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25 November  2022 
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Council for Trade in Services    
 
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ANNUAL REPORT OF THE COUNCIL FOR TRADE IN SERVICES  
TO THE GENERAL COUNCIL (20 22) 
Since its Annual Report of 20 21 to the General Council1, the Council for Trade in Services held four 
formal meetings, respectively on  22 October 2021 , 11 March , 16 May and 14 October 2022 .2  
During the period covered by this Report, the Council addressed the following matters.  
1  NOTIFICATIONS MADE TO THE COUNCIL PURSUANT TO GATS ARTICLES  III:3 , V:7 AND 
VII:4  
1.1.  The Council took note, altogether , of the following notifications:  
a. Notifications pursuant to Article III:3 of the GATS  
Russian Federation  (S/C/N/10 62-S/C/N/ 1063); 
Hong Kong, China  (S/C/N/1064);  
Lesotho  (S/C/N/1065 -S/C/N/1071);  
Switzerland  (S/C/N/1074);  
Separate Customs Territory of Taiwan, Penghu,  
  Kinmen and Matsu  (S/C/N/1075 ; S/C/N/1109 ); 
Albania   (S/C/N/1079 -S/C/N/1098);  
Ukraine   (S/C/N/1102);  
Thailand   (S/C/N/1103 -S/C/N/1104);  
Mauritius   (S/C/N/1106 -S/C/N/1107);  
b. Notifications pursuant to Article V:7 of the GATS  
United Kingdom and Mexico  (S/C/N/1060);  
United Kingdom and Canada  (S/C/N/1061);  
United Kingdom and Norway  (S/C/N/1072);  
Türkiye  (S/C/N/1073);  
ASEAN member States (Brunei Darussalam, Cambodia,  
 Indonesia, Lao PDR, Myanmar, Malaysia,  
 The Philippines, S ingapore , Thailand and  
 Viet Nam) and China  (S/C/N/463/Add.1);  
Türkiye and the EFTA States (Iceland, Liechtenstein  
 Norway and Switzerland)  (S/C/N/1076);  
Ecuador, Iceland, Norway, Switzerland, Liechtenstein  (S/C/N/1077);  
Republic of Korea and Türkiye  (S/C/N/1078);  
Australia, Brunei Darussalam, Canada, Chile, Japan,  
 Malaysia, Mexico, New Zealand, Peru,  
 Singapore and Viet Nam  (S/C/N/920/A dd.1); 
Iceland, Indonesia, Liechtenstein, Norway and Switzerland  (S/C/N/1101);  
Separate Customs Territory of Taiwan, Pen ghu, 
 Kinmen and Matsu  (S/C/N/500/Add.1);  
 
1 Document S/C/62. 
2 Reports of these meetings are contained in documents S/C/M/ 147 to S/C/M/ 150, and should be read 
in conjunction with this repo rt. S/C/W/38 7 
 
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  United Kingdom and Colombia  (S/C/N/1024/Add.1);  
United Kingdom, Colombia, Ecuador and Peru  (S/C/N/1028/Add.1);  
Seychelles  (S/C/N/1108);  
India and United Arab Emirates  (S/C/N/1110);  
 
