RESTRICTED  
  
S/C/M/130  
  
6 June 2017 
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Council  for Trade in Services    
 
REPORT OF THE MEETIN G HELD ON 16 AND 17 MARCH 2017 
NOTE BY THE SECRETAR IAT1 
The Council for Trade in Services held a meeting on 16 and 17 March 2017, chaired by 
Amba ssador Gustavo Vanerio (Uruguay) . The a genda was contained in document  
WTO/AIR/ CTS/10 and A ddendum 1 . 
 
The Chairman  indicated that the Addendum to the airgram had  been issued to explicitly include on 
the agenda the communication from China and Pakistan on the e -commerce Work Programme 
(JOB/SERV/243/Rev.1).  He recalled that  the communication had first figured on the agenda for the 
Council meeting of November  2016.  Documents were  normally included in the airgram on ly once, 
the first time they were  taken up by the Council, unless  there was  a specific  request to include 
them again.  
 
He further noted that the agenda contained  an item for the appointment of the new Chairperson  – 
Item H . The Rules of Procedure for M eetings of the Council for Trade in Services stipulate d that t he 
election of the Chairperson was  to take place at the first meeting of the ye ar and take effect at the 
end of that meeting.  However, consultations in the General Council on the appointments of 
Chairpersons to WTO Councils and Committees had  not yet conclude d. As such, there was , as yet, 
no incoming Chairpe rson for the Council to el ect. Therefore, a s done in past occasions, the Council  
would  not address that item  and postpone the handover of the Chairmanship of the Services 
Council until the consultations in the General Council had  concluded.   
 
The representative of the Republic of K orea wished  to add an item  under Other Business  regarding  
recent developments in trade in services in order to share information with other Members .  
The representative of the Russian Federation  wished to raise, under Other Business , an item 
regarding Ukraine's measures on financial services . 
The agenda was adopted  as modified . 
1  ITEM A - NOTIFICATIONS PURSUA NT TO ARTICLE S III:3  AND V:7  OF THE GATS  
1.1.  With regard to the notifications made pursuant to GATS Article III:3 (transparency),  the 
Chairman  drew the Counc il's attention to the communication s received from the Dominican 
Republic ( S/C/N/8 72); Switzerland ( S/C/N/8 73); and Hong Kong, China ( S/C/N/8 74-5). 
1.2.  He suggested that t he Council t ake note of the notification s made.   
1.3.  It was so agreed .  
1.4.  Concerning  the notifi cation s made pursuant to GATS Article V:7, the Chairman  drew the 
Council's attention to the communication receive d from  Colombia,  Peru, Ecuador and the European 
Union (S/C/N/876 ). He suggested that the Council take note of the notification made, and that t he 
agreement notified be referred to the Committee on Regional Trade Agreements for consideration.   
1.5.  It was so agreed .  
                                                
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/C/M/130  
 
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  1.6.  The Chairman  indicated that the agenda included also consideration of  the Note by the 
Secretariat titled "Overview of notifications made under relevant GATS provisions", which Members 
had agreed would be updated annually.  The Note ha d been circulated as document 
JOB(09)/10/REV.7.   
1.7.  A representative of the Secretariat  said that the Note provide d a statistical account of the 
notifications made  under relevant GATS provisions , update d to incorporat e notifications  submitted 
between January and December 2016 . As indicated in the Note, during 2016, six  notifications had 
been made pursuant to Article  III:3, by four Members , and ten economic integrati on agreements 
had been notified un der Article V:7(a). He highlighted that no mutual recognition agreements had 
been notified under Article VII:4. As always, the Secretariat would welcome any comments or 
factual corrections on its Note.  
1.8.  The Chairman  suggest ed that the Council take note of the presentation made.   
1.9.  It was so agreed.   
2  ITEM B - OPERATIONALIZATION O F THE LDC SERVICES W AIVER  
2.1.  The Chairman  recall ed that, at the November 2016 meeting, the LDC Group had reviewed the 
preferential treatment in favour of LDC services and service suppliers notified by Canada in its 
revised notification.  LDCs had sought a number of clarifications with regard to the notified 
preferences ; Canada had provided some answers at that  meeting , indicating that it would follow -
up on t he remaining questions bilaterally.  
2.2.  The representative of Uganda , speaking on behalf of the LDC Group, said that , as the Council  
continued to review the 23 notifications that had been made, M embers should undertake measures 
that complement ed and did not u ndermine the object, purpose, and sp irit of the waiver 
mechanism. The Group  expect ed that the mechanism would help LDC suppliers forge the 
necessary partnerships between them and consumers worldwide.  He then announced that he 
would be presenting the Group' s review of Brazil's notification.  
2.3.  Brazil 's notification was strictly on GATS Article XVI measures. The notification included  a first 
column listing the sector, a second column listing the market access preferential treatment for 
LDCs, and  a third  column indicating  whether or not the preference was  also provided  on an MFN 
basis under Brazil's  existi ng GATS Schedule. He indicated that t his format was  very useful for 
LDCs.  The Gro up wished to seek a clarification  from Brazil on the meaning and interpretation  of 
the footnote found in the notification, which read  as follows: "For greater certainty, this notification 
is not subject to Annex  2 to the WTO Agreement: Understanding  on Rules and Procedures 
Governing the Settlement of Disputes ." He asked whether  Brazil acknowledge d that the legal basis 
for the LDC Waiver Decision, which was also a M inisterial Decision, was  under the scope of 
Article  IX of the Agreemen t Establishing the WTO , which was  a covered agreement .  
2.4.  The preamb le of the Waiver Decision stated  as follows:  "In accordance with the provisions of 
paragraph 4 of Article IX of the WTO Agreement, the General Council shall review annually 
whether the exceptional circumstances justifying the Waiver still exist and whether the terms and 
conditions attached to  the Waiver have been met. " He asked whether  Brazil consider ed that, if a 
third party challenged  it in dispute settlement on the gr ound that such party's MFN benefits were  
undermined by  the notification, Brazil could not  use the Waiver Decision as a defenc e. He further  
asked whether  Brazil believe d that any Member could  legally questio n whether the Waiver Decision 
was being implemented in accordanc e with its terms and conditions.   
2.5.  Brazil had  provided preferences in 25 sectors, of which 22 were only in m ode 3 and drawn 
from Brazil 's DDA offer.  Of the 25  sectors, three we nt beyond mode 3:  veterinary services, in 
modes 1  to 3; consultancy, actuarial and survey services, in modes 1  to 4; and m aritime agency 
services in m odes 1 and  3. Most of the 25 sectors were identical or similar to sectors requested by 
LDCs in the ir Collective Request.  In at least three of the 25 sectors, a preference for LDCs was  
drawn from an existing GATS scheduled commitment, and not a new DDA offer.  However, he 
asked whether Brazil could confirm that it  had removed a restriction in mode 3 that applied  to all 
other Members  that was found in its existing  Schedule of C ommitments. If so, the LDC Group 
appreciated that Brazil was  utilizing the waiver in a manner consistent with its purpose.  S/C/M/130  
 
