RESTRICTEDWORLD TRADE
ORGANIZATIONS/C/M/26
9 March 1998
(98-0910)
Council for Trade in Services Original:  English
REPORT OF THE MEETING HELD ON 26 FEBRUARY 1998
Note by the Secretariat
1. The Council for Trade in Services held a meeting on 26 February 1998.  The agenda for the
meeting is contained in WTO/AIR/773.  No points were raised under other business.
A. THE CONCLUSION OF THE VERIFICATION OF THE SCHEDULES OF
COMMITMENTS ON FINANCIAL SERVICES
2. The Chairman recalled that an informal meeting had been held on 30 January and 2 February
to conduct the technical verification of the Schedules of Commitments and Lists of Article II (MFN)
Exemptions resulting from the negotiations on financial services concluded on 12 December of last
year.  Following that meeting the delegations concerned had made technical corrections and
improvements to their Schedules and Exemption Lists.  The revised versions of those documents wereavailable in a compilation dated 23 February 1998 (Job No. 1071).  There was also an Addendum to
that compilation containing the Schedules of Bahrain,  the Dominican Republic, Nigeria and South
Africa, and a document indicating a change to the MFN Exemption List for Australia.  A separate
Communication had been received from Bolivia containing an improved Schedule in Financial
Services.  The delegations of the Dominican Republic, Nigeria
, and South Africa  introduced some
changes to their schedules which had not been indicated in full during the informal meeting for
verification.
3. The Chairman suggested that the Council agree that the verification process was concluded,
and that the Schedules and MFN Exemption Lists as contained in the Compilation dated 23 February
and in the other documents now before the Council were the final results of the negotiations on
financial services, and therefore would be attached to the Fifth Protocol to the GATS.
4. The Council so agreed.
5. The Chairman informed delegations that the Fifth Protocol to the GATS would be open for
acceptance as of 27 February 1998.
B. THE IMPLEMENTATION OF THE WORK PROGRAMME APPROVED BY MINISTERS
AT THE SINGAPORE MINISTERIAL CONFERENCE
6. The Chairman recalled that at its last regular meeting, on 26 November 1997, the Council had
a preliminary discussion of the two Notes prepared by the Secretariat: "Economic Effects of Services
Liberalization" (S/C/W/26) and "A Review of Statistics on Trade Flows in Services" (S/C/W/27).  It
had been agreed that further discussion of the two papers was needed.  Several delegations noted that
the paper on the "Economic Effects of Services Liberalization" constituted a balanced approach to this
matter and that it provided a useful backdrop for the exchange of information exercise.  It wassuggested that some sections of this paper could be expanded as part of the further work needed onS/C/M/26
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the information exchange.  Regarding the paper on statistics, some delegations said that it would be
helpful for the Secretariat to explore existing statistics on foreign direct investment and any
employment and migration statistics that could be found.
7. Two delegations said that 1997 had been an important and fruitful year for the Council but
that much work still needed to be done in severa l areas, including the Article VI:4 work programme,
the exchange of information, and the negotiating guidelines for the next round.  It was the general
view that a structured process was needed for the exchange of information exercise and that this
matter should be the subject of informal consultations before the next formal meeting of the Council.
8. The Council took note of the statements made by delegations and agreed to revert to this item
in informal consultations.
C. SUBMISSIONS OF SCHEDULES OF COMMITMENTS IN BASIC
TELECOMMUNICATIONS
9. The Chairman drew attention to document s S/C/W/34 and S/C/W/35 containing the draft
Schedules in basic telecommunications of Cyprus and Barbados  respectively.  He recalled that these
two Schedules had been subjected to the regular certification procedure and that since no objections
were received from any delegation, the Schedules were deemed to have been approved.  The
procedure was concluded for Cyprus on 30 Janu ary 1998 and for Barbados on 20 February 1998 and
the Schedules had been issued in their final form.  He suggested that the Council take note of these
two new Schedules.
