RESTRICTED  
  
S/C/M/141  
 
13 December  2019 
(19-8653) Page: 1/16 
Council for Trade in Services    
 
 
REPORT OF THE MEETIN G HELD ON 30 OCTOBER 2019 
NOTE BY THE SECRETAR IAT1 
The Council for Trade in Services held a meeting on 30 October  2019 chaired by Ambassador Muylle 
(Belgium).  The agenda was contained in document WTO/AIR/CTS/ 21. 
 
The Chairman  indicated that, under Other Business, he would make a statement  about  the adoption 
of the Annual Report of the Council for Trade in Services for 2019.  
 
The representative of the United States  requested to add its delegation's name to agenda item F.  
The Chairman  said that the US request was noted and would be accordingly reflected in the record 
of the meeting.  
 
The agenda was adopted as modified . 
1  ITEM A: NOTIFICATION S PURSUANT TO ARTICL ES III:3, V:7 AND VII:4 OF THE GATS  
1.1.  With regard to the notifications ma de pursuant to GATS Article III:3 (Transparency), the 
Chairman  drew the Council's attention to the communications received from Senegal (S/C/N/955 - 
S/C/N/ 958, and S/C/N/958/Corr.1); Hong Kong, China (S/C/N/874/Add.1); Kazakhstan 
(S/C/N/960); Lesotho (S/C/N/962 -968); Bahrain , Kingdom of  (S/C/N/969) and Australia 
(S/C/N/970).  
1.2.  The representative of India was pleased that Australia was notifying a measure related to 
changes in its temporary work visa through which it implement ed its GATS and other international 
trade obligations.  Mode 4 was the key mode of export interest to most developing counties and LDCs 
and her delegation wished to  take th at opportunity to encourage  Members to regularly notify existing 
and new measures affecting their mode 4 commitments, including entry -related measures. Her 
Capital was examining the visa measure notified by Australia and would revert to it in case of any 
clarifications.  
1.3.  The Chairman  suggested that the Council take note of the notifications and the statement 
made.  
1.4.  It was so agreed . 
1.5.  Concerning the notifications made pursuant to Article V:7 (Economic Integration), the 
Chairman  drew the Council's attention to the communications received from the European Union 
and the Republic of Armenia (S/C/N/959); and Chile and China (S/C/N/577/Add.1).  
1.6.  The Chairman  suggested that the Council take note of the notifications and that the agreements 
notified be referred to the Committee on Regional Trade Agreements for consideration.   
1.7.  It was so agreed . 
1.8.  The Chairman  then drew delegations'  attention the fact that, at its meeting scheduled for 7 -8 
November, the CRTA would  be considering two Regional Trade Agreements that cover services trade. 
                                                
1 This document has been prepared under the Secretariat's own responsibility and is without prejudice 
to the positions of Members or to their rights and obligations under the WTO.  S/C/M/141  
 
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  The agreements in question were the Free Trade Agreement between Turkey and Singapore and the 
Economic Partnership Agreement between the European Union and Japan.   
1.9.  Turning to the notifications made under Article VII:4 (Recognition), he drew the Council's 
attention to the communication received from  Australia, Japan, the Republic of Korea, New Zealand 
and Thailand (S/C/N/961). He suggest ed that the Council take note of the notification.  
1.10.   It was so agreed . 
2  ITEM B: AN INCLUSIVE APPROAC H TO TRANSPARENCY AN D NOTIFICATION 
REQUIREMENTS IN THE WTO  
2.1.  The Chairman  said that that item ha d been placed on the agenda of the Council at the request 
of the delegation of South Africa, together with a communication by the same title circulated in 
document JOB/SERV/292/Rev.2.   
2.2.  The representative of South Africa  introduce d the communication  on behalf of the proponents , 
namely  the African Group, Cuba, India and Oman. He noted that transparency  remain ed an 
important issue within the operation and monitoring function of the WTO. The issue of compliance 
with notification obligations  had been contentious. Developing countries often struggle d to comply 
with onerous obligations, while , in many instances, developed countries also d id not comply with 
their notification requirements or did so selectively.  
2.3.  Notifications require d a deep und erstanding of the entire range of WTO Agreements, mature 
institutional mechanisms and human resource capacities that were often lacking in developing 
countries. Any work in th at area should be focused on supporting and incentivizing developing 
countries to  address th ose difficulties, especially as it relate d to transparency  obligations. Existing 
notification obligations should be rationalized so that they were commensurate with Members ' level 
of development. Developing countries, SVEs and LDCs should not be  expected to take on notification 
obligations which were beyond their capacities.  
2.4.  In contrast, in some of the recent proposals on transparency, some Members were proposing 
new or strengthened notification obligations. If developing countries were not able  to meet current 
notification obligations, there would be no possibility of meeting even higher notification 
requirements in future.  
2.5.  Given the challenging issue of resource constraints, developing countries could not  agree to 
any transparency obligations which went beyond existing obligations. Further, punitive approaches 
to enforce notification and transparency obligations were not acceptable. Any work in th at area must 
support developing countries' ability to address their difficulties through inclusive and mutually 
agreed approaches, such as through simplified notification formats. In some situations, prolonged 
time-frames could  also be considered. Technical assistance and capacity -building had to  be central 
components; however, they would  not completely  resolve human resource and institutional 
limitations.  
2.6.  He emphasise d that notifications could  only be made by the Member concerned and no counter -
notifications would  be valid. Neither the Secretariat or any other Member ha d the right to notify 
information  on behalf of another Member unless this possibility ha d been provided for in existing 
Agreements.  
2.7.  An important aspect of the proponents'  communication was the fact that it explicitly call ed for 
transparency beyond  the Annex 1A Multilateral Agreements on Trade in Goods. Th at was the reason 
why the proponents  were also addressing the issue of transparency and notification s in the context 
of the GATS . In th at regard, based on the informal Secretariat Note in document JOB(09)/10/Rev.9, 
he observe d that over the last two decades or so, notification records indicate d that developing 
countries, and especially LDCs, ha d submitted more notifications under the GATS than most 
developed countries. Th at was particularly true under GATS Article III :3. The proponents  encourage d 
developed countries to comply with their notification obligations under GATS Article III :3. Many ha d 
not done so.  S/C/M/141  
 
