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S/C/M/117  
 
27 May 2014  
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Council for Trade in Services    
 
REPORT OF THE MEETING HELD ON 8 MAY 2014 
NOTE BY THE SECRETARIAT1 
The Council for Trade in Services held a meeting on 8 May 2014, opened by Ambassador Al-Otaibi 
(Saudi Arabia) and chaired by Ambassador Choi (R epublic of Korea). The agenda was contained in 
document WTO/AIR/4293. 
With regard to item G, "Bolivarian Republic of Venezuela – Measures Affecting Trade in Services", 
the Chairman informed the Council that the delegation of Panama, who had initially requested 
inclusion of this item on the agenda, wished to postpone its discussion to a future meeting.   
The representative of the European Union indicated that his delegation wished to add an item of 
Other Business to the agenda, concerning a South African upcoming legislation in the area of 
security services. 
The agenda was adopted, as modified. 
1  ITEM A –APPOINTMENT OF THE NEW CHAIRPERSON 
1.1.  Based on the consensus reached in the Gene ral Council, the Chairman said that he was very 
happy to pass on the chairmanship of the Council for Trade in Services to Ambassador Choi of the 
Republic of Korea. He was confident that, with his experience and wisdom, Ambassador Choi would 
guide the future work of the Counc il skilfully and efficiently.  
1.2.  As the outgoing chairperson of the Council, he indicated that, during the previous year, he 
had enjoyed working with Members and had appreciated their cooperative and constructive spirit in fulfilling the mandate of the Council.  Likewise, he had enjoyed working with the Secretariat 
team and thanked them for their professionalism and good work. 
1.3.  The Council elected Ambassador Choi by acclamation. 
1.4.  The new Chairman, Ambassador Choi, thanked Ambassador Al-Otaibi on Members' behalf for 
his hard work during the previous year. He also  thanked Members for their trust and support. In 
his view, services were among the most important sectors and one which increasingly interacted 
with many other sectors. The role of the Council for Trade in Services was also very important. In that sense, he would do his best to chair the Council in the most efficient manner. The WTO was 
driven by its Members and their role was key in ma king the Council effective and active. He looked 
forward to Members' engagement and constructive suggestions. He was confident that with Members' cooperation, and the Secretariat's assistance, the Council's work would move forward 
smoothly and fruitfully. 
1.5.  All delegations who spoke at the meeting thanked Ambassador Al-Otaibi for his work and 
congratulated Ambassador Choi on his appointment as Chairman of the Council, welcoming him to 
his new position. 
                                               
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/117 
 
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  2  ITEM B –NOTIFICATIONS PURSUANT TO  ARTICLES III:3 AND V:7 OF THE GATS 
2.1.  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 South 
Africa (S/C/N/727-730), Togo (S/C/N/731) and the Kingdom of Morocco (S/C/N/732-738).  
2.2.  He proposed that the Council take note of the notifications made. 
2.3.  It was so agreed. 
2.4.  Moving on to the notifications made pursua nt to Article V:7 (Economic Integration), he drew 
Members' attention to the communication received from Singapore and the Separate Customs 
Territory of Taiwan, Penghu, Kinmen and Matsu (S/C/N/739).   
2.5.  He proposed that the Council take note of the notification and refer the agreement notified to 
the Committee on Regional Trade Agreements for consideration. 
2.6.  It was so agreed.  
3  ITEM C - COMPLIANCE WITH GA TS NOTIFICATION REQUIREMENTS 
3.1.  The Chairman recalled that, at the previo us meeting of the Council, in the course of 
deliberations under the item dealing with notifications, it had been agreed that the Secretariat 
would update its Note containing a statistical account of all services notifications to cover the period up to the end of 2013. Accordingly, on 8 April 2014 the Secretariat had circulated the 
updated Note, contained in document JOB(09)/10/Rev.4. 
3.2.  By way of brief introduction to the Note, a representative of the Secretariat said that, in 
addition to updating the statistical information about GATS notifications to cover the period until 
the end of 2013, the Note now contained illustrative graphics. He reiterated that the Secretariat 
would welcome any comments or corrections with regard to the information presented in its Note. 
3.3.  The Chairman said that, as had been agr eed at the February meeting of the Council, the 
Secretariat would update this Note regularly, on an annual basis. The next update would be 
produced early in 2015, and contain information covering the whole of 2014. He then recalled that 
recent discussions in the Council had focused on the creation of an online system for the submission of services notifications. At the end of the deliberations in February, Members had felt 
that it was premature to take a decision on the creation of such an online system. However, they 
agreed that it would be useful to learn more about existing means of obtaining information about notifications. Indeed, a data retrieval mechanism of  sorts existed already for notifications, through 
the Documents Online facility. It had therefore been decided that the Secretariat would make a 
presentation of the functionalities of that system. 
3.4.  A representative of the Secretariat presented the Documents Online (Docsonline) facility, 
noting that Docsonline was intended to give acce ss to all types of documents. He recommended 
that, when using Docsonline, delegations log on using their ID and password; although 
notifications were publicly available documents, this enabled delegations to conduct different searches and access any restricted documents at the same time.  
3.5.  Information about notifications could be re trieved in two different ways from Docsonline. 
First, by using the standard interface behind the "search" button. For instance, delegations could search for all of Australia's services notification s by typing 'Australia' under "Country/territory 
concerned", inserting the relevant time range under "Document date from" and "Document date 
to", typing 'services' under "Topic" and requesti ng 'Notifications' under "Document type". Running 
the search would yield 23 documents, as indica ted on the left-hand panel of the Docsonline 
interface. The list of documents could be opened-up and the years in which those notifications had 
been issued would appear. It was possible to view the documents, either in the HTML or PDF 
formats, by clicking on the relevant symbol and language. 
3.6.  The second interface that could be used to  search for notifications was the "Notifications" 
interface, which was accessible from the top horizontal panel of the Docsonline interface. This was S/C/M/117 
 
