S/C/55  
 
10 December 2018 
(18-7776) Page: 1/10 
   
 
ANNUAL REPORT OF THE  COUNCIL FOR TRADE I N SERVICES  
TO THE GENERAL COUNC IL (201 8) 
Since its Annual Report of 201 7 to the General Council1, the Council for Trade in Services held three 
formal meetings, respectively on  2 March , 30 May and  12 October  2018.2 During the period covered 
by this report, the Council addressed the following matters.  
1  NOTIFICATIONS MADE T O THE COUNCIL PURSUA NT TO GATS ARTICLES  III:3 , V:7 AND 
VII:4  
1.1.  The Council for Trade in Services took note, altogether, of the following notifications : 
a. Notifications pursuant to Article III:3 of the GATS  
Switzerland  S/C/N/ 897 
Tunisia  S/C/N/899  
Thailand  S/C/N/905  - S/C/N/ 910 
Kazakhstan  S/C/N/911  
Central African Republic  S/C/N/915  
Hong Kong , China  S/C/N/917  
 
b. Notifications pursuant to Article V:7 of the GA TS 
Hong Kong, China and Macao, China  S/C/N/898  
China and Georgia  S/C/N/900  
Liechtenstein and Switzerland  S/C/N/891/Add.1  
China and Macao , China  S/C/N/26 5/Add.10  
Turkey and Singapore  S/C/N/916  
 
The agreements notified in these documents were referred to the  Committee on Regional 
Trade Agreements for consideration.  
c. Notifications pursuant to Article V II:4 of the GATS  
Republic of Korea  S/C/N/ 901 – S/C/N/ 902 
Australia  S/C/N/903  
Thailand  S/C/N/904  
Kazakhstan  S/C/N/912  - S/C/N/ 914 
1.2.  At the meeting held in March, the  Council also took note of the updated annual Secretariat 
Note containing a statistical account of the notifications made under relevant GATS provisions.3 
                                                
1 Document S/C/5 3. 
2 Reports of these meetings are contained in documents S/C/M/1 34 to 136, and should be read in 
conjunction with this report.  
3 Document JOB( 09)/10/Rev. 8. S/C/55  
 
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  2  TEMPLATE FOR NOTIFYI NG CHANGES TO AN EXI STING REGIONAL TRADE  AGREEMENT  
2.1.  At the meeting held on 12 Octo ber, the Council adopted  a template for notifying changes to an 
existing Regional Trade A greement , upon recommendation by the Committee on Regional Trade 
Agreements4. The decision by the Council is contained in document S/L/418. 
3  OPERATIONALIZATION O F THE LDC SERVICES W AIVER  
3.1.  The Council discussed the operationalization of the LDC services  Waiver at all meetings held 
during the reporting period.   
3.2.  At the meeting held in March, the LDC Group commended the preferential treatment n otified 
under the Waiver, but  stressed the need for Members to provide supply -side and other capacity -
building  to enable LDC suppli ers to take advantage of th e preferences  in a concrete manner . The 
Group called on notifying Members to provide Waiver -specif ic technical assistance, and encouraged 
them to increase awareness of the Waiver domestically. Recalling paragraph 1.6 of the Nairobi 
Decision  on the Waiver , LDCs also advocated that Members explore what recommendations the 
Council might make "on steps tha t could be taken towards enhancing the operationalization of the 
Waiver". There was also a call  for Members  to take action in line with paragraph 1.5 of the Nairobi 
Decision.  
3.3.  At the May meeting , LDCs advocated that, i n line with paragraph 1. 4 of the Nairob i Decision, 
Members undertake specific technical assistance and capacity building measures to orient LDC 
suppliers to the preference benefits , and that, in line with paragraph 1.5 of the same Decision, the 
Council facilitate an exchange of information by M embers on relevant technical assistance measures 
and initiate a process to review the op eration of notified preferences . The LDC Group and Bangladesh 
put forward several  specific ideas to that effect .   
3.4.  A number of delegations asked LDCs to provide greater  detail on their different proposals, 
preferably in writing, and argued that more deliberations were necessary in or der to agree on a way 
forward. It was decided that the Chairman would be  conferring with delegations on how to advance 
the process so as to fulfil the mandate of the Council.   
3.5.  At the meeting held in October , the LDC Group introduced a communication on "Possible 
Elements for a Review of the Operation of Notified Preferences" .5 In light of the mandate in  the 
Nairobi Decision  that the Council  "initiate a process to review the operation of notified preferences, 
on the basis of inf ormation provided by Members ", the LDC communication  suggest s a number of 
elements that could be part of such a process .c 
3.6.  All Members who intervened expressed their appreciation to the LDCs for having submitted a 
written communication and offered their initial reactions. Several delegations pointed to the 
elements of the LDC communication that they could support and on which they were ready to 
engage, but also signalled  those on which they had questions . A couple of delegations encouraged 
those Members that had not notified preferences to do so at the earliest opportunity.   
3.7.  The LDC Group welcomed M embers' generally constructi ve comments. LDCs provided a number 
of clarifications in response to delegations' observations and stated their readiness to engage 
productively with the Membership. The Chairman indicated that he would be talking  with delegations 
to try to find a n agreed  way forward on the LDC Group's  proposals .  
3.8.  To date, t he Council has received a total of 24 notifications of preferences in favour of LDC 
services and service supplier s, on the part of 51 Members.6 As the Operationali zation of the LDC 
Services Waiver is a standing item on its agenda, the Council will take up  the issue  again at its next 
formal meeting .  
                                                