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  2.8.  In light of the  recent  significant push to negotiate multilateral rules on e -commerce and digital 
trade, investment faci litation and MSMEs , which were inextricably linked to services -related sectors 
and important areas for trade policy  making, notifications in th ose areas , as they pertain ed to 
measures "which significantly affect trade in services ", were particularly releva nt.  
2.9.  The proponents'  communication  also emphasize d the fact that transparency could not  only be 
seen from the view of notification obligations. It needed to  permeate the full spectrum of the 
operation of the WTO, from its day -to-day meetings to Ministerial  Conferences.  The scheduling of 
various Committee meetings , which often conflict ed, also gave rise to  transparency issues , as that 
practice limit ed the ability of developing country Members to effectively participate in important 
deliberations. In conclusion, emphasis needed to  be given to compliance in accordance with existing 
obligations and in all areas. In the context of services, notification s and transparency remain ed a 
concern since many developed Members were not complying with their notification obligations.  
2.10.   The representative of India said that South Africa ha d explained the rationale and motivation 
for th e communication, and her delegation  wished to highlight some of the key elements of th at 
document.  
2.11.   India understood  that transparency was an important pillar for the functioning of the WTO. 
However, as indicated  in the paper, LDCs and developing countries ha d genuine capacity constraints 
in terms of institutional requirements and human resources to fulfil the various notification 
obligations. Delay in notifications should not be attributed to wilful non-compliance , attracting 
punitive measures, as suggested by some Members in proposals on t hat issue tabled in other WTO 
bodies. Rather, Members  needed to adopt an inclusive  and cooperative approach to incentivize the 
participation of LDCs and developing countries in complying with  notification obligations.  
2.12.   The other significant aspect that needed to be emphasized in the CTS was  that notification 
obligations could  not be seen in isolation only for certain areas related to goods. They had to  be 
applied holistically to all WTO Agreements. As was evident from the informal Note by the Secretariat 
in document JOB(09)/10/Rev.9, some of the proponents of enhanced transparency and strengthened 
notification requirements in the WTO  were themselves chronically low in their level of compliance 
with existing notification requirements, notably under GATS Article III :3. 
2.13.   On one hand, transparency was referred to as a public good and  a lifeblood , but on the other 
hand, Art icle III:3 services notifications were held back, hiding behind the language and the 
interpretation of the words and phrases of the notific ation obligations . Rather, Members  needed to 
promote transparency elements in their true spirit , by appropriately applying the intent in each of 
the WTO Agreements.  
2.14.   Members would  recall that  during the CTS meeting held in March, India had notified 6 
agree ments pursuant to Article VII:4 of the GATS , in documents S/C/N/924 to S/C/N/929. One of 
the measures notified , regarding  the Memorandum of Understanding  between the Institute of 
Chartered Accountants of India and the Institute s of Chartered Accountants in  Australia and New 
Zealand, contained in document S/C/N/928, was  yet to enter into force. At the June CTS , India had  
notified 4 measures related to insurance and insurance -related services pursuant to Article III:3 of 
the GATS , in documents S/C/N/947 to S/ C/N/950. In brief, India was making all sincere efforts to 
comply with its notification obligations under the various provisions of the GATS.   
2.15.   In that regard, India encourage d developed country Members to regularly notify existing and 
new measures affectin g trade in services, especially those which affect ed their mode 4 
commitments, including entry -related measures, as mode 4 was the key mode of export interest to 
most developing counties and LDCs. As mentioned earlier, her delegation was  pleased with 
Austr alia's notification of  a measure related to changes in its temporary work visa.  
2.16.   At the same time, Members  needed to recognize genuine capacity constraints which LDCs and 
developing countries face d and adopt a cooperative and inclusive approach to address t hose 
constraints . 
2.17.   To conclude, she reiterate d that the key motivation for the proponents'  submission was to 
highlight the need for an inclusive, cooperative and developmental approach to transparency and 
the need to promote transparency elements in letter and spirit by appropriately applying the intent S/C/M/141  
 
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  in each of the WTO Agreements, including the GATS. India welcome d Members' suggestions and 
looked forward for further interactions bilaterally and in other formats.  
2.18.   The representative of Turkey  thanked the proponents for their communication. Transparency  
was at  the core of the functioning of the WTO . Non -compli ance with transparency obligations was a 
fact, but Members also needed to  be aware of the genuine capacity constraints many developing 
and least -developed countries face d. Notification requirements might  represent real challenges for 
countries that lack ed the necessary infrastructure, technical capacity and human resources. What 
was needed was simplification, longer time -frames, technical assistance and , above all , 
encouragement. There was a need to work constructively to assist Members to comply.  As pointe d 
out in the proponents' communication , Members  needed coordinated, development -oriented and 
holistic actions that would  help the inclusion of developing and least -developed countries within th e 
system.   
2.19.   The representative of the United States  thanked the proponents for their communication. The 
United States shared the objectives of the proponents to improve transparency and notifications in 
the WTO and was a strong supporter of transparency in services in domestic rule -making as well as 
in the internationa l trading system itself.  
2.20.   His delegation welcomed the opportunity to hear about any specific concerns Members might 
have in the CTS regarding transparency and notifications and was certainly open to hearing ways in 
which Members might improve transparent, open and participatory rule -making in services in 
general. In deed, in  the area of services, the United States had a long history of developing domestic 
regulations in a transparent, fair and open manner. All US domestic regulations were available to 
the public, but his delegation had a practical issue of submitting thousands and thousands of 
regulations  to the Council . It was essential to be practical and pragmatic. For the United States, it 
was not simply a matter of submitting regulations to the Council in order to check of a box , which 
some Members appeared to do. His delegation preferred to explore practical and pragmatic ways by 
which Members developed regulations in a transparent manner  that did not restrict trade but rather 
facilitated trade .  
2.21.   The representative of Australia  said that her delegation  support ed transparency of domestic 
measures and improving WTO notifications. Australia was not opposed to engaging in discussion s 
on that issue in a more detailed way in the CTS.  
2.22.   Australia  notified measures where relevant under GATS. Preparing notifications in itself was 
a useful exercise as it assist ed with inter -agency communication on policy measures , and her 
delegation was happy to discuss  domestic measures of specific interest to Members. At the March 
meeting of the CTS, Australia had raised questions which could assist th e Council to consider how 
to improve transparency and notifications , and she  would welcome the opportunity to engage fu rther 
on those ideas.  
2.23.   The representative of China  appreciate d the proponents'  efforts in preparing th e 
communication  and bringing attention to th at important issue. Since the same proposal ha d been 
discussed at the July meeting of the Council for Trade in Goods, for the sake of efficiency, he 
request ed that his delegation's  statement at the July CTG meeting be referred in the minutes of th e 
meeting.2 
2.24.   The representative of Bangladesh  thanked the proponents and welcome d their 
communication . Bangladesh believe d that transparency was an essential pillar of good governance. 
His delegation  also agree d that there were many ways to ensure transparency: only a few notification 
templates could not  fully serve the transparency purpose.  
2.25.   Notification provisions under different Agreements were diverse and the ability of many 
developing countries and the LDCs to notify was severely constrained by lack of technical capacity. 
A few customized training program mes might  not address the unique i nternal coordination 
challenges and capability vacuum in developing countries and LDCs. Although the ongoing efforts of 
the WTO Secretariat to provide technical support were deeply appreciated, the capacity constraint s 
                                                
