RESTRICTED  
  
S/CSC/M/85  
 
12 April 2021 
(21-3009) Page: 1/5 
Committee on Specific Commitments    
 
  
 
REPORT OF THE MEETING HELD ON 10 MARCH 2021 
NOTE BY THE SECRETARIAT1 
The Committee on Specific Commitments (CSC) held a meeting on 10 March 2021 chaired by 
Mr. Toshihide Aotake from Japan . The agenda for the meeting, contained in document 
WTO/AIR/CSC/1 4, was adopted . 
 
The Chairperson  recalled that delegations were meeting in virtual mode. He trusted that delegations 
attending virtually were, by then, all familiar with the main technical aspects of remote participation.   
 
1  ITEM A – CLASSIFICATION ISSUES  
1.1.  The Chairperson  explained that, a s announced at the last meeting, in view of a new format on 
the UN statistical classification s website, the U nited Nations  Statistics Division  (UNSD)  and the WTO 
Secretariat would provide a joint presentation on the new functionalities of this website and help 
Members navigate between the different Central Product Classification ( CPC) versions and between 
the CPC and other classifications, with a focus  on whether and how the correspondence could be 
established between the CPC Provisional Version and the later versions of the CPC. He reminded  the 
Committee  that the Services Sectoral Classification List (MTN.GNS/W/120) created for undertaking 
specific com mitments under the GATS was based on the CPC Provisional  Version .  
1.2.  A representative of the UNSD  presented the ne w statistical classifications website  (available at 
https://unstats.un.org/unsd/clas sifications ). The website provide d reference information on the 
work related to  International Statistical Classifications . Although still under development, a  lot of 
work had been achieved t o improve the page covering  economic statistical classifications . Additional  
functionalities were foreseen.  More classifications  were available for download and the ir structure s, 
such as the list of codes and titles/labels , were searchable and navigable.  
1.3.  The search functionality of codes and keywords was limited to matches in the main structure 
of the classification and in titles, but it could eventually be expanded to include explanatory notes. 
Permanent and unique links existed in each classification , pointing to detailed information.  This was 
a useful feature  if users wanted to store the links for future reference. Navigable c orrespondences 
were integrated in the website, enabling easy navigat ion between classifications (e.g. CPC and the 
International Standard Industrial Classification of All Economic Activities - ISIC), or different versions 
of the same classification (e.g. CPC Provisional Version and subsequent versions).  With respect to 
the corr espondences between CPC Provisional Version and more recent versions, she indicated that 
the lat ter were generally more refined, in particular for services items.  A direct correspondence 
between the CPC Provisional Version and the most up -to-date version ( CPC Version 2.1)  did not 
exist, and it was necessary to navigate between multiple versions  to be able to establish the 
correspondence . If requested, it could be possible to develop a direct correspondence . 
1.4.  The new functionalities included a registry providing additional information on updates on 
classifications, such as clarifications and corrections  
(https://unstats.un.org/unsd/classificatio ns/Econ/Registry ), as well as the possibility to provide 
online feedback or t o contact the classifications hotline by email . The next areas of work on the 
website included (i) making all related resources (alternative structures, alphabetical indices, etc. ) 
available on interactive pages in an integrated manner ; (ii) using metadata modelling and semantic 
 
1 This document has been prepared under the Secretariat's own responsibility and is without prejudice 
to the positions of Members or to their rights and obligations under the WTO.  S/CSC/M/85  
 
