( ) Page: 1/13 ANNUAL REPORT OF THE COUNCIL FOR TRADE IN SERVICES TO THE GENERAL COUNCIL (2016)

Transcription

1 25 November 2016 ( ) Page: 1/13 ANNUAL REPORT OF THE COUNCIL FOR TRADE IN SERVICES TO THE GENERAL COUNCIL (2016) Since its Annual Report of 2015 to the General Council 1, the Council for Trade in Services held five formal meetings, respectively on 15 October 2015, 2 November 2015 (Dedicated Session on the LDC services waiver), 18 March 2016, 17 June 2016 and 7 October During the period covered by this report, the Council addressed the following matters. 1 NOTIFICATIONS MADE TO THE COUNCIL PURSUANT TO GATS ARTICLES III:3, V:7 AND VII: The Council for Trade in Services took note, altogether, of the following notifications: (a) Notifications pursuant to Article III:3 of the GATS Russian Federation Peru Switzerland Ukraine Paraguay Lesotho Egypt European Union S/C/N/ S/C/N/ S/C/N/831, S/C/N/859 S/C/N/832 S/C/N/ S/C/N/ S/C/N/862 S/C/N/ (b) Notifications pursuant to Article V:7 of the GATS Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, Singapore and United Arab Emirates Brunei Darussalam, Cambodia, India, Indonesia, Lao PDR, Malaysia, Myanmar, Philippines, Singapore, Thailand, Viet Nam Kyrgyz Republic The European Union and Ukraine China and the Republic of Korea The Republic of Korea and New Zealand The European Union Australia and China The Republic of Korea and Viet Nam China and Hong Kong, China China and Macao, China Mongolia and Japan Mexico and Panama S/C/N/807/Rev.1 S/C/N/822 S/C/N/823 S/C/N/744/Add.1 and Corr.1 S/C/N/854 S/C/N/855 S/C/N/856 S/C/N/858 S/C/N/861 S/C/N/264/Add.9 S/C/N/265/Add.9 S/C/N/863 S/C/N/864 The agreements notified in these documents were referred to the Committee on Regional Trade Agreements for consideration. (c) Notifications pursuant to Article VII:4 of the GATS Russian Federation S/C/N/ S/C/48, dated 2 November Reports of these meetings are contained in documents S/C/M/124 to 128, and should be read in conjunction with this report.

2 At the meeting held in March 2016, the Council took note of the updated annual Secretariat Note containing a statistical account of the notifications made under relevant GATS provisions At the June and October meetings, the United States underscored the importance of timely and complete notifications of Economic Integration Agreements (EIAs) pursuant to GATS Article V:7, and drew the Council's attention to services EIAs whose notification was outstanding. 2 OPERATIONALIZATION OF THE LDC SERVICES WAIVER 2.1. The Council discussed the operationalization of the LDC services waiver during the entire reporting period. It also held a Dedicated Session, entirely devoted to the LDC services waiver, on 2 November A total of 23 notifications of preferences for LDC services and service suppliers were submitted to the Council by the end of the reporting period. Notifications were submitted by: Canada Australia Norway Republic of Korea China Hong Kong, China Chinese Taipei Singapore New Zealand Switzerland Japan Mexico Turkey United States India Chile Iceland Brazil European Union Liechtenstein South Africa Uruguay Thailand S/C/N/792/Rev.1 S/C/N/805 S/C/N/806 S/C/N/808 S/C/N/809 S/C/N/810 S/C/N/811 S/C/N/812 S/C/N/813 S/C/N/819 S/C/N/820 S/C/N/821 S/C/N/824/Rev.1 S/C/N/825 S/C/N/833 S/C/N/834 S/C/N/835 S/C/N/839 S/C/N/840 S/C/N/841 S/C/N/853 S/C/N/857 S/C/N/ As required by the Waiver Decision 4, notified preferential measures that go beyond Article XVI of the GATS need to be approved by the Council. At the Dedicated Session, the Council approved all such preferences included in the notifications submitted until then. Pursuant to the Decision on preferential treatment for LDCs adopted by Ministers in Nairobi 5, which, inter alia, instructs the Council to expeditiously consider approval of preferential measures beyond Article XVI, at its March meeting, the Council did consider, and approve, all such preferences, which were contained in five of the notifications on the agenda for that meeting At the Dedication Session of 2 November, the LDC Group presented its initial assessment of the notifications received up to that point. At the June and October 2016 meetings, the Group offered a further, detailed assessment of the preferences notified by the European Union and South Africa, as well as of Turkey's revised notification. The LDC Group indicated that it would continue, at future meetings of the Council, to share its examination of the notifications received As stipulated in the relevant Nairobi Ministerial Decision, the Council is to facilitate discussions on technical assistance aimed at promoting LDCs' participation in services trade. In line with that mandate, in March the European Union, China, Australia and India shared information on various technical assistance and capacity-building measures they had implemented 3 Document JOB(09)/10/Rev.6. 4 WT/L/ WT/L/982.

