RESTRICTEDWORLD TRADE
ORGANIZATIONS/CSC/W/23
21 July 1999
(99-3054)
Committee on Specific Commitments
DISCUSSIONS ON THE PROCEDURES FOR IMPLEMENTATION OF
ARTICLE XXI OF THE GENERAL AGREEMENT
ON TRADE IN SERVICES
Note by the Chairman
Following the numerous consultations held on the question of the procedures for the
modification of the schedules of commitments, I undertook to provide a note that would accompany
the formal adoption by the Committee of the said procedures contained in documents (S/CSC/W/21).
In the course of the work to develop procedures for the modification of schedules of
commitments, divergent views were expressed regarding the scope of the retaliatory measures
foreseen by Article XXI:4(b) of the GATS i.e. whether non-compliance with the arbitrator's finding
by the modifying Member allows or not the affected Member/s to cross retaliate outside the services
realm.  While a large majority of delegations held the view that Article XXI made no provision forretaliatory measures to be taken outside the area of services, some considered that there was no
provision forbidding cross–retaliation.
Divergent views were also expressed on the exis tence of the requirement to go back to the
arbitrator before retaliation.  While some delegations considered that there should be a mandatory
provision requiring recourse to the arbitrator before retaliation in every case, other delegations were of
the view that there was no provision in GATS Article XXI requiring this “second” recourse to thearbitrator.  Among the latter, many could accept the possibility of having a “second” recourse to the
arbitrator as an optional provision, in case an affected Member wishes to have that recourse.
In order not to prejudge any of these positions, and to preserve the right of the parties in case
of future disputes, it has been agreed by Members to re-state the text of paragraph XXI:4(b) of theGATS in the relevant part of the procedures.
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