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14 April  2023 
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Committee on Trade in Financial Services    
 
  
REPORT OF THE MEETING HELD ON 10 MARCH  2023 
NOTE BY THE SECRETARIAT1 
The Committee on Trade in Financial Services held a meeting on 10 March 2023 , under the 
Chairpersonship of Mr Pedro Bravo  (Peru). The agenda was contained in document 
WTO/AIR/CTFS/1 4.  
Under Other Business, the Chairperson  indicated that he would brief Members on the appointment 
of the new Chairperson for the Committee.  
The agenda was adopted as modified.  
1  PROPOSAL FOR A THEMATIC SEMINAR – FINANCIAL SERVICES: TRADE, INCLUSION 
AND ACCESSIBILITY – COMMUNICATION FROM CANADA, CHILE, CHINA, NEW ZEALAND, 
THE PHILIPPINES, THE REPUBLIC OF KOREA AND UKRAINE (JOB/SERV/CTFS/1/REV.2)  
1.1.  The Chairperson  reminded Members  that at the meetin g held in October 2022, Canada  had 
presented a proposal to hold a thematic seminar on " Financial Services: Trade, Inclusion and 
Accessibility". T he original document had been  circulated as JOB/SERV/CTFS/1. Since then, other 
Members ha d joined as co -sponsor s of the proposal, namely: Chile, China, New Zealand, the 
Philippines, the Republic of Korea and Ukraine  (recirculated as JOB/SERV/CTFS/1/Rev.2) .  
1.2.  Discussions at both the October and December meetings had highlighted the relevance of the 
main issue raised by the proposal: socio -economic financial inclusion and its interaction with trade 
in financial services and financial services trade policy.  
1.3.  Many Members had support ed the proposal. Some of those supporters had even made concrete 
suggestions on the program. A couple of delegations, while not explicitly opposed to organizing the 
seminar, had expressed some reservations and sought clarifications, which had been provided by 
Canada and the co -sponsors. However, India had expressed more fundamental concerns on the 
proposal, indicating that it could not accept it in its current formulation.  
1.4.  The Chairperson further said that he had been aware that the proponents and India had had 
bilateral consultation s earlier this yea r. On his part, the Chairperson  had also met with the 
proponents and India in order to take stoke of the progress in those bilateral discussions and to 
explore potential ways forward. He had understood that after that consultation, the proponents had 
share d some ideas with India, who had yet to provide feedback.  
1.5.  After this introduction, as indicated by the Chairperson in the annotated agenda circulated prior 
to the meeting (JOB/SERV/CTFS/3), the meeting turned into informal mode  to continue discussions .  
1.6.  Back to formal mode, the Chairperson  thanked the delegations of Canada (and co -sponsors) 
and India for the constructive discussions that led to an agreement on the annotated agenda for the 
thematic seminar on "Financial Services: Trade, Inclusion and Accessibility . He then asked the 
 
