RESTRICTED
WORLD TRADE S/C/W/17
16July1996
ORGANIZATION(96-2916)
Original: English Council forTrade inServices
COMMUNICATION FROM AUSTRALIA
Proposal fortheSingapore Ministerial Meeting
Thefollowing communication iscirculated attherequest ofthedelegation ofAustralia to
Members oftheCouncil forTrade inServices.
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SERVICES: PREPARATORY WORK Programme FOR THE BUILT-IN AGENDA
Australian Proposal fortheSingapore Ministerial Meeting
Introduction
1. Thenextround ofservices negotiations, mandated tocommence nolaterthan1January 2000,
islikely tobecomplex inviewoftherapid evolution oftheglobal services sector. Australia believes
thatitisdesirable thatWTO Ministers attheirmeeting inSingapore agree toinitiate in1997preparations
forthese negotiations. Aproposed preparatory work programme issetoutbelow.
Background: Thebuilt-in agenda mandate fornegotiations
Services negotiations -thenextround
TheGeneral Agreement onTrade inServices (Article XIX.1) mandates "successive rounds
ofnegotiations, beginning notlaterthanfiveyears from thedateofentry intoforce oftheWTO
Agreement andperiodically thereafter, withaview toachieving aprogressively higher level of
liberalization".TheGATSthereforecallsforaroundofservicesliberalizationnegotiationstocommence
notlaterthan1January 2000.
Further, theGATS (Article XIX.3) specifies "For eachround, negotiating guidelines and
procedures shallbeestablished. Forthepurposes ofestablishing suchguidelines, theCouncil forTrade
inServices shallcarry outanassessment oftrade inservices inoverall terms andonasectoral basis".
Sectoral negotiations andreviews
TheWTO built-in agenda provides forsectoral negotiations infinancial services, basic
telecommunications, maritime transport services andmovement ofnatural persons supplying services.
Furthernegotiationsarecurrentlymandatedinfinancialservices,basictelecommunicationsandmaritime
transport services. Infinancial services, theinterim agreement isduetoexpire inDecember 1997
andnegotiations willberequired todetermine arrangements forthissector when theinterim agreement
expires. Negotiations onbasictelecommunications havebeenextended untilFebruary 1997. Maritime
negotiations have been suspended andaretoresume withthecommencement ofcomprehensive
negotiations onservices inaccordance withArticle XIXoftheGATS.
Australia proposes thatMinisters atSingapore commit themselves tothecompletion ofthe
basic telecommunications negotiations inFebruary 1997 andtotheearly commencement in1997 of
negotiations aimed atdetermining arrangements forthefinancial services sector when theinterim
agreement expires inDecember 1997.
TheMinisterial Decision onProfessional Services (paragraph 1)states "...aWorking Party
onProfessional Services shallbeestablished toexamine andreport, withrecommendations, onthe
disciplines necessary toensure thatmeasures relating toqualification requirements andprocedures,
technical standards andlicensing requirements inthefieldofprofessional services donotconstitute
unnecessary barriers totrade". TheMinisterial Decision (paragraph 2)alsostates that"Asamatter
ofpriority, theWorking Party shallmake recommendations fortheelaboration ofmultilateral disciplines
intheaccountancy sector, soastogiveoperational effect tospecific commitments". Notimetable
hasbeensetfortheconclusion oftheWorking Party'sreport.S/C/W/17
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TheAnnex totheGATS onAirTransport Services mandates theCouncil forTrade inServices
toreview periodically, andatleastevery fiveyears, developments intheairtransport sector andthe
operation oftheannex onairtransport services withaviewtoconsidering thepossible further application
oftheAgreement inthesector. Thisreview would needtotakeplace nolaterthantheyear2000.
TheAnnex onArticle IIExemptions provides that"The Council forTrade inServices shall
review allArticle IIexemptions granted foraperiod ofmore than5years. Thefirstsuchreview shall
takeplace nomore than5years aftertheentry intoforce oftheWTO Agreement", thatis,nolater
than1January 2000.
Rules negotiations
TheWTObuilt-inagendacallsfornegotiationsintheareasofemergencysafeguards,government
procurement andsubsidies.
