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S/C/M/142  
 
31 August  2020 
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Council for Trade in Services    
 
 
REPORT  OF THE MEETING  HELD  ON 1 JULY  2020  
NOTE  BY THE SECRETARIAT1 
The Council  for Trade  in Services  held a meeting  on 1 July 2020 chaired  by Ambassador  Tan 
(Singapore).  The agenda  was contained  in document  WTO/AIR/CTS/23.   
 
The agenda  was adopted . 
 
The Chairman  welcomed  the United  Kingdom,  which was attending  the CTS as an independent  
Member  for the first time since leaving  the European  Union.   
 
As that was his first meeting  as Chairperson  of the Council  for Trade  in Services  for 2020,  he wished  
to thank  Ambassador  Muylle  for his sterling  efforts  in guiding  the Council's  work during  the previous  
year, and all Members  for their trust and support  in electing  him to the position.  He promised  to do 
his utmost  to chair the Council  in the most efficient  and productive  way possible  and he was confident  
that, with Members'  cooperation,  and the Secretariat's  able assistance,  the Council's  work would  
advance  smoothly  and fruitfully.  He looked  forward  to working  closely  with everyone  to advance  the 
Council's  agenda  in the face of the unprecedented  challenges  of the COVID -19 pandemic.  
 
He reminded  Members  that, as announced  in his communication  on organizational  and technical  
arrangements  for that meeting , circulated  on 19 June,  delegations  were meeting  both in-person  and 
in virtual  mode.  For those  delegations  attending  in virtual  mode,  he briefly  recalled  the main 
technical  aspects  laid out in his communication.  He thanked  delegations  for their patience  and efforts  
in following  those  arrangements  and for their understanding  regarding  the requirements  and 
limita tions imposed  by the situation.   
Finally,  he reminded  delegations  that the meeting  would  run until 13h00,  would  resume  at 14h00  
and would  end by 16h30  at the latest,  to allow sufficient  time for the Committee  on Specific  
Commitments  to meet. In view of the time constraints,  Members  agreed  to postpone  consideration  
of agenda  item J, "I-TIP Services  Trade  Policy  Database  – Presentation  by the WTO Secretariat " until 
the subsequent  CTS meeting.   
All delegations  who spoke  welcomed  Ambassador  Tan to the Chairmans hip of the CTS, congratulated  
him on his appointment  and wished  him every  success  in that role. The Chairman  thanked  
delegations  for their kind words.   
1  ITEM  A: NOTIFICATIONS  PURSUANT  TO ARTICLES  III:3,  V:7 AND VII:4  OF THE GATS  
1.1.  With regard  to the notifications  made  pursuant  to GATS  Article  III:3 (Transparency),  the 
Chairman  drew the Council's  attention  to the communications  received  from:  Thailand  (in documents  
S/C/N/971  to S/C/N/ 979);  the European  Union  (in documents  S/C/N/981  to S/C/N/ 985 and 
documents  S/C/N/1004  to S/C/N/ 1010,  with the relevant  Corrigenda);  Switzerland  (in documents  
S/C/N/987  and S/C/N/ 988);  the Separate  Customs  Territory  of Taiwan,  Penghu,  Kinmen  and Matsu  
(in documents  S/C/N/989  and S/C/N/ 990);  Australia  (in document  S/C/N/991);  the Russian  
Federation  (in documents  S/C/N/1000  to S/C/N/ 1002);  Ukraine  (in documents  S/C/N/1011  and 
S/C/N/ 1012);  and India (in document  S/C/N/1013).  
 
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/142  
 
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  1.2.  The representative  of India took the opportunity  to thank  the delegation  of Australia  for 
providing  useful  clarifications,  intersessionally,  on certain  issues  with respect  to their notification  on 
Australia 's Temporary  Skills Shortage  Visa reforms,  contained  in document  S/C/N/970.  
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:  Iceland  (in document  
S/C/N/919/Add.1);  Hong Kong China  and Australia  (in document  S/C/N/986);  China  and 
Hong Kong,  China  (in document s S/C/N/264/Add.11  and S/C/N/264/Add.11/Corr.1 ); China  and 
Macao,  China  (in document  S/C/N/265/Add.11);  and the European  Union  and Singapore  (in 
document  S/C/N/1003).  
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  (CRTA)  for consideration.   
1.7.  It was so agreed . 
1.8.  The Chairman  drew delegations'  attention  to the fact that, at its meeting  tentatively  scheduled  
for 27 July, the CRTA  would  be considering  two regional  trade agreements  that cover  services  trade, 
namely:  (a) the Free Trade  Agreement  between  Peru and Honduras;  and (b) the Free Trade  
Agreement  between  Hong Kong China  and Georgia.   
1.9.  Turning  to the notifications  made  under  Article  VII:4 (Recognition),  he drew the Council's  
attention  to the communicati ons received  from:  Thailand  (in document  S/C/N/980);  the Russian  
Federation  (in documents  S/C/N/992  to S/C/N/ 999);  and Australia  (in document  S/C/N/1014).  
1.10.  He suggested  that the Council  take note of the notifications.  
1.11.  It was so agreed . 
1.12.  The Chairman  indicate d that the agenda  included  also consideration  of the Note by the 
Secretariat  titled "Overview  of notifications  made  under  relevant  GATS  provisions ", which  Members  
had agreed  would  be updated  annually.  The Note had been circulated  as document  
JOB(09)/10/Rev .10.  
1.13.  A representative  of the Secretariat  explained  that the Note provided  a statistical  account  of 
the notifications  made  by Members  under  relevant  GATS  provisions,  updated  to incorporate  
notifications  submitted  between  January  and December  2019.  For ease of reference,  the Note listed  
all GATS  notificatio n requirements  applicable  to Members,  irrespective  of whether  any notifications  
had been submitted  under  those  Articles  in 2019.  Compared  to the previous  year's  note, it also 
referred  to the notification  requirement  in paragraph  5.c of the Annex  on Telecom munications,  which  
had been inadvertently  omitted  until then.  
1.14.  As indicated  in the Note,  during  2019,  51 notifications  had been submitted  pursuant  to 
Article  III:3,  5 economic  integration  agreements  had been notified  under  Article  V:7; and a further  
11 notifications  had been submitted  pursuant  to Article  VII:4.   
1.15.  Three  observations  could  be made  based  on the update  of the Note.  First, the number  of 
Article  III:3 notifications  received  in 2019 was five times  higher  than in 2018 and was the second  
highest  ever recorded.  Second,  2019 saw fewer  notifications  of economic  integration  agreements  
than was the case in the previous  year, continuing  a trend  that had already  been observed  in earlier  
updates.  Third,  2019 witnessed,  like 2018,  yet another  increase  in the notifications  submitted  
pursuant  to Article  VII:4.  
1.16.  The representative  of South  Africa , speaking  on behalf  of the African  Group,  thanked  Members  
for the various  notifications  submitted.  Transparency  remained  an important  obligation  to be 
discharged  by Member s. The African  Group,  together  with other  co-sponsors,  had submitted  a paper  S/C/M/142  
 
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  entitled  "An inclusive  approach  to transparency  and notification  requirements  in the WTO" 
(JOB/SERV/292/Rev.2).  The paper  highlighted  that transparency  was important  for the opera tion 
and monitoring  function  of the WTO,  especially  during  the prevalence  of the COVID -19 pandemic.  
1.17.   As the African  Group  had observed  in the previous  meeting  of the CTS, a statistical  account  
by the Secretariat  of the notifications  made  under  relevant  GATS provisions  showed  that developing  
countries  and LDCs had submitted  more GATS  notifications,  especially  under  Article  III:3,  than most 
developed  countries.  The reasons  for that discrepancy  were not altogether  clear but became  
significant  in the context  of COVID -19, as that trend  seemed  to be continuing.   
1.18.  The African  Group  wished  to thank  the WTO Secretariat  for compiling  the overview  of 
measures  notified  under  relevant  GATS  provisions  contained  in document  JOB(09)/10/Rev.10.  The 
Group  reiterated  the import ance of Members  complying  with their transparency  obligations  and 
supported  the Secretariat's  technical  assistance  efforts  in that area. In line with its transparency  
submission,  the African  Group  wished  to emphasize  that developing  countries,  including  LDCs, often 
lacked  capacities  that developed  countries  had. On that basis,  any transparency  obligations  should  
be commensurate  with Members'  level of development.  
1.19.  The Chairman  suggested  that the Council  take note of the statements  made.  
1.20.  It was so agreed . 
2  ITEM B: APPOINTMENT  OF CHAIRPERSONS  TO THE CTS SUBSIDIARY  BODIES  
2.1.  The Chairman  indicated  that, in accordance  with paragraph  7.3 of the Guidelines  for the 
Appointment  of Officers  to WTO Bodies  in document  WT/L/510,  and as announced  at the meeting  of 
the General  Council  held on 3 March  2020,  the outgoing  Chairperson  of the Council  for Trade  in 
Services,  Ambassador  Muylle,  had been consulting  on the appointment  of Chairpersons  for the 
subsidiary  bodies  of the Council  for 2020.   
2.2.  Despite  having  to reschedule  his consultations  due to the COVID -19 pandemic,  Ambassador  
Muylle  had nevertheles s been able to consult  extensively  with delegations  and Regional  
Coordinators.  Moreover,  as stipulated  in the Guidelines,  he had coordinated  closely  with Ambassador  
Cancela  of Uruguay,  the outgoing  Chairman  of the Council  for Trade  in Goods.   
2.3.  Based  on his consultations,  on 20 May Ambassador  Muylle  had circulated  a communication  
containing  the proposed  slate of Chairs  for the CTS subsidiary  bodies  for 2020.  However,  before  the 
prescribed  deadline  set out in that communication,  one Member  had presented  a formal objection.   
2.4.  Consequently,  Ambassador  Muylle  had continued  to consult  and engage  with the Members  
concerned  to find a satisfactory  solution.  As he had announced  in the communication  circulated  to 
all Members,  on 26 June there was no longer  any objection  to the initial  slate he had proposed.  The 
slate of candidates  was therefore  confirmed,  and Ambassador  Muylle  thank ed the Member  concerned  
for its constructive  engagement.   
2.5.  The Chairman  added  his own words  of appreciation  for the flexibility  that was demons trated  
and expressed  his satisfaction  that the issue,  of an essentially  housekeeping  nature,  could  be 
resolved  quickly  and in the right spirit.   
2.6.  The election  of the new Chairpersons  would  take place at the following  meeting  of the 
subsidiary  body concerned  or, if no meeting  date had been confirmed  yet, via a written  procedure.   
2.7.  He suggested  that the Council  take note of the statement  he had made.  
2.8.  It was so agreed . 
3  ITEM  C: OPERATIONALIZATION  OF THE LDC SERVICES  WAIVER   
3.1.  The Chairman  recalled  that, at its October  2019 meeting,  the Council  had held a dedicated  
session  to review  the operation  of the preferences  notified  under  the LDC services  Waiver.  S/C/M/142  
 
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  3.2.  The dedicated  session  was organized  in two parts,  consisting  of a workshop  and a dedicated  
formal  meeting  of the Council,  which  were held respectively  on 29 and 30 October.  The workshop,  
entitled  "Facilitating  the Increasing  Participation  of Least  Develope d Countries  in Trade  in Services ", 
offered  diverse  and valuable  presentations  and contributions,  and several  thought -provoking  
insights.  The dedicated  formal  meeting  was equally  rich. It provided  a platform  for constructive  and 
stimulating  interventions  and saw the active  engagement  of LDC Members  and notifying  Members  
alike.   
3.3.  He recalled  that the Nairobi  Ministerial  Decision  mandated  the Council  to "initiate  a process  to 
review  the operation  of notified  preferences ", and he believed  that the dedicated  session  had been 
an important  element  of that review  process.   
3.4.  The representative  of Chad, speaking  on behalf  of the LDC Group,  noted  the importance  of the 
Secretariat  following  up on the work that had been carried  out for the workshop  held in 
October  2019.  The event  had been useful , and it would  be helpful  to conduct  an assessment  of the 
notifications  submitted  under  the Waiver,  including  in relation  to their modal  coverage,  in light of 
the LDC Collective  Request.   
3.5.  The LDC Group  also underscored  the need for preference -granting  Members  to share  
information  on the initiatives  they had undertaken  to support  the operationalization  of the Waiver  
and to orient  LDC service  suppliers  to take advantage  of notified  preferences.  
3.6.  The Group  also wished  for the work of the workshop  and the review  process  to continue  in light 
of the COVID -19 crisis,  so as to obtain  information  about  the views  and experiences  of LDC service  
suppliers,  as well as of consumers  in preference -granting  Membe rs, with regard  to the 
operationalization  of notified  preferences.  Preference -granting  Members  should  also be able to share  
information  about  the industries  and businesses  that utilised  LDC services.  
3.7.  As Members  approached  MC12,  the LDC Group  would  be deepe ning its engagement  with other  
Members  so as to take stock of the operationalization  of notified  preferences  in light of the relevant  
Nairobi  Ministerial  Decision.   
3.8.  The representative  of South  Africa , speaking  on behalf  of the African  Group,  supported  the 
premise  of the paper  issued  by the LDC Group  on "Possible  elements  for a review  of the operation  
of notified  Preferences " (JOB/SERV/284).  That paper  emphasized  the importance  of the Nairobi  
Ministerial  Decision  on "Implementation  of Preferential  Treatment  in Favour  of Services  and Service  
Suppliers  of Least  Developed  Countries  and Increasing  LDC Participation  in Services  Trade " 
(WT/L/982)  and set out core elements  for a review  of the operation  of notified  preferences.  In that 
regard,  the Group  welcomed  the dedicated  session  held on 29 and 30 October  2019 as an outcome  
of previous  discussions  that were held to refine  the approach  and format  of the dedicated  session.  
It remained  critical  to enhance  the exchange  of information  between  Members and relevant  
stakeholders  related  to the participation  of LDCs in services  trade.  
3.9.  The African  Group  had noted,  from the exchange  of information  and various  presentations,  that 
even though  LDCs' share  in services  trade was increasing,  developing  countr ies' services  exports  
remained  highly  concentrated  in travel/tourism  and transport  services.  Infrastructure  remained  an 
impediment  as a supply -side constraint,  with electricity/energy  supply  and the level of digital  
connectivity  exerting  ever greater  impac ts on the ability  of LDCs to benefit  from market  access.  
Export  diversification  was key, notably  by building  up the stock of human  capital,  and building  
coherent  policy  ecosystems  was also important.   
3.10.  In that regard,  targeted  Aid for Trade  interventions  were needed  that supported  regulatory  
impact  assessments,  e-readiness  assessments,  more granular  sectoral  diagnostics  and increased  
investments  in backbone  services,  regulatory  institutions  and human  capital  in order  to realize  and 
implement  LDCs services  market access.  Enabling  LDCs to increase  their participation  in 
international  trade was an important  part of making  the trading  system  more inclusive.  MSMEs  
played  an especially  important  role in LDCs,  and barriers  to access  for such firms needed  to be 
reduc ed. Recent  experience  with COVID -19 suggested  that MSMEs  from developing  countries  and 
LDCs had been disproportionately  affected.  Members  had to take all relevant  steps  to ensure  LDCs' 
market  access  was not negatively  affected  by such developments.  S/C/M/142  
 
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  3.11.  The representative  of Senegal  had appreciated  the frank discussions  and exchanges  of 
experiences  that Member  had had at the dedicated  session  to review  the operation  of the Waiver  of 
October  2019.   
3.12.  Those  constructive  discussion s provided  the foundations  to improv e the operationalization  of 
the Waiver  and improve  LDCs' participation  in world  services  trade.  There  was still a lot to do for 
LDCs to be able to benefit  from the preferences  that had been notified  by developed  and developing  
Members,  in particular  in a context  where  the COVID -19 pandemic  was heavily  affecting  the services  
sector.  In that regard,  special  attention  had to be placed  on the reduction  of regulatory  obstacles,  
and particularly  visas and other  permits  necessary  to LDC service  suppliers.  He also associated  his 
delegation  to the statements  by the LDC Group and the African  Group.  
3.13.  The representative  of India reiterated  that her delegation  attached  utmost  importance  to the 
meaningful  implementation  of preferences  granted  under  the LDC services  Waiver  by all preference -
granting  Members  with the ultimate  objective  of increasing  the LDCs' share  in global  exports  of 
services.   
3.14.  During  the workshop  on the Waiver  held on 29 October  2019,  India had provided  specific  
information  regarding  the utilisation  of the preferences  it had granted  in the three areas  of visa-
related  preferences,  technical  assistance  and capacity -building,  and market  access.  Her delegation  
had also provided  some  suggestions  on better  future  utilisation  of those  preferences  by LDCs.  India 
looked  forward  to further  meaningful  engagement  with all Members  on that important  issue in the 
run-up to MC12.  
3.15.  The representative  of Mali thanked  India for the preferences  it had notified  and South  Africa  
for its statement  on behalf  of the African  Group,  noting  that 33 LDCs were in Africa.  She echoed  the 
stateme nt by the LDC Group  and Senegal,  thanked  other  notifying  Members  and the Secretariat,  
stressing  the importance  of the Waiver  to integrating  LDCs in world  services  trade.   
3.16.  The representative  of China  said that his delegation  attached  great  importance  to the 
operationalization  of the LDC services  Waiver.  China  had been an active  participant  in, and 
contributor  to, the LDC services  Waiver.  In recent  years,  China  had taken  concrete  steps  to fulfil its 
commitments,  including  by further  liberalising  services  sectors for the benefit  of LDCs,  and further  
enhancing  capacity -building  for LDCs.  
3.17.  China  was also ready  to continue  to make  concrete  contributions  to the effective  
implementation  of the Waiver  and encouraged  Members  to exchange  best practices  in that regard,  
with a view to providing  more effective  support  for LDCs to further  participate  in, and benefit  from, 
global  services  trade.  
3.18.  The Chairman  suggested  that the Council  take note of the statement s made.  
3.19.  It was so agreed . 
4  ITEM  D: WORK  PROGRAMME  ON ELECTRONIC  COMMERCE  
4.1.  The Chairman recalled that, on 10 December 2019, the General Council had adopted a Decision,  
contained in document WT/L/1079, in which Members had agreed to reinvigorate the work under 
the Work Programme, based on the existing mandate.   
4.2.  He informed delegations that in addition to the standard sub -item on "exchange of information 
and experiences based on submissions by Members", the Council had received a joint communication 
titled "Exploratory discussions on supporting digital capability  of business and consumers", circulated 
as document JOB/SERV/296. Two Revisions to the communication had been issued since, to add two 
Members as co -sponsors.  
4.3.  The representative of Australia  presented the communication on behalf of the co -sponsors. She 
indicated that, prior to COVID -19, trade in services had been the fastest growing sector globally, 
with commercial services exports increasing three times faster than goods exports when measure d 
by value. At the same time, the move towards online services had increased. That trend, which was S/C/M/142  
 