3 - 3 - or would undertake to promote the increasing participation of LDCs in services trade. At the June meeting, furthermore, a representative of the World Bank shared a preliminary assessment of the preferences granted; a distinction was made between the kinds of preferences that LDCs could take advantage of relatively rapidly and those for which more work was required. The World Bank also provided an overview of the kind of skills, regulatory and connectivity assistance that would likely be of greatest relevance to LDCs. 3 WORK PROGRAMME ON ELECTRONIC COMMERCE 3.1. In July 2015, Members had accepted China's suggestion to embark on a structured information-sharing exercise under the Work Programme through the addition of a standing agenda sub-item. Hence, at the October 2015 meeting China provided the latest available information on the rapid expansion of e-commerce in its market, developments with domestic e-commerce legislation and the role e-commerce had played in integrating Chinese SMEs into the world trading system. Nigeria also contributed information on the remarkable progress e-commerce had enjoyed in its market Pursuant to the relevant Nairobi Ministerial Decision 6, in 2016 the CTS continued with its deliberations under the Work Programme. In March, China presented the most recent data on the continuous acceleration of e-commerce in its market, while Canada shared information on the e- commerce provisions it had included in its trade agreements. A representative of UNCTAD updated the Council on a number of activities UNCTAD was undertaking related to e-commerce After noting that existing WTO rules were already applicable to e-commerce, at the June meeting some delegations called on the Membership to consider whether and which additional disciplines might usefully complement the multilateral rulebook in the area. One delegation reiterated, however, that Members' discussions under the Work Programme must not aim at any normative or prescriptive outcomes. The WTO institutional arrangements for deliberations on e- commerce were also mentioned by a few Members. While one delegation viewed the fragmentation across different bodies as unhelpful, several others supported such multi-layered discussions, in light of the broad range of issues involved. The MIKTA 7 countries shared with the Membership the programme of the e-commerce seminar they were organising on 5 July Also at the June meeting, Brazil proposed that the Secretariat update a 1998 Note produced to assist Members' examination of the treatment of electronic commerce in the GATS legal framework. 8 Many delegations welcomed the suggestion but a few requested more time to consider the proposal. The Chairman organised open-ended consultations on the matter in July, but no consensus could be reached and, at the October meeting, Brazil indicated that it did not intend to revisit its proposal Pursuant to the mandate in the Nairobi Ministerial Decision, that the General Council periodically reviews progress with the Work Programme based on the reports that might be submitted by the WTO bodies entrusted with its implementation, in June the Council agreed that the Chairman would produce, under his own responsibility, a factual report of the essence of the discussions the Council had had under that agenda item up to that point In October, Members considered a proposal by Chinese Taipei et al. that the Council hold a seminar on the services trade-aspects of e-commerce. 10 Around 30 delegations took the floor to support the proposed seminar, with several referring to e-commerce as a possible MC11 deliverable. A few delegations, however, indicated that they needed more time to consider the proposal and would revert to it. While generally agreeable to discussing e-commerce issues within the confines of the Work Programme, these delegations recalled that the Work Programme did not contain a negotiating mandate, called for special attention to be paid to its developmental aspects and underscored the need to bridge the e-commerce knowledge and regulatory gap that developing countries faced before any discussion of trade disciplines could be undertaken. It was 6 WT/L/ Mexico, Indonesia, Korea, Turkey and Australia. 8 S/C/W/68, 16 November The report is contained in document S/C/ RD/SERV/133/Rev.2, sponsored by Chinese Taipei with Australia; Canada; Colombia; Hong Kong, China; Israel; the Republic of Korea; Mexico; Panama; Paraguay; Qatar; Singapore and the United States.