2 See document G/C/M/135, paragraphs 12.126 to 12.128 . S/C/M/141  
 
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  had not been improved to the expected  level. The reasons  why the existing technical assistance 
program mes on notification enhancement could not meet expectation s needed to be investigated .  
2.26.   Bangladesh believe d in shared prosperity and peaceful coexistence of all Members. No one 
could  thrive a lone. His delegation encourage d Members to review the existing variation in 
understanding and explaining  of transparency issues. Members also  needed to  review and, where 
required, simplify the notification templates and procedures. Bangladesh look ed forwar d to working 
actively with the proponents and other Members.  
2.27.   The representative of the European Union  appreciated the proponents' contribution to that 
important conversation about improving transparency in general and compliance with notification 
obligatio ns in particular. She welcomed the fact that the issue was being discussed in the respective 
bodies with relevant expertise.  
2.28.   The European Union agreed with the proponents that notifications were not the only aspect 
of transparency and also  fully recognised that notification work was resource -intensive and could be 
challenging, particularly for small developing countries. However, her delegation also believed that 
notifications were the enabler of the WTO's monitoring function. Moreover, fro m her delegation's 
own experience, notification work was also capacity -building in and of itself, as it strengthened inter -
agency cooperation. The European Union therefore supported the deepening of discussions on 
notifications in the relevant bodies and i n the CTS , and was  ready to work with all delegations in 
order to make tangible improve ments to Members' collective notification compliance and enhancing 
transparency for the benefit of all.  
2.29.   The representative of Japan  also welcomed the proponents' communi cation. Following  the 
active discussion at the General Council meeting in July, her delegation again emphasised that 
notification was a fundamental obligation of all WTO Members . It was a common view that meeting 
notification obligations was of significant  importance for a sound WTO system. With that background, 
she noted that the WTO Secretariat had already extended a significant amount of assistance  to 
ensure that n otification s were implemented by Members. Japan also noted that the notification 
exercise i tself constituted  good capacity -building for developing  Members  and LDCs.  
2.30.   The representative of Switzerland  thanked the proponents for their contribution on the 
discussion on transparency and notifications . Their communication  highlight ed the  challenges fa ced 
by developing countries and LDCs in complying  with notification obligations  due to resource 
constraint s. There was  room to improve transparency and compliance with notification obligation s 
also under the GATS , taking into account resource constraints o f Members and the complexity of 
some notification obligations.   
2.31.   She wished to share the experience with services notification process es in Switzerland , where 
many measures that were taken at the sub -federal level. In order to have a complete picture of all 
the measures affecting trade in services, Switzerland  regularly conduct ed surveys at the sub -federal 
level and ask ed the Cantons to indicate all measures which potentially affect ed services trade. T his 
approach allow ed her delegation  on the one hand to have a full picture of the measures affecting 
trade in services and at the same time provided  important inputs for the notification requirements 
under the GATS.  
2.32.   Switzerland  believe d that, even though that process took time and resources , it was worth  
pursuing as it allowed to improve transparency and knowledge both at the domestic and the 
international levels. Transparency was key to the effective implementation and monitoring functions 
of the WTO,  and hence Switzerland  was interested in sharing experience s on how compliance with 
notification obligation s could  be improved.   
2.33.   The representative of the Russian Federation  thank ed the proponents for the ir 
communication, which deal t with a very important and relevant topic. Russia regard ed the issue of 
transparency as a crucial pillar of WTO activity , and was  ready to take active part in constructive 
discussion s of that matter.  
2.34.   Russia took into account the fact that developing countr ies in practice faced more difficulties  
in delivering notifications than developed ones. Th at situation was implicitly confirmed by the greater 
activity of developing Members on notifying measures in services trade , as the template and S/C/M/141  
 
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  timeframe were relat ively more comfortable  compared to  the goods  area. In th at regard, her 
delegation  strive d to develop  a comprehensive and balanced approach to all types of notifications in 
the WTO. Russia  would not want to give priority to one body of the Organization over  the others.  
2.35.   In services trade , Members were f aced with a situation where delegations  abuse d the 
flexibility of the wording of GATS Article III:3 and ignore d that important obligation  on a systemic 
basis. In services trade , behind -the-border measures were of great importance, and therefore 
transparency of domestic regulation was the main tool to provide public availability of domestic laws, 
regulations and practices. That information was crucial for all stakeholders,  and in particular s ervices 
suppliers.  
2.36.   The notification requirements under the GATS, especially  in Article III :3, were relatively 
narrower than those under other WTO Agreements. Russia  believe d that, at that juncture , more than 
ever, it was important to return to its reconsid eration and to the search for a balance between 
enhanced transparency and sound administrative burden. At the same time, discussions on Article 
III:3 could  be supplemented by deliberation o n the use of the reverse notification mechanism 
provided for in GATS Article III :5. 
2.37.   Her delegation also wished to clarify  with the proponents their understanding of the title of 
their communication. Transparency , as is indicated in the  communication's  title, implie d not only 
notification requirements , which were referred to in the text of the document. Other elements were 
also important: prompt publication under Аrticle III :1 and the work of enquiry and contact points as 
provided for by GATS Article III :4 and Article IV :2. Was the discussion on th ose aspects planned by 
the cosponsors or were those aspects deemed not relevant for some reason ? 
2.38.   The representative of Canada  said that, a s indicated at the July General Council meeting, her 
delegation appreciate d the cosponsors of th e communication for their contribution to the broader 
discussions on how to improve Members ' compliance with existing notification obligations.  
2.39.   Canada strongly support ed transparency, which was one of the key pillars of the functioning 
of the WTO. Canada also support ed initiatives and discussions aim ed at exchanging best practices 
and exploring ways to improve transparency and notification practices. In the context of trade in 
services, there was always room to maintain and improve effective transparency procedures and 
mechani sms that could provide greater benefits to policy -makers and stakeholders. Canada was 
open in having such discussion s under the CTS and would see value in having Committee -specific  
discussions to help consider the particular circumstances of the respective  body.  
2.40.   As her delegation  recognize d the particular challenges faced by developing countries, Canada 
also acknowledge d that each Member had its own unique circumstances and challenges in collecting 
the required information. Like Australia, her delegation h ad raised questions back at the March 
meeting of the CTS which could assist the Council in considering how to improve and facilitate 
transparency and notifications . Her delegation was happy to engage further on th ose ideas.  
2.41.   The representative of the Kingdo m of Saudi Arabia  said that improving the operation of 
notification procedures under the  WTO Agreement s would  contribute to the transparency of 
Members ' trade policies and the effectiveness of surveillance arrangement s established to the end. 
Saudi Arabia was considered to be a Member committed to WTO notifications and therefore 
welcome d any contribution aimed at improving transparency and enhancing compl iance with  
notification  obligations . Enhancing transparency and enabling better information provision , including  
through  timely notification s by Members , require d adequate technical assistanc e and capacity -
building to improve the ability of developing coun tries and LDCs to fulfil relevant obligations . She 
thanked the proponents for their communication and welcomed a  discussion in the Council on  how 
to improve transparency and facilitate notification s.  
2.42.   The representative of South Africa  thanked all Members who had taken the floor and 
participated in that useful debate. He reiterated that the proponents' communication tried to outlin e 
common approaches to transparency and notifications , and that those cut across the work of various 
Counci ls and Committees.  When it came to the Council for Trade in Services, Members might wish 
to think on how to specifically address issues more relevant to th e Council. During the deliberations, 
the proponents had taken note of context -specific issues raised in the various fora where the paper S/C/M/141  
 
