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S/C/M/115  
 
27 November 2013  
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Council for Trade in Services    
 
 REPORT OF THE MEETING HELD ON 29 OCTOBER 2013 
NOTE BY THE SECRETARIAT1 
On 29 October 2013, the Council for Trade in Services held a meeting under the Chairmanship of 
Ambassador Al-Otaibi (Saudi Arabia). The agenda was contained in document 
WTO/AIR/4218/Rev.1. 
The representative of Australia said that her delegation wished to add an item under Other 
Business, concerning the entry into force of the certified EU-25 schedule. The representative of Cuba expressed his delegation's concern with the proposal in item H of the 
agenda. Cuba was alarmed by the level of ambition of the proposal and concerned that the Council 
be used to promote initiatives that went beyond the scope of the WTO.  He suggested that some 
thought be given to this matter. The Council was a forum for multilateral discussions, which should 
be dealing with matters the WTO Director-General was inviting Members to concentrate on in order to strengthen the multilateral trading system and the credibility of the WTO.  
The representative of the Bolivarian Republic of Venezuela said that her delegation shared Cuba's 
concerns.  
The agenda was adopted, as modified by the addition of the item of Other Business. 
1  ITEM A – ANNUAL REPORTS OF THE SUBSIDIARY BODIES TO THE COUNCIL FOR 
TRADE IN SERVICES 
1.1.  The Chairman recalled that, in accordance with WTO reporting procedures, the Council for 
Trade in Services was to consider the Annual Report s of its subsidiary bodies. Accordingly, he drew 
Members' attention to the Reports of the Committee on Trade in Financial Services (S/FIN/28), the 
Committee on Specific Commitments (S/CSC/19), the Working Party on Domestic Regulation (S/WPDR/16) and the Working Party on GATS Rules (S/WPGR/24), which had been adopted by the 
respective bodies. 
1.2.  He proposed that the Council take note of the four Reports, on the understanding that they 
would be annexed to the Annual Report of the Council for Trade in Services, and form an integral 
part of it. 
1.3.  It was so agreed. 
2  ITEM B – ANNUAL REPORT OF THE COUNCIL FOR TRADE IN SERVICES TO THE 
GENERAL COUNCIL 
2.1.  The Chairman indicated that, in accordance with WTO reporting procedures, the Council for 
Trade in Services was to report each year to the General Council on its activities and those of its 
subsidiary bodies. Accordingly, he drew delegati ons' attention to the draft Annual Report of the 
Council for Trade in Services on its activities in 2013, contained in document S/C/W/352. The 
Report was factual and self-explanatory. As he had mentioned under the previous agenda item, 
                                               
1 This document has been prepared under the Secret ariat's own responsibility and without prejudice to 
the positions of Members and to their rights and obligations under the WTO. S/C/M/115 
 
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  the Annual Reports of the subsidiary bodies would be annexed to the Council's Report for 
submission to the General Council.  
2.2.  He proposed that the Council adopt the draft 2013 Annual Report to the General Council 
contained in document S/C/W/352. 
2.3.  It was so agreed. 
3  ITEM C - NOTIFICATIONS PURSUANT TO  ARTICLES III:3 AND V:7 OF THE GATS 
3.1.  Starting with the notifications made pursuant to GATS Article III:3 (transparency), the 
Chairman drew the Council's attention to the communications received, respectively, from 
Australia (S/C/N/698); Colombia (S/C/N/699-700); the Separate Customs Territory of Taiwan, 
Penghu, Kinmen and Matsu (S/C/N/702); South Africa (S/C/N/703-708 and 712); Montenegro 
(S/C/N/710-711) and  Switzerland (S/C/N/713).  
3.2.  He proposed that the Council would take note of the notifications made.   
3.3.  It was so agreed. 
3.4.  Turning to the notifications submitted pursuant to Article V:7, the Chairman drew 
delegations' attention to the communications received from Mexico (S/C/N/701); Costa Rica and 
Singapore (S/C/N/709) and Peru and Cost Rica (S/C/N/696).  
3.5.  He also drew attention to a further notification pursuant to GATS Article V:7, from Chile and 
Nicaragua (S/C/N/697), which had been circulated back in June but inadvertently omitted from the 
agenda of that meeting. Since delegations had received it some time earlier, he wanted to provide an opportunity for any delegation wishing to comment on the notification. As the procedural requirement of having the notification appear formally on the agenda of the Council still remained, 
however, it would be included for the next Council meeting, when it would again be possible to 
make comments. 
3.6.  He proposed that the Council take note of  the notifications made and refer the agreements 
newly notified to the Committee on Regional Trade Agreements for consideration. 
3.7.  It was so agreed. 
4  ITEM D - COMPLIANCE WITH GA TS NOTIFICATION REQUIREMENTS 
4.1.  The Chairman recalled that, in the course of discussions of this agenda item at the June 
meeting, the delegation of Switzerland had asked the Secretariat's Trade in Services Division to 
consult with its colleagues dealing with TBTs to ex plore the feasibility of setting up an electronic 
system for the submission of services notifications.  He offered the floor to the Secretariat to report 
back on the results of its investigations in this regard.  
4.2.  A representative of the Secretariat recalled that the issue raised concerned the possibility of 
developing an electronic system for the submission of services notifications, similar to the systems 
that existed for notifications und er the TBT Agreement and the SPS Agreement. In consulting with 
colleagues in the competent Divisions, it had em erged that, while there were some similarities 
between SPS, TBT and GATS notifications, there we re also a few important differences in terms of 
the nature of the notifications. This implied that  the IT cost for developing an on-line services 
notification system would be in the vicinity of the cost implied by the de velopment of the TBT and 
SPS systems. Clearly, there were differences in the number of notifications submitted under the SPS and the TBT Agreements compared to those submitted under the GATS, which was something 
delegations might wish to take into account when considering the cost-effectiveness of establishing 
such a system. An initial assessment of the IT co st was in the range of CHF100'000 to 130'000. 
The question of whether Members wanted to go ah ead obviously depended on how delegations felt 
about the management of the notification workload that they had to undertake pursuant to the 
relevant GATS obligations. As there were a number of details to consider, the Secretariat stood ready to circulate an informal Note, explaining briefly the situation with respect to the SPS and 
TBT systems and highlighting si milarities and differences.  S/C/M/115 
 