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/FIN/M/9 7 
 
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  delegati on of Canada to read out the amendments to the annotated agenda agreed upon in informal 
mode.  
1.7.  The representative of Canada  read out the changes agreed upon  in informal mode . The first 
change consisted of the deletion of the expression "gender  and" from the  "topic" of Session 1. The 
second adjustment was to modify the title of Session 2 to read "Financial Services Trade and 
Women 's Economic Empowerment". In addition, a footnote would be added to the title of this Session 
to indicate the following: "T his sess ion is intended to be consistent with paragraph 13 of 
WT/MIN(22)/24, WT/L/1135, including footnote 2. " The next change consisted of the addition of the 
following language after the expression "conditions for women"  in the description of Session 2 : 
"…acknow ledging their different context, challenges and capabilities in countries at different stages 
of development …". Finally, in Session 3, the expression "women and other" should be deleted from 
both the description and the thematic question.  
1.8.  The Secretariat  entered the changes in the document  – projected on the meeting room's 
screen  – as Canada read them.  
1.9.  With those changes to the annotated agenda, the Committee agreed  to organize the thematic 
seminar on "Financial Services: Trade, Inclusion and Accessibility".  
1.10.   The Chairperson  added that the revised annotated agenda agreed upon by the Committee 
would be issued after the meeting.  
2  PROPOSAL FOR A THEMATIC SEMINAR ON COST OF REMITTANCE SERVICES – 
COMMUNICATION FROM INDIA  (JOB/SERV/CTFS/2)  
2.1.  The Chair person  said that this agenda item had been included following a request by India, 
who subsequently had circulated a proposal to organize a seminar on the cost of remittance services  
(JOB/SERV/CTFS/2 ). 
2.2.   The r epresentative of India said that  the significant positive contribution of remittances 
towards socio -economic development of households and communities, especially in developing 
countries including LDCs, was well recognized. As per the World Bank estimates, out of total 
remittances of USD 794 billion in 2 022, USD 626 billion went to Low and Middle Income Countries. 
Remittance service  is a critical financial service used by the sender and receivers, thus providing a 
point of contact with the financial sector that could be leveraged to increase access to oth er financial 
services and inclusion in financial services trade. Because of the close relationship between such 
international money transfers and sustainable development, policymakers had promoted initiatives 
to support such transfers.  
2.3.  The United Nations (UN) included a target for remittance cost reduction in the Sustainable 
Development Goals (SDGs). The target aimed to reduce the global average cost of sending USD 200 
to less than 3% by 2030 and to ensure that, by then, each corridor’s cost for sending US D 200 would 
be not more than 5%. In 2020, the G20 prioritized the enhancement of cross -border payments, 
including remittances. If the cost of sending remittances could be reduced by 5 percentage points 
relative to the value sent, remittance recipients in d eveloping countries would receive over 
USD 31.30 billion more each year than they currently did.  
2.4.  The remittance industry was likely to flourish best under appropriate policy and regulatory 
framework. The digitalization of remittance flows had received a f urther push by the recent Covid -19 
pandemic.  
2.5.  Against this backdrop, India suggested having a dedicated seminar on the issue of "cost of 
remittance services" at the Committee on Trade in Financial Services (CTFS). This would go a long 
way in bringing the fo cus of the Committee on trade in this significant financial service. The proposal 
also included a draft agenda for the proposed seminar. The seminar would allow for presentations 
and discussions from global, regional and national perspectives.  
2.6.  The proposal  envisaged four sessions delving into different aspects of this issue. The first 
session would focus on the UN SDG target for the reduction of the cost of remittances, looking into 
how the target had been set, the progress achieved so far, and the UN propo sals to meet this goal S/FIN/M/9 7 
 
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  by 2030. The second session might focus on examining the magnitude and trends in cost of 
remittance services both worldwide and across countries and regions, and the potential impact of 
reduction in the cost of remittance services. W hen examining this, the session might particularly 
focus on the issue from the lens of the developing countries including LDCs. The third session could 
focus on the drivers of the cost of remittance services, including such factors as mode of transfer, 
the cost structure and revenue sharing arrangements of intermediaries and service providers 
involved, the market structure and the extent of competition, the payments infrastructure and the 
interoperability between jurisdictions, as well as the prevailing reg ulations in both source and 
destination countries. The session might thus look into the contribution of the different factors to 
the costs of remittances and the experience across countries and regions. The final session would 
look into ways and opportunit ies for lowering the cost of remittance services. While steps had been 
taken towards achieving the 2030 target, she said that the cost of remittance services still stood 
at 6.3%, well above the 3% target set by the UN SDG. This average figure masked signif icant 
variation across countries and regions. For example, the average cost of remittance services in Africa 
stood at 8.3%. The digitalization of remittance services provided additional opportunities for further 
reducing this cost. With the advent of digit al technologies, it would also be useful to revisit 
the 3% target of the UN SDG 10.c ), with a view  to mak ing it below 100 basis points, or even less.  
2.7.  India looked forward to working with the Secretariat and other Members in order to develop a 
seminar of interest to all Members.  
2.8.  The Chairperson  considered that c ross-border remittance services were extremely  important 
for a large number of developing economies. In his view, it would be extremely useful for Members 
of the Committee to have a bette r understanding of these services, how the industry works, the 
drivers of remittance costs and the initiatives that had been taken or could be taken to further reduce 
those costs and meet the sustainable development goals.  
2.9.  The representative of Nepal  welco med the proposal submitted by India to organize a thematic 
seminar on the cost of remittance services . Remittance s constituted a good source of foreign 
currency for countries like Nepal , accounting for about 21.7% of the country's GDP in the year 2022 
according to World Bank  data. Nepal was of the view that reducing the transaction cost of 
remittance s would largely benefit household s and contribute to poverty reduction.  He highlighted 
that t he SDG goal 10 was about reducing equality  within and among countries whereas goal 10.c ) 
set a target by 2030 to " reduce to less than 3 % the transaction costs of migrant remittances and 
eliminate remittance corridors with costs higher than 5 %". The proposed thematic discussion could 
be useful in i dentifying common views among the Members and bring out some possible ways for 
the necessary policy intervention. Nepal looked forward to engaging constructively in the 
organization of the seminar.  
2.10.   The representative of China  said that the proposal was sti ll being reviewed in capital , and 
reserved to right to further comment on it at the next meeting.  He added that  China was open to 
organize a seminar on this topic. China generally supported discussions on topics w ithin the remit 
of this committee, in particular those related to financial inclusion.  
2.11.   The representative of Canada  indicated that since the issue was of a multidimensional  nature, 
feedback was needed from different agencies in capital. Since the proposal had been submitted very 
recently, she reserved the right to make further comments at the next meeting. Based on a 
preliminary review of the proposal, she asked India if it could further elaborate on how the seminar 
would capture the services trade dimension.  
2.12.   The representative of Mauritius  considered that this proposal, as the one submitted by Canada 
and its co -sponsor s, was a positive way of reinvigorating the work of the Committee. He noted the 
pertinence of the question raised by Canada. In that regard, he considered that session 4 of the 
proposed seminar could provide an opportunity to discuss the trade aspects. He looked forward to 
moving forward with this proposal and with the organization of this seminar.  
2.13.   The representative of the Philippines  offered some initial thoughts on the proposal, pending 
further observations from hi s colleagues in capital . The Philippines welcomed a discussion of this 
important issue and note d its strong development dimension.  The Philippines supported the SDG 
goal of reducing transaction costs to less than 3 %, in light of the w ide regional and national 
divergences in curr ent average rates, which range d from 4 % to 14%.  In the case of The Philippines, S/FIN/M/9 7 
 