4 WT/REG/28 . 
5 JOB/SERV/284.  
6 Notifications  were submitted by: Canada; Australia; Norway; China; Korea; Hong Kong, China; 
Chinese Taipei; Singapore; New Zealand; Switzerland; Japan; Mexico; Turkey; the United States; India; Chile; 
Iceland; Brazil; the European Union; Liechtenstein; South Africa; Uruguay; Thailand and Panama.  S/C/55  
 
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  4  WORK PROGRAMME ON EL ECTRONIC COMMERCE  
4.1.  The Council discussed the Work Programme on Electronic Commerce at all its formal meetings, 
in accordance with the  Buenos Aires  Ministerial mandate to continue the work under the Work 
Programme and endeavour to reinvigorate work  by Members .  
4.2.  At the March meeting, delegations generally welcomed the  Ministerial Decision on the Work 
Programme adopted at MC11, and expressed su pport for multilateral discussions on e -commerce. 
Members considered two new non -papers by Chinese Taipei , on cyberspace trade barriers  and the 
impact of changes in the digital era.7 The documents were welcomed by  delegations as being in line 
with the MC11  Decision  and a step towards reinvigorating work , but they generated  considerable 
discussion , with different views expressed on some of the ir specific elements.   
4.3.  At the May meeting, China briefed the Council on a workshop  it had  organized on "E -commerce 
for Development under the Multilateral Trading System ". Delegations  who had participated in the 
workshop intervened to share their impressions and generally underline the usefulness of the event. 
Bangladesh suggested that  the Secretariat update its 1998 Not e on the treatment of e -commerce in 
the GATS legal framework8; while some delegations supported the suggestion, others  sought more 
time to reflect on the proposal . Recalling  that the Council had decided in principle to hold a thematic 
seminar on e -commerce , Chinese  Taipei  suggested that  Members  revert to the  issue. Delegations 
were generally supportive of holding  a seminar and expressed interest in reconsidering  the 
programme for the event . With regard to both suggestion s, the Chairman  encouraged the 
delega tions concerned to consult with each other and indicated that  he would also contact them , to 
try to  find a way forward that would be acceptable to all Members.  
4.4.  At the October meeting, the United States shared with the Council some of the work being 
carrie d out by its development agency to help developing and LDC Members integrate into the digital 
economy and harness it s potential for economic growth , in an attempt to identify possible areas of 
common interest amongst Members . A number of other delegations provided an overview of their 
experiences with capacity -building efforts aimed at assisting developing countries participate in, and 
benefit from, the digital economy. China shared with the Council information on its new e -commerce 
Law, and provided detail s on some of its main elements.  
4.5.  At all three meetings held during the reporting period , several Members referred to issues that 
they deemed essential for consideration  under the Work Programme, particularly those related to 
the infrastructural and regulatory challenges developing countries  had to overcome to participate in 
the digital economy . While acknowledging the opportunities created by the digital era, these 
Members were of the view that, until the issues  they had identified  had been discussed  in-depth and 
clearly understood, rule -making suggestions for e-commerce were premature, asserting in addition 
that the Work Programme did not contain a negotiating mandate.  
4.6.  Some Members  also expressed concern s with regard to the plurilateral initiative on  e-commerce 
being pursued in parallel to the multilateral track under the Work Programme . These delegations 
could not support an approach  for which there was no mandate and  which  had a rule -making 
objective that r an contrary to the exploratory mandate of t he Work Programme . They underscored 
the Membership's shared responsibility to reinvigorate multilateral deliberations  under the Work 
Programme.  
4.7.  At the May meeting, t he representative of UNCTAD report ed on UNCTAD's E -commerce Week 
and on -going measurement w ork on e-commerce , and the representative of the ITU inform ed 
delegation s that the ITU  would be holding its  Global Symposium for Regulator s on "New regulatory 
frontiers";  the ITU representative  shared a report  on the event  at the October meeting . 
4.8.  The Bueno s Aires  Ministerial Decision mandates the General Council  to hold  periodic review s of 
work under the Work Programme based on the reports submitted by the relevant WTO bodies. 
Pursuant to that mandate, in May the Council agreed that the Chairman would produce, under his 
own responsibility, a factual report of the essence of the discussions the Council for Trade in Services 
                                                
