectors. Due consideration should be given to the needs of small and
medium-sized service suppliers, particularly those of developing
countries.
The
negotiations shall take place within and shall respect the existing
structure and principles of the GATS, including the right to specify
sectors in which commitments will be undertaken and the four modes of
supply.
II
Scope
There
shall be no a priori exclusion of any service sector or mode of
supply. Special attention shall be given to sectors and modes of
supply of export interest to developing countries.
MFN
Exemptions shall be subject to negotiation according to paragraph 6 of
the Annex on Article II (MFN) Exemptions. In such negotiations,
appropriate flexibility shall be accorded to individual developing
country Members.
Negotiations
on safeguards under Article X shall be completed by 15 March 2002
according to the Decision adopted by the Council for Trade in Services
on 1 December 2000. Members shall aim to complete negotiations under
Articles VI:4, XIII and XV prior to the conclusion of
negotiations on specific commitments.
III
Modalities and Procedures
The
negotiations shall be conducted in Special Sessions of the Council for
Trade in Services, which will report on a regular basis to the General
Council, in accordance with decisions taken by the General Council.
Negotiations
shall be transparent and open to all Members and acceding States and
separate customs territories according to Decisions taken in this
regard by the General Council.
The
starting point for the negotiation of specific commitments shall be
the current schedules, without prejudice to the content of requests.
Liberalization
shall be advanced through bilateral, plurilateral or multilateral
negotiations. The main method of negotiation shall be the
request-offer approach.
There
shall be appropriate flexibility for individual developing country
Members for opening fewer sectors, liberalizing fewer types of
transactions, progressively extending market access in line with their
development situation and, when making access to their markets
available to foreign service suppliers, attaching to such access
conditions aimed at achieving the objectives referred to in
Article IV.
Based
on multilaterally agreed criteria, account shall be taken and credit
shall be given in the negotiations for autonomous liberalization
undertaken by Members since previous negotiations. Members shall
endeavour to develop such criteria prior to the start of negotiation
of specific commitments.
The
Council for Trade in Services in Special Sessions shall continue to
carry out an assessment of trade in services in overall terms and on a
sectoral basis with reference to the objectives of the GATS and of
Article IV in particular. This shall be an ongoing activity of
the Council and negotiations shall be adjusted in the light of the
results of the assessment. In accordance with Article XXV of the
GATS, technical assistance shall be provided to developing country
Members, on request, in order to carry out national/regional
assessments.
To
ensure the effective implementation of Articles IV and XIX:2, the
Council for Trade in Services in Special Session, when reviewing
progress in negotiations, shall consider the extent to which
Article IV is being implemented and suggest ways and means of
promoting the goals established therein. In implementing Article IV
consideration shall also be given to the needs of small service
suppliers of developing countries. It shall also conduct an
evaluation, before the completion of the negotiations, of the results
attained in terms of the objectives of Article IV.
While
the Council for Trade in Services in Special Sessions may establish
subsidiary bodies as it deems necessary, the proliferation of such
bodies should be avoided to the maximum extent possible. Existing
subsidiary bodies shall be utilised to their maximum capacity.
The
needs of smaller delegations should be taken into account, e.g. by
scheduling meetings in sequence and not in parallel.
The
Council for Trade in Services in Special Sessions shall, when
appropriate, develop time schedules for the conduct of the
negotiations in accordance with any relevant decisions taken by the
General Council.
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