RESTRICTED  
  
JOB/SERV/300  
 
21 July 2020  
(20-5033) Page: 1/5 
Council for Trade in Services  
Special Session  Original: English  
 
COMMUNICATION FROM A USTRALIA, CANADA, CH ILE, NEW ZEALAND AND  URUGUAY  
EXPLORATORY DISCUSSI ONS ON MARKET ACCESS : AGRICULTURE -RELATE D SERVICES  
The following communication, dated 21 July 2020 , is being  circulated to Members of the Council for 
Trade in Services in Special Session, at the request of the delegations of Australia, Canada, Chile, 
New Zealand and Uruguay.  
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Agriculture -related services are an area of economic and trade importan ce for Australia, Canada, 
Chile, New Zealand and Uruguay, as well as for numerous other WTO Members. This is true now 
more than ever, as services to support agriculture will be important to helping all Members, 
particularly developing and least -developed c ountries, respond to the health, economic and social 
impacts of COVID -19. These services are also important for enabling the resilience of food systems 
globally.  
Through this communication, we wish to present our initial ideas on a sector of common interes t 
and initiate an exchange with other delegations. Such exploratory discussions will help to better 
understand the views of Members on key issues, and provide valuable information regarding market 
access aspirations related to agriculture -related services.  The following is presented without 
prejudice to possible negotiations, and is made in the context of the objectives outlined in 
JOB/SERV/282.  
1  IMPORTANCE OF AGRICU LTURE -RELATED SERVIC ES 
1.1.  In many Members' economies, the agriculture sector is key to developme nt, poverty alleviation, 
and food security. In low income countries, agricultural growth is highly effective at reducing 
poverty.1 While agriculture accounts for around 3% of global GDP, it contributes to more than 20% 
of GDP in a number of least developed  countries (LDCs). Agriculture currently accounts for 
approximately 28% of global employment, but the share of the agriculture sector in total 
employment jumps to 56%, on average, for LDCs.2 
1.2.  Services are vital for agriculture and the food value chain becau se they intervene at all stages, 
from research and development, to agricultural production, storage, transport, and distribution. 
Services make up approximately 29% of value added in agricultural production globally.3  
1.3.  Services value chains linked to agric ulture are key to agricultural production and development. 
The WTO estimates that developing countries process only 38% of agricultural products compared 
to 98% in industrialised countries. Competitive services are also important to reduce trade costs for 
agricultural products; significantly higher for agriculture than manufacturing, and higher for less 
developed economies.4  
 
1 FAO, "Synergy between Agriculture and Services Trade - Enabling New Growth Opportunities", 2019.  
2 www.data.worldbank.org . 
3 Synergy between Agriculture and Services Trade Enabling new Growth Opportunities, FAO.  
4 International trade in agriculture is estimated to be about three times more costly than domestic 
trade. See WTO, World Trade Report 2019.  JOB/SERV/300  
 
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  1.4.  The contribution of agriculture -related services to agricultural value chains is also significant 
for Members' food systems, even in non-agriculture exporting economies. For example, efficient 
distribution, logistics and transport services can help to minimise post -harvest losses, which can be 
up to 40% in developing countries.5  
2  WHAT CAN AGRICULTURE -RELATED SERVICES ENCOMPASS?  
2.1.  The description above of modern agricultural value chains includes a wide range of services 
inputs.  
2.2.  As noted by the FAO (2019), a range of services sectors, from distribution, to information and 
communication technology, financial, transport and logistics services, have a strong impact on the 
agriculture sector. Looking at the role of specific services i n both the food industry and the 
agricultural sector, work by APEC's Policy Support Unit indicates that wholesale and retail trade 
services, transport and storage, finance, and business services are the main inputs.6 
2.3.  Notwithstanding that there is a wide ra nge of services sectors relevant for the agriculture 
sector, the objective of this paper is to focus on the following services that directly relate to 
agriculture:  
W/120  Description  Examples relevant to agriculture  
1.F.f Services incidental to 
agriculture, hunting and 
forestry  CPC 88110 - Services incidental to agriculture  
CPC 88120 - Services incidental to animal 
husbandry  
1.A.i Veterinary services  CPC 93209 - Other veterinary services   
4.A 
 Commission agents' services  CPC 62111 - Sales on a fee or contract basis of 
agricultural raw materials and live animals  
CPC 62112** - Sales on a fee or contract basis of 
food products  
4.B 
 Wholesale trade services  CPC 6221 - Wholesale trade services of agricultural 
raw materials and live animals  
CPC 6222** - Wholesale trade services of food and 
beverages  
4.C Retailing services   CPC 631 - Food retailing services   
 