4 - 4 - agreed that the Chairman would hold open-ended consultations on whether to hold the proposed seminar and what its programme might be. 4 RECENT DEVELOPMENTS IN TRADE IN SERVICES 4.1. Discussions under this agenda item took place at the October 2015 meeting, with TISAparticipating Members indicating their availability to share information on progress with their negotiations with any interested Member. 5 CERTAIN MEASURES RELATED TO THE REFORM OF THE UNIFIED GAS TRANSPORTATION SYSTEM OF UKRAINE STATEMENT BY THE RUSSIAN FEDERATION 5.1. At its October 2015, March, June and October 2016 meetings, the Council addressed certain measures related to the reform of the Unified Gas Transportation System of Ukraine, at the request of the Russian Federation. The Council took note of the statements made by the Russian Federation, Brazil, the Plurinational State of Bolivia, Argentina and the Bolivarian Republic of Venezuela at the October 2015 meeting; the Russian Federation and Ukraine at the March meeting; the Russian Federation, Ukraine, Armenia, Nicaragua and Cuba at the June meeting; and the Russian Federation, Ukraine, Armenia and Cuba at the October meeting. 6 RE-OPENING OF THE FIFTH PROTOCOL FOR ACCEPTANCE BY BRAZIL 6.1 At its March meeting, the Council agreed to re-open the Fifth Protocol to the GATS on financial services until 25 March 2016, to allow the Government of Brazil to deposit the instrument of acceptance that would give legal effect to Brazil's commitments annexed to that Protocol. 7 MODE 4 - ASSESSMENT OF BARRIERS TO ENTRY STATEMENT BY INDIA 7.1. At its March meeting, the Council addressed India's assessment of barriers to entry in mode 4 of the GATS, on the basis of a written communication India had submitted. 11 The communication refers, inter alia, to measures taken, or being considered, by the United States, Canada and the United Kingdom that India considers impede or may impede mode 4 trade The United States stated that, since India had filed a request for consultations under the DSU on the US measure under discussion, India had chosen the WTO forum in which to address the issue, and discussions of the same measure in the Council were procedurally inappropriate. The European Union and the United Kingdom stated that the Indian communication referred to neither a measure nor a draft measure within the meaning of the GATS, but simply to a recommendation from an independent consultative body. Canada indicated that India had misunderstood and misperceived its recent reforms Several developing countries echoed India's general concerns with respect to regulatory barriers that might impede mode 4 trade, while Australia noted that regulatory barriers could limit trade in other modes of supply India also proposed that the Secretariat update its 2009 Background Note on mode 4, to reflect, inter alia, the increase in perceived obstacles to mode 4, but a few Members expressed their opposition. The request was reiterated at the June meeting, but yet again no consensus was arrived at At the June meeting, the United Kingdom, Canada and the United States questioned India's approach in mentioning specific measures, rather than generic barriers, and expressed their disappointment that the issue had been revisited in the Council in a manner they considered unconstructive. Several developing countries echoed India's general concerns about the many barriers that hampered mode 4 trade When the Council took up the issue again at its October meeting, India suggested that, rather than focusing on specific measures by specific Members, the Council organize either a 11 JOB/SERV/ S/C/W/301.