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  4.3.  The representative of the United States th anked the Secretariat for the overview and agreed 
that it would be helpful to have an informal Note outlining the issues mentioned, to further reflect 
on the suggestion to establish an on-line system for services notifications.  
4.4.  The representative of Switzerland thanke d the Secretariat for the presentation and the 
suggestion. He also supported the idea of havi ng a Secretariat Note, and suggested that the 
emphasis could be placed on the specific n eeds and functionalities required for services 
notifications, rather than on comparisons with the TBT and SPS systems that would not necessarily 
be helpful. He suggested, for instance, that an on-line notification system in services should also 
include a search function, for notifications to be examined by sector, Member, date, type of measure and so on. The Secretariat Note should th us focus on suggestions that reflected Members' 
specific functional needs with regard to GATS notifications.    
4.5.  The Chairman said that the Secretariat would prepare the Note and suggested that the 
Council take note of the statements made and revert to this item at its next meeting. 
4.6.  It was so agreed. 
5  ITEM E - WORK PROGRAMME ON ELECTRONIC COMMERCE  5.1.  Turning to the Work Programme on Electronic Commerce, the Chairman recalled that, as a 
follow-up to the Workshop on Electronic Commerc e held under the auspices of the Council for 
Trade in Services on 17 and 18 June, the Ch airman of the Workshop, Ambassador Reiter of 
Sweden, had produced, on his own responsibility , a summing-up of the event, contained in 
document JOB/SERV/155, dated 28 June 2013. 
5.2.  The representative of the United States sa id that, depending on the outcome of the MC9, he 
expected to see a reinvigoration of the Work Programme, and his delegation would likely take up 
the initiative in the coming year.   
5.3.  The representative of Australia wished to ex press her delegation's appreciation for the active 
engagement of Members during 2013 to advance the Work Programme on Electronic Commerce, 
and particularly the wide range of expertise an d valuable information-sharing produced by the 
June workshop. Her delegation was also appreciative of the work of the General Council for 
drafting a comprehensive and well-balanced report on the Work Programme, particularly the work 
of the Council for Trade in Services, in the period since MC8.  
5.4.  Looking ahead to MC9 and the draft Minister ial Decision on Electronic Commerce, Australia 
strongly supported a continuation of the current practice of not imposing customs duties on 
electronic transmissions and valued the decision to continue to “substantially invigorate” the Work 
Programme on Electronic Commerce. The challenges and opportunities created by electronic commerce would remain at the forefront of trade discussions for the foreseeable future. During the 
Council's deliberations, it had become clear that many ‘e-commerce issues’ were cross-cutting and 
fast-moving. With that in mind, Australia welcomed the elaboration, in the draft Ministerial Decision, of a number of additional trade-related issues for inclusion in the Work Programme on 
Electronic Commerce, such as electronically-deliver ed software, cloud computing, the protection of 
confidential data, privacy and consumer protection . The draft provided a well-balanced snapshot of 
some of the trade-related issues all Members were grappling with as electronic commerce continued to expand. Her delegation looked forward to hearing views on how the Council for Trade 
in Services could continue to implement the E-Commerce Work Programme. 
5.5.  The representative of Canada continued to support the Work Programme on Electronic 
Commerce and looked forward to  engaging further with Members in the coming year.  
5.6.  The representative of Switzerland added his delegation's voice to those supporting the Work 
Programme on Electronic Commerce. The Council could count on Switzerland's continuous and 
active participation. Members needed to encourage the spread of e-commerce trade, bearing in 
mind aspects such as data and privacy protecti on. Overall, the balance achieved between the 
various WTO bodies was positive, and his delega tion was supportive of the draft Ministerial 
Decision on Electronic Commerce.  S/C/M/115 
 
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  5.7.  The representative of New Zealand welcomed  the extensive work done over the year in the 
services Council and other WTO bodies under the Work Programme on Electronic Commerce.  New 
Zealand very much welcomed the early conclusion of the draft Ministerial Decision for MC9, including the continuation of the moratorium and the on-going invigoration of the Work 
Programme building on the progress made.  
5.8.  The representative of the European Union joined previous speakers in appreciating the 
reinvigoration of the WTO Work Programme and the various initiatives in this regard, including the 
two very successful workshops held.  From the EU perspective, the conditions were met to report 
to the Ministerial Conference that progress had been made, and to support the renewal of the 
moratorium on e-commerce.   
5.9.  The representative of Japan welcomed the ea rly conclusion of the draft Ministerial Decision 
for MC9 and looked forward to continuing constructive discussions on electronic commerce.   
5.10.  The Chairman proposed that the Council take  note of the statements made and revert to the 
issue at its next meeting. 
5.11.  It was so agreed. 
6  ITEM F - OPERATIONALIZATION OF THE MC8 DECISION ON THE SERVICES WAIVER 
FOR LDCS 
6.1.  The Chairman recalled that, following a reques t on the part of the LDC Group, over the past 
two meetings the Council had discussed the operationalization of the Ministerial Decision on the 
Services Waiver for LDCs. The Council had agreed back  in June to revert to this item at the current 
meeting. 
6.2.  Speaking on behalf of the LDC consultative Group in the WTO, the representative of Nepal 
said that the decision on the preferential treatm ent of services and service suppliers of LDCs had 
been an important outcome of the Eighth Ministerial Conference. The decision allowed Members to 
provide such treatment regardless of the MFN obligation. Integrating LDCs in global services trade 
was important to address poverty and ensure sustainable development. The preamble of the Waiver Decision also reaffirmed that preferential  treatment to services and service suppliers of 
LCDs was critical for increased participation of LDCs in world trade in services. Almost two years 
had passed since the Decision had been adopted; it still remained to be implemented. This was a key component of the LDC package for Bali which the Group had submitted in May 2013. A proposal had been developed outlining how the Ninth Ministerial Conference could address the 
issue, instructing Members to do their part in order to implement the Waiver Decision. The Group 
thanked Members for their engagement under the fa cilitator-led process. The text of the draft 
decision had been presented by the facilitator be fore the last TNC. The Group was pleased to see 
that an outcome, although not optimal, would be presented for Ministers’ approval in Bali. It hoped 
that the proposed outcome would serve as an important step towards ensuring effective implementation of the waiver. 
6.3.  In previous Council meetings, the LDC Group had outlined a roadmap to develop a collective 
request. Accordingly, early that month an inte rnal brainstorming meeting had been held, with 
participation of capital-based government officials as  well as private sector experts. In one of the 
sessions, the Group had invited some key partners  to share their views on how they thought the 
Waiver could be operationalized. The inputs re ceived from the brainstorming session would be 
used in preparing a joint request. In the meantime, there was scope for offers which the Group's partners could make without delay. This would generate a positive message that the Waiver was 
good and meaningful. This aspect had been highlighted in the proposed Ministerial outcome as 
well. The LDC Group looked forward to continuously engaging with its partners in order to translate the promises of the Waiver Decision into  a meaningful and beneficial outcome in favour 
of LDCs.  
6.4.  The representative of Indonesia welc omed the draft Ministerial Decision on the 
operationalization of the MC8 Decision on the Services Waiver for LDCs. The draft had already 
shown the flexibility and strong support of all LDC Members to make Bali a success, in particular in 
achieving a concrete and feasible outcome on LDCs issues. For Indonesia, it was important to have S/C/M/115 
 