7 JOB/SERV/277 and 278, respectively.  
8 Document S/C/W/68.  S/C/55  
 
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  had had under that agenda item in 2018 up to the point in time.9 The Council will revert  to the Work 
Programme at its next formal meeting.  
5  CERTAIN WTO -INCONSIS TENT MEASURES APPLIED  BY UKRAINE  
5.1.  At its March  and May meeting s, the Council addressed certain measures related to the reform 
of the Unified Gas Transportation System of Ukraine, at the  request of the Russian Federation. The 
Council took note of the statements made , respectively,  by the Russian Federation and Ukraine at 
each meeting . 
6  MODE 4 
6.1.  At the March meeting, India reiterated its proposal that the Council hold a thematic seminar 
on mo de 4. While Members were generally open to India's suggestion, a number of delegations 
stressed that they needed to re -examine the proposed programme for the event.  
6.2.  Following informal  consultations by the Chairman , at its May meeting the Council agreed  to 
organise  the seminar  on the basis of the Secretariat programme contained in document 
JOB/SERV/255. Members decided  that the event would be held in conjunction with the subsequent 
formal meeting of the Council.  
6.3.  At the May  meeting, India proposed that the Secretariat update its 2009 Background Note on 
mode 410, but several delegations were of the view  that the Council should  first hold the seminar 
and only thereafter consider  whether further work on mode 4 might be  warranted . Australia invited 
delegations to consider whether it would be useful to have the Secretariat update the other two 
modal Notes .11  
6.4.  The seminar, entitled "Mode 4 at Work" , was held on 10 October.12 At the October meeting, 
the Secretariat pro vided a factual a ccount of the  event  and delegation s shared their own assessment 
and takeaways . Members were generally apprec iative of the event , which they had found informative 
and useful. The Council also reverted to India's suggestion to update the Secretariat Note on mode  4, 
and a couple of additional ideas for possible Secretariat papers  were put forward . The Chairman 
indicated that he would contact the delegations concerned to see what might be done to satisfy the 
different needs expressed in terms of Secretariat wor k. 
7  CYBERSECURITY  MEASURES OF CHINA  
7.1.  At the request of Japan and the United States, at its March  meeting the Council addressed the 
cybersecurity measures adopted and under development by China. The United States also submitted 
a communication under that agen da item.13 The two requesting delegations shared their concerns 
with the measures at issue,  many of which  were echoed by the European  Union, Canada, New 
Zealand, Australia and Chinese Taipei. India and South Africa  also intervened under that agenda 
item. China took the floor to  recall the responses it had  provide d at the previous  meeting and to 
provide a number of clarifications with regard to the issues raised on Virtual Private Networks and 
leased lines , while als o underscoring its government 's right to regulate in pursuit of relevant public 
policy objectives.  
7.2.  Again at the request of Japan and the United States, the Council reverted to China's 
cybersecurity measures at its October meeting. The United States submitt ed a new communication 
on the  issue.14 The two requesting delegations shared their  continuing  concerns with the measures 
at issue, and  were supported  by Canada, the European Union, Australia , New Zealand and 
Chinese  Taipei. After expressing its surprise at the issue being again on the Council's agenda, China 
                                                
9 The report is contained in document S/C/54 . 
10 Document S/C/W/301.  
11 Document S/C/W/304 on modes 1 and 2, an d document S/C/W/314 on mode 3.  
12 Speakers' presentations are posted on the WTO website at:  
https://www.wto.org/english/tratop_e/serv_e/mode_4_at_work_e/seminar_e.htm  
13 "Measures adopted and under development by China relating to its Cybersecurity Law", do cument 
S/C/W/376.  
14 "Measures adopted and under development by China relating to its Cybersecurity Law – Questions to 
China", document S/C/W/378.  S/C/55  
 