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  expected to accelerate as a result of the pandemic, presented both opportunities and challenges for 
business, consumers and governments.  
4.4.  Businesses had rap idly responded to the changing environment and deployed digital solutions 
to continue, expand or diversify their operations, including with the support of governments. On the 
other hand, the pandemic had further highlighted key digital inclusion challenges , particularly faced 
by MSMEs, and in developing countries and LDCs. The co -sponsors proposed that Members, through 
the CTS Work Programme, exchange information on domestic programmes, policies or practices 
they had put, or were putting in place, to facili tate business and consumer engagement in e -
commerce to consider how Members could most effectively harness opportunities and overcome 
challenges in that area.   
4.5.  She explained that the focus of the information exchange process would not be to create 
another avenue for Members to report on or notify measures they were taking in response to the 
pandemic, noting that the WTO Secretariat had already established such type s of reporting 
processes. It was intended to be an information -exchange exercise only, which t he co -sponsors 
hoped would be dynamic and could flexibly respond to the questions and needs of Members.  
4.6.  To structure that information -exchange process, the co -sponsors proposed that Members 
engage on the three following questions: (i) what are the challen ges and opportunities for digital 
solutions and digital delivery of services? (ii) what are Members doing to address these challenges 
and harness these opportunities? For instance, what domestic programmes, policies or practices 
have been or are being put in place to increase digital capability and address the digital divide as 
they related to e -commerce, including any assistance to MSMEs?; and (iii) are Members undertaking 
cooperation activities to support digital capability and address the digital divide as they related to e -
commerce?  
4.7.  The proponents invited Members to respond to all or any of those questions at that juncture 
and/or at future meetings.  
4.8.   On behalf of Australia, she shared her delegation's perspectives and experiences in response 
to the que stions. On the first question, Australian businesses were increasingly relying on digital 
solutions to trade, both during the pandemic and in the recovery phase, and they expected that 
trend to continue in the future. Making such a transition had generated  many opportunities for 
businesses by opening up new markets, tapping into new customer bases, enhancing their 
operational efficiency and revenue, as well as innovating their services to meet new customer 
expectations. For example, digital tools saved smal l Australian businesses 10 hours per week and 
boosted revenue by 27 per cent, amounting to an additional US D 385 billion per year in revenue 
across all Australian small businesses.  
4.9.  However, Australian businesses had faced challenges in making such a trans ition, adapting 
their business models to the capacities, modalities and customer preferences of their new markets, 
ensuring compliance with relevant regulatory requirements, as well accessing internet and other 
digital technologies, particularly in regiona l areas. The government was implementing a number of 
policies and programmes to address those challenges as they related to e -commerce, including in 
response to the pandemic specifically. For example, a key policy document was Australia’s 
International Cyber Engagement Strategy , which, amongst other things, sought to create an 
enabling environment for digital trade, including through trade agreements, harmonization  of 
standards and implementation of trade facilitation measures. Australia’s government was now 
focused on mapping the digital economy policies and business support services needed to accelera te 
the digitization  and resilience of Australian businesses in response to the pandemic and  track the 
growth of Australia's digital economy. Australia also intended to identify technology -led deregulation 
projects. Her delegation would be happy to provide further information on those and other 
programmes to interested Members and updates at future meetings.  
4.10.  On the third question, Australia ran an US D4.5 million e -commerce Aid for Trade Fund, which 
was supporting developing countries in the Indo -Pacific region to expand digital trade by increasing S/C/M/142  
 
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  their e -commerce capabilities. The Fund prioritized  projects that built productive capacity, supported 
effective trade policy and regulation and developed economic infrastructure in the e -commerce 
sector. The Fund’s first round, which focused on developing countries in the ASEAN region, had 
commenced implementation early in 2020 with six organizations  funded a cross different countries 
and sectors. Example areas of focus included building cybersecurity capability for MSMEs in 
Indonesia, accelerating e -commerce regulation adoption in Viet Nam and developing agribusiness 
e-commerce platforms in Myanmar. The second  round, focused on Pacific Island countries, had 
sought applications earlier that year and selected organizations  were expected to be announced that 
month. She hoped to be able to share information on lessons learnt through those programmes in 
the future. Australia looked forward to hearing about the programmes, policies and practices other 
Members had put in place domestically, and co -operation efforts to facilitate business and consumer 
engagement in e -commerce.  
4.11.  All delegations  who took the floor thanked the co -sponsors for their communication, and the 
co-sponsors thanked Australia for its leadership.  
4.12.  The representative of New Zealand  indicated that his delegation was pleased to co -sponsor 
the communication on the table as it saw a lot of value in discussi ng and sharing information and 
practices in that important area. New Zealand recognized  the importance that digital technologies 
played in the facilitation of trade in the global economy, and the trade -enabling benefits that the 
digital economy could provi de to SMEs.   
4.13.  His delegation wished to briefly respond to the questions posed in the communication. Digital 
connectivity was a key enabler for economic activity, and this had become even more apparent 
during the crisis as people had relied heavily on the in ternet to work, for education, to shop, bank, 
pay bills and keep in touch. As governments addressed the economic and social effects of COVID -
19, it was essential that as many people as possible were able to access and fully utilize  the internet. 
For New Ze aland, this had meant ensuring that all their rural and isolated communities were 
equipped with good and reliable broadband connections so that they could fully access and engage 
with the benefits of digital connectivity.  
4.14.  He pointed out that 97% of busine sses in New Zealand were MSMEs and the focus was on 
building their digital capabilities and adopting digital tools to support innovation and development. 
His government had recently appointed a Digital Council that would help identify gaps in accessing 
and using digital technology and advise on how digital technology could support and benefit societies 
and the economy. COVID -19 had also provided opportunities to increase the focus on tools like e -
invoicing that facilitated prompt payment to SMEs, supporting  cash flow during what had, for many 
businesses, been a challenging economic time.  
4.15.  New Zealand also recognized  the challenges of engaging in the digital economy faced by 
some. As an example, New  Zealand’s main area of focus under the Aid Programme was the Pacific 
region, where the opportunities and levelling impacts of e -commerce and digital trade were well -
suited to addressing traditional ‘tyranny of distance’ concerns and supporting a range of exporting 
sectors. For example, New Zealand had partnered with  the World Bank to develop a regional strategy 
toward the improvement of the digital economy in the Pacific region, which was set to be completed 
that year. His delegation looked forward to hearing from other Members and further discussions in 
subsequent m eetings.  
4.16.  The representative of Singapore  stated that, as co -sponsor of the paper, her delegation 
supported holding exploratory discussions on supporting digital capability of business and 
consumers. The pandemic had highlighted the importance of digital to ols, allowing small businesses 
in some instances to sustain their operations despite the closure of physical shops.  
4.17.  Her delegation wished to provide preliminary answers to some of the questions raised in the 
communication. On the second question, Singapor e wished to share information about its recently 
launched "Senior's Go Digital Programme", which aimed at fostering digital inclusion amongst 
seniors. As social distancing measures were likely to stay, digital tools could help seniors to maintain S/C/M/142  
 
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  their soc ial networks and adapt to new practices such as online grocer y shopping. To that end, 
Singapore's Info Commerce authorities had employed around one thousand Digital Ambassadors to 
be stationed at familiar public places to provide technical support to senio rs through three tiers of 
digital skills, including on the use of basic communication tools, like Whats App, government digital 
services, such as SingPass, and on the use of more complex tools such as e -payments. This was 
only one example, as there were man y issues to discuss and experiences to share under that topic. 
Her delegation viewed that as an on -going discussion that would continue in the Council, and looked 
forward to exchanging further information, experiences and views with other Members on that 
matter in the future.  
4.18.  The representative of Japan  said that the COVID -19 pandemic had highlighted the importance 
of e-Commerce and digitalization . Japan believed that sharing information on current domestic 
programmes to increase digital capability and addr ess the digital divide in the Council was a 
meaningful initiative and it could also help to reinvigorate the Work Programme in the Council.  
4.19.  Regarding the question on domestic programmes, policies or practices to increase digital 
capability and address the  digital divide, Japan wished to share briefly information on some of its 
projects. For example, Japan supported MSMES by providing them practical management advice 
using information technologies and guidance on cybersecurity. Public authorities also suppo rted 
improving the ICT environment in Japan by helping local municipalities and telecommunication 
service providers to improve the fiber-optic network infrastructure. As part of the policy aimed at 
encouraging 'telework ' by companies and enterprises, inclu ding MSMEs, the government of Japan 
had increased the number of consultation points and gave advice to ensure speedy and efficient 
introduction and implementation of telework by M SMEs. Those were some examples of efforts made 
by Japan to increase digital c apability and address the digital divide, especially regarding MSMEs.  
4.20.  On the third question, concerning cooperation activities, Japan wished to share the main 
elements of two projects. First, a cooperation project between Japan and Rwanda, aimed at 
strengt hening the ICT innovation Ecosystem in Rwanda, implemented by the Japan International 
Cooperation Agency (JICA). Under that project, Japan supported enhancing Rwanda’s ICT innovation 
system and promoting innovation, targeting particularly entrepreneurs and  start-ups. More than 250 
start-up initiative s were launched, and 5 companies were selected for intensive training. As a result, 
business relationships between Rwandan and foreign companies related to ICT had strengthened, 
broadening their business opportu nities.  
4.21.  Second, Japan supported, in cooperation with ITC, a project aimed at encouraging 
participation in electronic commerce by lecturing using online systems. It was directed at helping 
women entrepreneurs in developing countries to better participate i n international trade.  
4.22.  Last, but not least, Japan had been also promoting further understa nding of e -commerce and 
digital trade rules by government officials from the ASEAN and African regions. Under that 
programme, Japan provided a variety of activities,  including briefing sessions on strengthening 
digital capabilities, workshops on establishing digitalization  efforts, and site -visiting programmes on 
digital -oriented companies in Japan. His delegation hoped to continue contributing to the discussion 
under  that item.  
4.23.  The representative of Canada  said that COVID -19 had changed the structure and functioning 
of the international business and trading environment in fundamental ways.  Almost overnight, 
businesses and consumers, as well as governments, had had to conduct their work and/or business 
activities largely in the digital space. Ensuring broad and inclusive digital capability and connectivity 
was therefore critical to addressing the challenges of COVID -19 in navigating a business and trading 
environment th at was increasingly taking place online. It was also critical for countries, businesses 
and individuals to harness the opportunities and benefits stemming from digital trade and the digital 
economy. The importance of collaboration and cooperation between g overnments, businesses and 
consumers remained critical to identify, address and advance work to ensure broad and inclusive 
digital capability and connectivity around the world. The WTO, and specifically the Council for Trade 
in Services, provided an import ant platform for that type of exchange of views and collaboration.  S/C/M/142  
 
- 9 - 
 
  4.24.  Canada also recognized  the unique challenges that developing Members, particularly LDCs, 
as well as MSMEs faced in that realm.  For Canada, a constructive discussion on that topic in the 
Council provided a concrete vehicle to advance that important issue.  That work also very muc h 
complemented the work that a group of Members was undertaking in the WTO plurilateral e -
commerce negotiations, where they were seeking to establish modern and comprehensive trade 
rules to govern global digital trade. As delegations had heard through the WTO JSI e -commerce 
negotiations and the Work Programme discussions, developing countries faced challenges relating 
to the digital divide that affected their ability to tap into the benefits of digital trade. Her delegation 
was hopeful that discussions in t hat broader Council forum could provide a useful platform to further 
examine those issues and challenges. In that regard, the information provided by other delegations 
at that juncture on their own experiences was useful. Canada intended to share its exper iences in 
subsequent meeting s and hoped that other Members would also take the opportunity to share their 
views.  
 
4.25.  The representative of Nigeria  thanked the other co -sponsors and said that the reality of the 
21st Century was that trade in services was grow ing rapidly and, therefore, the performance of the 
service sectors had become an important determinant of the distributional effects of trade and 
growth. That fact was also true for digital trade. Nigeria believed that to optimize  the benefits of 
that econ omic reality, it was important to sustain and improve ongoing policy initiatives, improve 
the digital business climate and upscale investment in critical hard and soft infrastructure that 
underpinned growth.  
 
4.26.  The COVID -19 crisis was probably the most disr uptive force altering the dynamics of the 
global economy since the great depression of 1930s. As indicated by the WHO, the virus was likely 
to hang around longer than it was earlier envisaged. Despite the adverse global economic impact of 
COVID, there were  some positive economic developments. The world was experiencing exponential 
growth in e -commerce and the digital economy. Nevertheless, it was important to acknowledge the 
fact that given the North – South digital divide and digital exclusion, the benefit s of e-commerce 
growth between countries and amongst domestic economic players were disproportionately shared. 
Therefore, it was necessary to think of innovative ways of addressing this apparent problem.  
 
4.27.  The first step in addressing the problem was to ide ntify the remote and immediate causes 
and, thereafter, devise creative means of tackling the issues. Such creative means, in the case of e -
commerce, included exploring international cooperation and partnerships to address the structural, 
infrastructural an d other issues undermining the gains from e -commerce. It was for that reason that 
Nigeria had co -sponsored the communication on the table, which would enable Members, through 
the Council's Work Programme, to share information on current domestic programmes  seeking to 
increase digital capability and address the digital divide as they related to e -commerce. In his 
delegation's view, the knowledge gained from each other’s experience would provide Capitals with 
the information needed to formulate and implement appropriate policies to drive digital economic 
growth. His delegation called on Members to consider the elements of the communication with an 
open mind and to respond to the questions raised therein. He stood ready to share his delegation's 
responses to th e questions raised in the paper at the following meeting.  
 
4.28.  The representative of the United Kingdom  thanked the Chairman  for his kind words of 
welcome at the beginning of the meeting. H is delegation was pleased to co -sponsor the 
communication  and welcomed the discussi on of those issues at the WTO and in the Council. The 
digital economy and the digital divide were under intensive discussions in several multilateral fora. 
Important work was under way at the ITU on connectivity, and at  UNCTAD on the digital ec onomy. 
It was important that the WTO and its Members remained engaged in those cross -cutting efforts , as 
there were no single solutions to the challenges Members faced.  
4.29.  With an increasing proportion of services moving online, it was essential that develop ing and 
LDC economies were able to take advantage of the opportunities  that that  created. The COVID -19 
pandemic had thrown  the extent and implications of the digital divide  into sharp relief . The 
Secretariat Note on " E-commerce, T rade and the COVID -19 pandemic" summarised how consumers, 
business and institutions worldwide had  sought  digital solutions in response to the pandemic, but  
only with difficulty where  low connectivity, high costs and other barriers existed.  S/C/M/142  
 
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  4.30.  Before turning to international cooperati on, he would refer to domestic activities in the United 
Kingdom. With regard  to the challenges faced by MSMEs during the pandemic , one initiative put in 
place to support small business es in the United Kingdom was a platform called 'Digital boost ', which 
provided digital support by building a community of volunteer  digital experts who offered one -to-
one support to small business free of cha rge to help them improve their digital capability and build  
an online presence.  
4.31.  The UK government had a  new 'Tech Expor t Academy ' to provide expert advice for high -
potential SMEs in the tech sector to support growth into priority markets. Supported by leading 
professional services firms, SMEs would receive  expert  advice across  a wide range of areas, including 
legal, tax, i ntellectual property, regulatory and compliance, to help reduce the time to market for 
exporting and to increase UK exports. The support would also  ensure that women tech  founders  
were among those selected for the Export Academy.  
4.32.  The United Kingdom was  also seeking  to level up the success of the tech industry across its 
geographical regions . A network of tech export champions would  help the most promising regional 
scale-ups in the English regions to develop their international expansion plans. Governmen t 
departments would work with colleagues in Scotland, Wales and Northern Ireland to support very 
high-performing tech companies in the same way.  
4.33.  On the third question regarding cooperation activities, he said that the United Kingdom 
provided support to developing and LDC Members to  build their digital capacity and  increase 
participation in e -commerce. He wished to share with Members three examples.  
4.34.  First, through the 'SheTrades Commonwealth ' program me, the United Kingdom was 
support ing women -owned businesses in  the tourism , IT and  business process outsourcing sectors in 
Kenya, Ghana, Nigeria and Bangladesh to build their brands, develop export strategies and expand 
their client base s. Recently, the programme had helped business to adapt to the  challenges posed 
by the pandemic as well as the  broader trends towards operating online. This had included helping 
women entrepreneurs to maintain their current customer base via e -commerce platforms and digital 
sales and to market their goods and service s digitally to secure new markets.  
4.35.  Second, the UK 'Digital Access Program me' was helping to catalyse inclusive, affordable , safe  
and secure digital access for underserved communities in Nigeria, Kenya, South Africa, Indonesia 
and Brazil. It would increase  connectivity and digital skills of marginalised communities, build 
cybersecurity capacity and grow local digital economies by establishing tech hubs and empowering 
start-ups with the skills needed to expand globally.  
4.36.  Finally, the United Kingdom was a foun der member of the Digital Impact Alliance (DIAL), 
which was a multi -donor initiative that brought together development partners such as the Swedish 
and US governments, the Gates Foundation and the  UN Foundation. It was uniquely positioned to 
serve as a neu tral broker bringing together governments, industry, donors, NGOs and development 
stakeholders in the digital ecosystem to address challenges that no single actor or sector could tackle 
alone. His delegation encouraged other donors to continue to join and engage with DIAL on that 
important agenda. The United Kingdom looked forward to continuing discussing th ose and other 
initiatives in the Council  as part of an ongoing discussion .  
4.37.  The representative of Mexico  stated that her delegation was pleased to co -sponsor the 
communication , which was very important  for the Work Program me and for developing countries in 
particular . Her delegation was working in Capital to be able to present Mexico's experience with the 
pandemic, which was having very disruptive effects for the Mexican economy, both within borders 
and across borders. She hoped to share Mexico's experience at upcoming meetings in terms of the 
challe nges faced by consumers, small businesses, institutions and regulators involved in facilitating 
e-commerce.  
4.38.  The representative of Brazil  was pleased to co -sponsor the communication and said that it 
offered an opportunity to reinvigorate discussions under t he Work Programme. Brazil was glad to S/C/M/142  
 
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  share its experiences in that area. At that juncture, Brazil wished to offer preliminary responses to 
the questions raised in the communication, particularly on domestic experiences and international 
cooperation.  
4.39.  On the domestic front, Brazil was celebrating the 2 5-year anniversary of the Brazilian Internet 
Steering Committee, which comprised  members from government, the corporate sector, the third  
sector and the academi c community with the aim of coordinating and inte grating all internet service 
initiatives in Brazil as well as promot ing technical quality innovation, dissemination of the services  
available and promoting initiatives on digital inclusion. Brazil would be glad  to shar e their domestic 
experience regarding the work of the Committee at future meetings.  
4.40.  In the regional context , Brazil had recently adopted a number of Decisions with other Mercosur 
partners to promote cross -border e -commerce. The y had adopted some Decisions  and common  
principles and guidelines on consumer protection  and on  cooperation among authorities and 
suppliers on electronic signature s and digital authentication. Th ose initiatives aimed to promot e and 
facilitat e engagement of consumers and companies in e -commerce in the region. Brazil  would  be 
glad to share and exchange information with other Members in the future . 
4.41.  The representative of China  said that, as a result of the COVID -19 pandemic, people's travel 
had been restricted and offline consumption continued to be sluggish. However, online shopping 
demand had been fully released. The WTO Secretariat Information Note stated  that e -commerce 
played an active role in responding to the COVID -19 pandemic and had increasingly become a driving 
force for economic growth and international trade development in WTO Members.  
4.42.  Taking China as an example, the data of February 2020 showed that imported goods 
purchased by consumers on Tmall Global had increased by more than 52% year -on-year, and online 
cross-border shopping had been widely welcomed by consumers. That context highlighted the 
significance of cross -border e -commerce, as well as related logistics a nd payment services.  
4.43.  China supported continu ing to  share information and experiences on e -commerce issues 
within the WTO framework , and would welcome new proposals by  Members. China hoped that, 
through th ose discussions, the opportunities and challenges f aced by Members in relation to e -
commerce, in particular by developing Members and LDCs, would be fully considered so as to 
facilitate their entrance into the speedway of e -commerce development as early as possible.  
4.44.  The representative of Colombia  stated th at his delegation was convinced of the importance of 
e-commerce as a tool for development, which had been  confirmed during the pandemic. His 
delegation fully supported a dynamic and fruitful discussion on how to support digital capabilities of 
business and  consumers.  
4.45.  On the first question  in the communication , Colombia had identified important opportunit ies 
and challenges for digital solutions and digital delivery of services that affected the use and benefits 
derived from e -commerce. Th ese included , particularly , logistics, new business models, using e -
commerce platforms, consumer trust issues, new technologies and others. E -commerce was an 
important way of facilitating trade and the pandemic had shown that e -commerce was instrumental 
in enabling business,  especially MSME s, access national and international markets, allowing them to 
strengthen business and consumer relations. E -commerce had also provided opportunities for 
customers, for example, allowing access to essential goods and services.  
4.46.  On the secon d question, he pointed out that Colombia was preparing a first draft of its national 
policy on e -commerce, which involved the Ministry of Communication and Technologies, the Ministry 
of Trade and other  related agencies. In addition, the Ministry of Trade w as promoting national 
initiatives to foster the use of digital platforms to support business.  
4.47.  On the third question, in the context of the Pacific Alliance, the group had agreed to carry out 
a study that would identify barriers associated to services such  as transport and logistics as they 
related to e -commerce.  S/C/M/142  
 