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  LDC issues aboard at MC9. This would show Members' strong commitment to maximise the 
benefits of trade as an engine of growth for LD Cs and to better integrate LDCs into multilateral 
services trade. Indonesia believed that the draft De cision would muster consensus, and give strong 
guidance for Members in achieving the effective operat ionalization of the Services Waiver for LDCs.   
6.5.  The representative of Switzerland echoed Indonesia's statement in full and indicated that 
Switzerland stood ready to contribute in a proactive manner to making the Waiver operational 
immediately after MC9.   
6.6.  The Chairman said that the Council would take note of the statements made and revert to 
this item at its next meeting. 
6.7.  It was so agreed. 
7  ITEM G – FOLLOW-UP TO SECTORAL AND MODAL DISCUSSIONS 
7.1.  The Chairman said that this item had been  added to the Council's agenda at the request of 
the delegation of Switzerland. As a follow-up to the Council's sectoral and modal discussions, 
Switzerland had recently circulated a communication on Small and Medium-Sized Enterprises 
(SMEs), titled "Services Sector, Small and Medium -sized Enterprises and Employment: the Case of 
Switzerland", which was contained in document S/C/W/340/Add.1, dated 30 September 2013.  
7.2.  The representative of Switzerland indicated that, on 20 September 2011, his delegation had 
submitted a previous paper with regard to SMEs in Switzerland's tertiary sector, in document 
S/C/W/340. That paper provided information on the importance of SMEs in Switzerland's service sector in general and the number of employees in this sector. Additionally, it had identified the 
three most important subsectors, in terms of employment, for Switzerland's SMEs. 
7.3.  The present submission sought to show the development in employment in Switzerland's 
service sector over a period of no less than th irteen years, from 1995 to 2008. To examine this 
aspect, it had been necessary to use a different se t of statistical data, since the previously used 
information would not have allowed as much differentiation as needed. Nevertheless, the 
examined sub-sectors remained exactly the same as in the 2011 submission. 
7.4.  The new submission addressed three key questi ons. First, which size class of SMEs and which 
services sub-sectors were most powerful in creating new jobs in the long run. Second, to which 
extent had semi-governmental or governmental business entities distorted those findings, combined with other important observations, such as the distribution across size classes of enterprises in Switzerland's tertiary sector and developments in the number of entities over the 
observed period. Third, the capacity of SMEs to cr eate jobs over the long-term in comparison with 
that of larger companies, with more than 250 Full-Time Equivalents (FTEs).   
7.5.  The analysis undertaken had led to the following findings. With regard to the first question, 
as Table 1 showed very clearly, both in 1995 and in 2008, Switzerland's services SMEs were 
strongly dominated by the so-called micro-sized-enterprises, with less than 10 FTEs, to be followed by entities with 11 to 49 FTEs. Companies with more than 50 FTEs were relatively rare, with only 
about 3% of SMEs belonging to this category. Nevertheless, three sub-sectors had a higher 
amount of large SMEs, namely education servic es, financial and related services, and health-
related and social services.  
7.6.  These findings had raised the question of which size class had registered the biggest increase 
in business entities over the observed period. Tabl e 2 illustrated that no evident pattern could be 
identified across the twelve sub-sectors and the th ree size classes. However, the best performers 
were information and communication services, financial and insurance-related services, and 
housing and real estate services. Concerning the pe rformance of the three size classes, the picture 
was less evident. Mid-sized and large SMEs performed better than small ones. 
7.7.  These elements led to three conclusions: first, despite the fact that three outperformers 
among the twelve sub-sectors could be identified, no patterns could be found. In turn, this 
underlined the heterogeneity of the SME segment.  Second, micro-enterprises did not perform as S/C/M/115 
 