The agreements notified in these documents were referred to the Committee on Regional 
Trade Agreements for consideration.  
c. Notifications pursuant to Article VII:4 of the GATS  
Russian Federation  (S/C/N/10 99- S/C/N/ 1100); 
Thailand  (S/C/N/1105).  
1.2.  At the meeting held in March , the Council took note of the updated Secretariat Note containing 
a statistical account of the notifications made under relevant GATS provisions.3  
1.3.  At all meetings covered by this Report , one delegation  noted the  low record of  Article III:3  
notifications by developed Members, and urged them to lead by example in that regard . 
2  OPERATIONALIZATION OF THE LDC SERVICES WAIVER  
2.1.  At the October 2021 meeting, the LDC Group informed Members that LDC Trade Ministers had 
adopted a Declaration outlining th eir priorities for MC12. Amongst the areas of interest mentioned 
in the Declaration were a number of elements related to the LDC Services Waiver, aimed at 
improving the implementation of relevant Decisions and the preferences notified until then.  
2.2.  At the Ma rch meeting, the LDC Group called on Members to explore how the Waiver preferences 
might be complemented and how LDC participation in global services trade might be increased. The 
Group also recalled the services -related recommendations put forward in the LDC Trade Ministers 
Declaration for MC12, as well as the elements contained in the draft outcome document for the 
Ministerial. At the May meeting, LDCs noted that Members had converged on the paragraph related 
to the Waiver in the  Ministerial  draft outcome  document and asked for continue d support to ensure 
Ministers' endorsement at MC12.  
2.3.  At the  meeting held in  October  2022, the Chairman report ed on what he had heard  from 
delegations with regard to the Waiver  during his consultations on the MC12 implementat ion matters 
of relevance to the CTS .4 He said that Members had generally underscored the importance of the 
Waiver and their willingness to engage further on the issue. They had also highlighted the need to 
hear from the LDCs about their needs and expectat ions. Several delegations had noted the data 
gaps in LDC services trade and indicated their readiness to undertake follow -up work in this regard.  
2.4.  The LDC Group, recalling  the specific MC12 mandates assigned to the CTS with regard to the 
Waiver, put forwar d a number of suggestions on how to implement Ministers' instructions.  
2.5.  The importance of the Waiver and its effective implementation was stressed by a number of 
delegations at the meetings held in October 2021, March and October 2022 . 
3  WORK PROGRAMME ON ELECTRONIC COMMERCE  
3.1.  At the October 2021 meeting, a couple of delegations recalled the contributions they had made 
to the Council's discussions under  the Work Programme . One Members called for the renewal of the 
Moratorium, while a nother advoca ted a clear understanding of its scope and an evidence -based 
decision on the matter; both delegations called for the Work Programme  to be strengthened .   
3.2.  All delegations who spoke at the March 2022 meeting expressed their support for the Work 
Programme. Numerous Members called for its reinvigoration and for discussions to focus on the 
development dimension , with one delegation emphasising that discussions should also address the 
participation in e-commerce of women from developing Members . Many others stated that the 
 
3 Document JOB(09)/10/Rev. 12. 
4 The Chairman's report was subsequently circulated in document JOB/SERV/CTS/6.  S/C/W/38 7 
 