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  web technologies for classifications ; (iii) developing  Application Programming Interface s (APIs) for 
custom queries linking existing correspondence tables,  and referencing of common concepts as 
separately described in different classifications ; and (iv) e xplore ways to improve the visualiz ation 
of correspondences , including partial ones.  
1.5.  A representative of the Secretariat  presented  how the new website could be used to navigate 
between CPC versions, from CPC Version 2.1 back to CPC Provisional  Version , linking to W/120. He 
recalled that the scheduling guidelines (S/L/92)  indicated that "the legal nature of a schedule as well 
as the need to ev aluate commitments, require d the greatest possible degree of clarity in the 
description of each sector or sub sector scheduled. " Although not mandatory, the Scheduling 
Guidelines indicated that in general the classification of sectors and sub sectors shoul d be based on 
the W/120, where services subsectors could  further  be described in terms of the CPC Provisional 
Version  which was released in 1991 . This was the practice of most Members , whether in the context 
of the GATS or in many regional trade agreements .  
1.6.  Two new versions of the classification were published  after 1991 : CPC Version 1  in 1998 
(revised in 2002 – CPC Version 1.1) and CPC Version 2  in 2008 (revised in 2015 - CPC Version 2.1). 
The representative of the Secretariat used examples to illustrate how the navigation tool through 
the different CPC versions could be used to identify where certain services included in CPC Version 
2.1 would be classified  in CPC Provisional Version. This could raise some very interesting questions 
when it came to drafting commitments , although the new versio ns did not prejudge the 
commitments previously under taken by Members in the context of the GATS . He reminded delegates 
that the navigation between diff erent versions  often entailed one  item in a classification 
corresponding to more than one item in another classification , including partial correspondences  in 
many instances .  
1.7.  The representative of Canad a believed  that the  new version of the UN SD classifications ' website  
was a huge improvement . The UNSD's plans to add functionalities to the website were welcome. T he 
search function  within explanatory notes would be useful  and a direct correspondence between CPC 
Provisional Version and CPC Version 2.1 would be very much appreciated . The foreseen visualization 
functionality  would be of great interest, as illustrated by the examples. He asked whether having a 
direct correspondence table would enable a n improved measurement of th e value  of services trade  
based on CPC Version 2.1 corresponding to the services commitments made using the CPC 
Provisional Ver sion, or whether  the issue of partial correspondences would render  this exercise 
difficult , if not impossible. He confi rmed that the examples used were pertinent and  could raise some 
important questions when considering the use of  CPC Version 2.1. 
1.8.  The representative of the Russian Federation  stated that the agenda item was timely. Some 
specific methodologies , principles  or approaches  were used in each statistical system  in order to 
define how to group  services. She asked which of the  recent versions of the classifications  most 
successfully solved the issue of the categorisation  of certain converging services which blende d 
computer -related services, value –added telecom services, or audiovisual services  that could be 
technologically indistinguishable .  Given that the W/120  contained inaccuracies and errors, s he 
queried whether WTO Members had attempted to revise , correct,  or clarify the Services Sectoral 
Classification list. Finally, she asked whether commitments taken in the context of a regional trade 
agreement using a more recent version of the CPC, could eventually lead to a situation where a 
commitment would be reduce d in scope compared to a commitment for the same sector using CPC 
Provisional Version in the context of the GATS . Would such a situation be considered as  a violation 
of Article V of the GATS on Economic Integration?  
1.9.  The representative of Brazil  indicated  that th e presentation  helped  understand how the new 
tool could be used . He observed  that it was stated that the new versions of the classification d id not 
prejudge the commitments under taken by Members in the GATS.  He asked how decisions  had been 
taken with respect to the categorisation of services provided through electronic means, such as 
certain  bundled services resulting  from technological improvements  (e.g. streaming services),  or 
intermediation services provided via platforms  (e.g. in the transport  sector) . 
1.10.   The representative of Saudi Arabia  asked if  the modification s in revisions of the CPC, in 
particular Version 2.1, would impact the W/120  and if this would require a modif ication of  the 
Services Sectoral C lassification  list. She enquired whether t he new versions of the classification could 
affect how new Members  would draft their commitments . She then specifically asked where Services S/CSC/M/85  
 