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  well as mid-sized and large SMEs. Third, the success of SMEs was to a certain extent due to the 
mix of size classes. 
7.8.  In terms of the second key question, despit e the fact that the statistical material did not 
allow to differentiate between jobs that were created in the private sector and those created by 
governmental or semi-governmental business entities, it was possible to identify the subsectors 
most influenced by governmental or by semi-governmental organizations. These were artistic, entertainment and recreational services, education services, financial and insurance-related 
services, health-related and social services, transport services, and other services. 
7.9.  As concerned the third question, in terms of employment figures, Table 3 showed that the 
increase in business units per size class had moved in parallel with the development of employment in the three size classes. Table 3 al so confirmed that micro-sized enterprises did not 
perform as well as the other two size classes, thus corroborating the observation that the smallest 
SMEs were not driving the growth in the number of business units or determining their ability to create jobs. Nonetheless, in absolute terms they  remained the backbone of Switzerland's SMEs. 
7.10.  At any rate, the 13.4% total growth of employment in the SME segment was considerable. 
Table 4 indicated that, with only a few except ions, from 1995 to 2008 SMEs had performed much 
better relative to larger companies. This finding was most pronounced in information and 
communication services, financial and insurance-related services, and other business services. 
Nonetheless, large companies performed better in so me sub-sectors, such as distribution services, 
other services and professional services, even though their employment growth had never been 
higher than 6.4 per cent during the observed period. In other words, Switzerland's SMEs had 
performed twice as good as large companies. 
7.11.  Switzerland would be interested in other economics' experiences with SMEs in service 
sectors. In particular, which services SMEs could be considered as outperformers with respect to 
the creation of new jobs, which were the sub-sectors that had performed best, and what might be 
the plausible explanations?  
7.12.  The representative of China expressed hi s delegation's appreciation for Switzerland’s 
communication on SMEs, as a way of initiating further discussion and experience-sharing on the 
issue. At the March 2012 meeting of the Council, China had contributed to the discussion by presenting the general situation of its SMEs, their performance in e-commerce-related activities, the difficulties they encountered and the government’s strategies to further facilitate their 
development. The number of SMEs and individual businesses in China accounted for more than 
99% of all enterprises, and contributed about 80% in terms of employment. SMEs in sectors such 
as culture, tourism, information and communication had witnessed rapid progress in creating 
employment, including for many college graduates. This supported Switzerland’s findings that 
SMEs had a stronger impact on employment-creation than bigger companies.  
7.13.  China also shared Switzerland's view that SMEs played an irreplaceable role in creating job 
opportunities, promoting economic growth, encourag ing industrial innovation and improving social 
harmony. In recent years, Chinese SMEs, and small and micro businesses in particular, had been growing rapidly in a friendly policy environment. In April 2012, the State Council of China had transmitted the "Opinions for Further Promotin g the Small and Micro Enterprises’ Healthy 
Development", with the aim to better resolve the difficulties small and micro enterprises 
encountered in financing technical upgrades and talent reserves. In October this year, a State Council executive meeting had issued new policies promoting a reform of the registration system 
of company’s registered capital, and further relaxing capital registration conditions. As a result, 
small and micro enterprises would be further encouraged to increase productivity and create more employment opportunities. The issue of SME development merited further discussion in the 
Services Council; China stood ready to contribute and would welcome receiving further inputs from 
other Members. 
7.14.  The representative of South Africa welcomed the Swiss submission and its conclusion that 
SMEs contributed to job creation, which was an important development issue. He expressed his 
delegation's interest in further engaging in discussions on the issue.   S/C/M/115 
 
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  7.15.  The representative of the Chinese Taipei thanked the Swiss delegation for its interesting 
analysis of the relationship between the size of SMEs and employment. By way of preliminary 
observation, the representative noted that, while Table 1 showed education services as one of three sub-sectors with the highest proportion of big SMEs, Table 2 indicated that the big SMEs in 
this sector had suffered the most significant loss in terms of the number of business entities 
(minus 55.1%) in the period 1995 to 2008. It woul d be interesting to know whether Switzerland 
had explored further the reasons behind these changes.  
7.16.  In the Separate Customs Territory of Taiw an, Penghu, Kinmen and Matsu, a similar census 
had been carried out to see the relationship betw een the size of enterprises and employment. It 
showed that, over the period 2009 to 2012, the se rvices industry had accounted for about 68% of 
total GDP with the largest sub-sectors being wholesale and retail services (19.2%), real estate 
services (9%), and financial and insurance services (6.6%). In terms of numbers, the vast 
majority of all business entities were SMEs (97.7%). Of these SMEs, 80% were engaged in the services sector, and just over half of (50.6%) were wholesale and retail enterprises.  
7.17.  The total number of persons employed in all business entities had reached 10.86 million in 
2012. Of this total, about 8.5 million, or just over  78%, were employed by SMEs. Therefore, SMEs 
were the main source of employment opportuni ties. From 2010 to 2012, even though the direct 
sales of large enterprises (including domestic sales and exports) had been 2.6 times greater than 
those of SMEs, the total number of persons employ ed by SMEs had been 8.8 times higher that of 
large enterprises. SME employment in the servic e sector accounted for 58% of total employment 
in all business entities. The top four sub-sectors for creating jobs were wholesale and retail 
services (1.7 million people), hotel and restau rant services (710'000 people), other services 
(530'000 people), followed by financial and insurance services (320'000 people). He hoped that the findings he had just presented were of interest to Members. 
7.18.  The representative of Chile said that seven out of ten jobs in Chile were linked to SMEs. As 
in Switzerland, SMEs represented the backbone of the Chilean economy. He wondered if the 
definition of SMEs in the case of Switzerland had been based exclusively on the number of 
employees or whether revenue had also been take n into account. While the number of employees 
was the criterion usually used, and indeed in Ch ile SMEs were defined as  companies with fewer 
than 50 employees, he noted that this criterion did not always reflect economic reality. There could be industries that were not intensive in terms of employment but were highly productive. For 
instance, in the wealth management sector there were companies with very high revenues but 
very few employees.  
7.19.  The representative of Switzerland had been interested to hear that SMES were such a 
crucial part of many Members' economy. Replying to the question raised by Chinese Taipei 
concerning education services, he said that no explanation had been found for the significant decrease in the number of business entities and empl oyment in that sector. As for the question by 
Chile, he explained that the paper had used a defi nition of SMEs based on Full Time Equivalents 
(FTEs). Three company classes existed in Switzerland: 0 to 9 FTEs; 10 to 49 FTEs; and 50 or more FTEs. Some statistics might include a revenue-bas ed definition, but the Swiss submissions on 
SMEs had used the FTE definition. 
7.20.  The Chairman said that the Council would ta ke note of the statements made and revert to 
this item at its next meeting. 
7.21.  It was so agreed. 
8  ITEM H – RECENT DEVELOPMENTS IN TRADE IN SERVICES 8.1.  The Chairman said that that item had been  added to the agenda of the Council at the request 
of a group of Members. They sought to provide the Council with a summary of their discussions on 
a framework for negotiations on a Trade in Services Agreement and had submitted a 
communication to the effect contained in document JOB/SERV/164/Rev.1, dated 22 October 2013. 
8.2.  The representative of Australia said that the group wished to continue its practice of updating 
Members on its negotiations of a Trade in Services Agreement. Currently, WTO Members 
representing around 70% of world services trad e were involved, and the group was growing. It S/C/M/115 
 