10. The Council took note.
D. NOTIFICATIONS TO THE COUNCIL PURSUANT TO ARTICLE III:3 OF THE GATS
11. The Chairman recalled that paragraph 3 of Article III of the GATS calls upon Members to
notify, at least annually, any changes to their laws and regulations which significantly affect trade in
services covered by their specific commitments.  Pu rsuant to this provision, the Council had received
the following Notifications:
- Communication from Uruguay (S/C/N/54);
- Communication from Poland (S/C/N/56);- Communication from Poland (S/C/N/57);
- Communication from Japan (S/C/N/58);
- Communication from Japan (S/C/N/59);
- Communication from Japan (S/C/N/60);
- Communication from Japan (S(C/N/61);
- Communication from Japan (S/C/N/62);
- Communication from Norway (S/C/N/63);- Communication from Norway (S/C/N/64);
12. The Chairman suggested that the Council take note of these Notifications.
13. The Council took note.S/C/M/26
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E. NOTIFICATIONS TO THE COUNCIL PURSUANT TO ARTICLE VII:4 OF THE GATS
14. The Chairman recalled that paragraph 4 of Article VII of the GATS contains certain
notification requirements concerning recognition measures and agreements.  Pursuant to this
provision, the Council had received the following notifications:
- Communication from the European Communities
 and their Member States (S/C/N/43);
- Communication from Venezuela (S/C/N/44);
- Communication from Venezuela (S/C/N/45);
- Communication from Venezuela (S/C/N/46);
- Communication from Venezuela (S/C/N/47);
15. The Chairman suggested that the Council take note of these notifications.
16. The Council took note.
F. COOPERATION BETWEEN THE INTERNATIONAL TELECOMMUNICATION UNION
AND THE WTO
17. The Chairman stated that at the last regular meeting of the Council on 26 November 1997, the
Secretariat had presented a note contained in do cument S/C/W/30 entitled "Cooperation Between the
International Telecommunication Union (ITU) and the WTO".  During the discussion of thatdocument preliminary views were expressed and the Secretariat was asked to provide further
information on the subject.  Accordingly, the Secretariat had prepared an addendum to that note
contained in document S/C/W/30/Add.1.  A representative of the Secretariat introduced the document.
He explained that the ITU had taken the initiative with respect to a possible cooperation agreement
and that considering the heavy workload of last ye ar the Council and the Secretariat had not given any
definitive response.  It was now for the Members to react to the ITU initiative.  Some delegations said
that exploratory talks with the ITU on the question of a cooperation agreement could be desirable
particularly in relation to matters such as regulatory reform, cooperation on technical issues and a
certain level of exchange of information between the two organizations, as long as it was clear that
such cooperation would not slow down the pace of liberalisation and that would not undermine theindependence of Members within the WTO.
18. The Chairman noted that there was preliminary support for an agreement, but that a number
of elements still needed to be clarified before starti ng talks with the ITU.  He suggested that the Chair
might hold informal consultations on this matter.
19. The Council took note of the comments made and agreed to revert to this item at a future
meeting.
G. THE APPOINTMENT OF CHAIRPERSONS FOR SUBSIDIARY BODIES
20. The Chairman informed participants that in accordance with the Guidelines for Appointment
of Officers to WTO Bodies, he had been conduct ing informal consultations on the appointment of
Chairpersons for the four bodies subsidiary to the Council for Trade in Services: the Committee on
Specific Commitments, currently chaired by Mr. Mukerji, (India); the Committee on Trade in
Financial Services,  currently chaired by Mr. Okubo, (Japan); the Working Party on GATS Rules,currently chaired by Ms. Courtney, (Australia) and the Working Party on Professional Services,
currently chaired by Mr. Williams, (United Kingdom).  As no conclusion had yet emerged form theseS/C/M/26
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consultations he suggested that the Chair continue consulting delegations on the matter.  However, if
no result was reached by the time of the next meeting of the Working Party on Professional Services,
he suggested that this meeting be chaired by the current Chairman of the WPPS.
21. The Council so agreed .
I. INSTALLATION OF THE NEW CHAIRPERSON
22. The Chairman recalled that in the past year the Council had achieved very important results
and thanked the delegations, the chairs of the Council's subsidiary bodies and the Secretariat for the
work done during his chairmanship of the Council.  The Council thanked Ambassador Joun Yung Sun
of Korea for his excellent work as Chairman in th e past year and following the consensus established
at the meeting of the General Council on 19 Febr uary 1998, elected Ambassador Nobutoshi Akao of
Japan as its new Chairman by acclamation.
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