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  continuation of the Work Programme was linked to the extension of the Moratorium and called for 
both to be prolonged at MC12 , with a couple of  delegations advocating that the Moratorium be made 
permanent . One delegation cautioned th at the  scope and  impact of the Moratorium needed  to be 
better understood.  Several Members share d their experience and initiatives in the digital sphere.  
3.3.  At the May meeting, some Members presented i nformation about domestic developments in e -
commerce . One d elegation urged Members to strengthen the Work Programme , focusing on the 
challenges faced by developing countries. Another Member recalled the draft Ministerial decision to 
extend the Work Programme and the Moratorium that many delegations had co -sponsore d and called 
on Members to support it.  
3.4.  At the meeting held in October  2022, the Chairman provided an account of the views he had 
heard with regard to the Work Programme during his consultations on MC12 implementation 
matters.5 He said that many Members had welcomed the reinvigoration of the Work Programme , 
including its development dimension, and the extension of the Moratorium at MC12. While 
delegations were supportive of holding dedicated discussions on e -commerce in the General Coun cil, 
they held varied views on the role of the  CTS, particularly in relation to the Moratorium . Some 
delegations had noted the usefulness of the information shared in the Council  about domestic e -
commerce initiatives and developments and  had indicated thei r readiness to remain engaged , the 
Chairman reported . 
3.5.  A group of Members said that it would updat e an earlier communication it had submitted,  and 
another Member recalled the specific topics it had proposed  that the General Council address. A 
number of dele gations commented  further on the contribution the CTS could make to deliberations 
under the Work Programme , and a few  suggest ed that the Secretariat compile information shared 
by Members . One delegation provided information about domestic e -commerce develo pments, and 
another pointed to a n e-commerce technical assistance event it was organising .  
4  DATE OF THE NEXT REVIEW OF MFN EXEMPTIONS  
4.1.  At the March 2022 meeting, the Council addressed the question of when to hold the next review 
of MFN exemptions, as per the agreement Members had reached at the end of the preceding review 
in 2016. Members decided to start the fifth review of MFN exemption s at the last Council meeting of 
2022.  
5  IMPLEMENTATION MATTERS FROM MC12 MANDATES  
5.1.  At the October 2022 meeting, the Chairman reported on the views he had heard from 
delegations  in the course of his consultations on the MC12 implementation matters of relevanc e to 
the CTS.6 Under this agenda item, he focused on the WTO's Pandemic Response and WTO reform. 
On the Pandemic Response , delegations  indicated that they were open to discussing ideas that other 
Members might  bring forward , as long as these  were part of the WTO's core mandate, forward -
looking and relevant to services trade. On WTO Ref orm, Members' views differed with regard to the 
process, but  in terms of substantive elements that could be taken up in the CTS many  delegations  
referred to the  Council's  monitoring and deliberative function.   
6  UPDATE OF THE SECRETARIAT BACKGROUND NOTE ON MODE 4  
6.1.  The Council addressed this agenda item, upon India's request, at all meetings covered by this 
Report. India reiterated its request that the Secretariat update the Back ground Notes on mode  4 
along with Notes on the  other three modes of supply. India's suggestion was echoed by one 
delegation. India also support ed the proposal for the preparation of a Note by the Secretariat on 
intermodal linkages , which, however,  should n ot replace the separate modal Notes . While affirming 
that a Note on intermodal linkages would  be useful, one Member was of the view  that updating the 
Note on mode 4 had no  added value ; nevertheless, the Member was ready to engage bilaterally with 
India to find an acceptable way forward.  
 
5 The Chairman's  report was subsequently circulated in document JOB/SERV/CTS/6.  
6 The Chairman's report was subsequently circulated in document JOB/SERV/CTS/6.  S/C/W/38 7 
 