- 12 - 
 
  4.48.  The representative of Hong Kong, China  said that e -commerce had already been recognized 
as a driving force for trade and economic growth. The pandemic had further show n that developing 
e-commerce was not only a business trend, but also important for responding to the challenges that 
emerged in modern society. Changes in consumption habits and business models of enterprises 
would  not only represent short -term business opportunities, but also bring p rofound longer -term 
impact on the e -commerce market.   
4.49.  At the same time, his delegation  recognise d that th at might pose challenges for small 
businesses, especially those just starting to adapt to e -commerce, as well as for some Members who 
might face infrastructural constraints. For example, his delegation had launched a Faster Payment 
System (FPS) two years earlier to support instant electronic retail payments and fund transfers. It 
had been  observed that transactions through FPS had increased sharply , by 60%  in the previous 
quarter. Th at growing acceptance of e -payment driven by the pandemic could signal a 
transformation to a more digitally empowered society conducive to the further development of e -
commerce.  
4.50.  Against th at background, the communication was very timely and relevant , as it encouraged 
Members to share information on domestic policies and initiative s and enhancing digital capabilities, 
especially for MSMEs. Members could learn from each other’s experiences  and best practices and 
policies to support e -commerce development. Hong Kong, China looked forward to sharing its 
experiences and initiatives at future meetings and encouraged other Members to participate.  
4.51.  The representative of Mali wished to reiterate that e -commerce raised development issues, 
and that the implementation of the DDA could help to address th at problem. Mali associated itself 
with the  statements made or to be made by the African Group and the LDC Group.  
4.52.  In Mali, there was a Ministry of Digital Economy, and the government had taken a broad range 
of measures to support e -commerce. In the WTO, different bodies addressed different issues related 
to e-commerce from different angles. For instance, the Council for Trade in Goods discussed customs 
valuation issues and the TRIPS Council the transfer to technology, while the Committee on Trade 
and Development examined issues relevant to developi ng countries in terms of possible impacts of 
e-commerce, including their financial consequences, notably in terms of customs duties.  
4.53.   Developing countries faced several challenges that precluded them from accessing e -
commerce properly, such as access to el ectricity, digital connectivity and e -payment solutions. The 
pandemic had highlighted the importance of e -commerce, as well as the challenges that needed to 
be addressed, including for landlocked countries  like Mali , such as the lack of infrastructure. Som e 
delegations had highlighted the recent imposition of restrictive measures on imports or exports, and 
the fact that other countries had been impacted by this type of protectionism. She wished to request 
the relevant WTO bodies to focus on the implementati on of the Work Programme and address the 
issue of technology transfer, which in her delegation's view was key to promote e -commerce  and 
the integration of developing countries and LDCs in global services trade .  
4.54.  The representative of India wished to make t wo statements, one more specific in response to 
the new communication received, and a second general statement on sharing experiences under the 
Work Programme.  
4.55.  Her delegation agreed that due to increased travel restrictions and reduced demand for 
proximity in services delivery as a result of COVID -19, the demand for online delivery of services 
had increased. The online delivery of services offered exciting opport unities for countries like India, 
given their strength in IT -business process outsourcing services. However, as was rightly mentioned 
in the communication, it was very important to address the challenges posed by the digital delivery 
of services if develop ing countries were to benefit from the opportunities of digital trade.  
4.56.  Her delegation wished to highlight some of the foremost challenges faced by developing 
countries. For example, developing countries would have to urgently put in place laws relating to  
data protection and privacy, online consumer protection, cyber security and electronic transactions. S/C/M/142  
 
- 13 - 
 
  These constituted necessary conditions to do online business, not sufficient conditions, if gains from 
online trade were to be more equitably shared among st all stakeholders. There were at least three 
pieces of legislation that were required, namely: (i) a legal framework for ownership and pricing of 
data, including a legal framework to regulate the cross-border flow of data; (ii) on taxation, to move 
to the concept of economic presence as the basis of taxation, against the earlier used concepts of 
physical or commercial presence; and (iii) laws to curb concentration and anti -competitive practices 
in online trade.  
4.57.  Most importantly, there was an urgent need t o build the digital capacities of developing 
countries and LDCs in areas like digital skills and broadband infrastructure , so that the benefits of 
online applications like e -education, tele -medicine, electronic payments and the use of digital 
platforms for  sourcing goods and services were available to everyone including in developing 
countries and LDCs. India was working on th ose lines and had put in place the Digital India 
Programme to improve digital infrastructure, e -services, e -governance, and the use o f digital 
platforms for empowering citizens for feedback on government policies. India was also developing 
an e-commerce National Policy Framework for preparing to be competitive in the digital space.   
4.58.  As to her second general statement on the Work Program me, India welcomed the General 
Council Decision of December 2019 calling upon Members to reinvigorate the 1998 Work Programme 
on e-Commerce, which had a non -negotiating and exploratory mandate.  India had always 
maintained that while e -commerce had created new and exciting trade and investment opportunities, 
it had also posed several new infrastructure and regulatory challenges, which needed to be 
addressed, including the need for bridging the digital divide.  
4.59.  On the other hand, some Members were pushing for new rules on e -commerce. In her 
delegation's view, the gains from e -commerce should not be confused with the likely benefits of 
rulemaking in e -commerce. India believed negotiation on rules and disciplines on e-commerce would 
be very premature at that stage , especially given the highly asymmetrical nature of the existing 
global e -commerce space. Therefore, India reiterated its serious concerns on the parallel discussions 
on e-commerce under the Joint Statemen t Initiative with clear objectives of rulemaking, which 
clearly run contrary to the exploratory mandate of the 1998 multilateral Work Programme regularly 
reaffirmed by all Members. India was concerned about the impact of some of the e -commerce rules 
being proposed under the Joint Statement Initiative on existing trade rules, particularly GATS 
schedules that provided useful flexibilities and could wither away due to the onslaught of the so 
called ‘high standard’ e -commerce elements. As her delegation  had alr eady informed other Members, 
the G overnment of India , in consultation with stakeholders, was working on the National E -
Commerce Policy, which would inform India's  international engagements on that important subject. 
The draft had been put up in the public domain for stakeholder consultations in February 2019. 
Based on the feedback received, India was developing an E -Commerce National Policy Framework 
for preparing to be competitive in the digital space.  
4.60.  As regard ed the e-commerce Moratorium, which was a cro ss-cutting issue, India and South 
Africa had tabled another joint submission on the scope and impact of the moratorium, which would 
be discussed in the forthcoming meeting of the General Council. While India had always held the 
view that the Moratorium was  harmful for developing countries not just from the revenue point of 
view, but also in terms of negatively impacting developing countries' efforts towards their digital 
industrialisation, COVID -19 had further demonstrated the importance of retaining flexib ility to 
regulate imports of electronic transmissions.  
4.61.  The representative of Ukraine  said that in view of the increased volumes of e -commerce 
transactions and the move towards online services, in particular in the context of COVID -19, Ukraine 
considered t hat the communication on the table was timely and important. Regarding the questions 
posed in the document, following consultations with national authorities, Ukraine wished to 
contribute to the discussion by providing some preliminary answers on questions  two and three.  
4.62.  In order to increase digital capability and address the digital divide, Ukraine was taking 
measures to improve the regulatory and legislative framework aimed at the development of S/C/M/142  
 
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  telecommunication networks, information and communication te chnologies, broadband Internet 
access and introduction of fifth generation mobile communication systems. One of the principles of 
digital economy development was the requirement to increase the level of trust and security. Some 
prerequisites for simultaneo us digital development and appropriate prevention, elimination and 
management of related risks, had been to ensure information security, cybersecurity, personal data 
protection, privacy and users' rights in digital technologies, strengthening and protectin g trust in 
cyberspace.  
4.63.  In order to fulfil th ose tasks, Ukraine ha d been harmonizing its legislation on cybersecurity, 
information protection and electronic trust services with the EU legislation and best international 
practices in th ose areas, which would  in turn facilitate further cooperation with other Members on 
those issues. For example, Ukraine’s legislation on electronic trust services had been fully 
harmonized with the EU Regulations on Electronic Identification and Trust Services for Electronic 
Transactions in the Internal Market. Ukraine ha d also been taking measures to regulate the mutual 
recognition of Ukrainian and foreign public key certificates and electronic signatures used in the 
provision of legally significant electronic services in the pr ocess of interaction between entities of 
different states. In the context of bridging the digital divide, measures aimed at improving access 
to mobile internet and creating conditions for mobile broadband access had been undertaken by the 
relevant Ukrain ian national authorities. Ukraine stood ready to engage constructively on th at matter.  
4.64.  The representative of Switzerland  welcomed the initiative as it was clear that the health crisis 
had further increased the importance of conducting trade through digital m eans and the 
opportunities for development. All three questions in the communication were relevant, but at that 
juncture he wished to focus on the third one.  
4.65.  Switzerland had put in place various cooperation activities aimed at making enterprises in 
develo ping economies more competitive and help them better integrate into the global trading 
system. They included providing support to MSMEs for the digitalization of their supply chains, the 
use of global platforms, the collection of targeted data to improve t heir trade and investment 
decision -making, as well as the development of new finance models and payment solutions. The 
programme financed by Switzerland also supported the creation of favourable framework conditions, 
for example, linked to trade facilitati on and intellectual property rights. His delegation remained 
committed to help ing developing and LDC Members to strengthen their digital capabilities and looked 
forward to sharing best practices in th at area.  
4.66.  The representative  of the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
stated that the pandemic had highlighted the importance of e -commerce in today's world. All 
Members were facing challenges and rebuilding their economies after the pandemic, while also trying 
to close t he digital divide. Given the critical role that e -commerce played, his delegation supported 
the communication's proposal to share information across the Membership on current domestic 
programmes that sought to increase digital capabilities and  to address t he digital divide as related 
to e-commerce.  
4.67.  As a contribution to that discussion, at that meeting his delegation wished to share a few of 
the policies that the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu had adopted 
in that respect. For  example, to help business respond to the changes resulting from COVID -19 and 
to assist manufacturers with strengthening export promotion, the Separate Customs Territory of 
Taiwan, Penghu, Kinmen and Matsu had launched a series of relief measures and domes tic 
programmes on e -commerce aimed specifically at cultivating the talent required for digital 
transformation.  
4.68.  In those programmes, manufacturers could apply for counselling in such services as 'Product 
Information ', 'Digital Advertising ' and 'Production on a Cross -border E -commerce Platform '. In 
addition, a 'Digital Trade Academy ' had been launched, which offered training instead of subsidies. 
The course covered the four most relevant and important topics: cross -border e -commerce, digital 
transformation, digital commerce, and digital marketing. The purpose was to ensure that the S/C/M/142  
 
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  necessary talent and expertise was available to enterprises that needed those capabilities to drive 
digital transformation.  
4.69.  His delegation looked forward to further discussion and experience -sharing on those subjects, 
which were critical to the recovery of Members' economies, to the future of world trade, and indeed 
to the WTO.    
4.70.  The representative of Barbados , speaking on behalf of the ACP Group , stated that the 
communication demon strated the seriousness and commitments of the co -sponsors to the 1998 
Work Programme. That type of engagement was especially important as Members progressively 
moved towards MC12.  
4.71.  The Group continued to be a staunch  supporte r of exploratory  discussions u nder the Work 
Programme, particularly as they related to development. The Group was therefore  preparing a 
communication to contribute to th ose discussion s. They were keen on outlining areas of 
consideration in the CTS as well as in  cross-cutting discussion s under the auspices of  the General 
Council.  
4.72.  The Group recognized that significant progress had been made in advancing ITC infrastructure 
and services and Members saw the benefits  in many respects  during the still-evolving COVID -19 
crisis. Despite those b enefits, however,  the crisis had also underscored  much of what the Group had 
been saying in various WTO bodies, highlighting the obvious and pressing need to address  the digital 
divide. Therefore, it was important t hat any deliberation in the CTS address t he digital divide issue 
head-on. However, Members needed to be careful that the rhetoric surrounding that issue was not 
diluted or devised in a way to divert discussion away from long -standing and severe problems of the 
divide for many developing countries . Specifically, Members should build on the d iscussions around 
moving developing countries and LDC s from being predominantly mere buyers to becom ing active 
suppliers of e-commerce  services.  
4.73.  The issue of digital inclusion  or lack thereof  was critically important for the ACP countries, 
particularly as it related to their  MSMEs  and to the smallest and most vulnerable countries amongst 
the Group . Therefore, the ACP Group wished to lend its support for the elements highlighted by the 
LDC Grou p in the ir communication to the General Council in December 2019. The problems faced 
by LDCs had strong resonance with ACP countries , many of which were LDCs  and SVEs . 
4.74.  Th ACP Group was interested in hearing from the co -sponsors of the communication  on how 
they saw themselves supporting th e most impacted countries in  the digital divide, since much of the 
difficulty underpinning the use of e -commerce wa s a lack of necessary infrastructure . The backdrop 
to the infrastructural challenges that ACP Members faced included  electricity  shortages, resulting in 
load-shedding, tele density, payment systems, lack of  mechanisms to start up  enterprises in e -
commerce  businesses , limited assistance for an affordable ICT  infrastructure (e.g. internet, 
broadband  coverage, tele com infrastructure and services, access to credit cards - the main vehicles 
for online payments, high incidence of unbanked consumers and  limited experience with online 
payment ), trade finance for e -commerce enterprises and a lack of access to e -commerce d igital 
platforms.  
4.75.  Furthermore, data was a key component of digital inclusion as data was the centre of the 
digital economy. Data ownership and access to technologies to analyse and utilise  data for  data 
industrialization were at the core of effective participati on in the digit al economy. Multilateral 
cooperation to promote technology transfer was therefore critical and the work in the CTS in that 
regard had to identify  areas of cooperation that would result in inclusive digital industrialization.  
4.76.  In terms of services, most  ACP countries were already open but were not considered attractive 
because of deficiencies in infrastructure. UNCTAD's work on e -readiness assessments had shown 
that the problem  was overwhelming and confirmed what the Group had iden tified as issues facing 
their economy. That work had been specific to LDCs due to inadequate donor assistance, despite the 
growing demand  for such technical assistance . If the developing countries  and LDCs were to S/C/M/142  
 
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  participate effectively in the economic be nefit at home and in discussions in the WTO, such work 
had to be expanded, including to cover developing countries like those in the ACP Group.  
4.77.  Many ACP countries felt that there was societal and business dividend to be had for the major 
players in the industry in advanced Members to make available to developing countries and LDCs 
facing e -commerce challenges the necessary technologies and services to reduce the digital divide.  
That benefitted the l eading enterprises by increasing the depth of the market  worldwide and tapping 
into enterprises and their services suppliers as well.   
4.78.  That could be done through the establishment of an industry trust to support digital 
development  in a manner similar to initiatives for access to medicines and healthcare . It co uld 
include building the necessary IT infrastructure  and services , training of relevant agencies on policies 
most effective for e -commerce to flourish and bring in returns for developing countries. All players, 
including from the developed world, benefitte d if widespread IT infrastructure was funded across 
developing countries, making consumers and  business es fit for purpose. This would strengthen the 
foundations for an e -commerce trading system  where the poorest and capacity -constrained Members 
would build  confidence in their engagement in the WTO. The Group wished to hear the co -sponsors' 
views on those aspects to address digital solutions and delivery of services.  
4.79.  The representative of South Africa , speaking on behalf of the African Group , said that the 
Group welcomed a discussion of the issues raised in the paper, which constituted an important 
recognition on the side of the proponents that it was necessary to continue the exploratory 
discussions under the Work Programme. The African Group believed that the 1998 Work Programme 
on Electronic Commerce remained an important feature of the work of the CTS, as the General 
Council had renewed it in December 2019.  
4.80.  Therefore, the proposal on the table to share information on current domestic programmes 
seeking to increase digital capability and address the digital divide as they related to e -commerce 
was welcomed. Whereas the African Group found the premise of the su bmission useful, it was 
couched too narrowly, since the questions posed addressed only certain aspects of wider issues that 
could be usefully discussed under the Work Programme. Paragraph 1.1 of the 1998 Work Programme 
directed Members to "examine all trad e-related issues relating to global electronic commerce, taking 
into account the economic, financial and development needs of developing countries", and in 
paragraph 1.3 it further stated that "the Work Programme will also include consideration of issues 
relating to the development of the infrastructure for electronic commerce".  
4.81.  Furthermore, the African Group agreed that COVID -19 was having  a severe impact on service 
providers in all countries, noting the particular challenges that developing countries and  LDCs were 
facing . It would be important to address the digital divide to ensure digital inclusion in order to 
enable equitable participation of the Group in the digital economy.  
4.82.  While the demand for digital services had increased, ICT goods and services exports remained 
highly concentrated in only a hand ful of countries, wh ich accounted for more than 99% of all exports. 
The modest participation of African economies paled in comparison to overall digital trade figures. 
For example, Google accounted for 90%  of the market for internet searches; Facebook accounted 
for two thirds of the global social media market and was the top social media platform in more than 
90% of the world’s economies; Amazon had a 40% share of the world’s online retail activity and  had 
increased that percentage during COVID -19; and Amazon Web Services accounted for a similar 
share of the global cloud infrastructure services market. MSMEs were especially affected by the 
power of platforms and the practices and conditions imposed on them t o participate on such 
platforms. Most Members of the Group had big informal sectors and were likely not to be connected 
as they were disadvantaged by the digital divide.  
4.83.  In that regard, he recalled the communication from the African Group contained in 
JOB/GC/133 of 21 July 2017  on digital industrialisation policy and development. Therein the Group 
had pointed out the extremely high market concentration levels existing in the current global e -
commerce space, evident both in terms of how e -commerce trade was distributed across the global S/C/M/142  
 