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  a much reduced search interface, as it only conc erned notifications. The same search previously 
conducted could be performed by inserting the period concerned, typing 'Australia' under the "Member" field and opening up the list next to the "Requirements" drop-down menu and choosing 'Trade in Services' and, for instance 'GATS Article III:3' notifications.  
3.7.  The main difference with regard to the st andard search interface was the way in which the 
number of hits was calculated. Whereas in the standard interface, the hits corresponded to the total number of documents resulting from the search, in the notifications interface the hits were 
the total number of unique notifications corresponding to the search, excluding any subsidiary 
documents (e.g. corrigenda and addenda). It was however still possible to see such subsidiary documents, by clicking on the "+" symbol. The way in which hits were counted in this case provided a picture of the actual number of notifica tions, rather than the number of notifications 
documents. The notification interface also provided  for the possibility of conducting an advanced 
search, which allowed, for instance, to perform a full text search or add a number of other 
parameters.  
3.8.  A print option existed in the results panel on the left-hand side, which generated a report 
identifying the search that had been conducted, the notifying Member, the year and the document 
references. The report could be printed or saved. As the compilation of the report was quite heavy, 
the representative warned delegations that large re sults could take some time to be generated. A 
help file also existed, which could be consulted, and a contact email was also available for any additional questions delegations might have. 
3.9.  The Chairman suggested that the Council ta ke note of the statements made and revert to 
this item at its next meeting. 
3.10.  It was so agreed. 
4  ITEM D - WORK PROGRAMME ON ELECTRONIC COMMERCE 
4.1.  Turning to the Work Programme on Electron ic Commerce, the Chairman recalled that, at the 
February meeting, the Council had had a first discussion of the issues it might address in response 
to Ministers' instructions at MC9 to "continue substantially invigorating" work under the Work 
Programme. At that meeting, all delegations had welcomed the Ministerial Decision agreed in Bali, 
and had noted the positive work carried out und er the Work Programme since MC8. A number of 
suggestions were raised, in terms of possible issues for discussion, but no specific proposals were brought to the table. He hoped that, since February, Members had had the opportunity to give 
more thought to how to concretely take forward the work on e-commerce.   
4.2.  The representative of the United States reiterated his delegation's strong support for the 
reinvigoration of the Work Programme. He indica ted the United States was preparing a formal 
submission, working from the issues highlighted in the informal Note summing-up the workshop 
on e-commerce that had taken place under the ausp ices of the Council produced by the Chairman 
of the workshop. The Note stated that "the magnitude and implications of getting policy solutions 
wrong was higher when it came to e-commerce. A number of new topics [..], including privacy and 
security, [..] went to the heart of the challenge of ensuring that policies creating an enabling environment, on the one hand, and policies pursuing  other objectives, on the other, were mutually 
supportive." Those same issues had been highlighte d in various submissions, such as the one that 
the United States had made with the EU on cross-border information flows and local infrastructure. 
In addition, Australia had tabled a contribution th at had added a principle addressing on-line data 
protection. Those areas were very much related. Privacy was a valuable policy goal that all 
Members shared, but he noted that, while there wa s a relevant exception in the GATS, this was 
not a free pass to restrict trade and should not be  arbitrarily discriminatory. The forthcoming US 
submission would focus on data flows and localisation in relation to the privacy debate.  
4.3.  The additional element that the United States would be including in its submission was the 
coverage of cloud computing services under the computer and related services category. In its last submission, the United States had highlighted the growing importance of cloud computing for 
businesses everywhere, and particularly for small and medium size enterprises. Cloud computing 
was a critical component for any e-commerce environment and it was essential that trade 
commitments reflected the high degree of openness for that service. Indeed, many WTO Members S/C/M/117 
 
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  had strong commitments in the computer and related services sector, which was one of the bright 
spots in many GATS schedules. Some Members had created a degree of confusion about the classification of cloud computing, by including the computer functions within the realm of telecommunication services in their domestic regulatory schemes. Therefore, clarity on the 
coverage of those services would help avoid potential negative consequences for one of the 
fastest-growing and important infrastructure servic es for the expansion of e-commerce. In closing, 
the representative indicated that he hoped to be tabling his delegation's submission in the near 
future, hopefully before the fo llowing meeting of the Council. 
4.4.  The representative of Australia expresse d her delegation's support for further discussions 
under the Work Programme and welcomed the forthcoming US submission. She was particularly 
pleased to hear that the United States intended to include discussions of privacy issues, which 
Australia considered vital to ensure consumer confidence in e-commerce and hence secure growth 
of e-commerce as a platform for trade.  
4.5.  The representative of the Republic of Ko rea said that, with the global trading system 
changing rapidly, there was a strong demand for the WTO to respond to those changes.  
E-commerce was a key driver of change in the digital economy, which was why WTO Members needed to strengthen their efforts in moving forward with the Work Programme. Against this 
background, he welcomed the forthcoming US subm ission and looked forward to engaging in the 
discussion.  
4.6.  The representative of the European Union in dicated that his delegation also supported further 
the discussion under the Work Programme, was particularly interested to discuss the issues 
highlighted by the United States and looked forward to their submission. 
4.7.  The representative of India noted that the Council's discussions under the Work Programme 
had generally recognised that e-commerce was changing fundamentally the way business was 
conducted, by providing greater access to global markets, especially for SMEs, breaking down 
barriers of time and distance, lowering costs and providing greater access to consumers. However, 
from the point of view of developing countries, th ere were also fundamental constraints, such as 
internet access, both in terms of coverage and sp eed, payment issues, lack of basic infrastructure 
such as stable electricity supply, logistics and lack of consumer awareness. Many developing 
countries were still in the process of establishing ground rules for e-commerce and creating an atmosphere of trust. Members needed to continue working in this direction, so that all issues 
relevant for Members across the development spectrum could be considered. Her delegation 
looked forward to the US submission and hoped that all the issues she had mentioned would be 
taken up as well. 
4.8.  The representative of Japan reiterated his delegation's support for the Work Programme, 
welcomed the US forthcoming submission and look ed forward to contributing to the discussion. 
4.9.  The representative of Canada recalled his delegation's continued support for the Work 
Programme, which offered Members a forum to ensure that the WTO addressed issues of 
importance in the modern economy. For example, wi th the growth of the cross-border provision of 
digital services, particularly cloud computing, it was clear that firms needed to be able to transfer information across borders to conduct their business affairs. Trade disciplines on data flows, with 
appropriate balance for privacy and other public policies concerns, were of increasing priority to 
business. In Canada's experience, promotion of da ta flows and protection of personal information 
were not contradictory objectives. His delegation would definitely support examining those issues 
at the Work Programme and looked forw ard to receiving the US submission.  
4.10.  The representative of Chinese Taipei noted his delegation's support for the Work Programme 
and recalled that in 2013 Chinese Taipei had tabled a paper, in document JOB/SERV/140, 
regarding personal data protection, in connection with the US and Australian proposals regarding 
privacy protection. His delegation welcomed and l ooked forward to the forthcoming US submission. 
4.11.  The representative of Brazil looked forw ard to the circulation of the US submission. He 
associated himself with the statement by India,  as, in discussions under the Work Programme, 
there had to be a balance between the trade and development dimensions. S/C/M/117 
 