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  international remittances reached a record high of USD 36.14 billion in 2022, a 3.6 % increase 
from 2021, and represent ed 8.9% of GDP.  Remittances were key enablers of developme nt, providing 
additional resources for consumption and productive investments in education, real estate, and 
entrepreneurship.  The Philippines also support ed the participation  of international organizations 
involved in this area such as the World Bank, UNC TAD, and the IOM, as well as the private sector. 
He saw particular value in the discussion on practical aspects envisaged in sessions 3 and 4. These 
sessions could examine domestic regulation, measures related to modes 1 and 3, as well as fintech 
innovatio ns, potentially enabl ing further reduction in the cost of remittances.  
2.14.   The representative of Egypt  welcomed  further discussions and the sharing of experiences on 
this important issue. The proposal was being reviewed by colleagues in capital with a view to 
providing further comments. He said that Egypt looked forward to engaging constructively on this 
issue.  
2.15.    The representative of the Kingdom o f Saudi Arabia  welcomed the proposal, which was being 
assessed in capital. She said that remittances were very important for many developing countries, 
in particular those with the lowest incomes, allowing them to fight poverty and raise living standards . 
Since the late 1990s , remittances had been  more imp ortant than develop ment aid. In some 
countries, remittances represented a significant share of GDP. She said that r educing the cost of 
remittances was a promising area  of policy intervention  for several reasons . First, it would stanch a  
drain on the resources of  poor migrants and their families back home.  Second, it would increase 
flows through formal  channels, especially banks. Third, it w ould improve financial access for the poor 
in developing countries.  Finally, she c onsidered that, under  the auspices of this Committee, Members  
stood to benefit by enhancing their knowledge on this important topic and its impact on international 
trade.  
2.16.   The representative of Switzerland  said that the issue of remittances was an important topic 
to discuss at the Committee. Echoing the question by Canada, he asked India about the role of 
services trade and trade rules in this discussion. He looked forward to further discussions on a 
possib le agenda for the seminar. In his view, the seminar should delve on the trade -related aspects.  
2.17.   The representative of the United Kingdom  said that the proposal was under review in capital. 
Echoing the question by Canada and others,  she asked India about ho w it envisaged that the seminar 
should address the trade specific elements as a way of complementing the work on this topic carried 
out in other international fora.  
2.18.   The representative of the United States  said that the proposal was under review in capital.  
He offered however some initial reactions. The topic had been discussed in other international fora, 
such as the Global Partnership for Financial Inclusion (GPFI) and the International Fund for 
Agricultural Development. Cognizant of the work in those fora , he also asked whether India could 
further elaborate on the proposed seminar's trade dimension. He added that the SDG targets had 
already been established and the WTO did not seem the appropriate forum to start negotiating those 
targets. Finally, he consi dered that the proposed discussion was too narrowly focused on the cost of 
remittances, thus on the sending side, while for the purposes of an overall discussion, it would be 
necessary to put focus also on the impact on the recipient side.  
2.19.   The representat ive of the Dominican Republic  welcomed the proposal, whose details were 
being reviewed by capital . He looked forward to further engagement with India on this proposal.  
2.20.   The representative of the European Union  acknowledged the importance of the issue for 
developing and least -developed countries. The issue of remittances was being addressed by other 
international fora, such as the GPFI, co-chaired by India , the G20 process to improve  global 
payments including migrant s' remittances, also chaired by India, the World Bank and the 
International Fund for Agricultural Development. She asked India whether it could further elaborate 
on the trade a spects of th e proposal and the added value of work on this issue in the WTO context.  
2.21.   The representative of Austr alia said that the proposal was under review  in capital . As a 
preliminary reaction, she asked whether India could further elaborate on the link between 
remittances and th e work of this Committee, and on how this proposal related to opera tionalizing 
the GAT S and furthering its objec tives. S/FIN/M/9 7 
 