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  had invited and continued to invite other WTO Me mbers to join where they shared the underlying 
objectives. Australia considered the envisaged agreement to be an important development in services trade and therefore appropriate for discussion in the Council. 
8.3.   Since the previous meeting of the Council, the group had met twice, in the week of 24 June 
and the week of 16 September. Australia conti nued to be encouraged by the positive and 
constructive tone of the negotiations. Good progre ss had been made on the text of the agreement, 
to a point where all parties would be able to ta ble market access offers in the coming weeks. 
Participants would meet again the following week.  
8.4.  The group was aware that there was a high level of interest in its work. To better inform the 
Council, the group had tabled a paper (JOB/SERV/164/Rev.1), which contained details of the framework, agreed among the group in December 2 012, for the negotiation of a Trade in Services 
Agreement (TiSA). The paper outlined the paramete rs of the negotiations that had begun earlier 
that year, including the objectives for the agreem ent and key elements relating to its structure. 
The text of the agreement would build on the core GATS provisions and new and enhanced 
disciplines would be developed that went beyond the GATS. For instance, the group had already 
had substantive discussions in areas such as temporary entry, financial services, ICT services, professional services, maritime transport services and domestic regulation. The paper also 
explained how commitments would be scheduled in the TiSA using the GATS approach to 
scheduling market access commitments, but bringing in a horizontal commitment on national treatment, where full national treatment commitments would apply to all sectors unless a reservation was listed, with a standstill binding existing levels of liberalisation and a ratchet clause 
binding future liberalisation, subject to listed reservations.  
8.5.  The group hoped that, by sharing this paper, WTO Members would have a better 
understanding of the objectives and ambition for progressing services trade reform in a way that 
would support and feed back into the multilateral  system. Membership of the group continued to 
grow. There had been encouraging expressions of  interest from other WTO Members who shared 
the group's objectives and level of ambition as set out in the Framework Document. Participants 
wished to reiterate their willingness to talk to any Member interested in their work. 
8.6.  All delegations who spoke thanked Australia for its exercise of transparency. 
8.7.  The representative of the European Union al so expressed his satisfaction with the progress 
made by the TiSA participants. The time had thus come to exchange offers. The core elements of 
the text had been stabilised in accordance with the framework agreed by the group in December 
2012 and circulated to the Council. It foresaw that the text of the agreement would build on the core GATS provisions. This would facilitate the broadening of the group to other WTO participants 
and the future multilateralisation of TiSA. The cl oser they were to the GATS architecture, the 
easier would it be to open the negotiations. This was why the EU was particularly pleased that other WTO Members had expressed an interest in joining. The EU had repeatedly said, in the 
Council and beyond, that it would welcome any other Member sharing the parameters and 
objectives laid down in the December framework. The EU was actively engaging with those Members and would invite the participation of whoever shared the level of ambition and was willing to contribute to the development of common rules and disciplines. 
8.8.   The representative of Japan welcomed the participation in the TiSA negotiations of other 
Members who were also supportive of the group's objectives and ambition. 
8.9.  The representative of China said that his authorities, as staunch supporters of the multilateral 
trading system, had been following closely developments in the plurilateral services negotiations 
and later the TiSA negotiations, bearing in mind their systemic implications. The TiSA negotiating parties had emphasised on various occasions, including at several Council meetings, the 
transparent, open and inclusive nature of their negotiations, which were aimed at generating 
momentum for the multilateral negotiations. Over the previous years, some parties to TiSA had maintained close contacts with China and had repeatedly invited other WTO Members, including China, to participate in their negotiations. China was appreciative of their efforts.  
8.10.  As important driving forces of global growth , the services industry and services trade played 
an indispensable role in the development of all countries. The Chinese government fully recognised S/C/M/115 
 
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  the importance of trade in services for economic growth and social development, and was 
committed to developing further the domestic services industry through opening up the sector and ensuring a level playing field. 
8.11.  Given that the ultimate goal of the TiSA nego tiations was in line with the overall direction of 
its services policy, the Chinese government had de cided to participate in the TiSA negotiations. On 
30 September, it had formally notified all negotiat ing parties to TiSA of that decision through its 
Permanent Mission to the WTO. China had come to the conclusion that TiSA negotiations were 
complementary to the efforts under the multilateral framework. Negotiating parties to TiSA were 
committed to the further liberalization of global trade in services, which was also one of the most important goals of the WTO multilateral talks. China strongly urged the parties to TiSA to demonstrate by concrete measures that their negotiations were open to all WTO Members who 
shared the same objectives and that the multilateral isation of TiSA could be achieved in the future.   
8.12.  The representative of Egypt said that he was not clear about the legal basis for including the 
issue in the agenda of the Council. Although tran sparency was welcome and beneficial, the group's 
communication was silent with regard to the legal basis for TiSA. He wondered whether this would 
be Article V or Article XIX:4 and whether the TiSA initiative, with the invitation to other Members to join, would inject some dynamism into the negotiations, currently stalled, in the Special Session 
of the Council for Trade in Services as per the negotiating modalities in document S/L/93. It was 
essential to understand the way forward with TiSA, because it involved the major players in services trade, and services were an essential locomotive for growth. In terms of an eventual 
multilateralisation of TiSA, he wondered how this would work. Would all 160 WTO Members be 
expected to join TiSA? And what would be the legal status under the GATS? 
8.13.  Amongst the many questions he had, he wondered in particular whether the Special Session 
negotiations would resume after Bali or, rather, whether a decision would be taken in Bali, or 
thereafter, that the Special Session no longer existed or whether another outcome could be 
foreseen. It was important to be transparent about the implications of the initiative and to determine on which basis to move forward. He called on the TiSA participants, in future 
communications, to elaborate in detail on the benefits of their negotiations and respond to the 
concerns of Members.  
8.14.  The representative of Brazil said that the GATS reflected a carefully negotiated balance 
between, on the one hand, liberalization as a me ans for economic growth and the development of 
all Members and, on the other, special consideration of the needs and circumstances of developing 
countries. As it stood, the initiative seemed bound to ultimately disrupt the intrinsic balance of the GATS. By removing services negotiations from th e multilateral context and transplanting them to a 
like-minded, plurilateral setting, the TiSA talks had set standards that would be otherwise 
considered as unrealistic and unreasonable. Mo reover, since the negotiating dynamics that 
characterized TiSA did not offer the possibility of trade-offs in other areas, it was unlikely that an 
eventual outcome might ever evolve into a truly multilateral agreement. As a matter of fact, Brazil 
was concerned about the possibility of TiSA setting a risky precedent for the multilateral trading system, namely, a proliferation of selective, stand-alone plurilateral initiatives in areas promising substantial benefits and negligible costs for a small portion of the Membership at the expense of 
multilateralism, inclusiveness and transparency. 
8.15.  The representative of the Bolivarian Re public of Venezuela expressed her delegation's 
concerns and disagreement with the inclusion of th at item on the Council's agenda. The issue was 
not just a matter of transparency but introduced significant imbalance into the process of 
multilateral negotiations in the WTO, particularly in the run-up to MC9. The Council for Trade in Services could not be the forum where plurilateral services negotiations were promoted, 
particularly when these had the scope of TiSA and went much beyond the disciplines of the GATS. 
This would de facto institutionalise problems within the multilateral trading system and disrupt international trading norms agreed by a majority  of the WTO Membership. It was important to 
preserve Members' policy space to elaborate disciplines that did not undermine their sovereignty 
and ability to determine their own national legislation and rules within the international trading 
system in a gradual negotiating process. Against that background, she requested that discussion of this item be removed from the agenda. The alle ged multilateralisation of the TiSA did not meet 
the needs and respond to the possibilities of all WTO Members. S/C/M/115 
 