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  had been discussed. The proponents were in the process of updating their paper, taking account of 
the useful contributions that various delegations had made in the debate.  
2.43.   Turning to the question s by the Russian Federation on issues such as "prompt publication" 
under Article III:3 and matters raised under Article III :4, he explained that  since the communication 
was of general purport, those matters had not been specifically addressed as they  were sp ecific to 
the GATS . Given the interest to explore transparency further, the proponents would consider how 
Agreement -specific issues could be considered  in further discussions. In their view there was 
convergence on the issues encountered across the differe nt bodies. The proponents would develop 
a draft decision for transmission to the General Council at its following session  and encouraged 
Members who  had not yet signed onto their paper to do so . 
2.44.   The Chairman  noted that the issue would undoubtedly come back  to the Council and 
suggested that in the meantime the Council take note of the statement made .  
2.45.   It was so agreed . 
3  ITEM C: OPERATIONALIZATION O F THE LDC SERVICES W AIVER  
3.1.  The Chairman  recalled  that the "Operationalisation of the LDC Services Waiver" was a standing 
item on the Council's agenda. In light of the extensive discussions the Council had  just held in the 
dedicated session to review the operation of preferences under the Waiver3, his intentio n was not to 
open up that item for discussion . He suggested that  the Council  just take note of his statement . He 
added that the Council would revert to th at item at its next meeting.  
3.2.  It was so agreed . 
4  ITEM D: WORK PROGRAMME ON EL ECTRONIC COMMERCE  
4.1.  The Chairman recalled that , at its previous  meeting, the Council had  had a rich discussion. The 
United States had  introduced its submission on "The Economic Benefits of Cross -Border Data Flows"  
(S/C/W/382) and various delegations had shared experiences and informa tion on matters relevant 
to the Work Programme.   
4.2.  The representative of the United Stated  wished to reply to questions posed by delegations on 
its submission at the previous  meeting. In reply to Canada's request of examples of "interoperable 
regimes" (paragraph 33 of the submission), he cited the APEC's Cross -Border Privacy Rules (CBPR) 
system. It was an example of an interoperable system dealing with privacy, which had been  adopted 
in 2011 and endorsed by APEC leaders. It enabled business to demonstrate compliance with the 
commonly understood set of privacy standards that applied across the APEC economies, thereby 
establishing a level of certainty and predictability for compa nies that moved data across borders, as 
well as assurance and security for individuals providing that data.   
4.3.  He then turned to  Senegal's interesting questions, one of which asked if there was a breakdown 
of how much of the US$7.8 trillion of global economi c activity resulting from the flow of data was 
attributed to LDCs or low -income countries . He noted that  the study cited in the submission did not 
break  down the number by country. However, it did note that less -connected countries were closing 
the gap wit h the leaders at a very slow pace, and their limited participation in the global data 
economy had a real cost to the world economy. If the rest of the world had increased its participation 
in global flows at the same rate as the top  quartile  over the previous decade, world GDP would have 
been US$10  trillion or 13% higher today. For countries that had been slow to participate, the 
opportunities for catch -up growth were too substantial to ignore, and the paper suggested a number 
of ways for closing that gap. But none of th ose strategies could work if governments cut off their 
countries from the global digital economy by imposing data localisation requirements or other 
restrictions on cross -border data flows. Th at was one of the core messages of the paper. For those 
who claimed that that was just a developed country issue, or an issue for big multinational 
corporations, he recalled that one of the speakers at the Workshop on the LDC Services Waiver had 
                                                
3 As reported in docum ent S/C/M/14 0. S/C/M/141  
 
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  conveyed that data localisation requirement s hindered servic es development in LDCs by limiting the 
channels for regional growth.   
4.4.  In reply to the question on whether requiring a copy of data to be stored locally constituted a 
restriction to the free flow of data, and whether it was costly to access that data by loc al authorities 
when it was stored abroad, he said that the requirement to store a local copy of certain data was 
not exactly a restriction on the cross -border flow of data. However, such a rule was an example of 
a data localisation requirement. Th ose requi rements unnecessarily raised the cost for local 
businesses and local consumers , since businesses were forced to pay for data storage twice , globally 
and domestically, and they passed those costs on to consumers.  
4.5.  Those requirements were not necessary for l ocal or regulatory authorities to conduct their 
oversight supervision. Data could be stored anywhere in the world and still be accessed by local 
authorities consistent ly with legal mandates and procedures. For example, most large financial 
institutions ope rated global data systems, offering services in many jurisdictions, and often stored 
their data in a unified system in a small number of data centres. This helped enable global fraud 
detection , minimized cos t, ensured compliance with regulatory reporting r equirements, including 
anti-money laundering and other rules to combat illicit financing , and facilitated cybersecurity of 
sensitive financial information, including protecting confidentiality and privacy of customer data. It 
also made it easier for those financial institutions to provide access to data to financial regulatory 
authorities, consistent  with regulatory and supervisory mandate s. All financial regulators needed full 
and complete access to information to fulfil their regulatory and supervisory ma ndates, but they 
were generally able to obtain that access without requiring local storage of data. His delegation was 
unaware of such access being a costly undertaking.  
4.6.  Regarding distinctions made between personal data and other than personal data, most 
governments had specific rules for personal data in the interest of protecting privacy and sensitive 
personal information. Often those rules required that companies that collected or stored personal 
data had to ensure the privacy of such data, includi ng when it was transferred across borders.  It 
was critical that governments find ways both to protect privacy and to implement such protection in 
a manner that did not undermine digital trade, as those goals needed not to conflict.  One example 
of bridging the complementary goals of protecting privacy and promoting data transfers was the 
APEC's CB PR mentioned previously , which was an enforceable privacy framework based on 
internationally recognized privacy standards that also facilitated trade and enabled cr oss-border 
movement of personal information, recognizing that countries took different approaches to data 
protection. Th at APEC model enabled data to flow among markets that provided baseline s of strong 
data protection standards, consumer protection, as we ll enforcement cooperation.  
4.7.  To conclude, the  US submi ssion was designed to complement the on -going digital trade 
initiative and encourage Members to support a high -ambition outcome that yielded gains to domestic 
economies and to the global economy as well .  
4.8.  The representative of China  said that his delegation wished to share a case study  on e-
commerce and poverty alleviation, which addressed how big data could help small farmers to raise 
and sell chicken. He said that, traditionally, small farmers faced va rious barriers and risks when 
raising chicken. First, in terms of costs, they were less competitive than large farms with scale 
advantages. Second, they were more vulnerable to infectious diseases and market fluctuations. 
Third, intermediate links , such as  marketing, distribution, and cold -chain transport , also constituted 
challenges for small farmers.  
4.9.  The issue was how e -commerce and big data could help small farmers to address th ose 
challenges. In 2016, JD.com Inc., which was one of China's  largest e -commerce platforms , had  
launched a pilot poverty alleviation program me to help poor and small farmers raise organic chicken 
in Wuyi, a poverty -stricken county in the Hebei Province of China.  
4.10.   A series of modern technologies and business modalities were introdu ced in th at process. 
First, since small famers could hardly compete with big farms in terms of costs, the project found a 
niche market for them,  i.e. high-quality organic chicken raised in a natural environment outdoors. 
Wuyi is a mountainous county with s cattered small villages, thus it created an ideal environment for 
outdoor chicken -raising.  S/C/M/141  
 