5 - 5 - dedicated discussion or a seminar to discuss generic mode 4 obstacles. Such obstacles included unclear definitions, non-portability of social security, non-recognition of qualifications, residency requirements and economic needs tests. While several Members called on India to provide more details about its proposal, in writing, a number nonetheless offered their preliminary support to India's suggestion. A few others expressed an interest in discussing all services market access issues, across the board, and noted that no single mode should be singled out when debating barriers to services trade, while also observing that the sectoral scope and level of commitments Members had undertaken should also be considered in such discussions. A couple of delegations indicated that the novelty of India's proposal prevented them from reacting. It was agreed that, in light of India's most recent proposal under this agenda item, the Chairman would hold consultations to better delineate the scope of the Council's deliberations on the issue. 8 FOURTH REVIEW OF MFN EXEMPTIONS 8.1. In light of the decision Members had taken in 2011 to hold the fourth review of MFN exemptions "no later than 2016" 13, at its March meeting the Council debated when exactly, in 2016, it would start the review. The decision was reached to commence the review at the June Council meeting, with a discussion of procedural issues Consequently, at the June meeting Members started the fourth review of MFN exemptions, by discussing organisational issues. Delegations were in overall agreement that past practice could be adhered to, although many suggested that the review should be streamlined and a number of ideas were put forward to that effect. At a subsequent informal meeting, convergence emerged on the procedural arrangements to be followed; these were later outlined in detail in a Chairman's Note and agreed to by Members. 14 The fourth review of MFN exemptions will, accordingly, be conducted on that basis. 9 FUTURE WORK OF THE SUBSIDIARY BODIES TO THE COUNCIL FOR TRADE IN SERVICES STATEMENT BY BRAZIL 9.1. At the June meeting Brazil proposed that Members consider how to restructure the work of the subsidiary bodies to the Council. Specifically, Brazil suggested that the Committee on Trade in Financial Services be discontinued and the Working Party on GATS Rules and the Committee on Specific Commitments suspended; in lieu, a standing item would be added to the agenda of the Council, for Members to discuss the issues that were currently addressed in those bodies. The Working Party on Domestic Regulation (WPDR) should continue its work if Members engaged in text-based negotiations, or also be suspended otherwise Several Members asked Brazil to put its ideas in writing, so as to be able to consider them properly. One delegation found Brazil's proposal of interest, but a number of others expressed the view that, at a time of renewed interest in services work, the Council's subsidiary bodies should continue with their work. However, most delegations indicated that they were open to reconsidering the frequency of meetings: not all subsidiary bodies would necessarily have to meet during each cluster, whereas the WPDR might need to meet more frequently. The Council agreed that the Chairman would organise informal consultations on the issue. Although at those consultations no consensus emerged on Brazil's proposal, an item entitled "Future Work and Timing of the Next Meeting" was added to the agenda of each subsidiary body, to offer delegations an opportunity to discuss what future work might be undertaken and when the next meeting might be organised. 10 RECENT DEVELOPMENTS IN TRADE IN SERVICES STATISTICS At the October meeting of the Council, the Secretariat made a presentation on recent developments in trade in services statistics, which focused on data production and dissemination, technical assistance activities, specific projects and new areas of work. The Council agreed that such an update would be organised on a yearly basis. 13 S/C/M/105, paragraphs JOB/SERV/238.

6 WORK OF THE SUBSIDIARY BODIES The activities of the subsidiary bodies in 2016 are reflected in their respective reports, which are annexed to this report, as follows: Annex I Annex II Annex III Annex IV Report of the Committee on Trade in Financial Services (S/FIN/31) Report of the Committee on Specific Commitments (S/CSC/22) Report of the Working Party on Domestic Regulation (S/WPDR/19) Report of the Working Party on GATS Rules (S/WPGR/27).