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  responded to some  of the questions raised and then shared some of its own concerns with certain 
US measures that  it considered  might affect other Members' cybersecurity interests.  
8  CYBERSECURITY MEASUR ES OF VIET NAM  
8.1.  At the request of Japan and the United States, at its March  meeting the Council addressed the 
cybersecurity measures that Viet Nam was developing. The two requesting delegations shared their 
concerns with the measures at issue, many of which w ere echoed by  the European Union, Canada , 
Australia and Chinese Taipei. India and South Africa  also intervened under that agenda item. Viet 
Nam took the floor to provide  information about the legislative  process for its draft Law on 
Cybersecurity , while also underscoring its government' s right to regulate in pursuit of relevant public 
policy objectives.  
8.2.  Again at the request of Japan and the United States, the Council reverted to Viet Nam's 
cybersecurity measures at its October meeting. The two req uesting delegations reiterated and 
provided an update on  their concerns with Viet Nam's newly approved Law on Cybersecurity ; they  
were supported  by the European Union, Australia, New Zealand, Canada and Chinese Taipei. 
Viet Nam stated  that the adoption of its Cybersecurity Law was base d on a number of legitimate 
national policy objectives, and that the Law adhered to Viet Nam's WTO commitments.  
9  RECENT DEVELOPMENTS IN TRADE IN SERVICES  STATISTICS  
9.1.  At the October  meeting of the Council, the Secretariat delive red a presentation on recent 
developments in trade in services statistics, which focus ed on data production and dissemination, 
specific projects, trade data analysis and technical assistance activities . 
10  WORK OF THE SUBSIDIA RY BODIES  
10.1.   The activities of the s ubsidiary bodies in 201 8 are reflected in their respective reports, which 
are annexed to this report, as follows:  
 Annex I Report of the Committee on Trade in Financial Services (S/FIN/ 33) 
 Annex II  Report of the Committee on Specific Commitments (S/CSC/ 24) 
 Annex III  Report of the Working Party on Domestic Regulation (S/WPDR/ 22) 
 Annex IV  Report of the Working Party on GATS Rules (S/W PGR/29). 
 
_______________  
 
 
 
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  ANNEX I  
  
S/FIN/33  
 
27 November 2018  
(18-7481) Page: 1/1 
   
ANNUAL REPORT OF THE  COMMITTEE ON TRADE IN FINANCIAL SERVICE S 
TO THE COUNCIL FOR T RADE IN SERVICES (20 18) 
 
 
1. This report has been prepared pursuant to the Procedures for an Annual Overview of 
WTO Activities and for Reporting Under the WTO (WT/L/105).   
2. Since its 2017 annual report to the Council for Trade in Services1, the Committee on Trade in 
Financial Services (CTFS) has held no meetings.  
_______________  
 
 
                                                
1 Annual Report of the Committee on Trade in Financial Services to the Council for Trade in Services 
(2017), c ontained in document S/FIN/32 dated 16 November 2017.  
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ANNEX II  
  
S/CSC/24  
 
27 November 2018  
(18-7482) Page: 1/1 
   
ANNUAL REPORT OF THE  COMMITTEE ON SPECIF IC COMMITMENTS  
TO THE COUNCIL FOR T RADE IN SERVICES (20 18) 
 
1. This report has been prepared pursuant to the Procedures for an Annual Overview of 
WTO Activities and for Reporting Under the WTO (WT/L/105).   
2. Since its 2017 annual report to the Council for Trade in Services1, the Committee on Specific 
Commitments (CSC) has held no meetings.  
_______________  
                                                
1 Annual Report of the Committee on Specific Commitments to the Council for Trade in Services (2017), 
contained in document S/CSC/23 dated 16 November 2017.  
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ANNEX III  
  
S/WPDR/22  
 
27 November 2018  
(18-7473) Page: 1/2 
   
ANNUAL REPORT OF THE  WORKING PARTY ON DO MESTIC REGULATION  
TO THE COUNCIL FOR T RADE IN SERVICES (2018)  
1. Since its Annual Report of 2017 to the Council for Trade in Services1, the Working Party on 
Domestic Regulation (WPDR) held one formal meeting on 7 and 8 November 2017.2 
2. During  the formal meeting of 7 and 8 November  2017, the Working Party  addressed a 
communication on  "Disciplines on Domestic Regulation"  by a group of Members3, 4, as well as a 
communication by the Russian Federation5 containing proposed amendments and modifications to 
the proposed disciplines. In addition, a group of Members ci rculated responses to questions on 
domestic regulation.6 A group of Members7, as well as India8, circulated statements made during 
the meeting.  
                                                