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  auxiliary to all modes of transport  (corresponding to CPC Provisional Version code  749) would fall in 
CPC Version 2.1 .  
1.11.   The representative of the UN Statistics Division  agreed that the search functionality in the 
explanatory notes should be further explored . Concerning how technology was treated in the 
classification , she answered that the criteria used in the CPC structure were the intrinsic nature of 
the product as well as its origin . In CPC Version s 1.1 and  2.1 there was a lot of effort in adapting 
the classification to new technolog ies and related services (e.g. service s provided through the 
Internet). In that context more granularity was introduced in the classification . The question of how 
to treat technology in classification s remained under discussion , such as  in the process of revising 
ISIC. If an activity could be  done over the Internet  or by using new technologies, rather tha n with 
a pencil and pape r, how would this be  reflect ed? On the product side or the activity side?  In the 
telecommunications  sector, for example, the classification distinguished  the wired, wireless and 
satellite  technolog ies. Classification e xperts indicated that this distinction could not be done in 
practice as these services w ere often supplied in a bundle. The re were therefore discussions on how 
to deal with  the issue of technology  in classification s, whether reflecting practical implementa tion or 
using a fictitious segmentation of the activity. With respect to i ntermediation services , this was also 
an issue under discussion , in particular for the revision of ISIC. A previous decision of the UN Expert 
Group on International Statistical Classifications had been  to classify the activity according to the 
service being intermediated, but this was being rediscussed. N o decision ha d been made  at the time 
of the meeting . 
1.12.   The r epresentative of the Secretariat  noted that the issue of partial correspondences ha d 
always existed as a consequence of the development of different classification systems serv ing 
different needs and the necessary revision of statistical guidelines , in par ticular when it comes to 
services. The first international product classification to cover services was the CPC Provisional  
Version, developed in the late 80s.  Although it was  all encompassing, more  work was necessary to 
clarify certain issues. Because of  the evolution of technology, and digitalization, the way certain 
services were supplie d had evolved . On the issue of measurement of services, he clarified that 
another classification system was used , the Extended Balan ce of Payments Services Classification 
(EBOPS)  2010, based on CPC Version 2.  Nevertheless, t he same issues remain ed regarding the fit 
between commitments based on CPC Provisional Version and trade in services statistics . A bridge 
table exist ed between EBOP S 2010 and the Services Sectoral Classification List that c ould help 
identify which statistics items are relevant to analyse  commitments made using the W/120 . 
Concerning the classification used by acceding economies, he  reminded the Committee that the 
Scheduling Guidelines encouraged the use of W /120, although this was not compulsory. In principle 
acceding countrie s would still prepare their commitments on that basis but  could use other 
classification systems (of which CPC version 2.1) to clarify certain descriptions where deemed  
necessary.  
1.13.   The representative of the Secretariat  recalled that the Committee had previously held 
discussions on services classifications sector by sec tor. The last round of such discussions had 
identified inadequacies of W /120 with respect to the evolving market reality and technological 
advances. The compilation of the discussion could be found in document JOB/SERV/180. It included 
comparisons between W/120 and CPC Provisional Version , on the one hand , and CPC Version 2 , on 
the other . But it was for the Members  to decide  whether they would like to engage in a revision of  
W/120. She added that  if a direct correspondence table between CPC Provisional Version and CPC 
Version 2.1 would be  developed , Members could consider add ing a column next to the CPC 
Provisional Version code to include this information , without changing the structure of the Services 
Sectoral Classification list . Concerning the compati bility of services commitments taken in the 
context of GATS using W /120 - CPC Provisional  Version , compared to commitments using a late r 
version of the CPC in regional trade agreements, the Secretariat was not in a position to interpret 
Member's commitment s, nor Article V.  
1.14.   The Chairperson  thanked the presenters and confirmed that the GATS services classification 
system was facing challenges as services trade conditions had evolved significantly. Th e Committee 
provided a good forum to catch up with the evolu tion and improve the collective understanding. He 
encouraged delegations to continue the useful discussion. He then suggested that the Committee 
take note of the presentation and statements made and revert to this item at its next meeting.  
1.15.   It was so agree d.  S/CSC/M/85  
 