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  4.12.  The representative of Cuba echoed the stat ements by Brazil and India with regard to the 
balance that needed to be secured in discussions under the Work Programme. With regard to the 
issues to be addressed, he mentioned data protection, infrastructure development for developing countries, non-discrimination issues and especially the unequal access to information and 
communication technologies that many developing countries were facing.  
4.13.  The representative of Chile also welc omed the continued invigoration of the Work 
Programme. With regard to the issues mentioned, he noted that all had been addressed by Chile in 
the context of its Regional Trade Agreements and were not new as such for his delegation. 
Regardless, he was interested in discussing the forthcoming US submission. He also stressed the importance of striking a balance between the different issues and sensitivities.  
4.14.  The representative of Uruguay also noted the importance of e-commerce for the 
architecture of the modern economy. E-commerce was a fundamental vehicle for world trade and 
contributed to its growth. His delegation looked forward to the US submission and was interested 
to discuss the issue of data protection. 
4.15.  The Chairman thanked Members for their active and constructive engagement in the 
discussions, and particularly the United States for its forthcoming submission. He hoped that 
discussions under the Work Programme would be stimulated by the new submission, while also 
taking into account the other issues mentioned by delegations. The WTO e-commerce Work 
Programme was quite comprehensive and cross-cutting, with the involvement of other relevant Councils and Committees. He suggested that the Council take note of the statements made and revert to this item at its next meeting. 
4.16.  It was so agreed. 
5  ITEM E - OPERATIONALIZATION OF THE LDC SERVICES WAIVER 
5.1.  The Chairman recalled that, at the last formal meeting of the Council in February, two 
proposals were put forward. First, the LDC group had suggested that the Secretariat prepare a 
background Note collecting information on measures  of general application, under GATS Article III, 
measures under economic integration agreements notified under Article V:7, and measures on 
recognition notified under Article VII:4. In response, the Secretariat had indicated that it would be 
delighted to help, but needed more guidance to  sharpen the focus of the Note that was being 
requested. To this end, it was felt that consultations would be warranted.  
5.2.  Second, the delegation of Colombia, supported by several other delegations, had proposed 
that the Secretariat share with Members information on the work done by the International Trade 
Centre (ITC) relating to LDC services exports. On the basis of this information, Members might 
consider inviting the ITC to make a presentation of their work to the Council. As there was no 
agreement about whether the Secretariat should contact the ITC, it was decided that this issue 
would also be subject to consultations. 
5.3.  Accordingly, on 15 April, Ambassador Al-Ota ibi had convened an informal meeting to discuss 
those two suggestions. With regard to the scope of the Secretariat Note, it was clarified that the 
Note would cover the following: measures of general application notified under GATS Article III:3, measures under economic integration agreements notified under Article V:7, and measures on recognition notified under Article VII:4. The Note would limit itself to measures taken by the top 
ten services traders in the professional service sectors. The Note was already under preparation, 
and would be issued as soon as it was finalised. 
5.4.  As for the Secretariat sharing with Members information on the work done by the ITC relating 
to LDC services exports, no agreement could be  found at the meeting. The Chairman, however, 
recalled that the ITC would hold, that afternoon and the following day, a seminar on “LDC Services Exports; Business success stories and challenges” in the WTO building.  
5.5.  The representative of Canada expressed his delegation's support for the ongoing efforts that 
LDCs were making to identify the sectors and mo des of export of interest to them. He looked 
forward to reviewing the notification-based Note on  professional services that the Secretariat was 
preparing and to participating in the ITC seminar. Such information should help Members examine S/C/M/117 
 
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  how a preference scheme under the waiver might contribute to increasing the participation of LDCs 
in world services trade. He encouraged transp arency in the process, and looked forward to 
engaging more substantially with LDCs when  they were in the position to do so.  
5.6.  Speaking on behalf of the LDCs, the representative of Uganda was grateful for the 
Chairman's comprehensive update on the preparation of the Secretariat Note that the LDCs had 
requested. As Members were already aware, LDCs were in the process of submitting a collective 
request. In meeting their objective, they were optimistic that the information provided by the 
Secretariat would complement the efforts that they had already initiated and help fast-track the 
submission of their collective request. It would th erefore be helpful to have an idea of when the 
Secretariat Note would be submitted to Members. While this process was moving forward, the LDCs hoped that Members would take voluntary and proactive steps to implement the waiver. 
LDCs hoped that preferences of commercial valu e that could promote economic development in 
their countries would be extended to their services and services suppliers.  
5.7.  The representative of Ecuador said that, in accordance with the MC9 Decision, his delegation 
fully supported the rapid and effective implementation of the LDC services waver. His delegation 
also wished to congratulate the delegation of Australia who, together with the LDCs and with the help of the ITC, had organised a workshop about LDC services experts. Finally, he supported the 
decision taken in the course of the informal consultations for the Secretariat to prepare a 
background Note on the measures notified under  GATS Articles III:3, V:7 and VII:4, which was 
intended to provide LDCs with more elements to prepare their collective request. 
5.8.  The representative of Nepal noted that the role of trade in services was growing in many 
developing countries and LDCs, and that services played an important role in alleviating poverty 
and fostering economic growth. As a landlocked country, Nepal saw enormous opportunities and potential to reap economic benefits from promoting trade in services. However, owing to structural 
weaknesses, coupled with socio-economic constraints and limited technical, human and 
infrastructure capacity, Nepal had not been able to promote trade in services sufficiently. Against this background, his delegation was optimistic that, from the effective utilisation and 
operationalization of the waiver, Nepal and the othe r LDCs would be in a position to advance their 
services trade and reap the benefits of an open and ruled-based multilateral trading system.  
5.9.  However, more than two and half years af ter the waiver Decision had been adopted, the 
waiver had not yet come into execution. Noting that no single Member had taken any substantive 
initiative to operationalise the waiver, as stated by Uganda, he also encouraged developed and 
d e v e l o p i n g  M e m b e r s  w h o  w e r e  i n  a  p o s i t i o n  t o  d o  s o  t o  c o m e  u p  w i t h  a  u n i l a t e r a l  p r e f e r e n c e  scheme benefitting LDC services and service suppliers. He urged all Members to give flexible and 
sympathetic consideration to the collective request that the LDC group was intending to submit in 
the near future, identifying potential sectors, su bsectors and modes of export interest to them. 
Finally, he expressed appreciation for the Secretaria t's help in preparing the Note requested by the 
LDCs. 
5.10.  The representative of China said that hi s delegation attached great importance to the 
operationalization of the LDC waiver, as a means of promoting the economic development of LDCs 
and enabling them to expand their services export s. To help LDCs identify modes and sectors for 
preferential access, he would share some thoughts and information with the Council.  
5.11.  First, he suggested that, when identifying th eir actual export interests, LDCs might wish to 
give more thought to tourism services exported under mode 2. Tourism played an important role 
as an engine for growth and development in ma ny LDCs. According to a UNWTO report of April 
2014, tourism had been identified by half of the LDCs as a priority instrument for poverty reduction. There was more evidence supporting th is point. The WTO Secretariat background Note 
on tourism services of 2009 (document S/C/W/298) revealed that, for many developing countries, 
tourism services were one of the main income  source and the number one export category, 
creating much-needed employment and opportunities for development. Another WTO study undertaken in 2008 also found that the importance of tourism was especially evident for LDCs: the 
share of travel exports in total services export s had risen to 53% in 2006, up from 47% in 2000. 
Therefore, China was of the view that tourism serv ices exported under mode 2 could be taken into 
account by LDCs in preparing their collective request. S/C/M/117 
 