2.4.  These services span the agricultural value chain, and in many instances link directly to 
productivity -enhancing activities. For example, sophisticated agricultural services are increasingly 
traded cross -border, offering opportunities to optimise land use as well as application of inputs such 
as water, fertiliser and pesticides. Expert animal h usbandry is necessary to improve stock yield as 
well as resilience on a population basis, while veterinary services improve these outcomes in relation 
to individual animals.  
2.5.  Further down the supply chain, efficient wholesale and retail trade of agricultura l outputs can 
reduce loss, for example through effective cold storage. Sophisticated retail services in particular 
are also important for accessing markets for more profitable, higher quality agricultural products, 
for example organic or single origin.  
3  AREAS OF INTEREST FOR IMPROVING GATS COMMI TMENTS ON AGRICULTUR E-
RELATED SERVICES  
3.1.  As the table in the Annex shows, services incidental to agriculture have not been well 
committed under Members’ schedules. Only 48 schedules contain specific commitments in serv ices 
incidental to agriculture, hunting and forestry. Many such commitments are limited to consulting 
and/or advisory services; with others limited to only hunting and/or forestry, excluding agriculture. 
Veterinary services are similarly poorly committed, with only 40 schedules making commitments.  
3.2.  Wholesale and retail trade services are somewhat more widely committed, with commitments 
in 54 and 53 schedules respectively, although some commitments may be partial and exclude the 
 
5 WTO, Aid for Trade and Va lue Chains in Agrifood, 2013.  
6 APEC PSU Policy Brief No 21, May 2018 – "Services and the Food System".  JOB/SERV/300  
 
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  portions of these sectors mos t relevant to agriculture. The level of commitment for commission 
agents ' services is limited, at 42 schedules, and may also be diminished with respect to agriculture 
due to partial commitments.  
3.3.  New GATS commitments on these services subsectors could make  an important contribution 
to the policy environment for the agricultural sector by providing for greater transparency, 
predictability and contestability.  
3.4.  Our main interest focuses on improving the overall level of commitments in these subsectors, 
as well as removing listed limitations in order to reflect Members ' domestic regimes.  
4  QUESTIONS FOR DISCUS SION  
• How do Members view the contribution of trade in agriculture -related  services and related 
policies to wider food systems ? What have been the impacts of C ovid-19, and what 
contribution can agriculture -related services make to the resilience of food value chains?  
• What is the importance of agriculture -related services in the context of domestic policy 
objectives and the contribution of the policy environment for agriculture more broadly?  
• What are the areas of interest linked to agriculture that could benefit from improving GATS 
commitments?  Are there sub -sectors of significant interest for agricultural value chains beyond 
those identified in this paper? Have interests evolved since earlier discussions in the context 
of services negotiations ? 
  JOB/SERV/300  
 
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  Annex  
GATS commitments in Agriculture -related Services, by Member  
GATS Commitments in Selected Subsectors  
Members  1.A.i 1.F.f 4.A 4.B 4.C 
  Veterinary 
services  Services incidental 
to agriculture, 
hunting and 
forestry  Commission 
agents' 
services  Wholesale 
trade 
services  Retailing 
services  
Afghanistan      X X X 
Albania  X X X X X 
Argentina        X X 
Armenia  X   X X X 
Australia  X X X X X 
Botswana  X         
Brazil        X X 
Bulgaria  X X X X X 
Burundi  X X X X X 
Cabo Verde  X X   X X 
Cambodia      X X X 
Canada    X X X X 
Central African 
Republic    X       
China    X X X X 
Croatia  X X X X X 
Democratic Re p. 
of the Congo  X X       
Dominican Rep .   X       
European Union 
(25) X X X X X 
Ecuador        X   
The Gambia  X X X X X 
Georgia  X X X X X 
Guinea  X         
Haiti X         
Hong Kong, 
China    X     X 
Iceland  X X X X X 
Japan      X X X 
Jordan    X X X X 
Kazakhstan  X X X X X 
Korea, Re p. of   X X X X 
Kuwait , the State 
of   X X X X 
Kyrgyz Republic  X X X X X 
Lao People's 
Democratic Rep .       X X 
Lesotho  X X   X X 
Liberia  X   X X X 
Liechtenstein    X X X X 
Malaysia    X       
Mexico    X   X X 
Moldova, Rep . of X X X X X 
Mongolia        X X 
Montenegro  X X X X X 
Nepal  X   X X X JOB/SERV/300  
 
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  GATS Commitments in Selected Subsectors  
Members  1.A.i 1.F.f 4.A 4.B 4.C 
  Veterinary 
services  Services incidental 
to agriculture, 
hunting and 
forestry  Commission 
agents' 
services  Wholesale 
trade 
services  Retailing 
services  
New Zealand  X X X X X 
Nicaragua    X       
North Macedonia  X X X X X 
Norway  X X   X X 
Oman  X X X X X 
Pakistan    X       
Panama    X X X   
Peru       X X 
Qatar  X         
Romania      X X X 
Russian 
Federation    X X X X 
Samoa      X     
Saudi Arabia, 
Kingdom of  X X   X X 
Senegal        X X 
Seychelles  X   X X X 
Sierra Leone  X X       
Singapore  X X       
South Africa  X X   X X 
Switzerland  X X X X X 
Chinese Taipei  X X X X X 
Tajikistan    X X X X 
Thailand    X X     
Tonga  X   X X X 
Trinidad and 
Tobago  X         
Turkey    X       
Ukraine  X X X X X 
United Arab 
Emirates  X         
United States of 
America    X X X X 
Vanuatu  X X X X X 
Viet Nam  X X X X X 
Yemen        X X 
TOTAL  40 48 42 54 53 
 
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