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  economy, and in terms of the number of firms that dominated th at space, notably in terms of market 
capitalization.  
4.84.  The African Group had also highlighted that some countries had used policy tools such as data 
localization requirements, internet filtering and technology transfer requirements (i.e. disclosure of 
source code) to promote domestic digital firms and allowed them to catch -up with the leading 
multinational firms. National policies had played a vital role in preparing countries to take advantage 
of e-commerce.  
4.85.  In view of the cross -sectoral nature of digitalization, a whole -of-government response was 
important t o the formulation and implementation of policies aimed at securing benefits and dealing 
with challenges associated with e -commerce. Ensuring affordable and reliable connectivity remained 
a major challenge in many African economies, especially in rural and remote areas, and required 
attention. The profits and revenues of digital giants were rising substantially, and developing 
countries were net importers of digital services. Taxation was another area that required further 
consideration. As the tax landscape  evolved, it was essential to ensure wide and more inclusive 
participation of developing countries in international discussions on taxation in the digital economy.  
4.86.  The Group also point ed out that massive financial subsidies were being rolled out in the Nor th 
to sustain their businesses during the pandemic. Developing countries, which  could not afford 
comparable bailouts, would, at all levels, need to revive the use of strategic trade and industrial 
policies. On th at basis, the African Group would contribute  to the discussion of the Work Programme 
by submitting a proposal that would seek to capture the developmental aspects of the Programme. 
The Group, guided by 'Agenda 2063: The Africa we want ', would focus on issues such as building a 
data economy; building  cloud computing infrastructure; strengthening broadband infrastructure; 
promoting e -commerce in the region; promoting regional digital payments; progressing on single 
digital markets in the region; sharing experiences on e -government, promoting digital in novations 
and technologies; and building statistics for measuring digitization. It was important to locate 
developing countries within relevant value chains, while addressing infrastructure shortcomings in 
order to eliminate the trade -related disadvantage that many developing countries faced.  
4.87.  The representative of Guyana  associated her delegation  with the statement made by the ACP 
Group. Guyana considered that the questions posed by the communication were important and could 
contribute to reinvigorating dis cussions under the Work Programme.  
4.88.  Guyana’s MSMEs faced real challenges in utilizing and adapting to digital tools. Th ose 
challenges included the high cost s of broadband connectivity due to low population density in the 
interior and some coastal areas; hi gh transactional costs and limited interoperability between 
financial service s providers, including banks; a low level of trust in digital payments solutions; and 
a nascent legal and enforcement framework for consumer protection.  
4.89.  For a small vulnerable ec onomy such as Guyana, digitalization was likely to be a catalyst for 
social and economic development, if well harnessed. Guyana deemed the digital revolution as an 
opportunity to enhance its competitiveness in both domestic and export markets, as well as t o 
increase its ability to reach and penetrate new markets. Digital trade could allow to create new 
employment opportunities for youth and women, improve security for businesses and citizens 
through cashless payments solutions and attract targeted FDI into traditional and non -traditional 
sectors of the economy.  
4.90.  In response to the aforementioned challenges and aspirations, Guyana continued to develop 
policies that made digital services more accessible to the population , especially in the interior 
regions. Wi th the aim of enhancing skills to bridge the digital divide, the government had put in 
place ICT training programmes for schools from primary through tertiary education, implemented 
policies aimed at improving Guyana's  rank and ease of doing business, and established public ICT 
hubs in 24 communities across the country .  S/C/M/142  
 
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  4.91.  As a small economy with a lot of potential to develop digitally, Guyana looked forward to 
continuing discussions on solutions to bridging the digital divide through the Work Programme. In 
closing, Guyana sought Members ' guidance on the following: policies and programmes Members had 
implemented to ensure internet connectivity to their most vulnerable populations in poor 
communities and sparsely populated areas; best practices i n increasing trust and enforcement in 
digital financial transactions for burgeoning digital economies; and best practices suggested for 
MSMEs to increase their access to financing. Guyana looked forward to continued collaboration and 
cooperation in th at discussion.  
4.92.  The representative of Senegal  said that his delegation associated itself with the interventions 
made by the African Group and the ACP Group , and welcomed the discussions on supporting digital 
capability of business and consumers.  
4.93.  Senegal was com mitted to making digital technologies and e -commerce a strong lever of 
economic and social growth. E -commerce constituted a channel for domestic production and 
facilitated consumer access to goods and services. Physical exchanges and financial transactions  
were often carried out from accessible platforms at affordable costs, based on suitable, secure and 
data-protective infrastructure and through reliable and efficient supply and distribution channels . 
4.94.   With a view to creating a favourable environment for d igital players, in December 2019  
Senegal's  Ministry of Trade and SMEs had adopted two major strategic documents, namely the 
National Strategy for the Development of Electronic Commerce (SNDCE) and the Strategy for the 
Development and Promotion of Services Exports.  
4.95.  While the pandemic had impacted several sectors at the international level, it had also 
accelerated the implementation of Senegal's strategy for e -commerce. In th at context, it was 
necessary to deploy digital solutions aimed at supporting busines ses, consumers and the various 
stakeholders.  
4.96.  At the strategic level, in addition to the 'Senegal  Digital  2025' strategy, Senegal had adopted 
guidelines on e -commerce, which aimed to promote the development of a digital ecosystem for the 
development of e -commerce with leading players , who would be leaders in their respective fields 
and would make a decisive contribution to the formation of GDP. The National Strategy for the 
Development of Electronic Commerce also aimed to significantly increase Senegalese exports.   
4.97.  Its vision was based on "inclusive and sustainable electronic commerce based on an open and 
competitive market essentially driven by local production and SMEs". It was structured around five 
major axes: develop ment of  supply and demand for e -comme rce products and services; e -commerce 
support infrastructures; build ing of  national skills and expertise in electronic commerce; mobili sation 
of financial resources through innovative mechanisms adapted to electronic commerce; and 
strengthen ing of  the lega l framework for electronic commerce in Senegal.  
4.98.  Four major projects had been identified to support its implementation: Project I on the 
creation of a national electronic commerce platform to serve as a central point of information for 
companies wishing to  develop through e -commerce, but also for individuals and consumers; Project 
II on the creation of a national school to satisfy the lack of profiles corresponding to the requirements 
of the electronic commerce market; Project III on  the generalization of t echnical infrastructures in 
rural areas , to reduce the digital divide between urban and rural areas so as to harness the significant 
potential of e -commerce in these areas; and Project IV on  the awareness and training campaign to 
build a bond of trust between the different operators .  
4.99.  COVID -19 had specifically highlighted the importance of digital inclusion and the difficulties 
Senegal faced in resolving the digital question . Thus, in order to address th ose issues, particular 
emphasis had been placed on the promotion, development and facilitation of e -commerce.  
4.100.   Regarding the promotion of e -commerce, the 'ecommercesenegal.sn ' platform had been 
created to drive the promotion and online sale of all product categories, particularly local products . S/C/M/142  
 
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  Initially launched as 'ecommercecovid.sn', it aimed at referencing national expertise, developing 
local resources, promoting territorial equity and increasing job opportunities. In order to make it an 
inclusive platform and promote the management of stakeholders' needs, the National Consortium 
for E-commerce, which was an in tegral part of the electronic commerce monitoring system, had also 
been created , with the aim of promoting partnership between operators . It was composed of a  
commercial  and a non -commercial  section , with the objective of reflect ing on the modalities of 
development of the 'ecommercesenegal.sn ' platform and its appropriation by the operators . 
4.101.   For the development of e -commerce, the 'eKomkom ' platform had been launched to support 
SMEs that were active in the marketing of local products , to help them better cop e with the disruption 
of supply chains caused by COVID -19. It aimed at strengthening the presence of Senegalese SMEs 
on the internet, offering them solutions ranging from the design of product catalogues to online sales 
and home delivery of products, as we ll as the management and monitoring of orders.  
4.102.   As part of the facilitation of e -commerce, the Ministry of Commerce and SMEs, in collaboration 
with bakery professionals, had set up a bread sales system, the Jaayma Mburu ( 'Sell me bread ' in 
Wolof), which was a platform that allowed individuals to order bread online and have it delivered at 
home. Likewise, the Ministry of Commerce and SMEs had installed relay points, known as 'Point 
Jégé' ('Bringing closer ' in Wolof), which were service ce ntres aimed at improving supply and 
distribution channels, and provided populations in disadvantaged areas with assistance in  using 
digital platforms  and financial and non -financial intermediation  services at reduced costs.  They would 
also be functioning a s professional and secure pick -up points for e-commerce orders.  
4.103.   The 'Senegal Digital 2025 ' strategy, which consisted of 28 reforms and 69 projects, had a 
total cost of CFAF 1,361 billion, or approximately US D3 billion. Around 73% of th at funding was 
expect ed to come from the private sector, 17% from the public sector and 10% from public -private 
partnerships. From th at perspective, international cooperation and foreign direct investment in the 
various areas  of the strategy was essential for Senegal to achiev e its goal of digital transformation.  
4.104.   The representative of Chad, speaking on behalf of th e LDC Group , stressed that e -commerce 
was important for service providers from LDCs, for entrepreneurs, as well as for consumers. In th at 
regard, the Group  wished to  draw the attention of Members to its communication on the matter  
submitted to the General Council  in December  2019 (document WT/GC/W/787).  
4.105.   Specifically , the Group called for  mechanisms to support the creation of businesses in the e -
commerce space and highlighted the existing limitations in terms of ICT infrastructure, cost issues 
and insufficiencies with online payment systems. An additional issue was that of trade finance for 
LDC e-commerce businesses, as well as the problem of limited skill s among companies wishing to 
use e -commerce and ICT strategically for the purchase and sale of goods and services in the context 
of business -to-business, business -to-consumers, or business -to-government commerce. Finally, 
there was the problem of access to  credit cards and the high rate of unbanked consumers, who had 
limited familiar ity with online payments. LDC Capitals also experienced difficulties participating in 
virtual meetings , testifying to the difficulties faced by LDCs.  
4.106.   The global health crisis ha d added further challenges for LDCs, making  the situation 
extremely difficult for them. Therefore, the LDC Group called for Members' understanding, support 
and effective implementation of WTO rules in th at area. 
4.107.   With regard to the communication on the tabl e, the LDC Group appreciated the contribution 
and considered that it reflected the co -sponsors ' interest to engage constructively in the Work 
Program me. The Group encouraged further engagement on th at matter  as pertinent to LDCs and in 
view of MC12.  
4.108.   The re presentative of Thailand  said that the discussion on the 'digital divide ', which was an 
important issue also discussed under the JSI on e-commerce, constituted a critical challenge for 
developing countries and LDCs. Thailand recognised the importance of di gital technology in economic 
and social development. To th at end, the Ministry of Digital Economy and Society had been S/C/M/142  
 
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  established four years earlier  with the aim of developing and regulating basic telecommunication 
infrastructure and promoting the researc h and development of digital technology and innovation.  
4.109.   Thailand wished to share its experience concerning the second question posed in the 
communication , regarding domestic programmes to increase digital capability. Thailand had 
developed the "National D igital Economy and Society Development Plan and Policy 2018 –2037" to 
prepare to enter the digital age with the aim of transforming Thailand towards 'Digital Thailand '.  
4.110.   Thailand  recognized the challenges and opportunities arising from digital technologies and, 
therefore, the Plan would serve as a framework for utilizing digital technology as a key mechanism 
for promoting economic and social development. The Plan included several strategies focused on 
bridging the Digital Divide in the country , with a view t o ensuring that everyone could reap the 
benefits of digital technology.  
4.111.   First, the strategy included a nationwide high -efficiency digital infrastructure broadband 
project called 'Net Pracharat ', namely that high -speed internet networks would be introduced  in 
every village in the country. As of 2019, the fiber-optic cable network already covered over 24,000 
rural villages with 6.6 million users throughout the country. In 2020, the government had planned 
to increase internet speed and followed the Open Acces s Network (OAN) model by allowing 
telecommunication service providers to use the network.  
4.112.   Second, the Plan also aimed to strengthen competitiveness at the regional level through 
digital infrastructure connectivity initiatives , under bilateral cooperation and regional digital 
connectivity under the ASEAN framework. A good example was the New Asia Pacific Submarine 
Cable Proj ect connecting Hong Kong , China  and China's Guangdong Province, Japan, the Philippines, 
Singapore, Thailand and Viet  Nam, which was expected to be completed by the fourth quarter of 
2022.  
4.113.   Third, the Plan also aimed to build an equitable and inclusive soci ety by creating equal 
opportunities for access to and use of digital technology by the public, in particular the elderly, the 
disabled and those living in remote areas; developing people’s digital literacy, including their skills 
and ability to analyse med ia and information in  a free and open digital society . In that regard, the 
Ministry of Digital Economy and Society had launched 'Digital Literacy Thailand Project ' in order to 
develop the Digital Literacy Curriculum and collect information regarding media and information 
literacy in Thailand. Finally, the Plan also focused on workforce development for the digital age, by 
developing digital skills for all ages, including workers in both public and private sectors, in every 
profession and occupation.  
4.114.   As to cooperation activities and technical assistance provided to other Members, Thailand 
had been engaged in a number of sub -regional and regional cooperation programmes through 
various projects . These included : (i) the Young Entrepreneur Network Development Pr ogramme 
(YEN-D), initiated by the Department of Foreign Trade at the Ministry of Commerce, which aimed t o 
connect young successful entrepreneurs in ASEAN and included a series of workshops and seminars 
sharing business success stories , including the effect ive use of digital technology by the MSMEs.; (ii) 
Rural E -Commerce Development in the GMS Project under the Mekong -Lanchang Cooperation 
programme , comprising China, Cambodia, Laos, Myanmar, Thailand and Viet Nam and aimed at 
enhancing the understanding of the opportunities provided by e -commerce business development 
and developing a mechanism for promoting rural products that would help enable rural enterprises 
to participate in broader markets.  
4.115.   As to measures taken during the pandemic, the government had provided assistance to Thai 
people and entrepreneurs using digital technologies , with a view to facilitat ing new working trends 
and lower cost s for businesses. The policies enacted by various Ministries included: free broadband 
internet for 3 months; promo ting digital technology in SMEs by helping them to acquire digital 
transformation technologies; human resources development programmes to develop digital skills for 
700 targeted SMEs , such as on cyber security and data analytic s; cooperation with foreign o nline 
platforms to promote local products. For example, the Ministry of Commerce  had opened an online S/C/M/142  
 
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  store named 'TOPTHAI ' on the Chinese Tmall online platform, organized webinars regarding the 
benefit s of online marketing using e -commerce platform s, as w ell as online trade exhibitions.   
4.116.   The representative of Peru wished to briefly share some information on domestic measures 
adopted during the pandemic as a means of contributing to the discussion of the communication . E-
commerce had played an important role during the pandemic and, as of June 2020, online trade in 
Peru had increased to 700 million of Nuevos Soles.  
4.117.   One of the main challenges faced by her government was to promote consumers' confidence 
in digital markets. For that reason, the National Institute for the Defen ce of Free Competition and 
Intellectual Pro perty Rights (INDECOPI) had created a special form t hat allowed citizens  to report 
any issues arising from e -commerce transactions.  
4.118.   In the context of the digitalization of MSMEs, the Ministry of Production had launched a 
platform called 'Kit Digital 2.0 ', which aimed t o increas e the online sales of MSMEs, promoting e -
payments and domestic deliveries. In addition, the government had set forth an e -commerce 
protocol, which aimed t o contribut e to the prevention of new COVID -19 cases at workplaces by 
setting f orth some guidelines for the surveillance of workers and consumers online. Her delegation 
stood ready to share further information in the future.  
4.119.   The representative of the European Union  welcomed the communication  and was happy to 
see so many Members parti cipating in th e exchange of information on policies supporting the digital 
capability of businesses and consumers at that juncture.  
4.120.   The importance of services sectors and services trade for all Members' economies was 
uncontested, and that had only increas ed with digitalization. COVID -19 had moved lives to the on -
line world, putting more spotlight on digital technologies and digital trade. At the same time, the 
strengths and weaknesses of economies as regarded the availability and use of digital technologie s 
had become more visible.   
4.121.   The European Union wis hed to briefly answer the first question posed in the communication , 
as it considered that benefit ting from digital technologies required  a set of pre -conditions , such as 
the need for solid broadband intern et connection, affordable digital devices to connect to the internet 
and the necessary skills to do so. The combination of appropriate domestic policies and international 
cooperation was also important to help businesses, and in particular MSMEs, participa te in regional 
and global value chains.  
4.122.   On the second question, her delegation wished to briefly highlight a couple of examples from 
the EU experience. The Connecting Europe Facility (CEF) supported the development of high -
performing, sustainable and effic iently interconnected trans -European networks, including in the 
fields of transport and digital services. The telecom component of th at initiative facilitated cross -
border interaction between public administrations, businesses and citizens by deploying dig ital 
service infrastructures and broadband networks. Digital technologies and building up research 
infrastructures were also important elements in the EU research and innovation programme Horizon 
2020. In terms of future actions, the Digital Europe Program me was in preparation and foresaw to 
invest in five key digital sectors: high -performance computing; artificial intelligence; cybersecurity 
and trust; advanced digital skills; and, ensuring the wide use and deployment of digital technologies 
across the eco nomy and society.  
4.123.   Moving to external actions, the EU and its Member States had contributed to and 
implemented numerous cooperation and capacity -building projects to support services trade and the 
development of regulatory frameworks under the Aid for Trad e programme. In the last years, the 
European Union had experienced a strong shift in interest towards digital solutions. The European 
Union had also worked in the context of the 'Digital4Development ' strategy, including on connectivity 
and the strengthening of digital skills.  S/C/M/142  
 
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  4.124.   Cooperation actions and recommendations related to digital innovation, telecommunication 
services and other elements of digital economies had also been addressed in the context of the "EU-
African Union Digital Economy Task Force ". For example, the "Policy and Regulation Initiative for 
Digital Africa ", provided support for the harmonization of ICT/telecom regulatory frameworks, 
among others, by strengthening the continental cooper ation between national telecom regulatory 
authorities, or for harmonized spectrum allocation. The Digital4Development hub would be launched 
in October as a platform of coordination for EU actors to engage with African stakeholders and 
accelerate the implem entation of digitalization actions by partner countries. Her delegation would 
be happy to provide further details on the different programmes and projects at the request of 
interested Members.  
4.125.   The representative of Fiji said that his delegation welcomed t he communication  and 
supported discussions in the context of the Work Program me. His delegation associated itself with 
the statements made by the ACP Group and the Pacific Group.  
4.126.   There was no doubt about the potential of e -commerce for the development of Members' 
economies and the satisfaction it provided both to consumers and suppliers. It was particularly 
relevant for small island developing economies, who were dependent of the services sector. Most 
notably, e -commerce could help MSMEs to connect with wo rld markets, helping to tackle poverty 
and unemployment. Nevertheless, bridging the digital divide was necessary and efforts had to be 
geared towards addressing the limitations of countries like Fiji in terms of connectivity, 
infrastructure, etc. Therefore , it remained crucial to share information and explore avenues on how 
to transform Members' economies without leaving some behind. Fiji looked forward to exchanging 
information with other Members on th ose issues.  
4.127.   The representative of Nepal  said that his delegation associated itself with the statement 
made by the LDC Group and wished to highlight some key issues. The relevance of electronic 
commerce had been acknowledged since 1998 with the Work Program me. However, Members had 
yet not been able to deliver as expected.  
4.128.   E-commerce  had emerged widely in the global trade regime in different dimensions and 
modes, and therefore, meaningful interventions and result -focused initiatives in the WTO had 
become inevitable. The pandemic had reminded Members of the impo rtance of expediting work in 
that area in a participatory, fair, and inclusive manner. In that context, Nepal and other LDCs 
Members had realized the high relevance of e -commerce during and after  the pandemic period , in 
order to foster a  quick recovery and  improve their economies. Furthermore, trade in services had 
become more important for landlocked LDCs like Nepal, and e -commerce could significantly 
contribute to socio -economic development.  
4.129.   However, there was a huge gap between developed, developing and  LDC Members, and such 
a gap existed within countries as well. In th at context, revitalizing the e-commerce Work Programme 
was crucial for digitalization to contribute to global economic development without any digital divide 
among Members and within Membe rs' territor ies, particularly in LDCs. Furthermore, fair and 
equitable distribution of the benefits derived from e -commerce and the digital economy had also 
become important while designing future policies in th at area.  
4.130.   An additional package of support to enable weak Members to walk together had become 
urgent and would have positive multiplier effects on socio -economic development, including 
achieving the SDGs 2030 agenda in a timely manner regardless of the pandemic. Capacity  building, 
digital i nfrastructure development and other issues that LDCs were facing needed to be well -
discussed and addressed for an inclusive digital economy globally , in order to bridge the digital divide 
and make the future trade regime more inclusive. Nepal wished to ext end its appreciation to 
developed and developing country Members for their cooperation and support to LDC Members , 
including Nepal,  in that regard.  
4.131.   The representative of Vanuatu , speaking  on behalf of the Pacific Group  stated that the Group 
welcomed the communication  on the table and particularly that the discussion was  being  held in the S/C/M/142  
 