7 - 7 - S/FIN/31 24 November 2016 ( ) Page: 1/1 ANNUAL REPORT OF THE COMMITTEE ON TRADE IN FINANCIAL SERVICES TO THE COUNCIL FOR TRADE IN SERVICES (2016) Since its previous Annual Report to the Council for Trade in Services 1, the Committee on Trade in Financial Services held four formal meetings, on 14 October 2015, 16 March 2016, 15 June 2016, and 5 October ACCEPTANCE OF THE FIFTH PROTOCOL TO THE GATS 1.1. On 18 March 2016, Brazil accepted the Fifth Protocol to the GATS. In terms of paragraph 3 of the Protocol and pursuant to the Decision of the Council for Trade in Services (reproduced in document S/L/411), the Protocol entered into force for Brazil on 18 March The Protocol has now been accepted by all its parties. 2 TRADE IN FINANCIAL SERVICES AND DEVELOPMENT 2.1. The Committee focused on the issue of financial inclusion, on the basis of a Background Note by the Secretariat on Barriers to Financial Inclusion and Trade in Services (S/FIN/W/88/Add.1). The Note provides an overview of barriers to financial inclusion (e.g. supply-side and demand-side constraints, inadequate regulatory frameworks, institutional weaknesses and deficient financial infrastructure), shows through various original case studies how trade in services contributes to overcoming those obstacles, and discusses the role of trade policy in services in that context. As part of this discussion, Members also exchanged information on their respective financial inclusion initiatives and policies. 3 REGULATORY ISSUES IN FINANCIAL SERVICES 3.1. In the context of the Committee's review of recent developments in global financial regulatory reform and the implications for trade in financial services, representatives of the Global Forum on Transparency and Exchange of Information for Tax Purposes, the International Monetary Fund and the Islamic Financial Services Board made presentations on recent developments in their respective areas of competence. The presentations were followed by discussions with Members The Committee also considered a Note by the Secretariat overviewing recent standardsetting activities by the Basel Committee on Banking Supervision, the Financial Stability Board, the International Association of Insurance Supervisors, the International Organization of Securities Commissions, as well as the Islamic Financial Services Board, over the last two years (document S/FIN/W/90 and Add.1). 4 RECENT DEVELOPMENTS IN FINANCIAL SERVICES TRADE 4.1. At the meetings in June and October 2016, the representative of Jamaica, on behalf of the members of the Caribbean Community (CARICOM), drew Members' attention to the impact of "derisking" on correspondent banking relationships in the region. 1 S/FIN/30, dated 14 October The reports of the formal meetings are contained in documents S/FIN/M/86 to 89, and should be read in conjunction with this report.

8 - 8 - S/CSC/22 23 November 2016 ( ) Page: 1/2 ANNUAL REPORT OF THE COMMITTEE ON SPECIFIC COMMITMENTS TO THE COUNCIL FOR TRADE IN SERVICES (2016) Since its Annual Report of 2015 to the Council for Trade in Services 1, the Committee on Specific Commitments (CSC) held four formal meetings, respectively on 2 October 2015, 17 March 2016, 16 June 2016, and 5 October During the period covered by this report, the Committee addressed two standing items - classification issues and scheduling issues and considered future work. 1 CLASSIFICATION ISSUES 1.1. At the meeting of 2 October 2015, a representative of the UN Statistics Division made a presentation on services in the Central Product Classification (CPC) through video conference, with a focus on the evolution of CPC and its general application rules. In the follow-up discussions, Members reiterated their divergent views on various issues related to "new services", including whether "new services" existed, whether a definition of "new services" was needed, and the implications of "new services" for existing commitments under the GATS During the reporting period, a number of delegations indicated repeatedly that the Committee had exhausted the discussion on "new services", while some others continued to express interest in further exploring related issues. 2 SCHEDULING ISSUES 2.1. At the meeting of 17 March 2016, the delegation of Turkey presented its communication on economic needs tests (ENTs) with a view to reinvigorating the discussion in the Committee. 3 Noting problems arising from vague and ambiguous ENT entries in Members' schedules, Turkey made a number of specific suggestions for future work in this regard, including: updating the Secretariat's Note on ENTs, examining tendencies in the scheduling of ENTs in FTAs, exchange of information among Members on the application of ENTs, and identifying common elements of the criteria for ENTs by mode or by sector. Turkey's proposals received general support from Members and a shared view was expressed that ambiguous ENT entries in Members' schedules undermined the value of specific commitments under the GATS. Nevertheless, the Committee only agreed to task the Secretariat to update its Note on ENTs by examining the schedules of newly acceded Members At the meeting of 16 June 2016, the Secretariat presented the update of its Note on economic needs tests, which examined the schedules of the 11 Members that had acceded to the WTO after 16 April The updated Note highlighted that many ENT-related entries continued to be problematic, even in new Members' schedules At the meeting of 5 October 2016, the Committee continued its discussion on ENTs, but no progress was made on substance. 1 S/CSC/21, dated 14 October The reports of the formal meetings are contained in documents S/CSC/M/74-77, and should be read in conjunction with this report. 3 JOB/SERV/224, dated 29 February S/CSS/W/118/Add.2, dated 25 May 2016.