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  4.11.   Second, in order to minimize the risks of infectious diseases and market fluctuations, JD.com 
signed fixed -price purchasing contracts with small farmers joining th e project and provided farmers 
with 60-day-old chicks instead of the traditional new-born chicks, as studies had shown that new -
born chicks were more vulnerable to infectious diseases and were not suitable for outdoor breeding. 
In addition, both JD.com and local governments provided small loans for farmers to start th at 
business.  
4.12.   Third, e -commerce helped to provide traditional intermediate links such as marketing and 
distribution. All the chickens raised under th e program me were distributed via the e -commerce 
platform of JD.com, which also provided highly -efficient cold -chain transport and last -mile delivery, 
which was at the competitive edge of large e -commerce platforms.  
4.13.   Last, and this was key, the competitive edge of the chicken s lay in their quality, but the issue 
was how to guarantee this. The baby -chickens were supposed to be raised outdoors for at least 160 
days to ensure their best taste. But what would happen if small farmers kept the chicken s indoor for 
their co nvenience or, in order words, if they passed ordinary chicken as organic chicken ? An organic 
chicken was sold for more than US$30 in the market, while the cost of an ordinary chicken was 
between US$5 and US$8, which could constitute a motivation to cheat t he customers, particularly 
considering that chicken s were raised in dozens of scattered villages, making it too costly to conduct 
on-site inspection s. The answer to this question was big data. An electronic ring was put on the right 
leg of the chicken to t rack and record its daily activities, thus guaranteeing that chickens enjoyed a 
free and happy life outdoors. The rings also provided early warning for potential infectious diseases. 
The ring was not cheap, but it could be reused, thereby  reducing the extr a cost to an acceptable 
level.  
4.14.   The chicken -raising project was bringing change to those poor and small villages. Since raising 
chicken outdoors was not very laborious, women, old people and even people with disabilities could 
manage it. Thanks to the proje ct, the average annual per capita income of Wuyi had increased by 
RMB 3000 (more than US$400), and Wuyi had graduated from the "national -level poverty -stricken 
county" in 2018 . E-commerce was not only changing lives in cities and developed countries, it wa s 
also bringing change to rural areas and developing countries, which was an important conclusion to 
be learnt from th at project . 
4.15.   The representative of India thanked China for its interesting case study on e -commerce and  
poverty alleviation. She wished to make two points. First, regarding the submi ssion by the 
United  States on the economic benefits of cross -border data flows, India had already made clear its 
views in the statement delivered at the June meeting. Second, she noted that the e -commerce 
Moratori um, which was a cross -cutting issue, would expire in less than 2 months unless it was 
renewed. During 2018 and 2019, India and South Africa had tabled two submissions on th at issue  
in the General Counci l, given the cross-cutting  nature of the  issue. Her de legation's position on th at 
very critical issue had been spelt out in detail during the various meetings of the General Council 
over the p revious  year, including at the informal open -ended meeting on the issue held on 1 October 
2019 and again during the Ge neral Council Meeting on 15 -16 October 2019.  
4.16.   The representative of Senegal  thanked China for the case study, which showed how e -
commerce could be used to reduce poverty and promote economic development, particularly in rural 
areas. He also thanked the Uni ted States for providing further clarifications on its submission. His 
delegations had taken  note of the submission made by the United States in the context of e -
commerce Joint Statement I nitiative , which stipulated that, for financial services, access to data was 
one of the conditions for not requiring the localisation of specific data in a determined territory. 
Against th at backdrop, when it came to regulation and supervision, access to data was important 
not only for financial services, but als o for other services, where regulators in general , and in specific 
sectors , required access to such data to perform their tasks properly. On the difference between the 
treatment of personal data and non -personal data, he noted that according to certain leg islation on 
personal data, the scope of the latter could be very broad and include any personal information of 
an identifiable or  identified person, as well as economic information. In his delegation's view, the 
borderline between trade restrictions and th e treatment of personal data and non -personal data was 
tenuous . Therefore, it was important for delegations, such as his own , to continue discussions on 
the issue in order to better understand the implications and associated policies.  
4.17.   The Chairman  recalle d that the Buenos Aires Ministerial Decision on the Work Programme had 
instructed the General Council, in preparation for the following Ministerial Conference, to hold S/C/M/141  
 
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  periodic reviews on work under the Work Programme, based on the reports submitted by the  
relevant WTO bodies.  The last such review had been conducted in  July that year , and the Council 
had duly reported to the General Council at that juncture. Since the following  Ministerial Conference 
would not take place in December 2019, but rather in June  2020, it was his intention to report once 
again to the General Council at its December meeting. In line with past practice, he would  be 
producing, under his own responsibility, a Chairman's Report to the General Council of the 
discussions the Council had had under the Work Programme at that meeting. The report would be 
purely factual, reflecting the essence of Members' deliberations. He took it that t his was acceptable 
to all Members . 
4.18.   It was so agreed . 
4.19.   The Chairman  suggested that the Council take note of t he statements made  and revert to this 
item at its next meeting . 
4.20.   It was so agreed . 
5  ITEM E: UPDATE OF THE SECRET ARIAT BACKGROUND NOT E ON MODE 4 – REQUES TED 
BY INDIA  
5.1.  The Chairman  indicated  that that item had been added to the agenda of the Council at the 
request of the delegation s of India. 
5.2.  The representative of India said that, as previous ly clarified , her delegation would  welcome the 
updating of all Secretariat modal  Background Notes, on modes 1 and 2, mode 3 and mode 4. Besides, 
as requested by one delegation, the Secretariat should also prepare an additional Note, on inter -
modal linkages. She understood that while most delegations support ed the updati ng of all modal 
Notes and the production of a new Note o n inter -modal linkages, the U nited States continue d to 
have concerns on  the updatin g of those Notes,  and especially the one on m ode 4.  
5.3.  Following previous informal discussions with the Chair man and the Secretariat , her delegation 
had been  made to understand that the United States  would be  agreeable to having 'new' Notes in 
all modes, including on mode 4, plus a new note on inter -modal linkages.  However, subsequent to 
the Council meeting in June 2019, there appear ed to be some misunderstand ing on th at aspect,  and 
she asked the United States to kindly confirm its position on th at issue.  
5.4.  The representative of the United States  said that his delegation's position ha d not changed or 
evolved and was the same as  expressed over the previous  few Cou ncil meetings . The United States 
had been flexible in suggesting that a Secretariat Note on the interlinkage of all the modes of supply 
would be interesting ; indeed, that linkage had been mentioned  also during the LDC workshop , and 
therefore  such a paper w ould be useful. The United States did not support revised Notes  on all  the 
various modes, as it had explained a number of times. Again, looking back at the LDC workshop, 
one commentator had noted that the modes were often complementary , which would suggest that 
a Note  on the ir interlinkage s would be a contribution to the overall discussions on services . However, 
his delegation could not support taking  10-year-old modal Notes  and trying to update them when 
things ha d not really evolved  in that regard. A Note on the interlinkages between the modes of 
supply  would, instead, be a good starting point .  
5.5.  The Chairman  suggested that the Council take note of the statements made.  
5.6.  It was so agreed . 
6  ITEM F: CYBERSECURITY MEASUR ES OF CHINA AND VIET  NAM – REQUESTED BY JAP AN 
AND THE UNITED STATE S 
6.1.   The Chairman  indicated that the item has been added to the agenda of the Council at the 
request of the delegation of Japan, and, as indicated at the start of the meeting, it was also being 
co-sponsored by the United States.  
6.2.  With regards to recent developments in China's cybersecurity measures, the representative of 
Japan  said that WTO  Members were aware that Japan had been requesting that China pay careful S/C/M/141  
 