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  context of the Work Program me. The Group also supported the statements made by the ACP and 
LDC Groups , respectively.  
4.132.   The Group considered that e -commerce had the potentia l to overcome some of the 
challenges faced by its members due to their isolation from major markets by connecting the private 
sector, including their MSMEs, which formed the majority of their businesses, to the global 
marketplace. In addition, e -commerce h ad the potential to reduce poverty by connecting key sectors 
of the economy, including rural and urban areas, as well as to economically empower and improve 
the lives of women, who were predominantly  in MSMEs .  
4.133.   To realise th at potential, serious considerat ion should be given to addressing the digital 
divide that existed in developing countries and LDCs. The Pacific Group identified with the various 
challenges outlined by the ACP Group, which related to both physical infrastructure and utilities to 
enable in ternet connections, as well as soft infrastructure by way of policies, regulations, e -payment 
systems, consumer and data protection, logistic s services and trade facilitation. COVID -19 had 
indeed exposed the need to address the digital divide.  
4.134.   While the communication  aimed at the exchange of information at that stage, the Group 
hoped that such exchange would lead to concrete measures and support needed by developing 
countries to address their challenges. The Pacific Group saw th at discussion  as a useful sta rting point 
and a constructive way forward.  
4.135.   In that connection, the Group stood ready to engage in the exchange of information, based 
on the three questions posed by the proponents as it had been taking steps in that direction.  In 
addition to national eff orts, the Pacific Group had embarked on a regional approach to address the 
challenges  it faced , through e -trade readiness assessments as a first step, and the development of 
a regional roadmap for implementation based on gaps identified by the assessments.  The Group 
acknowledged the support of the EIF, the European Union and Australia in th ose assessments. 
Therefore, they looked forward to further engaging in the exchange of information with other 
Members in future meetings of the Council.  
4.136.   The representative of Pakistan  stated that digital capabilities and the digital divide were 
amongst the key issues that governments were confronted with, and this had been further 
highlighted by the pandemic. The digital divide was a grave reality , much like the technological 
divide in the 20th century separated the 'haves' and 'have -nots' in their attempts to industrialise 
their countries. COVID -19, and its effects on the global and domestic economies, had brought out 
that reality in an acute form and it  was being felt very strongly.  
4.137.   Increasingly, the digital divide was acquiring more connotations  and different meanings  
beyond just infrastructure and connectivity,  to encompass digital and technological capabilities, the 
ability and authority to harvest , accumulate  and process  data and the access and control of large 
platforms. In that regard, it was extremely important for Members that were on the wrong  side of 
the digital divide to acquire the necessary capabilities. Th at aspect  would help , not just during the 
current pandemic but in the long term, to  assist in  building responsi ve digital  industries to be ready 
for future eventualities.  
4.138.   Data, their  ownership, the ability  to regulate their flows, instituting regulations on  taxation, 
competition and access  to critical embedded technologies posed a very difficult conundrum for 
digitally impoverished countries. Linked to those were issues of privacy, ethical and moral 
implications for the use of digital data and various  application s, particularly  the need to develop 
them in  local languages for the domestic population. That had come to light in the context of COVID -
19 specifically, where several digital applications had been developed for contact tracing and other 
uses. 
4.139.   Against that backdrop, P akistan would be happy to learn from the experiences of other 
Members, particularly with regard to acquiring, nurturing and develop ing their digital industries and 
capabilities, not just in the context of trade in services but the overall digital economy. The question S/C/M/142  
 
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  of how Members  that had successfully  built their digital industries had done so would be key to  
Pakistan's understand ing of digital solutions  in the current pandemic and beyond . It would also be 
encouraging  to discuss other services -related  digital issues under the Work Programme .  
4.140.   The representative of Ecuador  said that Ecuador, like other developing countries, hoped not 
only to be able to create trade channels for MSMEs  through e -commerce , but also to benefit from 
digital information and data . Digital technologies offered significant opportunities to optimise 
business processes for service suppliers. To benefit from the opportunities provided by e -commerce 
it was necessary to improve connectivity, develop digital skills and have in place an ap propriate 
policy and legal framework, taking into consideration the  need to protect citizens ' fundamental 
rights .  
4.141.   One year earlier , Ecuador had published its first e -commerce policy 'Ecuador Digital', which 
focused on improving connectivity, efficiency, security of information , as well as innovation and 
competitiv eness . Several Ministries were developing the 'E -commerce National Strategy', which was 
aimed at developing an adequate legal framework, promoting e -commerce for  the benefit of MSMEs, 
promot ing financial inclusion, e -payment solutions  and logistics for e -commerce . Her delegation 
looked forward to sharing further information in future meetings.  
4.142.   The representative of Egypt  said that his delegation looked forward to a constructive 
engagement on that topic at upcoming meetings. He echoed the statement made by the African 
Group and thanked the Secretariat for activities carried out in the field of trade in services to enhance 
the capacity of developing and LDC Members in the area of trade in services. Indeed, that was a 
very important pillar of the Work Programme discussions. In that regard, he wished to thank the co -
sponsors of the communication for encouraging discussions on that crucial element particularly in 
light of the challenge that  COVID -19 had presented and which highlighted the many difficulties faced 
by developing and LDC Members  in terms of digital development and being able to benefit from  e-
commerce.  
4.143.   Egypt wished  to provide some preliminary responses to the questions posed by the 
communication . On the first question, the Egyptian authorities had seen a significant increase of 
demand for e-commerce -related  activities , of up to 20% , as a result of the pandemic. The number 
of visitors to online platforms had increased by 1 6% and consumption had increased by 4%. From 
the business side, there were also new digital solutions had been developed  by local developers and 
software companies .  
4.144.   On the second question, developin g countries faced many challenges , which had been 
highlighted by the pandemic,  such as lack of  capacity in terms of telecommunication  infrastructure, 
which limited their capacity to cope with the increased online traffic. There was also significant  
competi tion faced by local companies related to the use of foreign applications ; it would be useful 
to discuss how to provide a competitive advantage to local producers, particularly with regard to the  
the development of software in the national language , which  was an aspect that posed additional  
challenges. There was also a lack of equal and balanced geographical distribution  in terms of quality 
of infrastructure and access to the internet , especially via broadband . The Egyptian G overnment had 
tried to tackle th ose issues, but much more work was needed. Finally, there were also challenges 
associated with the lack of integrated databases for the  sectoral  analysis of e -commerce -related  
activities , which also led to the absence of an integrated legal framework . That was also an area 
that the Government was trying to work on.  
4.145.   On the third question on international cooperation, he cited some examples , such as the 
recent cooperation agreement on the implementation of the E -com@Africa initiative, as well as a 
recent agreement with Arab States on electronic signature s. Finally, Egypt had recently put in place 
a project called "Our Opportunity  is Digital"  to help  address the needs of  MSMEs  in the area of digital 
development .  
4.146.   The representative of Côte d'Ivoire  said tha t the pandemic had revealed in a flagrant manner 
the urgent need for closer cooperation on e -commerce in several areas. From his delegation's S/C/M/142  
 
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  perspective, to enable all Members to take advantage of the opportunities offered by e -commerce, 
physical and digi tal infrastructure, logistics, and cross -border payment solutions were crucial, as in 
order to respond to the need of e -commerce, it was essential to have a complete and high -quality 
digital infrastructure.  
4.147.   There was a need to support domestic digital netw orks. In that regard, the Secretariat could 
be tasked with putting together a catalogue of the different technical assistance and capacity -
building programmes available to help improve access to the internet for rural areas and 
disadvantaged groups, and of  the technical assistance and pilot projects for the development of e -
commerce to the benefit of Members who so requested.  
4.148.   It was also necessary to put in place an intra -institutional cooperation framework, as well as 
a support fund for the integration of  developing and LDC Members into the digital economy and e -
commerce. It was also important to look into the issue of competition. In his delegation's view, the 
WTO could also take part in initiatives put in place by UNCTAD to help assess the readiness of 
developing and LDC Members to participate in e -commerce, as those initiatives enabled the 
identification of the needs and difficulties faced by those countries.  
4.149.   The representative of Turkey  thanked the proponents for igniting the discussion on how the 
COVID-19 pandemic had affected trade in services and how digital services had helped with the 
burden that the pandemic had laid upon  Members'  economies and  for bringing forward the need for 
digitalization and support for MSMEs.  
4.150.   Turkey had been prioritizing di gital innovation for its business even before the pandemic. 
Her Government had set up the Virtual Trade Academy where anyone interested in a business 
endeavour could find valuable training  on establishment, domestic trade and cross -border trade , 
both in go ods and services. The Academy had proven to be an important resource for business es 
interested in selling their products internationally  or going  online. Since COVID -19 had started  and 
self-isolation and lockdowns had been imposed,  the number of participan ts of the Academy had 
skyrocketed.  
4.151.   As was the case worldwide, also in Turkey t he economic effects of the pandemic had been 
strongest  for SMEs. Therefore, the Ministry of Trade had introduced  on 8 May 2020  a solidarity 
campaign called " As e-commerce, w e stand with SMEs". It brought together online marketplaces, e -
payment solutions, e -commerce infrastructure providers and non -governmental organizations in the 
area of e -commerce to share their resources, allow access to their platforms, lower their membership  
costs and provided financial and technical support to SMEs. Although t he results of the initiative 
were yet to be seen, the Government expected more SMEs to move online with the advance of the 
pandemic.  
4.152.   Finally, her delegation wished  to underline  that the benefits of digitalization, which had 
allowed  to keep business es afloat  during the pandemic , were felt mostly  at the domestic level. In 
her delegation's view, the effects of the digital economy on cross -border trade for goods and ser vices 
were still uncertain.  
4.153.   The representative of Paraguay  thanked the co -sponsors for the communication and agreed 
with the need to urgently share experiences related to programmes and policies implemented 
domestically as a result of the COVID -19 pandemic . That exchange could contribute to enriching 
discussions in the context of the Work Programme.  
4.154.   Her delegation wished to briefly share some preliminary answers to the questions posed. 
Electronic commerce had emerged as the survival tool through which a ce rtain dynamism was 
maintained in trade, the provision of government services, and the supply of essential goods and 
services for consumers and MSMEs, which represented 93% of all economic units in Paraguay.  
4.155.   The National Economic Team had recently approved  a post -pandemic economic recovery 
plan that focused on e -commerce and that would be further developed in the following months. As S/C/M/142  
 
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  an example, social subsidy programmes had been implemented in view of the quarantine that had 
been put in place in Paraguay s ince March. The programmes, called Nangareko and Pytyvo, provided 
social subsidies for low -income people and independent or informal workers. Through solutions and 
transfers that were 100% digital, people who had been affected by the cessation of activitie s due to 
the pandemic could purchase essential  goods in supermarkets and pharmacies.  
4.156.   Among the initiatives to support MSMEs, in addition to the strong support provided to access 
credit and exemptions from payments for some services, Paraguay had put in pla ce the MSME 
digitization plan. This plan allowed MSMEs to create a webpage totally free of charge , facilitating the 
dissemination of, and enabling  access to,  electronic payment mechanisms. In addition, the 
Government had put in place numerous and frequent training workshops and courses aimed at 
developing digital skills.  
4.157.   In the field of international cooperation, together with ITC, Paraguay was finalizing the pilot 
plan for the Global Trade Helpdesk  and would be launching the platform in Spanish to facilit ate 
access to information and trade intelligence, which was key for participation  in international trade. 
Her delegation hoped to share more detailed answers at future meetings.  
4.158.   To conclude, Paraguay wished to suggest th at the  proponents include in their communication 
a strong  development component.  She called on Members to share their experiences, good practices 
and challenges. Paraguay hoped to further contribute to the debate  and bring the perspective of 
landlocked developing countries,  as these countries  faced additional obstacles in terms of internet 
connectivity , due in particular  to cost overruns for access to submarine fib er-optic cables  and 
difficulties  in digital infrastructure and logistics services for e -commerce . Still, those d ifficulties did 
not prevent Paraguay from  continuing to work to foster greater  digital and financial inclusion of 
vulnerable populations, consumers and MSMEs.  
4.159.   The representative of the Kingdom of Saudi Arabia  said that her delegation deemed the 
communicati on on the table very useful and saw value in sharing information on Members' domestic 
programmes, policies and practices to increase digital capacity.  
4.160.   As a result of the pandemic, digital industries had become central to every interaction in life, 
forcing  businesses and consumers to adapt very quickly. Regarding the challenges faced by the 
Kingdom of Saudi Arabia, as in most developing countries, the lack of international legal framework 
for digital trade was one of the main challenges. In addition, the ra pid progress of digital tools and 
the need to reorganise SMEs to be able to integrate in the new digital world, the need to reinforce 
logistics, such as delivery and others, and basic technical capacity for businesses and consumers 
were badly needed.  
4.161.   On possible solutions, her Government's investments in technology had paid off in its fight 
against the pandemic. With 'Vision 2030 ', her Government had started a national transformation 
strategy to shift from an oil -dependent economy to  a digital ly empowered  one. In th at vein, it had 
introduced legislation and  frameworks, created institutions for international partnerships  and 
focused on introduc ing digital solutions in priority services sectors such as justice, health, electricity,  
culture  and tourism, with t he clear goal of becoming the region 's tech leader.  
4.162.   The Government 's prioritization of digital transformation resulted in  the gradual deployment 
of commercial 5G networks in 2019 in more than 20 cities, helping to boost the Kingdom's tech 
credentials amon gst invest ors keen to invest  in industries benefiting from such infrastructure , such 
as tech,  finance, education, as well as the public sector. In addition, the Government had introduced  
a host of  smart tools , which ha d prove n effective  and gained the publ ic's trust .  
4.163.   Saudi  SMEs  were already on a road to higher  cloud adoption and the pandemic further 
accelerated this trend: more than 25% of enterprises had in place a plan to deploy a mix of on-
premises dedicated private  clouds, multiple public clouds and platforms to meet their infrastructure 
needs. MSMEs were reconsidering their  IT purchase decisions and pushing some of thei r IT spending 
towards  making their consumption more efficient  and economical .  S/C/M/142  
 
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  4.164.   The pandemic coincided with the  Saudi Presidency  of the G20 forum  in 2020. That had 
offered the Kingdom an opportunity to lead by example, by implementing an early lockdown , 
suspending most trade in services activities  and using its Chairmanship position to coordinat e the 
global response to the pandemic on various fronts, particularly in the digital sector . The Kingdom  
advocat ed for  digital response and recovery and promoted  collaboration with international 
organizations and the private sector , marking a shift in Saudi priorities . Her delegation remained 
ready to cooperate and work constructively with other Members to  support digital capacity  to address 
the digital divide as it re lated to e -commerce.  
4.165.   The representative of Cameroon  said that his delegation welcomed the communication and 
fully supported the statements made by the ACP Group and the African Group, respectively. His 
delegation was of the view that that initiative could open the way for useful discussions that could 
help deliver concrete results. In that regard, it would be essential for each Member to engage in a 
frank, open and sincere discussion.  
4.166.   While it was true that all Members agreed about the importance of e -comm erce, which had 
been further highlighted during the pandemic, it was equally true that the digital divide that existed 
between developing and developed countries did not favour a balanced development of e -commerce. 
With COVID -19, e-commerce had proven esse ntial in view of the lockdown constraints and had been 
extremely useful for continuing trade, including for  MSMEs that were able to contain losses and 
remain in contact with their customers.  
4.167.   The communication on the table called strongly for an inclusive  approach . It was essential  
to avoid ideological and dogmatic positions and to work based on facts by bringing concrete examples 
of national initiatives launched to develop the necessary  infrastructure and framework s and actions 
undertaken to address the c hallenges identified . This would allow to have a clearer picture of the 
different needs of Members and to identify the way forward to ensure that e -commerce not  be a 
divisive issue but  rather  a consensual one  which all Members supported with concrete measu res.  
4.168.   It was with that view in mind that Cameroon would engage on that issue and supported and 
encouraged other Members to contribute to an approach to e -commerce  that placed inclusion at its 
core.  
4.169.   The representative of the United States  said that he  had found Members' responses to the 
three questions posed by the communication on the table interesting and insightful. The United 
States had contributed to the Work Programme with various submissions that had highlighted a 
number of capacity -building projects  that the United State s had advanced in th at area with 
developing countries, including LDCs.  
4.170.   More broadly, his delegation wished to stress the need to keep the discussion trade -focused 
and identify ways in which trade could help address some of the concer ns raised by Members at that 
juncture. Going forward, it would be important to ensure that steps contemplated by Members, such 
as with respect to privacy, data, and custom duties on electronic transmission, were not ones that 
would serve to further undermi ne those Members' goal of increasing participation in international 
digital markets.  
4.171.   The representative of Sri Lanka  acknowledged the importance of the communication on the 
table, while reiterating the importance of the 1998 Work Programme and the mandate for conducting 
exploratory discussions contained therein.  
4.172.   While recognizing the work carried  out by various Committees under the Work Programme, 
her delegation noted that most discussions were focused on the benefits of e -commerce. It was , 
however , import ant that every Member could count on the necessary  infrastructure and other 
requirements to have a fair share of those benefit s.  
4.173.   The discussion on the digital divide focused on the hard and soft infrastructure required  to 
achiev e digital development. However, Members should be mindful that a ccess to data and S/C/M/142  
 