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  2.22.   The representatives of the Republic of Korea  welcomed the reinvigoration of work in the 
Committee. The WTO provided a valuable platform for Members to exchange information on their 
respective experiences regarding different  trade-related aspects.  The two seminars proposed (by 
Canada and co -sponsors , and by India) were closely related. Session 4 of the seminar agreed upon 
under the previous agenda item could provide an opportunity to discuss the cost of remittance 
services. H e finally said that the proposal was still under review in capital and that he would provide 
further comments at the next meeting.  
2.23.   The representative of South Africa  said that the proposal was under review in capital. She 
said she would revert to it at th e next meeting. Regardless, she said that South Africa concurred 
with India that the issue of remittances was of crucial importance for many developing and least 
developed countries, where remittances constituted a significant source of income for househol ds. 
She further said that it would be useful to complement the other seminar proposal by Canada and 
co-sponsors with further discussion on this topic.  
2.24.   The representative of Peru highlighted the importance of the issue for Peru and other 
developing countries. In Peru, according to Central Bank's data, over the last 31 years, remittances 
had increased almost 40 times. As shown during the Covid -19 pandemic, remittances contributed to 
population's resilience. She said she would provide furthe r comments on the proposal at the next 
meeting.   
2.25.   The representative of India thanked Members for their comments on the proposal. She 
acknowledged that time to review the proposal had been short and expressed appreciation for 
Members' consideration in that regard. Turning to the questions raised by Members, she said that 
the services trade aspects were in -built, alongside the financial inclusion dimension, through all the 
sessions of the proposed seminar  - in particular session 3, which was aimed at looking at the 
business, how trade actually takes place, and the main obstacles. The seminar would also look into 
regulations and their impact on the cost of money transfer services, thus on the cost of supplying 
that financial service. The focus on the cost of re mittances responded to the relevance of the issue 
for developing countries. Potentially increasing recipients' income by USD 31 billion through the 
reduction of the cost of cross -border remittances would be very significant. She added that there 
had been s uccessful examples – such as Korea's – of remittances cost reduction. The proposed 
seminar would provide a good platform for experience sharing among Members.  
2.26.   The Chairperson  said that Members had a n interesting first discussion on this issue. In his 
view,  the proposal gathered some support from the Committee, but further discussion was needed.  
2.27.   The Committee took note  of the comments made and decided  to revert to this agenda item 
at next meeting.  
3  OTHER BUSINESS  
3.1.  The Chairperson  referred to the selection of the next Chairperson for the Committee. He said 
that the handover of the chairmanship of the Committee should normally take place at the end of 
the first formal meeting of the year. However, since the consultations on WTO bodi es' chairs were 
still under way, the handover would have to be postponed.  
3.2.  The Committee took note  of that statement.  
 
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