. /.RESTRICTEDWORLD TRADE
ORGANIZATIONS/WPGR/W/45
11 November 2003
(03-6041)
Working Party on GATS Rules
- DRAFT -
ANNUAL REPORT1 OF THE WORKING PARTY ON GATS RULES
TO THE COUNCIL FOR TRADE IN SERVICES (2003)
1. Since its last update to the annual report, the Working Party on GATS Rules held two formal
meetings: on 2-3 July 2003 and 1 October 2003.  Reports of these meetings are contained in
documents S/WPGR/M/43 and S/WPGR/M/44.  They should be read in conjunction with this update.
The three negotiating mandates the Working Party is entrusted with were put on the agenda of the two
meetings: emergency safeguard measures (Article X), government procurement (Article XIII) and
subsidies (Article XV).  At its meeting of 2 and 3 July, the Working Party also took stock of progressmade in the negotiations, as reflected in the report of that meeting, as well as in the report of the
following meeting of the Special Session of the Council for Trade in Services.
2
I. NEGOTIATIONS ON EMERGENCY SAFEGUARD MEASURES UNDER GATS
ARTICLE X
2. At the meeting of July 2003, the issue of emergency safeguard measures was not addressed.
At the meeting of 1 October 2003, delegations continued their examination of issues related to a
possible ESM, including the questions of desirability and feasibility.  The Swiss delegation presented
a non-paper which examined a particular example and analysed the possibilities available to a
member government in the absence of an ESM.  Various points of views, as well as preliminary
reactions were expressed.  The delegation of Thailand, speaking for a number of other delegations,responded to questions previously asked regardin g how an ESM model might apply to a hypothetical
example.  These discussions are reflected in paragraphs 2-22 of S/WPGR/M/44.
II. NEGOTIATIONS ON GOVERNMENT PROCUREMENT UNDER GATS
ARTICLE XIII
3. The issue of government procurement was not addressed at the meeting of July 2003.  At the
meeting of 1 October 2003, the European Communities explained its proposal for a framework of
rules in this area.
3  Also, the Secretariat had prepared a note on government procurement disciplines in
economic integration agreements.4  A number of delegations commented and asked questions, while
others reserved their position for the time being or recalled their views on the mandate for
negotiations.  These discussions are reflected in paragraphs 23-38 of S/WPGR/M/44.
III. NEGOTIATIONS ON SUBSIDIES UNDER GATS ARTICLE XV
4. The issue of subsidies was discussed at both the meetings of July and October 2003.
Discussions focused on the issue of definition and on ways to obtain more information on subsidies in
                                                     
1 This report, together with the update in document S/WPGR/12, complete the reporting requirement
for 2003.
2 TN/S/M/8.
3 S/WPGR/W/42
4 S/WPGR/W/44S/WPGR/W/45
Page 2
services sectors.  Regarding the latter point, a proposal by the delegation of Chile, supported by
various other delegations, was put forward and several Members referred to UNCTAD's work on a
study on subsidies in services sectors.  In addition, Members mandated the Secretariat to update its
previous Note on subsidy disciplines in economic integration agreements notified under Article V and
to put together a list of studies pertaining to subsidies in services sectors that have been done by otherinternational organizations.   These discussions are reflected in paragraphs 44-69 of S/WPGR/M/43
and paragraphs 39-83 of S/WPGR/M/44.
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