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S/C/W/384  
 
13 November 20 20 
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Council for Trade in Services    
 
 
- DRAFT - 
ANNUAL REPORT OF THE COUNCIL FOR TRADE IN SERVICES  
TO THE GENERAL COUNCIL (20 20) 
Since its Annual Report of 201 9 to the General Council1, the Council for Trade in Services held two 
formal meetings2, respectively on  1 July and 2 October 2020.3 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 for Trade in Services took note, altogether, of  the following notifications:  
a. Notifications pursuant to Article III:3 of the GATS  
Thailand  (S/C/N/971  - S/C/N/ 979) 
The European Union  (S/C/N/981  - S/C/N/ 985; S/C/N/1004  - 
S/C/N/ 1010 and S/C/N/1004/C orr.1, 
S/C/N/1007/ Corr.1, and 
S/C/N/1009/ Corr.1) 
Switzerland  (S/C/N/987  - S/C/N/ 988) 
The Separate Customs Territory of Taiwan,  
 Penghu, Kinmen and Matsu  (S/C/N/989  - S/C/N/ 990) 
Australia  (S/C/N/991)  
The Russian Federation  (S/C/N/1000  - S/C/N/ 1002)  
Ukraine  (S/C/N/1011  - S/C/N/ 1012)  
India  (S/C/N/1013)  
Albania  (S/C/N/1020  - S/C/N/ 1021)  
 
b. Notifications pursuant to Article V:7 of the GATS  
Iceland  (S/C/N/919/Add.1)  
Hong Kong, China;  and Australia  (S/C/N/986)  
China and Hong Kong, China  (S/C/N/264/Add.11 and S/C/N/264/ Corr.1)  
China and Macao, China  (S/C/N/265/Ad d.11)  
The European Union and Singapore  (S/C/N/1003)  
Peru and Australia  (S/C/N/10 15) 
The European Union and Viet Nam  (S/C/N/10 16) 
Canada, Mexico and the United States  (S/C/N/10 17) 
 
The agreements notified in these documents were referred to the Committee on Regional 
Trade Agreements for consideration.  
 
1 Document S/C/5 9. 
2 The meeting originally planned for 24 March 2020 did not take place because of the measures  
introduced to combat the COVID -19 pandemic.  
3 Reports of these meetings are contained in documents S/C/M/ 142 and S/C/M/ 143, and should be read 
in conjunction with this repo rt. S/C/W/384  
 
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  c. Notifications pursuant to Article V II:4 of the GATS  
Thailand  (S/C/N/980)  
The Russian Federation  (S/C/N/992  - S/C/N/ 999) 
Australia  (S/C/N/1014)  
Albania  (S/C/N/1018  - S/C/N/ 1019)  
 
1.2.  At the meeting held in July, the Council took note of the updated Secretariat Note containing 
a statistical account of the notifications made under relevant GATS provisions.4 Some  Members 
observed that , as per the information in the Note, various developing countries and LDCs had 
submitted more GATS Article III:3 notifications  than most developed countries . 
2  OPERATIONALIZATION OF THE LDC SERVICES WAIVER  
2.1.  At the meeting  of the Council  held in July, the LDC Group urged notifying Members to share 
inform ation on how they were orienting LDC service suppliers to the benefits available under the 
Waiver preferences and how LDC services were being consumed in their domestic markets, including 
during the COVID -19 pandemic . Several Members intervened to undersco re the importance of the 
Waiver.  
2.2.  At the October meeting, the LDC Group put forward some ideas to advance the discussion s on 
the operationalisation of the Waiver. First, the Group proposed that the Council organize a virtual 
workshop to bring together LDC s ervice suppliers and consumers of LDC services in preference -
granting Members. LDCs asked  the CTS Chairman  to hold consultations on the proposed workshop, 
which  they suggested  could be held in the first quarter of 2021.  Second, LDCs informed Members 
that they planned to organise, in November 2020, a webinar on the impact of COVID -19 on the 
supply of services from LDCs. Third, the Group sought the Secretariat's assistance to update the 
information on LDC services trade initially prepared for the Dedicated Session of 2019.  
2.3.  Members were generally open to discussing the LDC Group's ideas but, given the novelty of 
the suggestions, called for more details to be provided, in writing.  
3  WORK PROGRAMME ON ELECTRONIC COMMERCE  
3.1.  In July, the Council for Trade in Services addressed a communication by a group of Members 
proposing exploratory discussions on how to support digital capability of business and consumers.5 
The document generated significant engagement, with around 40 delegations intervening. All 
Members welcomed the communication as a useful contribution to the Work Programme, and 
numerous delegations said that it testified to the co -sponsors' commitment to the Work Programme 
and the value of continuing exploratory discussions under the same.   
3.2.  All Member s underscored the crucial role of e -commerce to economic growth and development 
and noted that the COVID -19 pandemic had brought this aspect further to the fore. Many delegations 
shared their own experiences and initiatives in support  of digital capabiliti es, and several indicated 
that they would be contributing further at future meetings.   
3.3.  Numerous d elegations valued the communication's focus on the need to  bridge the digital 
divide, although some argued that the development angle of the paper could have been broader.  
Several  Members called for the CTS discussions to focus especially on the numerous infrastructural 
constraints faced by developing countries and LDCs . One Member expressed its concern s with the 
parallel J oint Statement Initiative (JSI)  on e-commerce and its rule -making objective. Another 
Member underscored the importance of keeping WTO discussions trade -focused and urged Members 
not to take measures th at undermined their goal of participating effectively in digital markets.   
3.4.  The joint communication6 continued to generate substantive engagement at the October 
meeting of the CTS, with several delegations presenting detailed information  and follow -up acc ounts 
 