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  8.16.  The representative of the Plurinational St ate of Bolivia echoed the concerns expressed by 
Egypt, Brazil and the Bolivarian Republic of Venezuela. The plurilateral initiative had given rise to a 
number of questions, especially about how the process was intended to be multilateralised. Was it going to be done in line with GATS Article II: 1, whereby whatever would be eventually agreed 
would be extended to all other WTO Members? What would be the legal context for such an 
outcome? There were many outstanding questions an d, if the group intended to be transparent, 
these needed to be addressed in order for other Members to understand where the process was 
going. 
8.17.  The representative of Ecuador echoed the concerns expressed by Egypt and Brazil. The TiSA 
proposal needed to be studied carefully, as it might include elements that were legally inconsistent 
with WTO rules. GATS Article V clearly permitted WTO Members to conclude economic integration 
agreements liberalising services trade, and as such  would allow for a plurilateral agreement to be 
concluded. However, Article V also stipulated that a number of conditions needed to be fulfilled. All 
what his delegation expected was that these conditio ns be fully respected. Finally, Article X of the 
Marrakesh Agreement establishing the WTO stipulated that all proposals for a new agreement to 
be decided exclusively by consensus. And consen sus was a basic principle underpinning the WTO.  
8.18.  The representative of South Africa recalled his delegation's previous statements on this 
issue, which were reflected in the interventions by Brazil, Egypt, the Bolivarian Republic of 
Venezuela, the Plurinational State of Bolivia and Ecuador. 
8.19.  The representative of India also echoed th e concerns expressed by previous delegations. At 
earlier meetings, India and other delegations had raised questions, primarily about how the 
proposed initiative would contribute to the goal of concluding the DDA in an inclusive manner as 
per the guidance by Ministers. India had expressed concerns about the impact of the initiative on 
multilateralism and the goal of inclusiveness, which primarily implied a need for all WTO Members 
to work towards a common set of goals for services liberalization. Those concerns and questions 
still remained. Nobody denied the importance of services trade liberalization, but the key issue was how and in what context the rules were set, whether multilaterally or by a set of Members with 
similar objectives. India encouraged and invited TiSA participants to negotiate within the WTO in a 
transparent and inclusive manner, keeping in mind the overall objectives and balance that the GATS provided. Multilateralism and inclusiveness would mean working with all Members to set the rules of the game. 
8.20.  The representative of Colombia said th at the document submitted was testament to the 
desire of the TiSA participant to have a transparent and inclusive process. Colombia would 
participate in any initiative aimed at liberalising international services trade and strengthening the 
multilateral trading system. 
8.21.  The representative of the Bolivarian Re public of Venezuela expressed her delegation's 
support for the statements by Egypt, Brazil, th e Plurinational State of Bolivia, Ecuador, South 
Africa and India. 
8.22.  The representative of Argentina recalled his delegation's previous interventions, echoed the 
concerns expressed by various Members and suppor ted in particular the interventions by Brazil 
and India with regard to the impact of the init iative on the effective conclusion of the DDA. 
8.23.  With regard to the questions raised about the legal form of TiSA, the representative of the 
United States said that it was premature to provide an answer. The United States agreed with 
China about the importance of services for economic growth and development. Not only were 
services important as an economic sector in their own right, but they also served as an important 
input into other sectors, such as manufacturing an d agriculture, and there was no evidence to the 
contrary. Because a number of WTO Members shared that view, TiSA was advancing. It involved a 
diverse group of countries, several of which were developing countries who were equally interested 
in advancing services trade liberalization. The constructive engagement in the TiSA was refreshing as it was not used as a platform for political grandstanding or squaring rhetorical points. For the United States, what mattered was replacing simple narratives with a pragmatic search for what 
worked in promoting services trade in the real world. As the negotiations advanced and the 
contours of an agreement became clear and stable, entry into TiSA would remain open to all those Members who shared the objective and ambitions of concluding a high-standard services S/C/M/115 
 