Article XoftheGATS states "There shall bemultilateral negotiations onthequestion of
emergency safeguard measures based ontheprinciple ofnon-discrimination. Theresults ofsuch
negotiations shallenter intoeffect onadatenotlaterthanthree years fromthedateofentry intoforce
oftheWTO Agreement", thatisnotlaterthan1January 1998.
ArticleXIIIstates"Thereshallbemultilateralnegotiationsongovernmentprocurementinservices
under thisAgreement within twoyears from thedateofentry intoforce oftheWTO Agreement",
thatisnotlaterthan1January 1997.
Article XVstates "Members recognize that,incertain circumstances, subsidies mayhave
distortive effects ontradeinservices. Members shallenterintonegotiations withaviewtodeveloping
thenecessary multilateral disciplines toavoid suchtrade-distortive effects. Thenegotiations shallalso
address theappropriateness ofcountervailing procedures". Notimeperiod issetforthesenegotiations.
Inaddition, Article VI,Domestic Regulation, while notspecifying negotiations, states under
paragraph 4,that"With aviewtoensuring thatmeasures relating toqualification requirements and
procedures, technical standards andlicensing requirements donotconstitute unnecessary barriers to
tradeinservices, theCouncil forTrade inServices shall, through appropriate bodies itmayestablish,
develop anynecessary disciplines".
Proposal: Preparatory Work Programme
Preparations forArticle XIXnegotiations
Theservices liberalization negotiations mandated intheWTO built-in agenda, which areto
begin notlaterthan1January 2000, willrequire anextensive preparatory process. Thisisparticularly
soinviewoftheglobalization andgrowth ofinternational services trade.
Australia believes thatinviewoftheexpected complexity ofthefuture services negotiations,
MinistersattheSingaporeMinisterialConferenceshouldagreetoinitiateapreparatoryworkprogramme
beginning in1997 forthese negotiations. There would beinsufficient timetoprepare forfurther
negotiations ifadecision tocommence preparations wasdelayed untilthe1998 Ministerial meeting.
Australia proposed thattheCouncil forTrade inServices undertake preparatory work forthe
future negotiations, taking asitsstarting point theparameters setoutinArticle XIX.3.S/C/W/17
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- TheCouncil forTrade inServices could commence theassessment oftradeinservices
overall andonasectoral basis. Thisassessment could include information exchange
onMembers 'services regimes andtheirexperience inservices liberalization.
- Australia believes thatanassessment ofservices liberalization provided forinregional
tradearrangements would beanimportant adjunct tothisworkinviewofdevelopments
inservices rules andaccess inthese arrangements.
- Thepreparatory work should alsobegin consideration ofguidelines andprocedures
mandated inArticle XIX.3.
Sectoral andrules negotiations
Inrespect ofprofessional services, Australia proposes thatMinisters agree to:
- Complete work onaccountancy bytheendof1997;
- Commence awork programme onhorizontal aspects related toprofessional services,
withaviewtocompleting work bythestartofthenextround ofservices liberalization
negotiations; and
- Look, asappropriate, atspecific issues related toother professional services.
Australia proposes thatMinisters agree toreview progress inrules negotiations (subsidies,
safeguards andgovernment procurement) atthe1998Ministerial meeting withaviewtoconsideration
oftheircompletion inthecontext ofthefuture negotiations in2000.
Inrespect ofdomestic regulation, Australia proposes thatMinisters request theCouncil for
Trade inServices toexamine, asappropriate under Article VI.4oftheGATS, measures relating to
qualification requirements andprocedures, technical standards andlicensing requirements withaview
tocompleting work before thenegotiations in2000.
Inorder toestablish asound foundation forthescheduling offuture commitments, Australia
proposes thatMinisters agree thattheCommittee onSpecific Commitments complete itswork related
totheconsistency ofscheduling commitments, including theadequacy ofexisting scheduling rules,
asanelement ofthepreparatory work programme forthecommencement ofnegotiations in2000.
Conclusion: Report oftheCouncil forTrade inServices
Australia proposes thattheReport oftheCouncil forTrade inServices totheMinisters atthe
Singapore Ministerial Conference recommend thatapreparatory work programme commence in1997
fornegotiations onservices notlaterthanthe2000asmandated inArticle XIXoftheGATS andthat
thepreparatory work programme include theabove elements.