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  ownership of data were also critical  in the 21st century , as data was considered the oil of the future. 
At the same time,  Members were hearing from developed country sources th at for their companies 
and institutions to deal with COVID -19 there was a need for free trade flows and new digital trade 
growth. However, h er delegation was doubtful that free data flows constituted the only or the best 
option available to achieve a balan ced outcome and benefits. Members should take a step back to 
look at the range of options and see which ones could help developing countries also be suppliers of 
digital goods and services in the future. It was also important to examine the implications of  free 
data flows and how th ose compared with other forms of data government systems including data 
ownership. Sri Lanka hoped to see further progress on the discussions under the Work Programme 
in the Council.  
4.174.   Finally, her delegation welcomed the submissi on by India and South Africa contained in 
document WT/GC/W/798  and looked forward to having a fruitful discussion on the Moratorium o n 
customs duties on electronic transmissions.  
4.175.   The Chairman  thanked all delegations for their active participation and rich  exchange of 
views. There was broad recognition of the importance of e -commerce, which had been highlighted  
by the pandemic, as well as of the challenges faced by developing countries and LDCs.  
4.176.   The Chairman  suggested that the Council take note of the statements made and  said that it 
would  revert to th at item at its next meeting.  
4.177.   It was so agreed . 
5  ITEM  E: UPDATE  OF THE SECRETARIAT  BACKGROUND  NOTE  ON MODE  4 – REQUESTED  
BY INDIA  
5.1.  The Chairman  indicated  that the item had been added  to the agenda  of the Council  at the 
request  of the delegation  of India.  
5.2.  The representative  of India said that, as had been clarified  by her delegation  on previous  
occasions,  India would  welcome  the updating  of all the Secretariat  modal  Background  Notes,  on 
modes  1 and 2, mode  3 and mode  4. In addition , the Secretariat,  as requested  by the United  States,  
should  also prepare  an additional  note on inter-modal  linkages.  As her delegation  had clarified,  while 
the issue of inter-modal  linkages  was indeed  useful  and, therefore,  India welcomed  the US proposal,  
this should  not substitute  its request  to update  the separate  modal  Background  Notes  by the 
Secretariat.  
5.3.  India also understood  that, while most delegations  supported  that inclusive  and comprehensive  
proposal,  the United  States  continued  to have concerns  on updating  those  Notes,  especially  the one 
on mode  4. On past occasions,  the United  States  had also maintained  that since no new multilateral  
negotiations  had happened  on mode  4, the Secretariat  Note of 2009 on mode  4 did not require  to 
be updated.   
5.4.  In that regard,  she stated  that, while unfortunately  there had been no forward  movement  on 
mode  4 negotiations  at the WTO,  the following  elements  from the 2009 Note could  nevertheless  be 
updated,  namely:  improved  methodology  for statistics  on mode  4, including  the recent  work on 
Trade  in Services  data by Mode  of Supply  (TiSMOS);  how mode  4 and related  issues,  such as MRAs,  
provisions  for facilitating  trade in professional  services,  etc. had been addressed  in some  recent  
RTAs,  covering  not only the commitments  but also regulatory  disciplines  on mode  4; analysis  of 
commitments  and MFN exemptions  of recently  acceded  Members;  sectoral  specificities,  as the 
2009 Note had only provided  an analysis  of mode  4 commitments  on a horizontal  basis;  obstacles  
to mode  4 based  on new literature  and empirical  information.   
5.5.  The updated  Note could  also cover  new studies  on potential  economic  effects  of mode  4 
liberalization.  For instance,  the ongoing  COVID -19 pandemic  had demonstrated  the importance  of 
cross-border  movement  of healthcare  professionals,  which  essentially  arose  because  of a mismatch  
between  demand  and supply.  Therefore,  the revised  Note could  also include  a section  on how best 
Members could  leverage  labour  market  complementarities,  especially  for medical  professionals.  S/C/M/142  
 
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  Those  were only suggestions,  and her delegation  would  be happy  to engage  with other  interested  
Members  on their views  and suggestions  on the propos ed update  to the mode 4 Note.   
5.6.  The representative  once again  requested  the United  States  to positively  consider  her 
delegation's  proposal.  Updating  of all Secretariat  modal  Background  Notes , as well as the proposed  
additional  Note on inter-modal  linkages , would  be a very useful exercise  in trade in services.   
5.7.  The representative  of Turkey  noted  that discussions  under  that agenda  item had not moved  
forward  and expressed  her delegation's  discontent  with the fact that Secretariat  work on mode  4 
could  not proceed.  Turkey  highly  valued  Secretariat  work that would : update  the information  on 
GATS  mode  4 commitments  and MFN exemptions  by acceded  Members,  provide  a recent  literature  
review  and, most importantly,  include  a study  of Members ' RTA practices.  She recalled  that her 
delegation  supported  updating  also the Secretariat  Background  Notes  on the other  modes  of supply  
and producing  a new Note on inter-modal  linkages.  She hoped  that discussions  under  that agenda  
item would  conclude  with an agreement  for the Secretariat  to undertake  work on all modes , including  
the most up-to-date information  on RTA provisions.   
5.8.  The representative  of the United  States  said that, as previously  stated  in the CTS, the United  
States  did not support  an updated  Secretariat  Background  Note on mode  4. That had been the US 
position  for the previous  couple  of years.   
5.9.  The United  States  was agreeable  to the Secretariat  preparing  a Note on the interlinkage  of the 
modes  of supply  but did not support  a revised  Note on the various  modes  of supply,  as his delegation  
had explained  a number  of times.  
5.10.  The Chairman  suggested  that the Council  take note of the statements  made.  
5.11.  It was so agreed . 
6  ITEM  F: CYBERSECURITY  MEASURES  OF CHINA  AND VIET  NAM  – REQUESTED  BY JAPAN  
AND THE UNITED  STATES  
6.1.   The Chairman  indicated  that the item had been added  to the agenda  of the Council  at the 
request  of the delegations  of Japan  and the United  States.   
6.2.  The representative  of Japan  said that, in continuation  from the previous  CTS meeting,  his 
delegation  appreciated  the opportunity  to share  its concerns  again  on China  and Viet Nam's recent  
measures  related  to cybersecurity.   
6.3.  With regard  to China 's measures,  Japan  noted  that China 's Cybersecurity  Review  Measures  had 
entered  into force on 1 June 2019.  Japan  remained  concerned  with the measures  at issue because  
they gave the Chinese  authority  a wide range  of discretion  and the criteria  that the authority  used 
in assessing  security  were not clear.  Thus,  Japan  requested  that China  implement  those  measures  
with transparency  and fairness,  by ensuring  that they were fully consistent  with China 's GATS  
commitments.   
6.4.  Japan  had continuously  placed  the issue on the agenda  of the Council  and raised  concerns  
regarding  China 's cybersecurity  law and its related  regulations.  While  his delegation  did not repeat  
its concerns,  as those  had already  been elaborated  in past meetings,  he stressed  that Japan  
continued  to pay close attention  to how China  addressed  his delegation 's concer ns.  
6.5.  As his delegation  had reiterated  in the Council,  Japan  requested  that China  develop  and 
implement  the laws and regulations  at issue in such a manner  that they did not unfairly  hinder  the 
level-playing  field of the business  environment  in China,  both in formal  and actual  treatment,  and 
were fully consistent  with the GATS.  
6.6.  Turning  to Viet Nam's measures,  Japan  wished  to again  raise concerns  with regard  to the draft 
Cybersecurity  Law. With respect  to the draft decree  relating  to the Law on Cybersecurity  of Viet 
Nam,  Japan  recognised  that the Government  of Viet Nam was still working  on deliberating  the draft 
decree.  Japan  requested  that Viet Nam continue  to ensure  transparency  and take into consideration  
the inputs  of all stakeholders  before  finalising  the decree  and related  laws and regulations.   S/C/M/142  
 
- 30 - 
 
  6.7.  The representative  of the United  States  said that he would  not reiterate  all of the points  that 
his delegation  and others  had previously  raised,  but noted  that the United  States  and several  other  
Members  had expres sed concerns  regarding  the trade-restrictive  nature  of China 's Cybersecurity  
Law, which  had come  into effect  in June 2017,  and various  implementing  measures  for the 
Cybersecurity,  and National  Security,  Laws,  some  of them still in draft form,  that imposed  restrictions  
on cross-border  data transfers  and required  data localisation.   
6.8.  One particular  concern  was in regard  to measures  implementing  Article  37 of the Cybersecurity  
Law. That Article  called  for restrictions,  including  data localisation,  for cross-border data transfers  
implicating  a potentially  very broad  or even unlimited  definition  of "important  information " and 
"critical  infrastructure ". For example,  the recently  finalised  Cyber security  measures,  effective  
1 June 2020,  appeared  to allow China  to define what entities  were considered  to be critical  
information  infrastructure  operators  in a manner  that was overly  broad  and could  include  all entities  
in a range  of sectors,  including  telecommunications,  healthcare  and finance.   
6.9.  China  had stated  in the past to the Council  that it did not intend  to restrict  cross-border  
transfers  of data that was routinely  transferred  in the course  of international  business.  The United  
States  would  appreciate  China 's renewed  confirmation  of that policy.  Could  China  provide  
information  on which  draft measures  implementing  the Cybersecurity  Law, that affected  cross-
border  transfers  of data, remained  to be finalised,  and what,  if any, additional  implementing  
measures  or regulatory  guidance  China  was contemplating  with respect  to that Law? 
6.10.  In addition,  the United  States  was concerned  that China 's Cybersecurity  Review  Measure  
created  a formal  process  for reviewing  and approving  the use of information  and communications  
technology  (ICT)  products  and services  by critical  information  infrastructure  operators  in China.  The 
United  States  feared  that China  might  use the review  process  to squeeze  out foreign  ICT products  
and services  for industrial  policy  purposes  rather  than because  of legitimate  cybersecurity  concerns.  
6.11.  Turnin g to Viet Nam's measures,  the United  States  remained  concerned  about  Viet Nam's 
proposed  data localisation  measures  in its draft cybersecurity  decree.  His delegation  looked  forward  
to Viet Nam amending  that draft measure  in a transparent  manner  to address  concerns  that the 
United  States  and other  Members  had raised,  in order  to ensure  that the Cybersecurity  Law was 
implemented  in the least trade-restrictive  manner  possible.  Did Viet Nam have any updates  to share  
on the status  of the draft decree?  
6.12.  The repres entative  of the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
expressed  appreciation  to Japan  and the United  States  for having  raised  that issue again  in the CTS 
and echoed  Members'  statements  in that regard . Members'  measures  on the international  transfer  
of information  would  affect  cross-border  business  operations  and MSMEs'  equal  opportunity  to 
market  access.  From a systemic  perspective,  his delegation  would  carefully  follow  that issue in the 
future.  
6.13.  The representative  of the European  Union said that her delegation  was follow ing closely  the 
implementation  of China 's Cybersecurity  Law and shared  the concerns  expressed  by the previous  
speakers.  
6.14.  The European  Union  continued  to be concerned  with the scope  of the requirements  that were 
unclear , as key terms  had not been specified  in sufficient  detail.  Concepts  such as "critical  
information  infrastructure " and "secure  and trustworthy  products " were not sufficiently  clarified.  
6.15.  The European  Union  noted  that the Law only made  reference  to national  standards.  That could  
lead to lack of interoperability  with international  standards.  In the development  of national  
standards,  it would  be appropriate  to build on existing  international  standards  and to involve  all 
relevant  stakeholders,  including  foreign -invested  and fully-foreign -owned  enterprises,  in a non-
discriminatory  manner  in the relevant  Technical  Committees.  
6.16.  The EU wished  to request  more clarity  regarding  several  of the implementing  measures  
following  China's  Cybersecurity  Law. For exampl e, the Cyberspace  Administration  of China's  Cross -
Border  Data Transfer  Measures  continued  to raise concerns  on the EU side about  the broad  scope  of 
those  regulations,  regarding  what was considered  as critical  information  infrastructure  and which  
kinds  of cross-border  data transfers  were affected.  S/C/M/142  
 
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  6.17.  Moreover,  the European  Union  noted  with concern  that the Cybersecurity  Law already  applied  
and was enforceable,  while the implementing  measures  that would  clarify  its implementation  were 
still not in place.  This created  significant  uncertainty  for economic  operators.  Could  China  inform  the 
Council  when  implementing  measures  would  be adopted?  
6.18.  The European  Union  also took the opportunity  to reiterate  its concerns  on the Cryptography  
Law published  by the Office  of State Commercial  Cryptography  Administration.  The European  Union  
called  on China  to ensure  that legal and regulatory  requirements  were based  on non-discrimination,  
did not favour  specific  technologies,  did not limit market  access  and did not lead to a forced  transfer  
of intellectual  property.  
6.19.  Finally,  the European  Union  would  also welcome  an update  by Viet Nam on the state of play 
of the implementation  of its cybersecurity  measures  and, in particular,  on how the concerns  
expressed  by stakeholders  had been taken  into account.  
6.20.  The representative  of Canada  said that, as per past statements,  her delegation  was also 
following  closely  measures  on cybersecurity  by China  and Viet Nam.   
6.21.  With regard  to China 's measures,  Canada  appreciated  China 's June 16 response  to her 
delegation 's questions,  submitted  in the TBT Committee,  on its Measures  for Cybersecurity  Revie w 
and Cybersecurity  Law. Nonetheless,  Canada  wished  to echo interventions  made  by the United  
States,  Japan,  the European  Union  and the Separate Customs Territory of Taiwan, Penghu, Kinmen 
and Matsu , and continued  to have concerns regarding  the requirements ' consistency  with GATS  and 
TBT requirements,  including  their (i) lack of transparency;  (ii) absence  of clear references  to National  
Treatment  and MFN treatment,  and the use of international  standards,  and (iii) the short 
implementation  period  for the Measures  for Cybersecurity  Review.  
6.22.  Turning  to Viet Nam's measures,  Canada  supported  the interventions  made  by previous  
speakers  and noted  the large product  coverage  of Viet Nam's requirements.  Canada  continued  to 
seek Viet Nam's agreement  to facilitate  trade by adopting  international  standards  and conformity  
assessment  frameworks.  Canada  would  appreciate  receiving  any updates  on those  measures.   
6.23.  The represent ative of China  thanked  previous  speakers  for their interest  in China 's 
cybersecurity -related  measures.  China  had been drafting  and implementing  cybersecurity -related  
measures  in accordance  with the Law on National  Security  and the Law on Cybersecurity.  The 
purpose  of those  measures  was to identify  and avoid  possible  risks arising  from the purchase  and 
use of cyber -related  products  and services,  thus guaranteeing  the security  of critical  information  
infrastructure  and its supply  chain  and safeguarding  nation al security.   
6.24.  China  had been following  the principle  of transparency  in the drafting  process  of various  
measures  by seeking  public  comments  and had taken  into consideration  the opinions  and 
suggestions  from various  stakeholders.  Some  of the measures  were already  in place and some  were 
still in the drafting  process,  and China  would  continue  to welcome  suggestions  from other  Members.  
China  would  also continue  to welcome  foreign  products  and suppliers  in that market.  
6.25.  China  noted  that Japan  and the United  State s also had respective  laws and regulations  on 
cybersecurity,  such as Japan 's IT Basic Law, Action  Plan on Critical  Infrastructure  Information  
Security  Measures,  Cyber  Security  Strategy,  and the United  States ' Patriot  Act, Executive  Order  
13636  and Cybersec urity Act of 2015.  China  believed  that protection  of security  of critical  
infrastructure  was a common  objective  of Members,  although  they might  have different  practices.   
6.26.  As his delegation  had reiterated  time and again  in previous  meetings,  China's  cyberse curity -
related  measures  were equally  applied  to domestic  and foreign  services  and service  suppliers.  
Nevertheless,  China  noted  the Executive  Order  issued  in May 2019 by the United  States,  which  
banned  specific  foreign  enterprises  from providing  information  and communications  technology  or 
services.  China  had expressed  grave  concerns  over that measure,  as it obviously  violated  US GATS  
commitments  and WTO rules.  Therefore,  China  urged  the relevant  Member  to stop those wrong  
practices  as soon as possible,  abide by WTO rules and fulfil its GATS  commitments.  
6.27.  The representative  of Viet Nam thanked  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 S/C/M/142  
 
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  Cybersecurity  Law. He reiterated  that the process  had been transparent,  with an open mind and all 
stakeholders'  comments  had been reviewed  for the continuing  internal  consideration.   
6.28.  The Chairman  suggested  that the Council  take note of the statements  made.  
6.29.  It was so agreed. 
7  ITEM  G: 5G-RELATED  MEASURES  OF AUSTRALIA  – REQUESTED  BY CHINA  
7.1.  The Chairman  indicated  that the item had been added  to the agenda  of the Council  at the 
request  of the delegation  of China.   
7.2.  The representative  of China  said that, since August  2018,  the Australian  Government  had 
implemented  a series  of measures  to prohibit  Chinese  companies  from participating  in its 5G 
telecommunication  projects.  Since  2019,  the Australian  Government  had extended  its restrictive  
measures  to areas  beyond  5G projects,  and Chinese  companies  had been facing  many  unreasonable  
and discriminat ory requirement s when  maintaining  their 4G networks  or transmission  networks  in 
Australia.  The Australian  Government  had also exerted  pressure  on Australian  operators  behind  
closed  doors  to restrict  their cooperation  with Chinese  companies.  Those  unreasonable  and non-
transparent  measures  severely  restricted  Chinese  suppliers ' ability  to provide  equipment  and 
services  in Australia  and were inconsistent  with WTO rules,  seriously  undermining  the business  
operations  of Chinese  companies  in Australia.   
7.3.  China  had expressed  strong concerns  over those  measures  at the CTG and in other  fora. Those  
measures,  while violating  GATT  rules,  were also inconsistent  with the GATS  obligations  of Australia.   
7.4.  First, those  measures  prevented  Chinese  companies  from providing  network  construction  and 
operating  services  in Australia,  impairing  the market  access  of Chinese  companies  and Chinese  
services  in Australia,  and violating  the MFN principle  under  GATS  Article  II.  
7.5.  Second,  Australia  had made  commitments  in its GATS  schedule  in the value -added  
telecommunication  services  sector  and all sub-sectors  of computer  and related  services  (except  for 
database  services).  It had also made  commitments  in basic telecommunication  services  and 
construction  and related  engineering  services  (with a few reservatio ns on foreign  equity  ownership  
and nationality  of the directors).  Prohibiting  Chinese  companies  from participating  in its 5G projects  
was in violation  of Australia 's commitments  in those  sectors.   
7.6.  Third,  China  noted  that the Australian  Government  had declared that those  measures  were 
based  on its Telecommunications  and Other  Legislation  Amendment  Act 2017,  yet its restrictive  
measures  were imposed  before  the Act had come  into force.  That was a clear violation  of due process  
and of the transparency  obligatio ns under  GATS  Article  III.  
7.7.  China  required  Chinese  companies  to comply  strictly  with local legislation  when  operating  
overseas.  In the meantime,  China  strongly  opposed  any suppression  against,  and interference  with, 
business  operations  of law-abiding  Chine se companies  by foreign  governments.  China  urged  
Australia  to treat Chinese  companies  in an objective,  just and fair manner,  and stop its unilateral  
and discriminat ory measures  against  Chinese  companies,  so as to fulfil its WTO obligations,  create  
a sound  business  environment  for companies  from both sides,  and safeguard  the legitimate  rights  
of foreign  companies  to operate  and develop  in Australia.  
7.8.  The representative  of Australia  thanked  China  for its statement.  Australia  was committed  to 
upholding  and actively participating  in a rules-based  multilateral  trading  system  and its position  on 
5G networks  was fully WTO consistent.  Australia  welcome d foreign  business  in that market,  which  
it considered  essential  for the efficient  and effective  operation  of Austral ia's telecommunications  
sector.  
7.9.  That was the first time that Australia  was hearing  that matter  in the Council  for Trade  in 
Services,  although  it had been previously  discussed  elsewhere  in the WTO.  Australia  remained  open 
to bilateral  dialogue  with Members  and would  continue  to engage  constructively.  
7.10.  The Chairman  suggested  that the Council  take note of the statements  made.  S/C/M/142  
 