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  attention to the regulatory measures and implementation of its draft Encryption  Law in order to 
avoid hindering access to the Chinese  market o n the part of  foreign enterprises and their operation s 
in that market .  
6.3.  China had reportedly very recently  adopted the draft  Encryption Law, the content of which was  
currently being examined in Capital and closely compared with the comments  that t he Japanese 
government had submitted in September. At th at juncture, Japan expect ed China to ensure that the 
Chinese Cybersecurity Law and related regulations , including the Encryption Law and its  
implementation measures , were fully consistent with China's GATS  obligations . 
6.4.  On that occasion Japan w ould not repeat its concerns with China's Cybersecurity Law and 
related regulations , as those had already been elaborated at previous meetings. Japan would 
continue to pay close attention t o how China addresse d Japan's  concerns. To conclude, Japan 
expect ed China to ensure that the related measures to be drafted d id not unfairly hinder the level 
playing field o f the business environment in China,  both formally and in effect.  
6.5.  She then turned  to Viet Nam's draft decree related to the Law on Cybersecurity , which Viet  Nam 
had sought public comments on the previous December. Japan underst ood that  Viet Nam was still 
giving consideration to the decree. Japan continue d to request  that Viet Nam appropriately reflect 
Japan's  comments in its revised measure s and expect ed Viet Nam to continue to ensure transparency 
and to take the inputs  of all stakeholders into consideration before finalizing the related Law and 
regulation s.  
6.6.  The represen tative of the United States  recalled that his delegation had  been raising conce rns 
regarding China and Viet  Nam's proposed measures relating to cross -border data flows and data 
localization at a number of C ouncil  meetings.  The United States continue d to raise th e issue given 
the potential restrictive impact on trade in services, and because both China and Viet  Nam ha d failed 
to adequately address conce rns raise d by trad ing partners on multiple occasions.  
6.7.  For both Viet  Nam and China, th ose restrictive measur es had been proposed in connection with 
broader laws ostensibly designed to promote broadly -defined goals of cybersecurity, encompassing 
both protection of networks and information transmitted over such networks. Viet  Nam, in addition, 
addresse d compliance  by networks and platform with general laws through such measures.  
6.8.  In both cases, the main conce rn of the United States were requirements flowing from th ose 
measures that require d local storage or information, and/or limit ed its transfer abroad.  While the 
United States strongly support ed efforts to enhance cybersecurity , i.e. protections of networks and 
the information they store d and transmit ted, and underst ood governments' interest in ensuring 
compliance with other domestic laws, neither goal warrant ed data localization or restrictions on 
cross-border data flows as means to achieve that end.  
6.9.  Indeed, in many cases, a localization requirement actually increase d cybersecurity threats, by 
exposing a network to additional, unnecessary points of atta ck. With respect to protecting networks 
and customers' information, there was now widespread support for developing approaches that 
achieve d those goals without threatening the fundamentally transnational character of the digital 
economy, which depend ed on companies' abilities to leverage computing resources located in 
multiple jurisdictions.  For example, the APEC Cross Border Privacy Rules system did so for persona l 
information. And with respect to protecting networks generally, there ha d been important wo rk done 
on developing voluntary frameworks applicable internationally , which he would  describe in detail 
later on  in his intervention . 
6.10.   With respect to China's draft Measures for Security Assessment for Cross -Border Transfer of 
Persona l Information and the draft Measures for Data Security Management, and their proposed 
impact on cross -border data  flows, China's feedback up to that point had been disappointing . There 
was lack of clarity on vague terms such as "important information" and "critical infrastructu re", which 
trigger ed restrictive treatment;  the continued advocacy of sweeping requirements to conduct ill -
defined "security assessments", and in addition, in the case of persona l information, obtain 
individual's consent, solely on the basis that a transfe r was cross -border.  
6.11.   His delegation would appreciate an update on the status of those draft measures, including 
China's process for incorporating changes requested by foreign governments and other international S/C/M/141  
 
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  stakeholders. Ha d China released any additiona l draft measures relating to cross -border data  flows 
or data localization?  
6.12.   With respect to Viet  Nam's measures, the United States  remain ed unconvinced that data 
localization, a key remedy proposed in the draft implementing measure , was at all relevant to 
Viet Nam's goal of ensuring that various domestic measures, none of which were directly related to  
cybersecurity, were adequately enforced. The United States  looked forward to Viet  Nam amending 
that draft measure, in a transparent manner, to fully address th at basic conce rn. 
6.13.   The representative then offered some examples of ways in which standards for cybersecurity 
might  be adopted that were less trade restrictiv e and which would  enhance security and create 
consistency across regimes.  He drew delegations' attention to a recent workshop conducted at the 
Asia-Pacific Economic Cooperation (APEC)  forum in August  2019. 
6.14.   On the margins of the latest  APEC Senior Officia ls meeting in August, APEC had  held a 2 d ay-
workshop on "Facilitating Trade through Adherence to G lobally -Recognized Cybersecurity Standards 
and Best Practices ", which had gathered a wide variety of speakers and experts to discuss 
cybersecurity standards.  One objective of the workshop had been  to demonstrate the alignment of 
cybersecurity standards as an opportunity to increase regional trade, as well as to strengthen overall 
cybersecurity in the region.  The workshop had been  designed to encourage economies to "develop 
or adopt globally recognized  standards and best practices" in th at area. A theme of th e workshop  
had been that divergences in approach, coupled with a lack of consensus in multilateral  coordination 
on cybersecurity, hamper ed the growth of global digital trade.  
6.15.   Stand ards were assuming  an increasingly significant role in an environment where 
governments need ed a more flexible approach to adapt and improve as the digital environment and 
innovation continue d to change. Adopting globally -recognized standards, developed through 
transparent,  multi-stakeholder and consensus -based processes, c ould minimize compliance costs for 
businesses, thereby both strengthen ing cybersecurity and creat ing trust.  
6.16.   Industry representatives, who were at the front line in defending networks, had emphasized 
the need for more certainty in co mpliance and a clearer understanding of risks, as well as the role 
for standards in speeding the adoption of technologies in companies and gove rnments.  Divergences 
in standards and frameworks among economies, particularly if mandatory, create d challenges in 
doing business across borders.  APEC w ould continue th at work through its appropriate sub -bodies, 
as the workshop had demonstrated that a collaborative approach to those challenging issues raise d 
awareness of policy -makers and might  ultimately result in sound policy decisions.  
6.17.   The representative of Chinese Taipei  expressed his appreciation to Japan for having rais ed 
that issue again in the Council  and share d Members'  statements in th at regard. Members' measures 
on the international transfer of information would affect cross -border business operations and 
MSMEs' equal opportunit ies to access  markets . From a systemic perspective, his delegation would 
carefully follow th at issue in the future.  
6.18.   The representative of Australia  said that, l ike other Members, her delegation  appreciate d 
China 's efforts in consulting with interested parties on its draft measures related to cybersecurity , 
most recently on measures related to the  Encryption Law, on which Australia had  provided a written 
submission of views in September 2019 , and previously on measures related to the cross -border 
transfer of personal information, on which Australia had also provided views in July 2019 . Her 
delegation continue d to urge China to take into account the concerns of business and WTO Member s 
in the implementation of th ose measures and development of future measures.  Australia looked 
forward to continuing to work closely with China on draft me asures related to cybersecurity.  
6.19.   Her delegation  also appreciate d Viet Nam's engagement on its cybersecurity measures. As 
she had  raised in previous meetings, like other Members, Australia continue d to have a number of 
concerns with concepts in Viet  Nam's Cybersecurity Law.  Her delegation  looked forward to continuing 
to work with Viet  Nam on th at Law and related measures.  
6.20.   The representative of the European Union  said that, like other Members who had intervened 
previously,  the EU continue d to closely monitor the development s around China's draft Cryptography 
Law. The European Union underst ood that th e draft Law was another step toward the first unified S/C/M/141  
 