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  5.12.  Second, he provided information about Ch ina’s mode 2 imports of tourism services over 
recent years. The tourism industry in China was experiencing stable growth, with increasing numbers of Chinese citizens choosing to travel overseas. According to China's National Tourism 
Administration, in 2013 China had provided 98 million visitors to other destinations, up 18% since 
2012. In 2013, China’s tourism services imports amounted to US$129 billion, a 26% year-on-year 
increase, while exports only accounted for US$52 billion, registering a 3% rise. China had recorded a US$77 billion deficit in tourism services trade. China's double-digit growth rate for tourism 
services imports implied that the outbound tourism business continued to provide great 
commercial opportunities for other destination countries, including LDCs.  
5.13.  With regard to outbound tourism destinations, the Chinese government was considering 
granting to more LDCs the Approved Destination Status, which enabled and facilitated Chinese 
citizens' travel to these destinations. At that point, thirteen LDCs had Approved Destination Status 
for Chinese citizens, namely Bangladesh, Benin, Cambodia, Lao People’s Democratic Republic, Madagascar, Mali, Myanmar, Nepal, Rwanda, Tanzania, Uganda, Vanuatu and Zambia. 
5.14.  Finally, he suggested that LDCs might undertake a study on their tourism services exports 
under mode 2. Those LDCs that wished to foster tourism cooperation with China could present their requests to his delegation, and China would provide them with an opportunity for 
cooperation. In that process, his delegation wo uld consider what kind of preferences could be 
granted to relevant LDCs. 
5.15.  The representative of Australia said that her delegation was very supportive of the 
implementation of the LDCs services waiver an d recognised that implementation had been an 
important undertaking by Ministers at MC9. As sh e had indicated at the informal CTS meeting in 
April, Australia was also very interested in de veloping a good understanding of the challenges 
facing LDCs in getting their services to markets,  including examining examples of where this had 
been achieved and what elements had contributed to those successes.  
5.16.  To that end, and in consultation with LD Cs, Australia was funding, outside of the Council 
context, an exciting initiative by the ITC that would start that afternoon and continue the following 
day. The seminar, "LDCs Services Exports: Business Success Stories and Challenges", would 
provide an opportunity for SME services exporter s from LDCs to share their stories with WTO 
Members, and highlight the opportunities and challenges that LDCs faced in reaching international markets. A better understanding of the constraints LDCs faced in exporting their services was an 
important step in the process of assisting LDCs to further integrate into the global services 
economy.  
5.17.  The event featured a number of case stud ies, including from Uganda, Zambia, Myanmar and 
Barbados. Unfortunately speakers from Rwanda an d Sierra Leone would not be able participate 
because of visa difficulties but there was, none theless, a full programme of very interesting 
speakers. A cocktail session was also foreseen, at the end of the afternoon session. The event 
would continue the following morning with contributions from Senegal, the Pacific Islands Forum, 
Bangladesh, Cambodia, the Gambia and Ethiopia. There would also be an opportunity to consult with the LDC business speakers on Friday afternoon on an informal basis. 
5.18.  The representative of Bangladesh said that , as indicated by Uganda, LDCs had been working 
on a collective request and expected to submit it in the near future. However, he recalled that 
preferences were voluntary and he thus encouraged Members to come up with a preference scheme that would inject new energy into th e system. He had heard the presentation on 
preferential trade agreements in the Working Pa rty on Domestic Regulation, which had provided 
useful information. Instances already existed where preferences had been offered to PTA partners in a variety of ways, relating to mutual recognition and domestic regulation more broadly. The 
application of such preferences in simila r ways might be useful also for LDCs. 
5.19.  He expressed his appreciation for delegations' support of the LDC cause and believed that 
Members would demonstrate their commitment by extending unilateral and voluntary preferences to LDC services and service suppliers. Any kind of preference, in any sector or mode, would have a 
positive impact on demand, which was the central force behind business and trade. S/C/M/117 
 
