REPORT by THE CHAIRMAN OF THE

council for trade in services in special session^[1]

FRIday, 14 MARCH 2014

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1.1.  Pursuant to the instructions provided by the Chairman of the TNC on 6 February, I have conducted informal consultations with Members to exchange views on the Services component of the post-Bali Work Programme, which the TNC must finalize by the end of 2014. These consultations took place in an informal meeting of the "Enchilada Group" on 24 February, and an informal meeting of the Special Session of the Council for Trade in Services held on 12 March 2014. In both meetings, I asked Members to focus on the following three questions:

·         First, can it be assumed that the three market access negotiations on Agriculture, NAMA and Services should be taken up simultaneously as a package?

·         Second, if that is the case, how do Members see the services component of that package?

·         Third, at this early stage, how do Members see the potential level of ambition in services, in both market access and rule-making areas?

1.2.  Members recognised that this discussion was still at a very early stage. The need for further deliberations on the optimal way ahead was emphasized. There was overall willingness to engage in a positive way, reflecting the post-Bali spirit. There was agreement that the three market access pillars should be addressed simultaneously. There also seemed to be broad convergence on aiming for an outcome that would be realistic, doable, and balanced across the three market access pillars, as well as within the services agenda itself. Such an approach would require a certain degree of creativity and readiness to explore new approaches.

1.3.  The centrality of the development objective of the Round, and the importance of seeing this reflected in the negotiating outcome on services was emphasized. Reference was frequently made to the need to learn from previous DDA experience, to avoid repeating earlier mistakes in determining the way forward. Some Members specifically referred to the need to avoid a sequencing order in the DDA. At the same time, others stressed the centrality of the agriculture negotiations among the three market access pillars.

1.4.  While recognising that further deliberations were needed to arrive at an appropriate level of ambition in services, it seemed to be widely accepted that this would have to be considered commensurate with the corresponding levels in agriculture and NAMA. Most Members mentioned that there should also be a balanced outcome within the services pillar. Many insisted that such a balance should also include the rule-making side of the negotiations.

1.5.  References were made to plurilateral negotiations on services taking place outside the WTO. Some recognised the importance of such plurilateral initiatives as a complement to the WTO negotiations, highlighting the potential for cross-fertilization between the two tracks. At the same time, others took the view that such initiatives could undermine the multilateral process.

1.6.  The importance of operationalizing the LDC waiver was also stressed. It was generally the view that the implementation of Bali outcomes should take utmost priority. It was also noted that the regular session of the Services Council has been mandated by Ministers to address this matter.

1.7.  My conclusion is that Members are engaged and ready to include Services in the Post-Bali Work Programme and that an agreement in this area is doable. However, Services negotiations do not take place in a vacuum.