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  2  ITEM B – IMPLEMENTATION OF SPECIFIC COMMITMENTS  
2.1.  The Chairperson  recall ed that this item had been included in the agenda upon a communication  
from the United States (S/CSC/W/69, dated 5 March 2020), which proposed that the Committee 
examine d GATS schedules with conditional commitments to improv e transparency of schedules . He 
reminded the Committee that t he purpose of the proposed exercise was to improve transparency 
and technical accuracy of specific commitments . Members had shared the view t hat information -
sharing and transparency constitute d core aspects of regular work of the WTO.  
2.2.  He recalled that upon the request of the Committee, the Secretariat had prepared a compilation 
of conditional commitments (contained in S/CSC/W/70, dated 13 Novem ber 2020) to facilitate the 
discussion. As noted in the document, this Compilation was for transparency purposes only and was 
without prejudice to the positions of Members and to their rights and obligations under the WTO.  
2.3.  It had been  recognized that the C ompilation provided a useful overview of conditional 
commitments, though some Members took issue with the characterization of their entries referenced 
in the document. In the spirit of transparency, these Members had provided updates on their 
commitments, which we re appreciated. Some Members had previously indicated  that they were 
holding internal consultations. He hoped these Members would be in a position to provide updates 
to the Committee  at this meeting . Regarding the concern that this exercise might l ead to 
negotiations, he reiterate d that the C ommittee  was not the venue for market access negotiations.  
He invited delegations to consider the suggestion that a column be added to the Compilation with 
information on the further development of conditional commitments as reflected in notifications or 
Trade Policy Review Reports.  
2.4.   The representative of the United States  reiterated the reason for  making  this proposal . It was  
designed to increase clarity in entries in Member's schedules where reference was made to policy 
reviews. He repeated that updates were requested on those entries  which implied revisions to 
schedules. He added that his delegat ion welcomed the suggestion to add a column to include 
information based on information drawn from trade policy reviews.  
2.5.  The representative of Jamaica  informed the Committee that  internal consultations were being 
pursued in the capital , as the process was not a simple undertaking . 
2.6.  The representative of the Russian Federation  reiterated her delegation's support for the US 
proposal as  it was useful for transparency purposes . Noting that not many s imilar  initiatives existed 
in services, her delegation was attentive to the discussion.  While m odifying schedules  should be 
done with caution , it was important for Members to exchange information. Adding  a column in the 
Secretariat document was a neutral way to achieve this.  The proponent of the exe rcise on conditional 
commitments did not initially  intend to make any sectoral exceptions. The transparency principle 
should not be sector specific . This  was an unconditional requirement for all Members . Her delegation 
therefore requested t he Secretariat  to add the financial sector  to the Compilation . In the context of 
the pandemic and the development of the digital economy , the role of that sector ha d become even 
more important . 
2.7.  The Chairperson  reminded Me mbers of the mandate of the Committee , stating that it shall 
carry out its responsibilities  in relation to all services sectors  other than those for which sectoral 
bodies ha d been established.  There was a sectoral committee on trade in financial  services, which 
was the reason the sector was excluded  from the initial compilation . But, i f Members agreed , the 
Committee would ask the Secretariat to add the financial sector  to the Compilation . 
2.8.  Since there was no objection, t he Chairperson  asked the Secretariat to prepare a revision of 
the Compilation to include entries related to financial services  as well as add a column to include 
information about further developments concerning conditional commitments , such as relevant 
notificati ons or Trade Policy Review Reports . 
2.9.  The Chairperson  suggest ed that the Committee take note of the statements made and revert 
to this agenda item at its next meeting.  
2.10.   It was so agreed . S/CSC/M/85  
 
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  3  ITEM C - SCHEDULING  ISSUES  
3.1.  The Chairperson  moved to Item C on Scheduling Issues.  
3.2.   No intervention was made under this item.  
3.3.  The Chairperson  suggested that the Committee revert to this agenda item at its next meeting.  
3.4.  It was so agreed .  
4  ITEM D – OTHER BUSINESS  
4.1.  The Chairperson  moved to Item D on Ot her Business.  
4.2.   No intervention was made under this item.  
4.3.  The meeting was then adjourned . 
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