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  7.11.  It was so agreed . 
8  ITEM  H: RUSSIAN  FEDERATION  FOREIGN -LICENSED  FIXED  SATELLITE  OPERATORS  
MARKET  ACCESS  (DECISION  OF THE SCRF  NO. 17-42-07, DATED  4 JULY  2017)  – 
REQUESTED  BY THE UNITED  STATES  
8.1.  The Chairman  indicated  that the item had been added  to the agenda  of the Council  at the 
request  of the delegation  of the United  States.   
8.2.  The representative  of the United  States  said that his delegation  had placed  that item on the 
CTS agenda  because  it was seeking  clarification  of a measure  adopted  by the Russian  Federation.   
8.3.  On 4 July 2017,  the Russian  State  Commission  for Radio  Frequencies  (GKRCH)  adopted  
Decision  No. 17-42-07 on the allocation  of radio frequency  bands  for satellite  communication  earth  
stations  and VSAT -stations  relying  on transponders  of spacecraft  used by foreign  satellite  networks  
over the territory  of the Russian  Federation.  
8.4.  According  to Appendix  3 of the Decision,  telecommun ications  operators  wishing  to rent capacity  
from a foreign  satellite  operator  needed  to first demonstrate  that Russian  satellite  providers  did not 
have such capacity.   
8.5.  No such requirement  was in Russia 's Schedule  of Commitments,  and Russia 's Working  Party 
Report  stressed  that any foreign -licensed  fixed satellite  operator  could  access  the market  of the 
Russian  Federation  by providing  capacity  to a juridical  person  of the Russian  Federation  that 
possessed  a license  for telecommunications  services.  There  was no requirement  that those  licensees  
had to use Russian  satellites.  Could  Russia  provide  more details  on that requirement?  In particular,  
were foreign  fixed satellite  service  providers  allowed  to provide  services  directly  to customers  in 
Russia  without  a requirement  for those  customers  to first use Russian  fixed satellite  service  
providers?  
8.6.   The representative  of Canada  indicated  that her delegation  shared  the US concerns  that 
Decision  No. 17-42-07 on the allocation  of radio frequency  bands  for satellite  comm unication  earth  
stations  and VSAT -stations  appeared  to be inconsistent  with Russia 's mode  1 commitments  on fixed 
satellite  services.  Canada  would  appreciate  further  clarifications  from Russia  on that measure  and 
how it complied  with Russia 's existing  GATS  obligations.  
8.7.  The representative  of the European  Union  also wished  to express  its concerns  with respect  to 
the licensing  procedures  of Russia  for the provision  of fixed satellite  services,  which  created  an 
effective  barrier  affecting  EU satellite  operators  wishing  to provide  satellite  services  in the Russian  
market.  
8.8.  The Decision  in question  required  telecommunications  operators  wishing  to rent capacity  from 
a foreign  satellite  operator  to first demonstrate  that Russian  satellite  providers  did not have such 
capacity:  this was discriminatory  against  foreign  satellite  providers,  who were prevented  from 
providing  their services  to customers  on the same  conditions  as their Russian  competitors.  
8.9.  The European  Union  considered  that the requirements  in Decision  17-42-07 of the State  
Commission  on Radio  Frequencies  (GKRCH)  were in breach  of the Russian  Federation 's GATS  
commitments,  which  required  non-discrimination  between  national  and foreign  fixed satellite  
services.  Moreover,  EU-based  satellite  operators  had provided  evidence  of actual  loss of business  in 
Russia  due to that provision.  The European  Union  therefore  renewed  its request  that the measure  
be brought  in line with Russia 's GATS  commitments . 
8.10.  The representative  of the Russian  Federation  said that according  to Federal  Law "On 
communications " of 7 July 2003 No. 126-FZ, the right to use the radio frequency  spectrum  was 
granted  by allocating  radio frequency  bands  and assigning  radio frequencies  or radio frequency  
channels.  The Law set a procedure  for users  to obtain  permission  for access  to the radio frequency  
spectrum.   
8.11.  At the first stage  of obtaining  a permission  for the usage  of the radio frequency  spectrum,  it 
was necessary  to obtain  a decisio n of the State  Commission  on Radio  Frequencies  (GKRCH)  on S/C/M/142  
 
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  allocation  of radio frequency  bands.  At the second  stage,  it was necessary  to get a permission  to 
use radio frequencies  or radio frequency  channels  by the Roskomnadzor.   
8.12.  The Russian  Federation  wishe d to stress  that it was not aware  of any instances  when  that 
procedure  had created  a barrier  or a difficulty  for foreign  service  suppliers.  Her delegation  did not 
have any such communications  from foreign,  including  US, companies.  She emphasised  that there 
had been no rejections  for the Russian  operators ' usage  of foreign  satellites  since the Decision  of 
the State  Commission  had come  into force.   
8.13.  Her delegation  was ready  to review  any information  of specific  practical  difficulties  
experienced  by any US comp anies in the context  of the said Decision  of the State  Commission  on 
Radio  Frequencies  (GKRCH).  
8.14.  She had also taken  note of the statements  of Canada  and the European  Union,  would  consider  
them carefully  and revert  to them in the future  as necessary.  
8.15.  The Chairman  suggested  that the Council  take note of the statements  made.  
8.16.  It was so agreed . 
9  ITEM  I: RUSSIAN  FEDERATION  SOFTWARE  PRE-INSTALLATION  MANDATE  (FEDERAL  
LAW DATED  2 DECEMBER  2019  NO. 425-FZ "ON AMENDING  ARTICLE  4 OF THE LAW OF 
THE RUSSIAN  FEDERATION  'ON PROTECTION  OF CONSUMER  RIGHTS' ") – REQUESTED  BY 
THE UNITED  STATES  
9.1.  The Chairman  indica ted that the item had been added  to the agenda  of the Council  at the 
request  of the delegation  of the United  States.   
9.2.  The representative  of the United  States  wished  to raise in the Council  for Trade  in Services  the 
Russian  Federation 's software  pre-install ation mandate  that could  be found  in Federal  Law No. 425-
FZ titled "On Amending  Article  4 of the Law of the Russian  Federation  ‘On Protection  of Consumer  
Rights '" dated  2 December  2019.  That was not the first time Members  had raised  concerns  about  
that measure in the WTO.  It had previously  been discussed  at the February  and May meetings  of 
Committee  on Technical  Barriers  to Trade  and the June 2020 meeting  of the Council  for Trade  in 
Goods.   
9.3.  The United  States  was raising that issue in the CTS because  of the implication s of that measure  
to various  services  and service  suppliers.  The measure  required  pre-installation  of Russian  software  
on certain  types  of what the Law called  "technically  complex  goods  (TCG) " sold in Russia.  
9.4.  Russia  had undertaken  market  access  and national  treatment  commitments  in a variety  of 
services  sectors  related  to the use of software  in computers.  Could  Russia  explain  how the 
requirement  that certain  Russian  software  be pre-installed  complied  with Russi a's services  
commitments?   
9.5.  Specifically,  first, the draft Resolution  listed  programmes  for search  engines/browsers  among  
the types  of software  for which  a Russian  version  must be pre-installed  before  a TCG could  be sold 
in Russia.  How did that requirement  comply  with Russia 's commitment  not to impose  limitations  on 
national  treatment  for Computer  and Related  Services  (CPC 84) (except  with respect  to certain  
subsidies),  On-line Information  and Data Base Retrieval  (CPC 7523)  (except  for certain  limitations  
applicable  to satellite  communications)  and/or  On-line Information  and/or  Data Processing  
(CPC 843) (except  for certain  limitations  applicable  to satellite  communications)?  
9.6.  Second,  the draft Resolution  listed  programmes  to send and receive  email  among  the types of 
software  for which  a Russian  version  must be pre-installed  before  a TCG could  be sold in Russia.  
How did that requirement  comply  with Russia 's commitment  not to impose  limitations  on national  
treatment  for Electronic  Mail (CPC 7523)  (except  for certain limitations  applicable  to satellite  
communications)?   
9.7.  Third,  the draft Resolution  listed  programmes  for instant  messaging  among  the types  of 
software  for which  a Russian  version  must be pre-installed  before  a TCG could  be sold in Russia.  S/C/M/142  
 
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  How did that requirement  comply  with Russia 's commitment  not to impose  limitations  on national  
treatment  (except  for certain  limitations  applicable  to satellite  communications)  for Other  
Telecommunication  Services  (CPC 7529)?  
9.8.  Fourth,  the draft Resolution  listed  programm es for audio -visual  services  among  the types  of 
software  for which  a Russian  version  must be pre-installed  before  a TCG could  be sold in Russia.  
How did that requirement  comply  with Russia 's commitment  not to impose  limitations  on national  
treatment  (excep t with respect  to certain  subsidies)  for audio -visual  services  (CPC 9611)?  
9.9.  The representative  of Japan  shared  the concerns  expressed  by United  States  regarding  the 
Russian  Federation 's software  pre-installation  measure.  Russia 's proposed  measure  included  unclear  
articles  regarding  definitions  of terms,  requirements  for review  and evaluation,  which  could  hamper  
market  access  by foreign  enterprises  in Russia,  and the level playing  field between  Russian  
enterprises  and foreign  companies.  Therefore,  Japan  reque sted Russia  to implement  that measure  
to be fully consistent  with GATS.   
9.10.  Also taking  advantage  of that opportunity,  Japan  wished  to ask Russia  to explain  the reason  
why the measure  to install  the Russian  programme  into electronic  items  such as smartphones  and 
computers  would  result  in consumer  protection.   
9.11.  Japan  called  on the Russian  Federation  to provide  a response  to the concern  and question  
that his delegation  had raised  at that meeting  and on other  occasions.  
9.12.  The representative  of the European  Union  shared  the concerns  expressed  by the United  States  
and Japan  with respect  to the Russian  Federation 's software  pre-installation  mandate  in "On 
Amending  Article  4 of the Law of the Russian  Federation  'On Protection  of Consumer  Rights '". Her 
delegation  had also raised  that issue in other  Committees  earlier  that year.  
9.13.  However,  the envisaged  measures  also raised  concerns  with regard  to their compliance  with 
the GATS  market  access  and national  treatment  commitments  of the Russian  Federation  in certain  
services sectors.  In particular,  the European  Union  would  welcome  Russia 's explanation  on how the 
obligation  to pre-install  certain  Russian  software  would  comply  with the national  treatment  
commitments  Russia  had made  in computer  and related  services  (CPC 84) and in 
telecommunications  services  (in particular,  CPC 7523).   
9.14.  The representative  of Canada  said that her delegation  was also following  closely  the measure  
at issue and wished  to echo the concerns  raised  in previous  statements.  Canada  also sought  Russia 's 
explanation  of the legitimate  objective  it was pursuing.  
9.15.  The representative  of the Russian  Federation  thanked  Members  for their interest  in the 
Russian  Federation's  regulation  on the protection  of consumer  rights.  
9.16.  The amendments  to Article  4 of the Federa l Law of the Russian  Federation  "On Consumer  
Rights  Protection " had been drafted  in cooperation  with foreign  companies  that were members  of 
the Association  of Trading  Companies  and Manufacturers  of Electrical  Household  and Computer  
Equipment  (RATEK)  in order  to prevent  possible  negative  impacts  on trade.  The authoriti es 
responsible  for the drafting  process  had taken  into account  the position  of the industry  and its 
suggestions.  Moreover,  some  of the largest  transnational  corporations  involved  in manufacturing  
and exporting  technically  complex  goods  had evaluated  positi vely that initiative  and did not consider  
it to be a burden  for conducting  trade activity.  
9.17.  Her delegation  wished  to assure  the delegation  of the United  States  that the amendments  did 
not contain  any discriminatory  provisions.  In particular,  they did not provide  for any limitations  or 
restrictions  that were contrary  to the national  treatment  obligation.   
9.18.  The Law did not prohibit  the pre-installation  of foreign  software.  The Law did not prohibit  
importation  and distribution  of products  should  they contain  pre-installed  software  of non-Russian  
origin,  subject  to the requirement  that such software  did not violate  other  laws and regulations  of 
the Russian  Federation,  in particular  those  related  to public  order,  data protection,  consumers ' rights  
protection.  Howev er, her delegation  wished  to note that such other  laws and regulations  applied  on 
a non-discriminatory  basis to software  of any origin,  Russian  or non-Russian.   S/C/M/142  
 
- 36 - 
 
  9.19.  The Law did not require  the manufacturers  or distribut ors to uninstall  any pre-installed  
softwa re of non-Russian  origin.  However,  any software,  whether  of Russian  or non-Russian  origin,  
should  be consumer -removable.  The programmes  would  be installed  on the basis of commercial  
contracts  between  software  developers  and device  manufacturers.   
9.20.  Her deleg ation stood  ready  to review  any information  of specific  practical  difficulties  
experienced  by any US companies  in the context  of the said Federal  Law and amendments  thereto.   
9.21.  She had taken  note of Members ' comments  and questions  and would  consider  them carefully.  
Her delegation  would  be glad to continue  the constructive  discussion  on that issue in the future.  
9.22.  The Chairman  suggested  that the Council  take note of the statements  made.  
9.23.  It was so agreed . 
10  ITEM  K: THE COVID -19 PANDEMIC  AND IMPLICATIONS  FOR TRADE  IN SERVICES  
10.1.  The Chairman  recalled  that, as indicated  in the communication  on organizational  and technical  
arrangements  for that meeting  he had circulated  on 19 June,  he had added  that item to the Council 's 
agenda  in light of the unprecedented  disrupt ions that the COVID -19 pandemic  had inflicted  on public  
health,  the global  economy  and world  trade.  He was of the view that it would  be timely  and important  
for Members  to have an opportunity  to share  information  and exchange  views  on the aspects  of the 
pandemic  that related  specifically  to trade in services.  
10.2.  As the Secretariat  Information  Note on "Trade  in services  in the context  of COVID -19" 
observed,  the services  sector  had been heavily  affected  by the measures  governments  across  the 
world  had implemente d to contain  and combat  the pandemic.  Mobility  restrictions  and social  
distancing  measures  imposed  for public  health  reasons  had not only severely  hit the services  
economy,  but also services  trade.   
10.3.  The effects  of the crisis varied  by sector  and mode  of supply.  Trade  in services  that relied  on 
physical  proximity  between  suppliers  and consumers,  such as in tourism  or entertainment  services,  
had practically  ground  to a halt. Services  that were traded  in connection  with the international  
movement  of goods  and people  and the operation  of supply  chains,  like transport  services,  had also 
been hit badly.  At the same  time, the crisis had led to an increase  in the on-line supply  of many  
services,  such as retail,  telecom  or audio -visual  services,  and a shift towards  mode  1 trade.  That 
had also brought  to the forefront  technology  and connectivity  disparities.  
10.4.  Services  trade statistics  became  available  with a lag, and thus at that moment  there were no 
figures  available  that registered  the full extent  of the impact  of the pandemic.  In fact, he feared  that 
the situation  would  get worse  before  it got better.  Nevertheless,  it seemed  safe to assume  that, 
when  statistics  did become  available,  they would  reveal  a significant  drop in services  trade.  
Simultaneously,  they might  be expected  to show an intensification  of the shift towards  on-line 
service  supply.  
10.5.  Overall,  the pandemic  had highlighted  the fundamental  role that services  played,  both in 
providing  vital infrastructure  to facilitate  all economic  activities  and internation al trade,  as well as 
essential  items  of final consumption.  In so doing,  it had also underscored  the critical  importance  of 
services  trade and services  policies  in supporting  the post-COVID -19 economic  recovery.   
10.6.  He would  welcome  hearing  about  Members'  experiences,  and delegations'  views,  on the 
implications  that the pandemic  was having  on trade in services,  and their responses  to mitigate  its 
immediate  impact  and in the post-pandemic  recovery.  
10.7.  The representative  of Chad, speaking  on behalf  of the LDC Group , said that the Group  
appreciated  the information  about  the implications  of COVID-19 on trade in services.  The Group  had 
observed  that a number  of the measures  introduced  were aimed  at relaxing  requirements  to facilitate  
access  to the internet  and other  resources.   
10.8.  The service  sector  had been severely  affected  by the need to interrupt  travel,  tourism  and the 
operation  of many  industries  crucial  for LDC economies  during  a three -month  period,  with the aim S/C/M/142  
 
- 37 - 
 
  of protecting  against  the spread  of the virus.  LDCs that were very dependent  on financial  transfers  
from abroad,  in addition  to tourism,  were hardest  hit. Some  LDCs were just at that juncture  
experiencing  the peak of the pandemic.   
10.9.  The near-total interruption  of cross-border  commercial  activities  due to travel  restrictions  and 
border  closures  introduced  to limit the spread  of the pandemic  showed the extent  to which  LDCs 
were particularly  exposed  to heavy  negative  economic  consequences.   
10.10.   LDCs had very limited  financial  resources  to compensate  for revenue  losses  and ensure  
minimum  levels  of protection  and livelihoods  for their citizens.  LDCs did not have the budgetary  
capabil ities necessary  to counter  to the effects  of the crisis,  differently  from some  other  Members  
that had the resources  to compensate  the losses  suffered  by their businesses  and employees.  
10.11.   There  was no question  that the crisis was seriously  affecting  LDCs' development  programmes  
and their short and medium -term development  objectives.  The crisis also clearly  demonstrated  the 
extent  to which  LDCs needed  to build greater  economic  resilience  to face exogenous  crises  and 
shocks.  That was the perspective  LDCs were planning  to pursue,  with Members ' support,  so as to 
enable  them to exit their condition  of fragility  and poverty.   
10.12.   There  were many  unknowns  with regard  to the rhythm  and depth  of the pandemic  in LDCs.  
Nothing  was certain  with regard  to the development  of a vaccine  and the best treatment  of the 
disease.  All Members  would  need to continue  to adapt  to a constantly  evolving  situation.  Given  those  
circumstances,  LDCs were seeking  flexibility  and adaptability.  To succeed,  it seemed  appropriate  to 
build a collective  pact.  
10.13.   Tourism  had come  to a halt. The closure  of capital  markets  had prevented  fund-raising  and 
left start-ups and innovative  companies  by the wayside,  even though  their contribution  to the 
economy  was particularly  relevant  at that time. The crisis had also affected  many  fast-growing  
companies  that needed  access  to capital  to fuel a strong  expansion.  That had come on top of the 
sharp  collapse  in the prices  of oil and mining  products,  which  were important  sources  of revenue  for 
some  LDCs and which  directly  affected  public  expenditure.   
10.14.   There  was therefore  a need to mobilise  private  and public  funds  to support  enterprises  that 
could  survive  the crisis.  The response  to the economic  downturn  was essential  to reduce  the deep 
and global  health  crisis that was likely to affect  LDCs in particular.  The crisis caused  by COVID -19 
showed  just how much  LDCs needed  to consolidate  their productive  capacity  of goods  and services  
in order  to improve  and diversify  their means  of income,  through  trade.  Such a development  would  
help LDCs better  cope with economic  shocks  and global  crises.  
10.15.   The LDC Group  warmly  thanked  the Secretariat  for the Information  Note on the impact  of 
COVID -19 on trade in services.  It had been extremely  useful,  and the Group  would  request  that the 
Secretariat  look particularly  at the situation  of LDCs,  analysing  the specificity  of the different  areas  
hardest  hit by the pandemic  and the consequences  on trade in services  for LDCs.  
10.16.   The representative  of South  Africa , speaking  on behalf  of the African  Group , noted  that 
UNCTAD,  in its updated  Trade  and Development  Report  of May 2020,  estimated  that global  output  
would  contract  by at least 3%, with up to half the global  workforce  at the risk of losing  their jobs, 
and billions  of people,  especially  in the South,  pushed  back into poverty  and hunger.   
10.17.   The asymmetry  in mobilising  public  resources  had emerged  even more starkly  during  that 
period . UNCTAD  pointed  out that developed  economies  had so far committed  on average  almost  
30% of their GDPs  to fight the pandemic,  while the average  size of relief packages  in developing  
countries  did not even reach  5% as at 25 May 2020.  The crisis also demonstrated  the important  role 
that governments  and governmental  agencies  played in the rapid response  measures  that were 
needed  during  that time. The downsizing  of state institutions  and the weakened  fiscal base in most 
developing  countries  further  constrained  actions  to address  the ravages  of COVID -19.  
10.18.   The WTO Secretariat  reports  on "E-commerce,  trade and the COVID -19 pandemic " and 
"Trade  in services  in the context  of COVID -19" of 4 and 28 May 2020,  respectively,  pointed  out that 
while demand  for internet  and mobile  data services  had increased , demand  had fallen  for certain  
services,  such as tourism, transport  and distribution  services.  The reports  further  pointed  out that S/C/M/142  
 