4 Document JOB(09)/10/Rev. 10. 
5 JOB/SERV/296/Rev.2, co -sponsored by Australia; Brazil; Canada; Colombia; Hong Kong, China; 
Japan; Mexico; New Zealand; Nigeria; Norway; Singapore and the United Kingdom.  
6 The communication was revised  in September , in JOB/SERV/296/Rev.3, to add Ukraine as a 
co-sponsor.  S/C/W/384  
 
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  of the initiatives  they had undertaken to support digital capability of business and consumers. One 
Member also shared  extensive  information on its efforts to promote the development of the 
e-payment sector.  
3.5.  Members  emphasised again  that e-commerce was vital to  fostering economic growth and 
development and stressed that COVID -19 had considerably highlighted this aspect. While 
acknowledging the benefits of e -commerce, a few  Members affirmed  that the Work  Programme 
discussions had not sufficiently focused on the significant challenges it posed . These Members  argued 
that exten ding the e-commerce Moratorium  would be harmful to developing countries and reiterated 
their concern s with the parallel JSI process and its rule -making intent.  
4  UPDATE OF THE SECRETARIAT BACKGROUND NOTE ON MODE 4 
4.1.  The Council addressed this  agenda  item upon India's request . At both the July and October 
meetings , India reiterated its request that the Secret ariat update the Background Notes on mode  4 
and on the other modes of supply.  India's suggestion was echoed by some delegations.  India could 
additionally support the preparation of a further Note by the Secretariat , on intermodal linkages.  
4.2.  While affirming  that a Note on intermodal linkages might  be useful , one Member  stated that 
updating the old modal Notes  would be of no added value and thus could not support India's request.  
5  CYBERSECURITY  MEASURES OF CHINA AND VIET NAM  
5.1.  At the request of Japan and the Unit ed States, at its July and October meetings the Council 
addressed again various cybersecurity measures adopted and under development by China and 
Viet Nam, respectively. The two requesting delegations shared their concerns with  various aspects 
of those measures , which they alleged could  be inconsistent with  China and Viet Nam's respective 
GATS obligations,  and sought additional information and clarity on the same. The ir concerns  were 
echoed by several  other Members .  
5.2.  In reply, C hina said that its measures had been drafted transparently and had taken 
stakeholders' comments  into consideration . China stated that the purpose of the measures was the 
protect ion of  cybersecurity , an objective that all Members  shared. At the July meeting , China also 
raised  its own concerns with a cybersecurity measure of the United States.  
5.3.  Viet Nam noted that its legislative process was open and transparent, and that stakeholders' 
comments would continue to be reviewed as the process advanced.  
6  5G-RELATED  MEASURES OF AUSTRALIA  
6.1  At the request of China, the Council addressed 5G-related measures  of Australia at its July and 
October meetings . China expressed its concerns  that the measures under discussion prevented 
Chinese companies from participating in 5G -related projects  in Australia and  run counter to 
Australia's WTO obligations .  
6.2  In reply, Australia stressed that its measures on 5G networks were fully consistent with its WTO 
obligations and stated that it welcomed foreign businesses into its market.  
7  RUSSIAN FEDERATION FOREIGN -LICENSED FIXED SATELLITE OPERATORS  MARKET 
ACCESS  
7.1  At the request of the United States, at its July and October meetings the Council addressed a 
measure by the Russian Federation related to market access for foreign -licenced fixed satellite 
operators . The United States  shared  its concern s that the measure in question provided a preference 
for the use of Russian satellite services over foreign ones , and sought additional information  on the 
same . The US concerns , and the possibility that the Russian Federation's measures could run counter 
to its WTO obligations, were echoed by two other Members.  
7.2  In reply, the Russian Federation provided some details about its measure , stating that it had 
not created any difficulties for foreign suppliers and that no Russian operators ha d been prevented 
from using the services of foreign satellite operators . S/C/W/384  
 