1 S/WPDR/20, dated 16 November  2017.  
2 The report of the meeting is contained in document S/WPDR/M/ 73, dated 9 March 2018, and should 
be read in conjunction with this report.  
3 JOB/SERV/272/Rev.4, dated 30 November 2017 - Communication from delegations of Albania ; 
Argentina; Australia; Canada; Chil e; Colombia; Costa Rica; the  European Union; Hong  Kong, China; Iceland; 
Israel; Japan; the Republic of Kazakhstan; the  Republic of Korea; Liechtenstein; Mexico; the  Republic of 
Moldova; Montenegro ; New  Zealand; Norway; Peru; the Russian Federation ; Switzer land; the  Separate 
Customs Territory of Taiwan, Penghu, Kinmen and Matsu; Turkey; Ukraine and Uruguay - Disciplines on 
Domestic Regulation.  
4 In order to inform delegations about the latest version of c ommunications that were subsequently 
revised to add co -sponsors, these communications are referred to by their latest revision.  
5 JOB/SERV/273, dated 3 November 2017 - Communication from the Russian Federation; Proposed 
Amendments and modifications to the Communication from Argentina; Australia; Canada; Chile ; Colombia; 
Costa Rica; the European Union; Hong Kong, China; Iceland; Israel; Japan; Kazakhstan; The Republic of 
Korea; Liechtenstein; Mexico; the Republic of Moldova; New Zealand; Norway; Switzerland; the Separate 
Customs Territory of Taiwan, Penghu, Kin men and Matsu; Turkey and  Uruguay  – Disciplines on Domestic 
Regulation (JOB/SERV/272) . 
6 JOB/SERV/270, dated 12 October 2017 - Communication from Argentina; Australia; Chile; Colombia; 
Costa Rica; the European Union; Hong Kong, China; Iceland; Israel; Japa n; Kazakhstan; the Republic of Korea; 
Liechtenstein; Mexico; the Republic of Moldova; New Zealand; Norway; Switzerland; the Separate Customs 
Territory of T aiwan, Penghu, Kinmen and Matsu  and Turkey - Responses to Questions on Domestic Regulation  - 
Submissi on by Co -sponsors of Disciplines on Domestic Regulation . 
7 RD/SERV/148, dated 7 November 2017 - Unofficial Room Document by Argentina; Australia; Canada; 
Chile; Colombia; Costa Rica; the European Union; Hong Kong, China; Iceland; Israel; Japan; Kazakhstan;  the 
Republic of Korea; Liechtenstein; Mexico; the Republic of Moldova; New Zealand; Norway; Switzerland; the 
Separate Customs Territory of Taiwan, Penghu, Ki nmen and Matsu; Turkey; Ukraine and Uruguay - Statement 
delivered on behalf of co -sponsors of Disc iplines on Domest ic Regulation - 7 November 2017.  
8 RD/SERV/149, dated 30 November 2017 - Unofficial Room Document from India - Comments by India 
on Co -sponsors' Text on Disciplines on Dom estic Regulation (JOB/SERV/272) - Interventions at the meeting of 
the WPDR on 7 and 8 November 2017 . 
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  3. Following the meeting of 7 and 8 November, communications to the WPDR were issued by the 
African Group9 and India.10 The Chairperson of the Working Party submitted a report on the state of 
play of the Working Party's discussions to the Council for Trade in Services (Special Session).11 
 
 
_______________  
                                                
9 JOB/SERV/274 , dated 4 December 2017 – African Group Elements for Ministerial Decision - Disciplines 
on Domestic Regulation.  
10 JOB/SERV/276 , dated 5 December 2017 – Comments by India on Co -sponsors' Text on Disciplines on 
Domestic Regulation (WT/MIN(17)/7; WT/GC/190) - Disciplines on Domestic Regulation.  
11 S/WPDR/21, dated 21 November 2017.  S/C/55  
 
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ANNEX IV  
  
S/WPGR/29  
 
27 November 2018  
(18-7490) Page: 1/1 
   
ANNUAL REPORT OF THE  WORKING PARTY ON GA TS RULES  
TO THE COU NCIL FOR TRADE IN SE RVICES (2018 ) 
1. This report has been prepared pursuant to the Procedures for an Annual Overview of 
WTO Activities and for Reporting Under the WTO (WT/L/105).   
2. Since its 2017 annual report to the Council for Trade in Services1, the Working Party on GATS 
Rules  (WPGR) has held no meetings.  
__________  
 
 
                                                
1 Annual Report of the Working Party on GATS Rules to the Council for Trade in Services (2017), contained 
in document S/WPGR/28 dated 1 6 November 2017.