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  e-commerce -related  challenges  had arisen  or been further  amplified  during  the pandemic.  Those  
included  price gouging  (i.e. increasing  prices  to unreasonably  high levels),  produc t safety  concerns,  
deceptive  practices,  cybersecurity  concerns,  the need for increased  bandwidth  and development -
related  concerns.  
10.19.   The pandemic  had highlighted  the glaring  need to bridge  the digital  divide.  COVID -19 might  
have accelerated  further  concentra tion in the digital  marketplace,  a trend  that already  existed  before  
the pandemic.  If left unchecked,  that concentration  would  make  the digital  divide  permanent.  
Furthermore,  the Secretariat  Note pointed  out that online  purchasing  of tourism  and travel  by value  
had plummeted  as a result  of the COVID -19 pandemic.  African  Group  Members  had suffered  massive  
losses  in the tourism  and travel  sectors  due to the COVID -19 lockdowns  that remained  in place in 
the face of an increase  of infections  in their Members ' jurisdictions.  Remittances  had also diminished  
substantially,  and income  from mineral  resources  and oil revenue  had suffered  tremendous  shocks.  
10.20.   The advancement  and availability  of technology  to collect  tariffs  on electronic  e-commerce  
should  be noted.  If it was possible  to collect  duties  on electronic  transmissions  during  COVID -19, 
that would  constitute  a meaningful  source  of government  revenue  that could  be used to address  the 
health  and economic  consequences  of the pandemic,  especially  for developing  countries.  Whereas  
the African  Group  was not a demandeur  of the application  of the Moratorium,  current  trends  under  
COVID -19 should  be noted  as Members  moved  towards  the next Ministerial  Conference.   
10.21.   Changes  in behaviour  resulting  from the COVID -19 crisis were likely to have longer -lasting  
effects,  so any post COVID -19 recovery  strategy  had to aim to bridge  the digital  divide  to allow more 
countries  to take advantage  of digitisation.  If left unchecked,  the gap between  under -connected  and 
hyper -digitised  countries  would  increase.  There  was a need for new policies  and regulations  to ensure  
a fair distribution  of gains  from the digital  economy,  with a focus on technology  transfer,  capacity  
building  and targeted  aid for trade measures.  
10.22.   The representative  of Barbados , speaking  on behalf  of the ACP Group , said that, although  
the full extent  of the emergent  financial  and economic  crisis remained  unknown,  the evidence  in the 
statistics  as well as on the ground  in their Capitals  revealed  that all ACP economies  were reeling  
from the impact.   
10.23.   While  the disciplines  of the GATS  allowed  for flexibilities  in the rules in emergency  situations  
like COVID -19, the Group  wished  to remind  WTO Members  that the invoking  of such flexibilities  was 
not without  condition s. Any measures  invoked  had to be temporary,  not applied  in an arbitrary  or 
discriminatory  manner  and not serve  as disguised  restrictions  to trade.  Most of the measures  
introduced  appeared  to relax or facilitate  services  pertaining  to accessing  e-commerce  during  the 
pandemic  lockdown s, supporting  businesses  to continue  in a modified  way to work from home  or to 
reach  many  clients  around  the globe  and families  and friends  to keep connected.   
10.24.   Some  of those  measures  appeared  to add licens es for providers  of mobile  services  or 
increase  broadband.  However,  the Group  asked  Members  to ensure  the temporary  nature  in cases  
where  measures  discriminated  in terms  of MFN, departed  from a national  treatment  commitment  in 
relevant  Members ' services  schedules  or were disguised  restrictions  or provisions  in those  services  
sectors.   
10.25.   While  the WTO Secretariat's  monitoring  of services -related  measures  taken  by Members  in 
the name  of COVID -19 was useful,  the Group  wished  to stress  that Members'  rights  and obligations  
had to be preserved.  A clear indication  that the Secretariat 's report s were not official  and were 
subject  to verification  was useful.   
10.26.   Across  the ACP Group,  the travel  sector  accounted  for the largest  share  of ACP earning.  
Some  of the Group 's Members  were dominant  in tourism,  transport  services  and financial  services,  
which  represented  their greatest  source  of export  revenues.  In terms  of services  imports,  the three 
leading  sectors  for ACP countries  were transport,  other  business  services  (characterised  by research  
and development,  professional  and management  consulting  and technical  trade/trade -related  
services)  and travel  services.  These  three  sectors  stood  out in terms  of the value  of imports,  ranging  
from between  USD38 million  for transport  to USD90 million  for travel.  Other  sectors,  notable  for 
trade measures  deployed  in the context  of COVID -19, such as financial  and telecom  services,  did 
not represent  as much  of a share  of imports  on aggregate.   S/C/M/142  
 
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  10.27.   The biggest  challenges  facing  ACP economies  was how to promote  economic  recovery.  Given  
the devastating  impact  of the pandemic  on their services  sectors,  it would  be critical  to assess  
multilateral  rules and how they could  support  economic  recovery  efforts  of ACP countries,  given  the 
unprecedented  nature  of the crisis.   
10.28.   Based  on a survey  on the main sectors  impacted  by services  measures  reported  by the WTO 
Secretariat,  it could  be noted  that the travel  and transportation  industries  constituted  the most vital 
sectors  in services  trade for ACP countries,  owing  to their sheer  loss of normal  earnings.  While  
developed  countries  might  have lost earnings  in those  sectors as well, the impact  on ACP Members  
had a comparatively  devastating  effect .  
10.29.   New services  might  have emerged  as a result  of the pandemic,  such as direct  delivery  of 
produce  to home s, especially  for seniors,  as well as new platforms  to provide  telemedicine  services.  
It was still early days to know  how Members  had adapted  and come  forward  with innovative  services  
to keep contact  and responded  to new demands.  It would  be useful  to exchange  information  in the 
CTS in that regard,  as that could  be helpful to other  Members  in find ways to cope.   
10.30.   The representative  of Singapore  said that the COVID -19 pandemic  had severely  disrupted  
global  economic  activity  and had led to both demand  and supply -side shocks  to the Singapore  
economy.   
10.31.   There  were a number  of segments  of the economy  that had been most badly  hit. First, those  
that relied  on international  travel,  including  air transport,  accommodation,  and tourism -related  
sectors.  Second,  consumer -facing  sectors,  such as retail and food services,  had also been adversely  
impacted  by the cutback  in domestic  consumption  amid safe distancing  measures.  Third,  outward -
oriented  sectors,  such as manufacturing  and wholesale  trade,  had been implicated  due to the fall in 
external  demand  and supply  chain  disruptions.   
10.32.   However,  there were some  bright  spots  seen in the rise in demand  for on-line sales and 
services.  To some  extent,  the pandemic  had been a catalyst  for digitisation  amongst  some  of 
Singapore 's SMEs.  Suppliers  from across  various  sectors  were accelerating  efforts to expand  their 
online  operations  and consumers  were adopting  new habits  that might  contribute  to a profound  and 
long-term shift towards  online  services.   
10.33.   To mitigate  some  of those  immediate  impacts,  the Singapore  government  had introduced  
some  measur es to assist  enterprises  in the area of managing  their cash flow, enhancing  digitisation  
capabilities  and up-skilling  their workers.   
10.34.   Overall,  services  sectors  and online  transactions  would  be the key to recovery  in the 
economic  slowdown.  Her delegation  thought  that would  be a relevant  topic that Members  could  
explore  in the CTS in the following  months  and would  welcome  further  discussions  with Members.    
10.35.   The representative  of Peru said that, in Peru's case, tourism,  international  transport  services,  
restaurants  and some  entertainment  services,  which  had been severely  affected  by the domestic  
measures  adopted,  such as border  closures  and restrictions  to the free movement  of people , had 
been amongst  the most affected  sectors .  
10.36.   Only companies  that provided  essential  and other  complementary  services  (such  as 
telecommunication  services , financial  services,  food and medicine  distribution  services  and call 
centres,  among  others)  were able to continue  operating  with some  normality.  Remaining  business es 
had resorted  to remote  work whenever  the nature  of their work allowed  it.  
10.37.   In that sense,  many  companies  were forced  to adapt  to their staff working  from home  and 
had to make  adjustments  to their costs and structure s. In addition,  some  of their client  portfolios  
were reduced,  which  directly  impacted  their revenues.  However,  opportunities  also arose  for the 
design  of new business  strategies,  and for adaptation  to e-commerce  and digital  transformation.  
10.38.   There  was also considerable  growth  in demand  in the telecommunication  sector,  due to the 
need to implement  platforms  for tele-education,  tele-health,  e-commerce  and delivery  services.  
During  April alone,  Internet  traffic  had increased  by 12%.  In the particular  case of basic education,  S/C/M/142  
 
- 40 - 
 
  in order  to bring teachi ng to as many  Peruvians  as possible,  education  was provided  through  the 
internet,  but also through  broadcasting  services,  such as radio and TV.  
10.39.   In conclusion,  although  the pandemic  had strongly  hit the services  sector,  the supply  of on-
line services  had increased  and a great interest  had been generated  in the country  to promote  a 
better  environment  for business  through  digital  media,  which  was very positive.  His delegation  hoped  
that that difficult  situation  would  serve  to promote,  throughout  the world,  the design  of policies  that 
facilitated  e-commerce,  such as the free flow of information,  respect  for the confidentiality  of source  
codes,  the free location of data, which  were amongst  the issues  that Members  were discussing  in 
the WTO.   
10.40.   The representative  of Canada  said that her delegation  supported  discussions  aimed  at 
strengthening  transparency  and allowing  all Members  to have a better  overview  of the evolving  set 
of measures  and initiatives  in place in the context  of COVID -19. She welcomed  the Secretariat 's 
analysis  of the impact  of the pandemic  and would  support  further  work as appropriate.  She also 
thanked  the Secretariat  for its tracking  of services  trade measures  and for its timely  updates.  It was 
clear that services  trade had been impacted  by the current  situation.  Transparency  was a key pillar 
of the WTO functions  and the CTS offered  a venue  to further  engage  on that topic.   
10.41.   The representative  of Japan  said that his delegation  welcomed  the Council 's discussion  of 
that important  issue.  The pandemic  was affecting  services trade  significantly , and it was important  
for Members  to share  views  and experiences.   
10.42.   His delegation  appreciated  the Secretariat 's efforts  in collecting  information  on Members ' 
measures  affecting  trade  in services.  Japan  had, for example,  taken  facilitating  measures  to allow 
more flexibility  in the financial  sector  to deal with the crisis.  Japan  wished  to stress  that emergency  
measures  had to be targeted,  proportionate,  transparent,  temporary  and consistent  with WTO rules.  
Further,  trade-restrictive  measures  had to be lifted as soon as they became  unnecessary.  His 
delegation  hoped  to continue  to review  the situation  in the CTS. 
10.43.   Japan  also welcomed  the Secretariat  Information  Note released  on 28 May, which  analysed  
the impact  of the pandemic  on different  service  sectors  and modes.  The Note explained  that sectors  
such as tourism  and air transport  services  had been heavily  affected.  At the same  time, the crisis 
had focused  more attention  on online  service  supply,  including  online  retail sales,  telemedicine  and 
online  education.  The Note concluded  that the crisis might  lead to an increase  in mode  1 trade and 
accelerate  the trend  from the traditional  categories  of transport  and travel -related  services  toward  
telecommunication,  computer  and information  services,  business  services  and audio -visual  services.   
10.44.   Sharing  information  on how the pandemic  was affecting  Members ' services  trade was very 
useful.  If possible,  his delegation  wished  to invite  the Secretariat  to collect  information  and make  a 
presentat ion at the CTS.  
10.45.   Finally,  as the crisis had shown the growing  importance  of e-commerce,  Japan  wished  to 
stress  the importance  of improving  resilience  through  digitalisation  and making  international  rules 
for the digital  economy  in a way that contributed  to economic  recovery.  Japan  was committed  to 
accelerating  negotiations  on electronic  commerce.   
10.46.   The representative  of Mali wished  to express  her delegation 's gratitude  to UNCTAD  and the 
World  Bank for their support  and very clear diagnosis  of the impact  of the COVID -19 on LDCs.  The 
World  Bank was also investing  in basic health  access  training  of health  workers,  which  was badly  
needed  in LDCs.  In terms  of healthcare, LDCs had seen limitations  on exports  of medical  products.   
10.47.   When  it came  to education  services,  developed  countries  and some  developing  countries  had 
been able to offer online  lessons  to their students,  but because  of the digital  divide,  in LDCs children 
who had had to stay at home  had had no lessons  and had lost a year.  
10.48.   With regard  to tourism  services,  Mali had one highly  touristic  area and yet at that juncture,  
it was one of the most dangerous  areas  and as a result,  Mali had no income  from those  activities.  
Furthermore,  being  a landlocked  country,  the pandemic  had further  worsened  Mali's connectivity  
challenges.   S/C/M/142  
 
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  10.49.   The representative  of India said that the COVID -19 pandemic  had demonstrated  the 
importance  of cross-border  movement  of medical  professio nals, including  doctors  and nurses  as well 
as other  essential  service  providers . Members  should  not only improve  their specific  commitments  
in that regard,  but also commit  on commercially  meaningful  disciplines,  as per the mandate  of GATS  
Article  VI:4, to facilitate  the movement  of essential  professionals.   
10.50.   India's proposals  on domestic  regulation  disciplines  for mode  4 service  suppliers  had been 
discussed  by the Working  Party on Domestic  Regulation  in 2018 and 2019.  Several  Members  and 
Groups  had supported  India's  proposal s and expressed  their interest  in working  on issues  of interest  
to developing  countries,  with priority  on development.  Leveraging  labour  market  complementarities  
for the movement  of skilled  essential  professionals  would  be a win-win outcome  for all Members.    
10.51.   The representative  of the United  States  welcomed  the opportunity  to share  views  on the 
COVID -19 pandemic  and implications  for trade in services.  He noted  that the United  States  and 
many  other  countries  were currently  in the midst of a public  health  crisis.  At the same  time, the 
health  crisis had sparked  a separate  economic  crisis,  with job losses  at their worst  in many  services  
industries  in many  countries,  including  the United  States . 
10.52.   However,  one item to note amid the challen ges of the pandemic  had been the successful  use 
of digital  technologies  in adapting  to business  and consumer  needs  where  physical  interaction  had 
been limited , whether  through  communications,  like call/videoconference,  online  sales of goods,  
online  consump tion of entertainment,  or use of digital  technologies  to process  business  and 
governmental  forms.  
10.53.   The resilience  and adaptability  of the digital  ecosystem  (networks,  services,  and 
applications ) had been encouraging,  and had played  a major  role in limiting  the economic  harm of 
the pandemic,  and in some  cases,  spurring  innovation  into new products  and services.  
10.54.   What was obvious  from that acceleration  of the digital  transformation  was that some  of the 
core policies  the United  States  had advocated  for, such as avoiding  restrictions  on cross-border  data 
flows and mandatory  data localisation,  were more important  than ever, and that such restrictions  
would  hurt the ability  of countries  to leverage  digital technologies  and recover  from the pandemic.  
Since  business,  consumers,  and government  were increasingly  reliant  on technologies  such as 
videoconferencing,  for example,  blocking  or degrading  such services  seriously  disrupted  legitimate  
economic  activity.  
10.55.   The representative  of China  said that the COVID -19 pandemic  had had a serious  impact  on 
global  services  trade,  especially  in the tourism,  transport,  retailing  and health  sectors . At the same  
time, the importance  of e-commerce  had also been further  highlig hted during  the pandemic.  China  
recognised  the critical  role of services  trade in economic  growth  and was committed  to promoting  
its development  through  further  liberalisation  of the services  market.   
10.56.   In the context  of the COVID -19 pandemic,  China  encourag ed Members  to strengthen  
international  cooperation,  redouble  efforts  on negotiations  on services  trade-related  topics  and 
uphold  the multilateral  trading  system,  so as to help the global  economy  to recover  rapidly  from the 
impact  of the pandemic.  
10.57.   The repre sentative  of New Zealand  expressed  appreciation  to the Chairman  for including  
that item on the Council 's agenda  and to Members  for sharing  their experiences . The pandemic  
represented  the great est challenge  currently  facing  all Members,  with significant  trade implications,  
and it was therefore  important  for Members  to discuss  those  issues  in the WTO and in the CTS. All 
Members  benefitted  from transparency,  sharing ideas and coordinating  trade responses . His 
delegation  saw value  in continuing  those  discussion s and in further  analysis  by the Secretariat.  
10.58.   The representative  of the European  Union  thanked  the Chairman  for adding  that important  
point on the agenda,  and the Secretariat  for producing  a Note on the impact  of pandemic  on services  
trade.  Indeed,  as could  be seen from the experiences  shared  at that meeting,  services  sectors  had 
been badly  affected  by the current  health  and economic  crises, and in particular  trade through  modes  
2 and 4 had been largely  paralysed.   S/C/M/142  
 
- 42 - 
 
  10.59.   At the same  time, services  trade was important  for the recovery  of Members ' economies . 
Telecommunications  and computing  services  were key for on-line supply,  while distribution,  
transport  and logistic s were essential  to facilitate  goods  trade.  That only underscored  the importance  
of providing  fresh impetus  to services  trade, and the European  Union  was open to sharing  
information  on those  aspects  at future  meetings.   
10.60.   Finally,  her delegation  welcomed  efforts  to ensure  transparency  with regard  to measures  
related  to services  trade taken  during  the pandemic  and invited  all Members  to report  any such 
measures  in the future.   
10.61.   The representative  of Australia  also thanked  the Chairman  for adding  the item on the 
agenda,  and the Secretariat  for its efforts  in analysing  the impact  of the pandemic  and tracking  
COVID -19 measures.  While  being  hit hard by the COVID -19 pandemic,  trade in services  would  be 
essential  to all Members ' efforts  to respond  to the health,  economic  and social  impacts  of COVID -
19. Australia  agreed  that information -sharing  on that topic was useful  and would  look forward  to 
further  discussion  at future  meetings.   
10.62.   The Chairman  thanked  all delegations  who had intervened.  It had been a very interesting  
and instructive  discussion,  which  had provided  him, and hopefully  all Members,  with food for thought  
to guide  a reflection  on how every  WTO Member  could  play its part to combat  COVID -19, facilitate  
the post-COVID -19 economic  recovery  and uphold  the rules-based  multilateral  trading  system.   
10.63.   He suggested  that the Council  take note of the statements  made.  
10.64.   It was so agreed . 
11  ITEM  L: OTHER  BUSINESS  
11.1.  No issue was raised under this agenda item.  
11.2.  The meeting  was adjourned . 
 
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