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  5.20.  The representative of Saudi Arabia said th at her delegation supported the implementation of 
the LDCs services waiver. She thanked the Secretar iat, the delegation of Australia and the ITC for 
their respective efforts and contributions to this  effect. Accelerating the implementation of the 
LDCs services waiver would certainly strengthen  LCDs' domestic services capacity, and enable 
them to make use of existing opportunities as well as any preferences granted to them. 
5.21.  Echoing previous statements, and notably those by Canada and Australia, the 
representative of the European Union stressed that his delegation also was keen to continue 
working with LDCs, to better understand their co ncerns regarding the implementation of the 
waiver. The EU was also looking forward to receiv ing the Note from the Secretariat. He thanked 
Australia for organizing that afternoon's workshop , which the EU would attend with interest. He 
hoped that the workshop would contribute to furt hering discussions in the Council. He reiterated 
the importance of maximum transparency in discu ssions on the implementation of the waiver, in 
order for Members to understand each other and work constructively towards a meaningful result. As it had signalled in the past, the EU was ready to continue the dialogue with LDCs, to understand 
their concerns and arrive at appropriate solutions.  
5.22.  Speaking on behalf of the LDC group, the representative of Uganda thanked the delegation 
of China for its presentation. It was a clear testimony of what Ministers had envisaged with the 
Bali Decision on the waiver, namely that it was indeed possible for Members to take voluntary and 
proactive steps, at any time, to extend preference s to LDCs services and services suppliers which 
had commercial value and promoted economic benefi ts for LDCs. He encouraged other Members to 
follow China's approach, and looked forward to re ceiving a written copy of China's intervention. 
LDCs also wished to thank Australia for organizing the workshop that would be held that afternoon 
and the following day. It was the group's hope that Members would be encouraged to design proper preferences for LDCs consistent with the waiver decision.  
5.23.  The representative of Colombia reiterated her delegation's support for the operationalization 
of the services waiver. In that sense, Colombia was pleased that the seminar organized by the ITC 
and the Government of Australia was taking place, as it would provide valuable information and 
make a positive contribution to the process. 
5.24.  The representative of the Republic of Ko rea fully supported a commercially meaningful and 
effective operationalization of the LDCs services waiver and looked forward to the LDC collective 
request. In line with the MC9 Ministerial Decision, Korea would participate constructively in the 
discussion. The ITC seminar was a good opportunity to arrive at a better understanding of the 
constraints and challenges that LDCs services exporters faced. Korea hoped that the seminar 
would contribute to the elaboration of the LD C collective request and thanked Australia for 
sponsoring the event.  
5.25.  The representative of Cuba reiterated his delegation's support to the LDCs group in its effort 
to ensure the operationalization of the services waiver. He was grateful to the Secretariat for its 
efforts and coordination with other agencies. He also thanked those Members who were working 
with LDCs to identify sectors and modes of particular export interest to them and specific technical assistance and capacity-building needs, so as to ensure greater access for LDCs services exports.  
5.26.  The representative of India stressed the im portance of operationalizing the LDCs services 
waiver for the development dimension of the DDA services negotiations. Her delegation was 
encouraged by the discussion and looked forward to  participating in the ITC seminar. Additionally, 
India was looking forward to the Secretariat Note and the LDC collective request. Her delegation 
would cooperate fully for the expeditious and effect ive operationalization of the waiver. In that 
regard, she hoped that the seminar and the Secretariat Note would further Members' understanding, to help them design and propose preferences for LDCs. 
5.27.  The representative of Japan appreciated LDCs efforts in preparing the collective request, 
which was an important starting point to operationalize the waiver. In this regard, his delegation 
welcomed the Secretariat Note and hoped that it would facilitate the endeavours of the LDCs. He also echoed the statements by Canada and the EU on the crucial importance of transparency. 
Lastly, he congratulated Australia on organizing the seminar, which his delegation was looking 
forward to. S/C/M/117 
 
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  5.28.  The representative of South Africa said th at his delegation was looking forward to the Note 
by the Secretariat. In planning for the operationalization of the LDC waiver, he reiterated South 
Africa's concern that merely providing market access might not in itself result in increased participation by LDCs: this needed to be accompanied by an examination on how the meeting of 
standards, licensing and qualification requirements, relating to sectors in which market access was 
to be given, could be facilitated for LDCs, to ensure that they benefitted from any access granted in terms of the waiver. Having said this, South Africa would continue to be informed by the 
interests and priorities of the LDCs themselves. Finally, he thanked Australia for organizing the 
workshop. 
5.29.  The representative of Chinese Taipei reiterated his delegation's support for the LDC waiver 
and interest in working closely with LDCs to  better understand their concerns and identify 
solutions. He welcomed the Note by the Secretariat, and looked forward to receiving it soon. 
Regarding to the ITC seminar, Chinese Taipei was grateful for the contribution and efforts made by Australia and hoped that the outcome of the seminar would contribute to the operationalization of 
the waiver. 
5.30.  The representative of Brazil reiterated his delegation's support for the speedy and effective 
operationalization of the LDC services waiver, which was a very important deliverable. Brazil was 
willing and ready to cooperate in this regard. He also welcomed the outcome of the last informal 
meeting of the Council, which was in line with th e wishes expressed by the LDC group. Finally, he 
hoped that the Secretariat note would meaningfully contribute to the elaboration of the LDC collective request. 
5.31.  The representative of the United States reiterated his delegation's continued support for 
work to determine how to develop meaningful serv ices preferences helpful to the LDCs. There was 
a significant information deficit in terms of how best to make effective use of the waiver to help 
LDCs. In that regard, the Secretariat Note and the ITC seminar organized with the help of Australia 
should be useful to develop a better understanding of the issues facing LDC service suppliers. He thanked Australia for organizing the event. Finall y, he echoed the call from the EU, Canada and 
Japan for greater transparency in LDCs' engagement with Members in preparing their collective 
request. 
5.32.   The representative of Norway said that  her delegation continued to support the work 
towards the operationalization of the LDCs servic es waiver. In that regard, Norway welcomed the 
Secretariat Note and Australia's sponsorship of the ITCs seminar, both of which would contribute 
to the identification of opportunities for the oper ationalization of the waiver. She had found China's 
contribution at that meeting interesting and hope d that it would spark ideas among other Members 
as well. 
5.33.  In reply to the question raised about its no te, a representative of the Secretariat said that, 
while the discussions surrounding the Secretariat Note  had been useful in clarifying its scope, the 
work involved in preparing the note, in terms of collecting information, ensuring that it pertained 
to professional services for the top ten services  traders, and providing useful data to Members 
would require a bit of time. He indicated that, within the following six weeks, Members would 
receive a Note which would hopefully correspond to the needs expressed and represent a useful 
contribution to the discussions. The Note would not be just a statistical account of notifications, 
but provide more meaningful descriptive content of the measures concerned. The Secretariat stood ready to provide any further explanation concerning the timing of the note, if so requested. 
5.34.  The Chairman thanked Members for their ac tive engagement on the important subject of 
the operationalization of the LDC services waiv er, for which the Council had been given a clear 
mandate by Ministers. He also welcomed Australia's initiative to host the ITC seminar on the issue. 
He proposed that the Council take note of the statements made and revert to the issue at its next 
meeting. 
5.35.  It was so agreed. S/C/M/117 
 