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  8  SOFTWARE PRE -INSTALLATION MANDATE OF THE  RUSSIAN FEDERATION  
8.1  At the request of the United States,  the Council addressed a measure by the Russian Federation 
on the pre-installation of software on "technically complex goods" at its July and October meetings. 
The United States shared its concern s that the measure in question  could run counter to the Russian 
Federation's WTO obligations  and sought additional clarity on the same . The US concerns were 
echoed by  three  other Members.  
8.2  In reply, the Russian Federation stated that the measure under discussion was fully consistent 
with its WTO obligations . The Russia n Federation  would continue to engage with stakeholders  and 
duly consider the ir views.  
9  MEASURES OF THE UNITED STATES RELATED TO CERTAIN  APPLICATIONS  
9.1  At the request of China, i n October  the Council addressed a series of US measures  concerning 
ByteDance and the TikTok and WeChat applications. China raised its concerns that those measures  
were trade -restrictive and inconsistent with the United States'  GATS obligations . 
9.2  In reply, the United  States stated that its actions  served to protect its national security and  had 
been taken to mitigate specific and identified national security risks. China responded that the United 
States had not provide d any  concrete evidence that its national security was being impacted.  
10  MEASURES OF INDIA RELATED TO INVESTMENT APPROVAL AND CERTAIN  
APPLICATIONS  
10.1  At the request of China, at its October  meeting the Council addressed a series of Indian  
measures  on investment appr oval and banning the use of certain  applications . China expressed its 
concerns that those measures were trade restrictive and  inconsistent with India's  GATS obligations .  
10.2  After noting that it had not receiv ed advance information of the specific concern s China 
intended to raise, India replied that its measures were fully compliant with  its WTO obligations . India  
called on China to reflect on its own record with transparency and maintaining an open trade regime 
for digital services. China responded  that it had not taken any blanket measures against services 
and service suppliers of any particular origin.  
11  THE COVID -19 PANDEMIC AND IMPLICATIONS FOR TRADE IN SERVICES  
11.1  This item had been included on the agenda of the July meeting by the Chairman, to provid e 
an opportunity for Members to exchange views on the aspects of the pandemic that related to trade 
in services. Many delegations highlight ed the importance of sharing relevant information and 
experiences , and several  mentioned  the Secretariat 's Information  Note on "Trade in services in the 
context of COVID -19".7 Some Members referred  to the Secretariat's collection of COVID -related 
services trade measures and highlighted the importance of transparency , with various delegations 
underscor ing that Members' trade -restrictive measures had to be temporary , proportionate, non -
arbitrary  and non -discriminatory .  
11.2  Transport and tourism were identified as amongst the sectors most heavily affected by the 
pandemic ; it was noted that  this had a disproportionate effect on those  developing and LDC Members 
whose services exports were concentrated in th ose sectors. At the same time, s everal  delegations 
observed  that the pandemic had resulted in an increased provision  of onl ine services , including 
across borders , and had focused attention on the need to foster a n environment  conducive to 
leveraging digital technologies. V arious Members noted, nevertheless,  that the crisis had further 
underscored the urgent need to address disparities in digital connectivity . Several delegations said 
that the pandemic was impacting developing and LDC Members particularly severely given their 
limited financial resources to support their economies.  
11.3  As requested at the July meeting , in October the Secretariat gave a present ation of  its 
Information Note on "Trade in services in the context of COVID -19". Several delegations  reiterated 
the need for Members'  COVID -related  measures affecting trade in services to be timebound , 
 
7 https://www.wto.org/english/tratop_e/covid19_e/services_report_e.pdf   S/C/W/384  
 
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  justifi able and non-arbitrary . Some Members stated that the crisis was having an asymmetric effect 
on developing countries , impacting their ability to provide fiscal stimulus  and to respond to the health 
crisis. One delegation  underscored  the importance of the cross -borde r movement of health 
personnel . 
12  I-TIP SERVICES TRADE POLICY DATABASE  
12.1  Further to a request of the Russian Federation,  at the October meeting the Secretariat 
delivered a presentation of the World Bank -WTO I -TIP Services , focusing mainly on the Services 
Trade Policy Database that had been released in January . Members expressed their  appreciati on for 
the database and considered it to be a useful tool.  
13  RECENT DEVELOPMENTS IN TRADE IN SERVICES STATISTICS  
13.1.   At the October  meeti ng of the Council, the Secretariat delivered  its yearly  presentation o f 
recent developments in trade in services statistics . The Secretariat presented p reliminary estimates  
showing a marked decline of services trade during the first half of  2020, with some  sectors, such as 
travel and construction, particularly impacted  by the COVID -19 crisis, and o thers, such as ICT 
services, faring better .  
14  WORK OF THE SUBSIDIARY BODIES  
14.1.   The activities of the subsidiary bodies in 20 20 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 the 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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