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  agreement. It was important that the momentum not be slowed down or deterred. The United 
States welcomed the interest of others and would continue to be transparent about the ambitions sought and progress achieved. 
8.24.  The representative of El Salvador said that her delegation shared the concerns expressed by 
other Members about the implications of the TiSA negotiations for the multilateral trading system 
and, in particular for small countries like her own. There was as yet no clarity as to how the initiative would be multilateralised in the future and how it would contribute to integrating 
developing countries into international services trade.  
8.25.  The representative of Panama said that se rvices were one of the most important sectors for 
Panama, which was why they were part of the TiSA group. The submission circulated clearly 
explained the group's parameters, objectives and level of ambition. She thanked all those 
Members who had shown an interest in the group's initiative. 
8.26.  The representative of Costa Rica echoed what the European Union, Japan, Colombia, the 
United States and Panama had said. His delegati on was participating in the TiSA negotiations 
because they offered a platform to move forward with services trade liberalization and consolidate 
the progress made. In this context, he emphasiz ed the importance and potential that services 
sectors offered in particular for developing countries such as Costa Rica. A study by the WTO 
Secretariat about the participation of developing countries in the multilateral trading system 
presented the previous week in the Committee on Trade and Development showed that exports of 
commercial services by developing countries had been growing by 10% between 2010 and 2012 and, in the same period, the participation of developing countries in services exports and imports 
grew from 29% to 31%, and from 25 to 37%, re spectively. Regarding Costa Rica, the services 
sector had been expanding constantly over recent years; in the period 2007 to 2010 it had done so at an annual rate of 9.4%. For example, in formation technology services and other business 
services represented 5.8% of Costa Rica's GDP and surpassed agriculture and tourism exports. 
Costa Rica believed that its participation in the TiSA process would contribute to consolidating that trend. Costa Rica's objective continued to be for those negotiations to contribute the multilateral 
trading system and strengthen the work of th e WTO. Like others, Costa Rica welcomed the 
participation of other Members who shared the group's ambition and objectives. 
8.27.  The representative of Nepal expressed his delegation's concern about how the TiSA initiative 
would promote multilateralism and strengthen the rules-based trading system. He wondered 
whether LDCs and small economies would benefit from the initiative and how it would contribute to 
the effective conclusion of the DDA. He echoed th e statements by Egypt, Brazil, the Plurinational 
State of Bolivia, El Salvador, India and others about the need to have further discussions of the 
issue. 
8.28.  The Chairman proposed that the Council would take note of the statements made and revert 
to this item at a future meeting. 
8.29.  It was so agreed. 
9  ITEM I – I-TIP SERVICES DATABASE  – PRESENTATION BY THE SECRETARIAT 
9.1.  The Chairman indicated that, pursuant to a delegation's request, the item had been placed on 
the Council's agenda for the Secretariat to present the newly established "I-TIP Services" 
database, which was the services component of the WTO's Integrated Trade Intelligence Portal. 
The database had been publicly launched on 23 July, and many delegations had been present at 
that event. I-TIP Services was an integrated da tabase developed jointly with the World Bank. It 
aimed at making it easier for Members and other stakeholders to access the various types of 
information relevant for services trade policy-making, be they commitments, applied measures, or statistics. 
9.2.  A representative of the Secretariat explained the database. He recalled that, prior to the 
launch in July, a prototype of the application had been presented during Data Day on 16 January, 
and that the project had been addressed in communications to Members from the Director General. The database was composed of four modules, dedicated to different types of information: 
specific commitments and MFN exemptions under the GATS; services commitments in regional S/C/M/115 
 
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  trade agreements (RTAs); information on applied measures; and services statistics. Each module 
permitted to search and access information in an efficient manner. Further, the modules were linked and users could easily switch, for example, from GATS commitments to related RTA commitments.   
9.3.  From the entry page for I-TIP Services ( http://i-tip.wto.org/services/ ), the user could select 
the module where it wished to make the search. The entry page also provided additional 
information on the type of information contained in each module, and included links to a detailed 
user guide, background documents, and a disclaimer that the information contained had no legal 
status.   
9.4.  In the GATS module, users could search specific commitments by selecting Members and 
sectors. Sector selection was based on the Services Sectoral Classification List (MTN.GNS/W/120). 
The search results were first presented in an ov erview format: a summary was presented by listing 
the Members and then the services where they had undertaken specific commitments under the 
relevant sector headings of the W/120 classification. Clicking on the underlined text of a particular 
sectoral entry allowed seeing the full details of a specific commitment. Clicking on the name of the 
Member or on a particular sector heading permitted accessing all relevant specific commitments for the Member or sector chosen. Search results could be exported in Excel or PDF format. From 
the page presenting the overview of search re sults, the user could select to see the MFN 
exemptions for the relevant Members and sector s. The representative then demonstrated two 
features that would soon be added to this module. The first one allowed accessing the WTO documents containing schedules of commitments. The second one permitted to obtain summary 
reports indicating how many and which Members had undertaken specific commitments in each 
sector.   
9.5.  The module on RTA commitments could be used to search and access information on 
commitments undertaken with respect to services in economic integration agreements notified 
under Article V of the GATS. The module currently covered 60 such agreements; others would be progressively added. The search page permitted to select Members and sectors, but also RTAs. 
Like for other modules, search results were first presented in overview form. In the case of 
negative-list RTAs, the first column in the summary table indicated the services where sector-specific reservations had been undertaken. If no reservations had been taken in a sector, it was so indicated. The second column provided a preview of the non-conforming measures at issue. The 
third column indicated the type of obligation for which the reservation had been taken (e.g., 
national treatment, market access, most-favoured-nation treatment), and the subsequent one listed the modes of supply covered by the relevant obligations. The last column highlighted those 
reservations that had been identified in the RTA as concerning existing non-conforming measures. 
To get detailed information on a particular reservation, the user could click on the underlined text or, to see many at a time, click on the name of the Member, name of RTA, or sector heading. In 
the 'detailed view' mode, information on the reservation was made available as found in the RTA, 
e.g., sector description, description of the non-conforming measure, relevant laws, and obligations concerned. Direct links to the text of releva nt obligations, chapters, and annexes were also 
included. 
9.6.  In the case of positive-list RTAs, the 'overv iew' page listed the services where sector-specific 
commitments had been undertaken. When no commitments existed in a sector, it was so indicated. A preview of the commitment indicated, for both 'market access' and 'national 
treatment' and for each mode of supply, whether full commitments ('none'), commitments with 
limitations ('partial') or no commitments ('unbound') had been undertaken. Details could be accessed in the same way as for negative-list RTAs. 
9.7.  Another feature of this module was the possi bility to access, for each agreement, an "RTA 
overview", which provided a brief description of key features of the RTA, such as the chapters 
relating to services and whether the liberalization modalities followed a negative- or positive-list approach. From the 'overview' page, the user could fi lter the display of the search results, e.g., by 
type of obligation concerned. Filters were common to different modules and also allowed to 
perform a word search. 
9.8.  The objective of the module on applied regi mes, as explained at the launch of the database 
and presentation of the prototype, was to make it easier to find relevant information on existing 
measures in the area of services. Information on such measures was found in a variety of sources S/C/M/115 
 