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  6  ITEM F – RECENT DEVELOPMENTS IN TRADE IN SERVICES 
6.1.  The Chairman recalled that this item had been added to the agenda of the Council at the 
request of a group of Members, who wished to up date Members on progress with their discussions 
on a framework for negotiations on a Trade in Services Agreement.  
6.2.  The representative of Australia informed th e Council that it had chaired the sixth round of 
Trade in Services Agreement (TiSA) negotiations in Geneva, from 28 April to 2 May. Good progress 
had been made, and now the group had negotiating texts for a number of new and enhanced 
disciplines in financial services, professional services, e-commerce and telecommunications 
services, temporary entry of business persons (m ode 4), air transport, maritime transport, 
domestic regulation and transparency. TiSA parties had also held productive discussions on a number of other proposals, including competitive delivery services, energy-related services and 
road transport services.  
6.3.  TiSA parties had come to the round ready to negotiate, and were able to reflect individual 
positions on much of the text under discussion. It was pleasing that the negotiations had such 
strong traction, and that parties were very enga ged on both disciplines and market access.  As 
previously reported, 21 of the 23 TiSA parties had tabled their market access offers. Market access discussions had focused on comparing the level of ambition across TiSA parties’ offers and, in 
particular, on the importance of binding commitmen ts as closely as possible to existing market 
openness. TiSA parties were pleased with the pace of the negotiations and had agreed to undertake inter-sessional work, on both market access and disciplines, to make the TiSA negotiating rounds as effective as possible.  
6.4.  As part of the group's efforts to be as transparent as possible, in addition to addressing that 
Council meeting, they had been also pleased to participate in a public information session on the TiSA organised by the International Centre for Trade and Sustainable Development (ICTSD), on 
Wednesday of the previous week. The session was attended by many, and provided a further 
forum for stakeholders and other WTO Members to learn more about the negotiations. A report and, she believed, a video of the event was avai lable on the ICTSD’s website. The group looked 
forward to the United States chairing the next ro und of TiSA negotiations from 23 to 27 June.   
6.5.  The representative of China said that there had been many debates in the Council about 
TiSA’s implications for the DDA. He understood some Members’ concerns on the impact of the 
ongoing TiSA talks on the multilateral services negotiations. From China’s perspective, the 
plurilateral negotiations under the TiSA framework could be complementary to the WTO 
multilateral services negotiations, provided that the TiSA negotiations proceeded in an inclusive, non-discriminatory, and transparent way. China would continue to rely on the multilateral trading 
system and endeavour to push forward the multilat eral services negotiations with other Members. 
6.6.  The representative of Ecuador said that, in  light of the wide scope of the TiSA negotiations, 
and of the fundamental WTO principle or tran sparency, it would be appropriate for TiSA 
participants to provide the Council with detailed information about the disciplines that their 
initiative would deepen compared to the GATS an d, in particular, to describe their market access 
objectives, i.e. the level of liberalization contained in the initial offers tabled compared to current bindings in multilateral commitments.   
6.7.  His delegation was of the view that the TiSA  initiative should be analysed more closely, to 
ensure that it was fully compatible with the principles and disciplines of the WTO.  The provisions of GATS Article V were directly relevant. Article V clearly stated that the GATS did not prevent any 
WTO Member from being a party to an agreement liberalising trade in services such as TiSA. At 
the same time, Article V clearly established that certain requirements needed to be complied with. Just to mention but a few, the agreement had to have substantial sectoral coverage, not exclude 
any mode of supply, and provide for the absence or elimination of substantially all forms of 
discrimination. Flexibility was provided for developing countries. An article V agreement had to facilitate trade between parties and in no respect raise the level of trade barriers in respect of any 
Member not party to the agreement. All Members had to abide by the requirements of Article V 
when concluding an economic integration agreement.  S/C/M/117 
 
