WORLD TRADE
ORGANIZATIONS/FIN/6
4 October 2001
(01-4776)
Committee on Trade in Financial Services
REPORT OF THE COMMITTEE ON TRADE IN FINANCIAL SERVICES
TO THE COUNCIL FOR TRADE IN SERVICES
1. Since its last annual report to the Council for Trade in Services, the Committee on Trade in
Financial Services has held three formal meetings, on 29 November 2000, 2 April 2001, and 9 May
2001.  Reports of those meetings are contained in documents S/FIN/M/29 to 31.  The discussions of
the Committee focused on four items: the acceptance of the Fifth Protocol to the GATS; the sectoral
classification of financial services; other issues for future discussion; and recent developments infinancial services trade.
2. Concerning the acceptance of the Fifth Protocol, the Council for Trade in Services decided at
its meeting on 1 December 2000 to reopen the Protocol to allow for the acceptance by Kenya and
Nigeria.  The two Members accepted the Fifth Protocol on 1 and 7 December, respectively.  Seven
Members have not yet accepted the Protocol: Bolivia, Brazil, Dominican Republic, Jamaica,Philippines, Poland, and Uruguay.  As part of its monitoring function, the Committee invited those
Members to report on the situation regarding their domestic ratification processes and acceptance
procedures.  In the period under consideration, the Committee heard progress reports from Brazil,
Jamaica, Poland, Philippines, and Uruguay.  Deta ils of those reports are contained in documents
S/FIN/M/29 to 31.
3. Regarding the sectoral classification of financial services, discussions focused on an informal
note submitted by Japan on the classification of activities carried out through the Internet, such as
Electronic Communication Networks (E CNs) or Internet Initial Public Offerings (IPOs).  While a few
delegations felt that the issues raised by Japan deserved further attention by the Committee, others
considered that the broad definitions contained in the Annex on Financial Services already covered
those service activities.  At the meeting held on 9 May 2001, the delegation of Japan indicated that
even though it still considered that the classification of those services would merit further analysis, ithad no intention to insist on its original proposal if, as it appeared to be the case, most Members did
not wish to pursue the discussion at that stage.  Ho wever, a few delegations indicated that they might
revisit the issues raised by Japan at future meetings since they were still considering them.
4. Under the agenda item on other issues for future discussion, the Committee agreed to
organize an informal briefing session by three international standard-setting organizations, namely the
Basel Committee on Banking Supervision, the Intern ational Organization of Securities Commissions,
and the International Association of Insurance Supervisors, to be held on 10 October 2001.  The
objective, modalities and agenda are contained in document Job(01)/56.
5. With respect to recent developments in financial services trade, at the meeting held on 29
November 2000, the Committee heard a statement by Argentina on its financial reforms.  At
subsequent meetings, although no particular presentation was heard, some delegations considered that
this agenda item represented a good opportunity for Members to provide information on national
experiences regarding regulatory reform processes in the area of financial services.
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