9 - 9-3 FUTURE WORK 3.1. The Chairman held consultations on possible future work the Committee might undertake within its mandate. At the meeting of 5 October 2016, a number of delegations expressed interest in discussing various scheduling and classification issues, in particular those related to e- commerce. There were also questions about the purpose of the Committee's work in the absence of market access negotiations. The Chairman would continue to consult with Members on future work of the Committee.

10 S/WPDR/19 25 November 2016 ( ) Page: 1/2 ANNUAL REPORT OF THE WORKING PARTY ON DOMESTIC REGULATION TO THE COUNCIL FOR TRADE IN SERVICES (2016) Since its Annual Report of 2015 to the Council for Trade in Services 1, the Working Party on Domestic Regulation (WPDR) held four formal meetings, respectively on 15 October 2015, 17 March, 16 June, and 6 October During the period covered by this report, the Working Party continued with its work on domestic regulation disciplines pursuant to GATS Article VI:4. 1 DEVELOPMENT OF REGULATORY DISCIPLINES UNDER GATS ARTICLE VI: The focus of the discussion at the meeting on 15 October 2015 was on inclusion of a possible transparency element in an outcome at the Tenth WTO Ministerial Conference in Nairobi. While some delegations suggested that such an outcome was desirable and could be built around transparency elements of previous WPDR Chair draft texts, other delegations were not convinced that transparency in domestic regulation was an issue that should be included in a Nairobi outcome During the meeting of the Working Party on 17 March 2016, delegations were in agreement that further work should take place on the basis of the full mandate of the Working Party under Article VI:4. Delegations expressed general readiness to engage on substance. Several delegations stated that a first step towards engagement could be a discussion on objectives and desired outcomes At the meeting of 16 June 2016, on the basis of a proposal by a group of Members3, many delegations engaged in a discussion of experiences with domestic regulation barriers, Members' objectives, possible elements to be included in future domestic regulation disciplines, and the way forward in the work of the WPDR. Upon request by Members, the Chairperson prepared an informal summary of possible elements for inclusion in disciplines on domestic regulation that were mentioned by Members at the meeting During the meeting of 6 October 2016, the Working Party addressed two communications by Members: one communication by a group of Members provided text proposals on "Administration 1 S/WPDR/18, dated 15 October The reports of the formal meetings are contained in documents S/WPDR/M/65-68 and should be read in conjunction with this report. 3 JOB/SERV/231/Rev.1, dated 13 June 2016; Communication from Australia; Chile; China; Colombia; Hong Kong, China; the Republic of Korea; Mexico; New Zealand; Norway; the Russian Federation; Singapore; Switzerland; the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu; and Turkey - Elements for Discussion. 4 JOB/SERV/236, dated 28 June 2016; Informal Summary by the Chairperson - Possible Elements of Domestic Regulation Disciplines mentioned at the Meeting of the Working Party on Domestic Regulation on 16 June 2016.

11 of Measures" 5, while the other communication, by India, presented a "Concept Note for an Initiative on Trade Facilitation in Services. 6 5 JOB/SERV/239, dated 27 September 2016; Communication from Australia, Chile, Colombia, the European Union, Mexico, Norway, the Republic of Korea, and the Separate Customs Territory of Taiwan, Penghu, Kinmen, and Matsu Domestic Regulation Administration of Measures. A revision to the Communication to include Japan and Peru among the co-sponsors was issued on 31 October 2016, JOB/SERV/239/Rev.1. 6 S/WPDR/W/55, dated 27 September 2016; Communication from India - Concept Note for an Initiative on Trade Facilitation in Services.

