. /.WORLD TRADE
ORGANIZATIONTN/S/7
13 March 2003
(03-1415)
Council for Trade in Services
Special Session
SPECIAL SESSION OF THE COUNCIL FOR TRADE IN SERVICES
Report by the Chairman to the Trade Negotiations Committee
Further to my interim oral report made to the TNC on 4 March 2003, I wish to make this
formal written report.
The Council for Trade in Services in Special Session met on 3-6 March 2003.
I. STATUS OF WORK
1. Under the item Assessment for Trade in Services preliminary and substantive discussions
were held based on communications from the United States and China.  While Members recognisedthe benefits obtained from the process of liberalisation, questions were raised regarding the speed with
which this process moves forward, particularly given capacity restraints and the need to adapt
regulatory frameworks.  Comments of a more general nature were also made concerning the
objectives and the results of the assessment.   Specific reference was made to the Guidelines and
Procedures for the Negotiations on Trade in Services, which call for the negotiations to be adapted inlight of these results.  Some Members also mentioned the limitations they faced in conducting an
assessment, including the lack of accurate statistics on trade in services, as well as the limits on their
ability to collect information on areas of export interest to them.  A statement was made on behalf of
African Members highlighting some of the difficulties  that they face in participating fully in the
assessment.  Finally, there were some "spillovers" noted between this part of the Council's work and
its Review of Progress in the Negotiations.
2. Concerning the Modalities for the Treatment of Autonomous Liberalization, the Council
adopted the draft modalities and took note of a Statement by the Chairman in this regard.  The
Modalities are contained in document TN/S/6.  A few delegations chose to make statements on this
occasion which will be reproduced in the report of the meeting.
3. On the Modalities for the Special Treatment for Least-Developed Countries, the Council held
an open-ended informal meeting on 30 January, in which Members discussed a draft text prepared bythe least-developed countries.  This discussion was focused and constructive and resulted in a good
exchange of views.  At the formal meeting, the Council was informed by the least-developed
countries that they are currently reviewing the co mments made by Members at the informal meeting
with a view to preparing a revised draft.  Bangla desh, on behalf of the LDCs, informed the Council
that work in this regard was moving forward and th at the LDCs hope to circulate a revised draft in the
near future.
4. Under the item Proposals Relating to the Negotiations under Article XIX a substantive
discussion was held on the basis of a joint statement by 52 Members on Maritime Transport Services.
There were a large number of interventions which expressed widespread support for the joint
statement, as well as the importance of this service sector to Members' economies.  A question wasTN/S/7
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also raised by India regarding the need for more information on notifications made to the Council
pursuant to Article VII:4, recognition agreements.
5. Finally, under the item Review of Progress in Negotiations, the Council had substantive
discussion  with a large number of delegations making interventions.  Overall, Members noted that the
negotiations in services have been making good progress.  Many noted that they have held a numberof bilateral meetings, which had generally been constructive and positive.  In this context, it was
recalled by some that there shall be no a priori  exclusion of any service sector or mode of supply in
the negotiations.  Some delegations wished to highlight  areas of particular interest to them, including
audio-visual services, energy services, maritime transport services, telecommunications services the
supply of services through the movement of natural persons, and the reduction and termination of
MFN exemptions.  At the same time, a growing num ber of references were made to the need for
balanced progress in the negotiations in two respects.  The first was for balance with regard to thepace of progress between negotiations on market access and negotiations on GATS rules and
disciplines on domestic regulation.  The second was a call for overall balance in the various areas
under the Doha Development Agenda, that is, between Services on the one hand and Agriculture and
TRIPS-health related issues on the other.  With respect to the approaching 31 March benchmark for
the circulation of initial offers, a number of  Members, both developed and developing, indicated theirintention to circulate their offers by this date and encouraged others to do so as well.  Other Members
signalled that their capitals were actively engaged in domestic consultations, and that the complex and
administratively taxing nature of the offers process would require more time.
II. OUTSTANDING ISSUES
6. Members were invited to respond to a proposal made last October by a group of developing
country Members regarding paragraph 15 of the Guidelines and Procedures for the Negotiations on
Trade in Services, which refers to an evaluation of the results obtained in the negotiations in terms of
the objectives of Article IV (Increasing Participation of Developing Countries) of the GATS.
Specifically, a proposal has been made to include this item as a permanent sub-item on the agenda
under "Review of Progress in the Negotiations".  Some Members expressed their support for thisproposal while others stated their internal consultations were continuing.
III. FUTURE WORK
7. Overall, I feel that the Council's work is proceeding at a good pace.  A few Members noted
their interest in building on the success of the Modalities for the Treatment of Autonomous
Liberalization by turning next to a revised draft of the Modalities for the Special Treatment for LDCs,
which the least-developed countries have indicated they hope to circulate in the near future.
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