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  7  CYBERSECURITY  MEASURES OF CHINA AND VIET NAM  
7.1.  At the request of Japan and the United States, at all the meetings covered by this Report the 
Council addressed various cybersecurity measures adopted and under developme nt by China and 
Viet Nam, respectively. The two requesting delegations shared their concerns about various aspects 
of those measures , which they alleged could be inconsistent with  China and Viet Nam's WTO 
obligations,  and sought additional information and clarity on the same . Their concerns  were echoed 
by a number of other Members .  
7.2.  In reply, China said that its measures had been drafted in a transparent and WTO -consistent 
manner, taking into account national conditions and international practices, as well as stakeholders' 
comments. Viet Nam noted that its legislative process was open , transparent  and had given due 
consideration to stakeholders' remarks and its measures were compatible with its international 
commitments . 
8  5G-RELATED MEASURES OF AUSTRALIA  
8.1  At the request of China, the Council addressed 5G -related measures of Australia at all the 
meetings covered by this Report . China expressed its concerns about the measures under discussion , 
which it alleged run counter to Australia's WTO obligations.  
8.2  In reply, Australia stressed that its 5G-related measures were  country -agnostic, transparent, 
risk-based, non -discriminatory and fully WTO-consistent.  
9  SOFTWARE PRE -INSTALLATION MANDATE OF THE RUSSIAN FEDERATION  
9.1  At the request of the United States, at its October 2021  meeting  the Council addressed a 
measure by the Russian Federation on the pre-installation of Russian software . The United States 
shared its concern s about  the measure in question , which  could run counter to the Russian 
Federation's WTO obligations . The US concerns were echoed by  a number of  other Members.  
9.2  The Russian Federation stated that  the measure was fully consistent with its WTO obligations.  
10  MEASURES OF THE UNITED STATES RELATED T O CERTAIN  APPLICATIONS  AND 
TELECOM OPERATORS  
10.1  At the request of China, the Council addressed US measures  concerning Chinese mobile  
applications  and Chinese telecom operators at, respectively,  all the meetings covered by this Report  
and at the March, May and October 2022 meetings.  China expressed  its concern s about  the measures  
in question , which it alleged  were inconsistent with the United States' WTO obligations .  
10.2  The United States stated that the actions  cited had been taken  to protect its national security .  
11  MEASURES OF INDIA RELATED TO INVESTMENT APPROVAL AND CERTAIN  
APPLICATIONS  
11.1  At the request of China, the Council addressed Indian measures on investment approval and 
banning the use of certain applications at, respectively, its October 2021 meeting and at all the 
meetings covered by this report . China voiced  its concerns about the measures in question , which it 
alleged were  inconsistent with India's  WTO obligations .  
11.2  India replied that its measures were fully compliant with  its WTO obligations  and that they had 
been introduced to ensure the protection of privacy, data security and national security .  
12  SAUDI ARABIA LOCALISATION OF CUSTOMER SERVICES  
12.1  At the request of the United States, at the October 2021 , March , and May  2022 meeting s the 
Council addressed a  measure by Saudi Arabia on the localisation of customer services activities . The 
United States shared its concerns about  the measure  and sought clarifications on its scope and 
operation . At the October 2021 meeting, t he US concerns  were echoed by another Member . S/C/W/38 7 
 
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  12.2  Saudi Arabia stated  that it had provided clarifications, including in bilateral meetings with the 
United States, and had not received any complaints from enterprises operating in the Kingdom . 
13  MEASURES OF ALBANIA, AUSTRALIA, CANADA, EUROPEAN UNION, ICELAND, JAPAN, 
LIECHTENSTEIN, MONTENEGRO, NEW ZEALAND, NORTH MACEDONIA, NORWAY, 
REPUBLIC OF KOREA, SINGAPORE, SWITZERLAND, UNITED KINGDOM AND THE UNITED 
STATES  
13.1.   At the request of the Russian Federation, at the May 2022 meeting the Council addressed 
measures taken by Albania, Australia, Canada, the European Union, Iceland, Japan, Liechtenstein, 
Montenegro, New Zealand, North Macedonia, Norway, the Republic of Korea , Singapore, Switzerland, 
the United Kingdom and the United States. The Russian Federation shared its concerns about  the 
measures unilaterally introduced by these Members  against the Russian Federation , which it alleged 
were inconsistent with their WTO obl igations.  
13.2.   The Members  concerned  said the measures would not have been introduced if the Russian 
Federation had not invaded Ukraine,  condemned the Russia n Federation 's actions , and stated that 
they had acted  to protect  their essential security interests , in line with WTO rules.  
14  RECENT DEVELOPMENTS IN TRADE IN SERVICES STATISTICS  
14.1.   At the October 2021 and  October  2022 meetings of the Council, the Secretariat delivered its 
yearly presentation of recent developments in trade in services statistics.  
15  WORK OF THE SUBSIDIARY BODIES  
15.1.   The activities of the subsidiary bodies in 20 22 are reflected in their respective reports, which 
are annexed to this report, as follows:  
 Annex I  Report of the Committee on Trade in Financial Services (S/FIN/ XX) 
 Annex II  Report of t he Committee on Specific Commitments (S/CSC/ XX) 
 Annex III  Report of the Working Party on Domestic Regulation (S/WPDR/ XX) 
 Annex IV  Report of the Working Party on GATS Rules (S/W PGR/XX). 
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