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  6.8.  Notwithstanding what was spelled out in GATS Article V, the possibility existed, to the extent 
that participants wished to make an immediate contribution to strengthening the multilateral services trading system, to proceed on an M FN basis, similarly to the situation with the 
Information Technology Agreement. This would clearly demonstrate the participants' support for 
the multilateral trading system of the WTO.   
6.9.  The representative of Cuba noted his delega tion's continued concern with the TiSA initiative, 
which was discriminatory and not inclusive. TiSA continued to be pursued by a group of Members 
in an attempt to reduce the multilateral achievem ents of MC8, which were aimed at reinvigorating 
the DDA and, in so doing, defend the multilateral trading system and strengthen the credibility of the WTO. Cuba reiterated that it would continue to defend multilateralism and reject plurilateral approaches. The strategic objective of such approaches was to reduce the policy space of 
developing countries, through the establishment of new disciplines with higher standards. As such, 
they undermined the multilateral trading system and the unity of WTO Members. Finally, his 
delegation supported the concerns expressed by China regarding the incompatibility of the TiSA 
initiative, as well as the statement by Ecuador.  
6.10.  The representative of the Plurinational Stat e of Bolivia recalled that his delegation did not 
support plurilateral initiatives such as TiSA, because they undermined efforts in the multilateral 
setting and had unforeseeable results for develo ping countries. Negotiating agreements on the 
margins of the system of balances enabled by th e multilateral trading system did not advance the 
interests of the WTO, as it focused only issues of  priority to some Members, without taking into 
account the interests of others, and of developing countries in particular.  
6.11.  The representative of India echoed the concerns raised by previous speakers. In the past, 
India had raised questions on the TiSA plurilateral  initiative and had expressed concerns regarding 
its impact on multilateralism and the goal of concluding the DDA in accordance with Ministerial 
guidance. Those questions and concerns still rema ined unaddressed and India's position on this 
issue was unchanged. India encouraged and invited the TiSA members to negotiate within the WTO, in the Special Session of the Council for Trade in Services, in a transparent and inclusive 
manner involving the entire Membership, in accordance with the DDA mandate.  
6.12.  At a juncture when, in accordance with the Bali Decisions, Members were discussing the 
establishment of a work programme in key areas of negotiations, including in services, it was ironic that the Council should still hear about plurilateral initiatives such as TiSA. In that situation, 
Members faced the challenge of smoothly juxtaposing plurilateral initiatives like TiSA with 
multilateralism. Members all agreed that concluding  the DDA negotiations in the near future should 
be a priority. However, if the TiSA negotiations were to finish before the DDA was concluded, there 
would be much less incentive for many major players to meaningfully engage in the DDA services 
negotiations. Thus, the sequencing and conclusion of a plurilateral agreement like TiSA had the potential to adversely affect the conclusion of the DDA.  
6.13.  The representative of the Bolivarian Repub lic of Venezuela repeated that her delegation did 
not support plurilateral initiatives. Venezuela's concerns were similar to those expressed by China 
with regard to the incompatibility of TiSA with the GATS, by Ecuador in terms of implementation 
and by Ecuador and Bolivia with regard to the sy stemic repercussions that such a plurilateral 
agreement could have. India had also mentioned that, in looking at the future, there were many 
elements that needed be considered, and her delegation did not believe that such an initiative was the best way of seeking a common understanding on the way forward.  
6.14.  The representative of Uganda echoed the concerns expressed by previous speakers. 
Multilateralism and multilateral outcomes were fundamentally important for LDCs as a group. This 
was why they believed that plurilateral initiatives undermined the multilateral trading system, as 
they did not take account of the specific issues of  interest to all Members and should therefore not 
be encouraged. 
6.15.  The representative of Brazil supported the concerns expressed by previous speakers. As his 
delegation had stated previously numerous times, the TiSA initiative was a matter of concern, in 
light of its potentially harmful systemic effects. TiSA was bound to disturb the balance between 
liberalisation and development in the GATS, by scra pping flexibilities for developing countries. It 
also weakened a complementary, but very importan t, element of the market access trade-off from S/C/M/117 
 
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  the bargain of the DDA. Finally, it set a bad precedent of stand-alone sectoral negotiations 
involving like-minded countries, at the expense of transparency, inclusiveness and development. Having said that, Brazil acknowledged that the initiative could be pursued outside of the WTO under GATS Article V, as long as the conditions prescribed therein were met. But one had to be 
clear that in that case it was on an entirely separate, different track and had no linkages 
whatsoever with the multilateral services negotiations.  
6.16.  The representative of Egypt reiterated his delegation's concerns regarding the TiSA 
initiative. Egypt was not yet convinced that it was the best contribution to help move forward the 
multilateral trading system and successfully conclude the DDA. He stressed that the Bali Ministerial had provided an appropriate platform for Members to resume the DDA negotiations within the WTO. He also echoed the concerns expressed by previous speakers. 
6.17.  Recalling that his delegation's position on the TiSA initiative was also well-known, the 
representative of South Africa associated himsel f with the statements by Brazil and other like-
minded Members. 
6.18.  The representative of Nepal echoed the statements by India, Uganda, Cuba and others and 
reiterated his delegation's position that, instead of going for plurilateral initiatives, Members' focus 
should be on enhancing and strengthening the mult ilateral trading system in services, since this 
was in the interest of LDCs  and developing countries. 
6.19.  The representative of the United States had taken note of the concerns and issues raised by 
other Members. He noted that bilateral and plurilater al negotiations were a fact of life, they were 
on-going and involved everybody. His delegations saw TiSA as just one more initiative in a long 
line of similar initiatives trying to advance trade liberalization, be it in agriculture, manufactured 
goods, or services. The United States saw TiSA and the post-Bali work programme moving in parallel, and TiSA ultimately strengthening the multilateral trading system by elevating the issue of 
services liberalization as a key input into overall economic growth and development. On that note, 
his delegation would welcome ideas from those Members who had intervened at the meeting on how to advance the post-Bali agenda in services in an ambitious manner. The United States looked 
forward to hosting the following round of TiSA in June.  
6.20.  The representative of Canada was pleased with the progress and constructive engagement 
by participants in the TiSA negotiations, but also  remained ready to engage with Members on how 
to address services in a post-Bali work plan. Creative ideas were needed on how to move forward, 
and the TiSA initiative could inform Member's work in that regard.  
6.21.  The representative of the European Union fully supported the statements by Australia, the 
United States and Canada regarding the recent developments in the TiSA talks. The EU also 
believed that TiSA and the multilateral discussions were moving in parallel and that the two could 
be constructively pursued in parallel. He had some difficulties to understand the concerns raised by some Members regarding the lack of transparency in the TiSA process. Australia had mentioned 
the event hosted by ICTSD, which had been open  to every interested Member and had usefully 
provided more information about the TiSA talks. As for the concerns raised about the lack of 
compatibility between TiSA and WTO provisions, he encouraged Members to revert to the document that the TiSA group had circulated to the Council in December 2012, which contained 
useful information in that regard. 
6.22.  The representative of Japan echoed the statements by the previous three speakers and 
noted that TiSA and the post-Bali discussions were moving in parallel, in a complimentary fashion. 
Japan was involved in the TiSA initiative but was simultaneously also engaged in the post-Bali 
discussions, and was looking forward to the two processes moving in parallel  
6.23.  The representative of Argentina associated his delegation to the statements by Brazil and 
Uganda with regard to their concerns about the implications of plurilateral initiatives on the 
multilateral trading system and the successful conclusion of the DDA. 
6.24.  With regard to the question about any impact that TiSA might have on the multilateral 
trading system and the DDA negotiations, the representative of Australia endorsed the comments 
made by the United States, Canada, the EU and Japan on the issue. From her delegation's S/C/M/117 
 