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  within the WTO (e.g. Trade Policy Reviews, Trade Monitoring Reports, GATS notifications), as well 
as in sources from other international organizations, including the World Bank. The information was publicly available, but scattered. The module  compiled and organized such information so as 
to facilitate access as well as feedback. This mo dule did not pretend to be exhaustive, since the 
sources mentioned above were not complete either, but it still provided a considerable amount of 
information, which would be further expanded over time.  
9.9.  The search page for this module was similar to that for RTAs or GATS. It allowed to search by 
Member and sector. Most, but not all sectors were covered yet. Postal, courier, and audio-visual 
services had recently been added. Remaining ones (construction, education, environmental, health, and recreational services) would soon follow. Searches could be limited to certain types of sources. Users could also select to see only inform ation on policy changes, or measures applied on 
a preferential basis. The page presenting the ov erview of the search results provided summary 
information on the service and measure at issue, indicating where the information came from and when it was published. The 'detailed view' mode of  the applied measures provided a description of 
the measure, on the basis of an excerpt from the source of information, along with any reference 
to relevant laws, and a link to the original  document. The representative emphasized the 
integrated nature of the database, showing how moving from one module to another permitted 
easy access to different types of informat ion for the selected Members and sectors. 
9.10.  The module on statistics aimed to comple ment the other modules by providing access to 
trade in services statistics and other sector-specific indicators. Information came from the UNCTAD-WTO trade in services statistics database, but the module also included additional 
information from other sources. The main type of information found was balance-of-payments data 
on commercial services, by sector and partner. This essentially covered modes 1, 2 and 4. To 
complement this, the database also included, when available, data on foreign affiliates statistics, 
which were the best indicator of services trade under mode 3. In addition, the Secretariat had 
included relevant data on foreign direct investment, value added, employment, as well as sector-specific indicators of interest, such as, for example, the number of foreign students in the case of 
education services, and the amount or value of fr eight transported in different transport services. 
The information came from the best sources av ailable, e.g., World Bank, UNESCO, ITU, OECD. 
9.11.  The module showed available statistics most closely related to the W/120 sector selected. 
Some sectors under the W/120 could cover more than one sector of the statistics classification. For 
example, for 'business services' in the W/120, bala nce-of-payments statistics could be provided for 
'other business services' and 'computer services'. Information on the definition of the sector and 
other indicators was available from the search results page by clicking on the information icon.  
9.12.  For services covered by balance-of-payme nts statistics, users could choose the type of 
charts they wished, including motion charts, to visualise the information. Data were presented in a standardised format, which included exports/imports for the five main trading partners, as well as 
shares in total trade, and growth rates. Export in Excel and PDF format was possible. The results 
page provided direct links to the relevant Member 's trade profile and services profile. It also 
included a link to the WTO Statistics Database. 
9.13.  The representative emphasized that the dataset put together for this module was unique 
and quite large, and that the Secretariat would continue gathering and updating relevant 
information, as well as including additional sector-specific indicators. For the other three modules, the immediate priorities were to include information on commitments in additional RTAs and to 
expand the sectors covered in 'applied regimes'. A number of suggestions had been received since 
July, for example to permit search by such grou ps as LDCs and acceding Members. The export 
functionalities would be enhanced, and certain summary analytical reports would be made 
available. The representative stressed the importan ce of receiving feedback from delegations (i-
tip_services@wto.org), both in terms of the data base's functionalities and in relation to the 
accuracy of the information contained. 
9.14.  The representative of Chile complimented and thanked the Secretariat for the significant 
work undertaken. For officials involved in bilateral and multilateral negotiations, especially those 
from developing countries, the tool just presented was optimal. Having such information organized and easily accessible was extremely useful. For ex ample, it allowed seeing and comparing what 
different trading partners were doing in different  contexts. The tool was equivalent to having S/C/M/115 
 
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  additional resources within delegations: it saved time and made work more efficient. The database 
would likely prove even more important in the future. 
9.15.  The representative of India congratulated the Secretariat for the tremendous effort. With 
respect to the module on applied regimes, she had looked at information provided on India, in 
particular that coming from the World Bank's services restrictiveness database, and asked how the 
information contained in I-TIP Services would be updated, especially since policies kept changing and trade policy reviews would not necessarily cove r all sectors. There was a possibility that the 
database would not reflect the prevailing situation in the country. She indicated that additional 
questions would be subsequently forwarded by e-mail. 
9.16.  The representative of the Secretariat sa id that the module on applied regimes did not 
pretend to be exhaustive. The objective was to gather and organize information that was already 
public so as to facilitate access and feedback. Information from certain sources of information 
might date back a few years, which was unavoidable, but other sources were more recent. This was the case, for example, for the WTO Trade Moni toring reports, which provided information on 
recent policy changes. The Secretariat had thus been able to update information obtained from 
other sources. This had been the case for India in the retail sector, for instance. In the WTO, additional sources for updated information were the Trade Policy Reviews and GATS notifications. 
Members were also invited to provide information and identify any inaccuracies, so that 
modifications could be made. The representative recalled that the database indicated where the 
information had come from, provided excerpts, and highlighted the year of publication, so as to 
guide the user. 
9.17.  The Chairman enquired about the steps taken to ensure the accuracy of the information on 
applied regimes, in view of the fact that the in formation came from a number of different sources. 
9.18.  The representative of the Secretariat said that relying on different sources could not ensure 
that the information was at all times precise, but it limited inaccuracies. Before launching the 
database, the Secretariat had reviewed the information on applied regimes to identify any contradictions between different sources of information; underlying inaccuracies were then 
addressed.   
9.19.  The Chairman said that the Council would take note of the statements made.  
9.20.  It was so agreed. 
10  ITEM J - OTHER BUSINESS 
10.1.  The representative of Australia said that her delegation would welcome an update from the 
European Union regarding its progress on the entry into force of its certified EC-25 schedule. 
Members would recall that it had been five years since Australia had first raised its concerns. The 
delay on the part of the European Union was a source of both systemic and commercial concerns 
for Australia, and she urged the European Union and its Member States to expedite the entry into 
force of the amended schedule of commitments. 
10.2.  The representative of the European Un ion said that, since the previous update, one 
additional EU Member State had finalised its internal procedure and now 21 Member States out of 
25 had concluded their ratification of the consolid ated schedule. The EU intended to finalise the 
process as soon as possible. 
10.3.  The Chairman said that the Council took note of the statements made. 
10.4.  The meeting was adjourned. 
__________