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  Law in th at field and the EU had submitted written  comments in a public consultation organized by 
China in early Septembe r. The EU remain ed concerned about the wide scope of the Law in 
conjunction with a lack of clarity of a number of foundati onal concept s, as well as administrative 
procedures described i n the text , and it was  concerned that both of th ose aspects  could negatively 
affect business confidence.  
6.21.   The EU call ed on China to ensure that legal and regulatory requirements were based  on non -
discriminat ion, did not favour specific technologies  nor lim it market access. Regulatory procedures 
relate d to products containing cryptographic components  should be transparent, predictable and 
consistent with international practices. The representative  therefore urge d China to address the 
concerns raised by tradi ng partners in the final version of the draft Law and trust ed that China w ould 
keep its trading partners informed of the next steps in th at process.  
6.22.   She also reiterate d her delegation's previously raised  concerns in relation to Viet Nam's 
Cybersecurity Law, which applie d as of the beginning of 2019 . The EU continue d to have concerns 
with regard to the potential economic impact of th at legislation and its compatibilit y with Viet Nam's  
international commitments . Her delegation therefore welcome d the public  consultation s on the draft 
implementing decree on cybersecurity setting out further  details  for some articles of the 
Cybersecurity Law on which the EU had also provided comments .  
6.23.   She hoped that Viet Nam's government would  seriously consider the concerns  expressed  and 
would continue the dialogue with the EU and other Members on th at ma tter, to ensure that it was 
aligned with international best practices. She therefore invite d Viet Nam to provide up -to-date 
information on any plans for taking into co nsideration comments provided by interested parties , 
including  industry and other stakeholders , and would appreciate an update on  the timing for the 
adoption of  the implementing decree . 
6.24.   The representative of Canada  echoe d previous Members' comments on China 's cybersecurity 
measures, including China's  new Encryption Law. Canada had  also t aken part in China 's public 
consultation process and had submitted comments in August 2019, which pertained mainly to the 
regulation s of goods used to encrypt data.  Overall, Canada share d the view that the draft Law would 
benefit from improved clarity in order to assure predictable market access. While her delegation  
underst ood that the Encryption Law had been  adopted recently by the Nation al People 's Congress, 
she would appreciate an update on any changes to the Encryption Law following the public 
consultations and on efforts to address concerns received through that process. As it continue d to 
discuss th at issue in the Council , Canada also  looked forward to discussing th e issue at the November 
meeting of the Technical Barriers to Trade Committee.  
6.25.   The representative of New Zealand  welcome d China's openness to discussing the 
implementation of its cybersecurity regulations further , and to enhancing international cooperation 
in cybersecurity. N ew Zealand  recognize d the right of States  to take measures  in order to protect 
legitimate matters of  public policy. He appreciate d China's assurances that such measures should 
be implemented in a manner consistent with international obligations and minimizing negative 
impact s on trade. Lack of clarity about how China would implement its cybersecurity meas ures 
created uncertaint y and introduced  additional unnecessary compliance costs for foreign  operators .  
6.26.   New Zealand  encourage d China to have a more narrow and focused scope in implementation , 
including util ising a targeted and clear definition of what cons titute d networks and critical information 
infrastructure. His delegation  also encourage d China to look at the trade implications of requir ing 
assessment  before data was able to be transferred to board. New Zealand continue d to encourage 
China to implement its cybersecurity regulation s in a transparent manner and consistent with the 
letter and spirit of the obligations contained in the GATS.   
6.27.   Turning to Viet Nam's measures , in line with his delegation's  interventions at previous Council 
meetings, N ew Zealand  continue d to have a strong interest in the revision of the draft decree and  
urged Viet Nam to continue to engage with stakeholders so they might  effectively  input into the 
consultation process before final regulations were implemented.   
6.28.   The representative of China  thanked Japan and other delegations for the comments on the 
Encryption Law of China. He took the opportunity to update  Members on  the latest development of 
that legislation. After soliciting public comments from 5 July to  2 September 2019, the Encryption S/C/M/141  
 
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  Law had been adopted by the National People 's Congress on  26 October and w ould come into force 
on 1 January 2020.  
6.29.   The N ational People's Congress had taken into account the val uable suggestions by different 
stakeholders during the legislati ve process of the Encryption Law, with a view to keeping a balance 
between guaranteeing encryption security and minimizing the burden for business. To th at end, 
China had established tailored regulatory requirements for different encryption products, such as 
core encryption, common encryption and commercial encryption.  
6.30.   Regarding the questions raised by Japan on commercial encryption, he said that it was a 
common practice f or authorities to regulate the production, sale and import of commercial encryption 
by implementing measures such as security certificate and import and export control.  
6.31.   According to the Encryption Law, the above -mentioned security certificate and import and 
export control w ould not apply to all commercial encryptions, but only to those commercial 
encryptions relating to national security, public interest or China 's international obligation s. In the 
meantime, commercial encryptions used for public consumpti on products would not be subject to 
import and export control. China would  issue a list of products subject to the above -mentioned 
regulations, so as to provide more clarity on the scope of regulation.  
6.32.   With regard to the  US comments, the relevant regulatio ns and rules were still in the drafting 
process, and China was open to further dialogue both at the government and business level s. 
6.33.   The representative of Viet Nam  thank ed the Members who had intervened for their continued 
interest in Viet Nam's  legislative  drafting process for the decree to implement certain articles of the 
Cybersecurity Law. He emphasize d that the proces s had been very transparent , with an open mind 
and all stakeholders ' comments ha d been reviewed for the on-going in ternal consideration.  
6.34.   The Chairman  suggested that the Council take note of the statements made.  
6.35.   It was so agreed . 
7  ITEM G: RECENT DEVELOPMENTS IN TRADE IN SERVICES  STATISTICS  
7.1.  The Chair man recalled that, in October 2016, the Council had agreed that the Secretariat would 
present to the Council, on a yearly basis, the latest developments in trade in services statistics.  
7.2.  A representative of the Secretariat  explained that there were four main areas of statistical 
work: the WTO's Trade in Services Data Hub, technical assistance, latest developments and new 
initiatives. Starting with the Trade in Services Data Hub, he indicated that all statistics were available 
on-line from the statistics gateway on the W TO website. The data was collected and disseminated 
jointly with UNCTAD and ITC in what was called the 'Geneva Cooperation". Data was released with 
an annual frequency, in BPM6, up to 2018, and quarterly data had just been released for the second 
quarter o f 2019. Monthly data was also available on the WTO website but was only compiled by the 
WTO.  
7.3.  Based on that data, analytical work was also produced  in the World Trade Statistics Review. 
The latest version had been released in July and presented a broad des cription of the trends in 
international trade , including in the services sector, by sector, economy and economic groupings. 
The Secretariat also produced Trade Profiles by economy, with structural information for each 
economy. In addition, the World Trade Report, released in October 2019, was focused on trade in 
services and its evolution as influenced by digital technologies, demographic changes, rising per 
capita income s and climate change.  
7.4.  The Secretariat was working on an experimental dataset with the O ECD, looking at trade by 
partner . As this information was n eeded in the context of global value chain analyses, the OECD and 
the WTO together had established a methodology to estimate a balanced trade in services dataset 
by partner (BATIS). That dataset was currently available for 1995 to 2012 in BPM5; both 
organizations were currently work ing on developing a dataset for 2005 to 2018 in  the BPM6 
methodology. The plan was to release first provisional data at total level in the first half of 2020.  S/C/M/141  
 
