            DECISION CONCERNING PARAGRAPH (b) OF ARTICLE XIV
              OF THE GENERAL AGREEMENT ON TRADE IN SERVICES


      Ministers recommend that the Council for Trade in Services at its 
first meeting shall adopt the decision set out below.

         WORKING PARTY ON TRADE IN SERVICES AND THE ENVIRONMENT

The Council for Trade in Services,

      Acknowledging that measures necessary to protect the environment may 
conflict with the provisions of the Agreement, and

      Noting that since measures necessary to protect the environment 
typically have as their objective  the protection of human, animal or plant 
life or health, it is not clear that there is a need to provide for more 
than is contained in paragraph (b) of Article XIV.

      Decides as follows:

1.    In order to determine whether any modification of Article XIV of the 
Agreement is required to take account of such measures, a Working Party 
shall be established and shall examine and report, with recommendations if 
any, on the relationship between services trade and the environment 
including the issue of sustainable development.  The Working Party shall 
also examine the relevance of inter-governmental agreements on the 
environment and their relationship to the Agreement.

2.    The Working Party shall report the results of its work within three 
years of the entry into force of the Agreement Establishing the MTO.