RESTRICTED  
  
S/C/W/379  
27 November 2018  
(18-7463) Page: 1/5 
Council for Trade in Services    
 
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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 -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 GATS  
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/ 901-902 
Australia  S/C/N/903  
Thailand  S/C/N/904  
Kazakhstan  S/C/N/912 -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/W/379  
 
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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 October, the C ouncil 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 WAIVER  
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 notified 
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 -specific 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 that could be taken towards enha ncing 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 Nairobi 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 Members 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 C ouncil.   
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 . 
3.6.  All Members who intervened expressed their appreciation to the LDCs for havi ng 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 perple xities.  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 constructive comments. LDCs provided a number 
of clarifications in response to dele gations' 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 recei ved 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; Ur uguay; Thailand and Panama.  S/C/W/379  
 
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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 support for multilateral discussio ns 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 rei nvigorating 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 Multila teral 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 Note 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 
delegations  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 
carried  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 details 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 countr ies 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 t o the exploratory mandate of the 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 W eek 
and on -going measurement work  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 Buenos 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/W/379  
 
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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 
Progra mme 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 mode 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 therea fter 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 account 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 usef ul. 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 w hat might be done to satisfy the 
different needs expressed in terms of Secretariat work . 
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 agenda 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 P rivate Networks and 
leased lines , while also 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 submitted a new communication 
on the  issue.14 The two requesting delegations shared their  continuing  concer ns with the measures 
at issue, and  were supported  by Canada, the European Union, Australia , New Zealand, Canada 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, and document S/C/W/314 on mode 3.  
12 Speakers' presentations a re 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", document 
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/W/379  
 
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  responded to some  of the questions rai sed 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 Counci l addressed the 
cybersecurity measures that Viet Nam was developing. The two requesting delegations shared their 
concerns with the measures at issue, many of which were echoed by  the European Union, Canada , 
Australia and Chinese Taipei. India and South Afr ica 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 obj ectives.  
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 requesting delegations reiterated and 
provided an update on  their concerns with Viet Nam's newly approve d 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 delivered  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 subsidiary 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/ XX) 
 Annex II  Report of the Committee on Specific Commitments (S/CSC/ XX) 
 Annex III  Report of the Wo rking Party on Domestic Regulation (S/WPDR/ XX) 
 Annex IV  Report of the Working Party on GATS Rules (S/W PGR/XX). 
 
 
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