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  perspective, multilateralism was of the outmost importance and Australia was a strong champion 
of the WTO. She rejected the contention of the TiSA negotiation would negatively impact the DDA negotiations. As others had said, TiSA and the DDA negotiations were clearly on separate tracks, and Australia certainly agreed with Brazil on that point. Australia would be putting just as much 
effort into the multilateral negotiations as it did on TiSA. Extreme care had been put in ensuring 
that TiSA was complementary to the multilateral trading system. This could be ascertained by looking at the structure of the agreement as described in the framework document that the EU had 
referred to, and Australia had been very careful to make sure that TiSA was complementary and 
supportive of the GATS. She looked forward to future engagement with the other Members on 
services at the post Bali work programme, and to a very good outcome for services in the DDA negotiations. 
6.25.  The Chairman proposed that the Council take  note of the statements made and revert to the 
issue at its next meeting. 
6.26.  It was so agreed. 
7  ITEM H – TRADE RESTRICTIVE MEASURES IN SERVICES OF CERTAIN MEMBERS 
7.1.  The Chairman indicated that item H had b een added to the agenda of the Council at the 
request of the delegation of the Russian Federation. 
7.2.  The representative of the Russian Federation  said that her delegation had serious concerns 
with respect to restrictive measures just recently  taken by certain Members contrary to their WTO 
obligations. In particular, the Russian Federation  expressed its deep concern in respect of the 
substance and practical implications of the Exec utive orders of the 6th, 17th and 20th March 2014 
adopted by the President of the United States. In  accordance with the said Executive orders, all 
property and interests in property that were in th e United States, that thereafter came within the 
United States, or that were or hereafter came within the possession or control of any United States 
person (including foreign branches) of the pers ons determined by the Treasury of the United 
States, including persons of the Russian Federati on, were blocked and could not be transferred, 
paid, exported, withdrawn, or otherwise dealt in.  
7.3.  The Russian Federation wished to draw the attention of the United States to the GATS and 
the US schedule of specific commitments. Such co mmitments had been undertaken by the United 
States in a vast number of sectors and precluded the United States from taking actions that would undermine the rights of Russian services suppliers  operating within the United States or engaged 
in trade in services with US counterparts, in part icular, in the manner provided for in the Executive 
orders. The measures provided for in the Executive orders were incompatible with the obligations and specific commitments of the United States under the GATS. 
7.4.  The measures put services suppliers of th e Russian Federation and their services in a less 
favourable position than services suppliers and their services from any third country that were not subjected to like impediments. Such measures were not in conformity with GATS Article II. 
Moreover, the US schedule of specific commitments contained commitments in sectors such as 
financial services, energy, mining and engineering.  The Executive orders contained an illustrative 
list of sectors of the economy of the Russian Federation, the operators of which were subjected to unjustified barriers. In those circumstances,  it was not clear why, notwithstanding its 
commitments, the United States applied a measure that was not administered in reasonable, 
objective or impartial manner. The criteria for application of the measures in respect of particular Russian persons were not provided for by the Executive orders. To the contrary, the application of 
the measures was at full discretion of the US Treasury without any further clarification, guidance 
or justification. For those reasons such measures were not in conformity with the requirements of GATS Article VI and the specific commitments of the United States.  
7.5.  Blocking of assets and prohibition to conduct any transaction within the territory of the 
United States effectively meant that service supplie rs were precluded from supplying their services 
both through modes 1 and 3, notwithstanding the specific commitments undertaken by the United 
States in particular sectors. For those reasons such measures were not in conformity with the 
specific commitments of the United States. Moreov er, GATS Article XI prevented the United States 
from imposing any restrictions on international transfers and payments for current transactions S/C/M/117 
 
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  relating to its specific commitments. For those reasons, such measures were not in conformity with 
GATS Article XI. 
7.6.  The Russian Federation also noted that, notwithstanding the specific commitments 
undertaken by the United States in respect of mode 3 in the banking sector, the Executive orders 
effectively precluded one of the Russian banks list ed by the US Treasury to establish a commercial 
presence within the territory of the United States. Moreover, the Executive orders prohibited cross-border supply of services by that Bank, as well as payments related to its activities. As a result of 
the implementation of the Executive orders, certain US-based payment systems had already 
interrupted the serving of cards issued by that Russian bank. As a consequence, that Bank was 
unable to provide its services, in particular within the territory of the United States.  
7.7.  The Russian Federation urged the United  States to bring its Executive orders and 
implementing measures in line with its GATS obligations and specific commitments.  
7.8.  The representative of the United States underscored that the United States took its 
obligations under the WTO Agreements very seriously. Prior to instituting the measures referenced 
in the communication of the Russian Federation to both the CTS and the CTG, as well as the 
related measures announced on 28 April, the United States had carefully considered their consistency with WTO rules. The United States remained confident that all its actions were 
consistent with its WTO obligations.  
7.9.  The representative of the European Union underlined that the European Union, just like the 
United States, took its obligations under the WTO Agreements very seriously. Therefore, the EU 
trusted that the measures referred by the Russian Federation communication to the CTS and the 
CTG, as well as the new measures announced on  28 April, were consistent with WTO rules. 
7.10.  The Chairman proposed that the Council take note of the statements made. 
7.11.   It was so agreed. 
8  ITEM I - OTHER BUSINESS 
8.1.  The representative of the European Union informed the Membership about the EU's concerns 
with certain provisions of a new legislation in South Africa in the area of private security services. 
The EU was currently studying some of the prop osed amendments of the legislation that, it 
believed, might place South Africa in contravention of its international trade obligations, notably its GATS commitments. The EU would closely monitor the legislative evolution in South Africa and, if 
necessary, might ask to include the point formally on the agenda of the following CTS meeting.  
8.2.  The representative of the United States noted that his delegation had also been made aware 
of the situation that might exist in South Africa and would welcome inputs from the South African 
delegation, to work with them, as well as the EU and other interested Members, to examine the 
issue more closely. 
8.3.  The representative of South Africa said that  his delegation took note of the statements made. 
8.4.  The Chairman proposed that the Council take note of the statements made. 
8.5.  Before closing, he wished to thank Members for the kind words that they had extended to 
him as the new Chairperson of the CTS. As he had indicated at the beginning of the meeting, he considered services to be amongst the most important sectors and one where commercial realities were changing very rapidly. Therefore, Members need ed to be vigilant in following up the evolving 
environment, and think about how to address such changes in the context of the Council. He very 
much welcomed Members' active engagement in the discussion of the Council's activities. The issues involved were very complex and multifaceted, and he therefore encouraged all Members to 
exchange information and dialogue with each other, to build trust. As the Chairperson, his door 
was open to all Members, and he would welcome any question and proposal to promote the CTS activities. He stood ready to work with Members in this sense.  
8.6.  The meeting was adjourned. 
__________