12 S/WPGR/27 23 November 2016 ( ) Page: 1/2 ANNUAL REPORT OF THE WORKING PARTY ON GATS RULES TO THE COUNCIL FOR TRADE IN SERVICES (2016) Since its 2015 annual report to the Council for Trade in Services 1, the Working Party on GATS Rules (WPGR) held four formal meetings respectively on 14 October 2015, and 17 March, 16 June and 5 October The three negotiating mandates the Working Party is entrusted with namely emergency safeguard measures (GATS Article X), government procurement (Article XIII) and subsidies (Article XV) were put on the agenda of each of these meetings. In addition, in February 2016, the Working Party held an open-ended informal consultation to discuss a proposal by the European Union on future work on government procurement. In all three areas, progress on substance remained limited due notably to the overall context of the negotiations. 1 NEGOTIATIONS ON EMERGENCY SAFEGUARD MEASURES (ARTICLE X) 1.1. During the period covered by this report, the group of proponents on emergency safeguard measures (ESM) the 'Friends of ESM' 3 re-affirmed their continued interest in pursuing work in this area in accordance with the built-in mandate of GATS Article X. They invited comments from delegations on the dedicated discussion on safeguard-type provisions in bilateral and regional trade agreements that the Working Party had held in late 2013 and They also recalled their 2007 proposal in favour of establishing rules for the use of emergency safeguard measures contained in JOB(07)155 4, and suggested resuming technical discussions on statistical sources and indicators that could be used in services safeguard investigations 5. However, no delegation took up these suggestions, and Members did not engage in any substantive work on the subject. 2 NEGOTIATIONS ON GOVERNMENT PROCUREMENT (ARTICLE XIII) 2.1. In October 2015, the Working Party discussed a proposal for future work on government procurement tabled by the European Union 6 suggesting that Members exchange information on how they treated foreign-owned or -controlled established service suppliers 7 in their government procurement practices, as compared to their domestic suppliers. Further to such an exchange of information among Members, the EU delegation had suggested inviting the Secretariat to examine how possible discrimination with respect to government procurement was dealt with in Members' bilateral and regional trade and/or investment agreements. In subsequent meetings, delegations discussed the purpose of the proposal as well as the need to clarify its contours. The EU delegation 1 Annual Report of 2015 contained in document S/WPGR/26, dated 15 October Reports of these meetings are contained in documents S/WPGR/M/88 to 91, and should be read in conjunction with this report. 3 Comprising the following nine delegations: Brunei Darussalam, Cambodia, Indonesia, Lao People's Democratic Republic, Malaysia, Myanmar, Philippines, Thailand and Viet Nam. 4 Communication from Brunei Darussalam, Cambodia, Indonesia, Malaysia, Myanmar, the Philippines, Thailand and Viet Nam of 19 October 2007, "(Draft) Annex on Article X Emergency Safeguard Measures". 5 At its March 2011 meeting, the Working Party had discussed the question of the availability of disaggregated, mode-specific statistics in the context of emergency safeguards. The debate was introduced by two presentations by WTO Secretariat experts. The report of the meeting is contained in document S/WPGR/M/73. 6 Communication by the European Union entitled "Proposal for Future Work on Government Procurement", document JOB/SERV/215, dated 25 September These refer to suppliers supplying services through the establishment of a commercial presence in the territory of another Member, or 'mode 3'.

13 informed Members that, based on the comments received, they were reflecting on the best way forward regarding their proposal. 3 NEGOTIATIONS ON SUBSIDIES (ARTICLE XV) 3.1. Discussions in this area have stood at an impasse for some time with no new ideas or approaches being put forward. More conceptual work would ideally be needed to better understand how and in which sectors subsidies were provided, and what effects they might have on trade in services.