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  7.5.  In July th e Secretariat had also released a trade in services dataset by mode of supply, known 
as TISMOS. It was based on the BPM6 methodology and was available by partner from 2005 to 
2017. Information was available for 66 services types for the four modes of suppl y. He explained 
that TISMOS was an experimental dataset: the Secretariat used the data that was available and 
completed it by adding estimations in order to come up with a complete dataset. In doing so, it used 
three principles: first, that of "baseline", where the starting point was an agreed and established 
methodology; the second principle was "modularity", implying that whenever data was obtained this 
would replace estimates (this would be done once a critical mass of revisions had been collected); 
the third principle was "transparency", meaning that the dataset was carrying relevant metadata on 
what was reported, what was estimated and how this was estimated. Given that the work involved 
was significant and would not be undertaken by different stakehold ers, it was hoped that both 
datasets would develop into an international benchmark.  
7.6.  The kind of information one could draw from the TISMOS dataset, for example in terms of 
world trade by modes of supply, also highlighted some of the limitations of the data set; for instance, 
it showed some but only limited variations in the share attributable to each mode, as constant shares 
over time had been used as a basis for the estimation methodology. As those shares were invariant, 
the variation over time was due to t he total value of commercial services. The side -effect was that 
the Secretariat had developed a worldwide FATS output dataset for 200 economies which was also 
available online for research purposes. TISMOS included only local sales, to match FATS data with  
the scope of the GATS definition  of mode 3 . 
7.7.  The Secretariat was also working on improving reported data with data compilers at the 
national level by providing technical assistance within an inter -agency task force. The WTO was the 
focal point of the task force for technical assistance and statistical capacity building: the task force 
had brought out the Compilers' Guide, which presented good practices on collecting and compiling 
data according to the BPM6 methodology and had also developed an e -learning co urse together with 
UNCTAD and UNSD. Work was now focused on dealing with t he technical difficulties that economies 
faced in compiling those statistics, particularly in a more disaggregated form.  
7.8.  A course on trade in services statistics was held at the WTO  practically on an annual basis for 
trade in services statisticians. It was fully sponsored by the WTO and the e -learning course was a 
pre-requisite to participate. In 2019, there had been  more than 700 people worldwide participating 
in the e -learning cour se across more than 110 economies. Of those, only 30 had been  selected to 
follow the Geneva -based course, where the focus was on particular sectors that were of trade 
interest, with the participation of national compilers from WTO Members, who shared their  
experience on the ground, and closed by a round -table discussion on the way forward.  
7.9.  The Secretariat had also worked on new products. One such product was the Services Trade 
Barometer, an index which evaluated to what extent services trade was developing  compared to the 
trend. The Barometer took account of the evolution of the Purchasing Managers Index, indicators 
for financial services, ICT services, air travel, container shipping and construction. Th ose elements  
were equally weighted to form the indicat or on which the Barometer was based. As trade in services 
was measured in value, in nominal terms in USD, a proxy had also been calculated for the volume 
of such trade by deflating the nominal values by the inflation and exchange rate. The Barometer 
would be computed and made available twice a year. The Secretariat also had released the second 
quarter trade in commercial services statistics , which illustrated global and regional performance in 
four sectors, i.e. transport, travel, goods -related services and other commercial services. Further, 
the representative observed that TISMOS included estimates for the distribution sector. On that 
basis, distribution services were the most important servi ce sector.  
7.10.   In terms of conceptual issues, he highlighted that the Manual on Statistics of International 
Trade in Services foresaw the possibility of complementary groupings, such as ICT services and ICT -
enabled services that had been included based on the  recommendation of the UN Statistics 
Commission and developed by UNCTAD, for which some first results were available for India and 
Costa Rica. Another new initiative the Secretariat was working on was a handbook on measuring 
digital trade. It was  being  developed by an expert group under the auspices of the inter -agency Task 
Force. The handbook would be a living document because digital trade was a fast -evolving area for 
which there were no cross -country comparable data available at present. The handbook wou ld define 
a conceptual framework and list compilation experiences of countries as they became available.   S/C/M/141  
 
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  7.11.   The representative of India thanked the Secretariat for sharing the latest developments , 
including methodology, new concepts and findings , in the area  of services statistics . She asked the 
Secretariat to confirm whether it had conducted any outreach program mes with national statistical 
agencies and Central Banks to share th ose developments, including on TiSMOS , and take their views 
on board and,  if not, if it had  any plans to do so. 
7.12.   A representative of the Secretariat  indicated that the Secretariat was conducting outreach . 
He noted that all the data was available online and that experts had been informed through the 
inter-agency task force and various ot her channels during the development of the  TISMOS  dataset . 
More activities  were planned with international compilers to spread the news about th e dataset. 
There was a huge interest in  the feedback that had been receive d. At that stage, as it was much 
more difficult to develop the dataset in a bilateral way, the plan was to do a small feasibility study 
with some selected economies to see how the bilateral angle might work out.   
7.13.   The Chairman  suggested that the Council take note of the statements made.  
7.14.   It was so agreed . 
8  ITEM H: OTHER BUSINE SS 
8.1.  As indicated at the start of the meeting, the Chairman  recalled that, as he had announced at 
the June meeting, barring any unforeseen or urgent matters, that would be  the last meeting of the 
Council  for 2019. As such, the Council needed to  adopt its Annual Report for 2019, in order to submit 
it to the General Council in December. Given that there was some time before th at meeting of the  
General Council, he suggest ed that the Council follow a written procedure to adopt its 2019 Annual 
Report. In the course of the following  week, the Secretariat would  circulate a draft Report to all 
Members, with a deadline for comments. If any comments were received, there would still be 
sufficient time, before the General Council meeting, for Members  to resolve them, either via a revised 
draft, to be again submitted for Members' written approval, or by discussing them at an informal 
Council meeting. He took it that his proposal was acceptable to all delegations , and  said that the 
Council would take no te of the statement made.   
8.2.  The meeting was adjourned . 
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