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  2.6.  There were  areas where Brazil appeared  to provide LDCs with better treatment than other 
Member s. He asked Brazil to confirm this in the following areas . First, in the case of  agencies and 
brokerage s ervices , where  the mode 3 restriction  had been removed for LDCs, he asked Brazil 
whether the DDA offer for th ose sectors  was without limitation s. If so,  he wondered how the 
headnote on limitation s would  operate in the document and whether  there  were fewer limitations 
compare d to Brazil's  DDA offer or current s chedule of commitments.  Second, for  consultancy, 
actuarial and survey services, where full commitments had already been made in modes 1 to 3, 
but the LDC notification included  a full commitment also in m ode 4. Third, for f reight 
transportation, where the restr iction requiring government authorization and discretion, and 
possible limitation on number of providers in m ode 3, had been removed for LDCs.  
2.7.  There seemed  to be a preference in placement and s upply of personnel services in  mode 3 . 
However, mode 1 was  listed as technically not feasible.  He requested clarification as to why Brazil 
had insert ed this limitation.  While the mode 3 preference was  appreciated, placement services 
were also supplied via m ode 1 , and included among back office operations.  
2.8.  For the fo llowing sectors, also found  in Brazil 's DDA offer, t he LDC Group requested Brazil to 
confirm that there would  be no preference erosion if the DDA was concluded  before the end of the 
duration of the w aiver: engineering design services; o ther engineering ser vices during the 
const ruction and installation phase ; veterinary services; computer and related s ervices ; technica l 
testing and analysis services; s ervices incidental to fishing (not including the property of fishing  
boats) ; placement an d supply services of personnel; m aintenance and repair of equipment (not 
including maritime vessels, aircraf t or other transport equipment); photographic services; 
packaging services; convention services; b uildin g completion and finishing work; c ommissi on 
agents' services; insurance s ervices and insurance -related services ; travel agencies and tour 
operators services ; tour guide services; sporting services; maritime cargo -handling services (as in 
item 1 – definitions) ; storage and warehousing s ervices , customs clearance servi ces (as in item 2 
– definitions) ; container station and depot services (as in item 3 – definitions) ; and maritime 
agency services (as in item 4 – definitions) . 
2.9.  Brazil's notification also contained limitations. B usiness service sellers, contractual service 
suppliers a nd independent professionals were  not allowed to supply financial services in Brazil.  He 
asked if Brazil could provide the rationale for those limitations, and the reasons why Brazil 
require d permanent residency for the provision of insurance se rvices.  
2.10.   The LDC Group thank ed Brazil and all preference -granting Members for their notifications  on 
preferential treatment for  LDCs. The Group also wished  to make an appeal , in line with 
paragraph  3.2 of the LDC Collective R equest. LDCs had increasingly c ome to the conclusion that it 
was more helpful to their service suppliers if donor M ember s, developmen t partners and agencies 
could design and provide technical assistance to p rojects and program mes that were based in their  
respective countries or regions , with a view to building the LDC supply capacity on the ground. 
These program mes should help to, inter alia , sensitize  people about the benefits accruing as a 
result of the waiver. This would help build an inclusive space of shared prosp erity and one that 
truly ensured  the integration of LDCs in  the multilateral trading system . Further , the Group wished 
to request that M embers also undertake some waiver -related domestic awareness -raising among 
their respective constituencies , so as to afford them sufficient understanding of the  preferential 
treatment that had  been granted to LDCs.  
2.11.   The representative of Brazil  said that , at that juncture, he could provide answer s only to  
some of the questions raised by the LDC Group ; for the others, he would need to co nsult w ith 
capital . Regarding the first question on  the footnote, he would need to consult with capital  on the 
rationale behind it. As to the second question related to the removal of the restriction on mode 3 
applied to al l Members, there seemed to be a  drafting  problem. I n the notification , Brazil had 
identified the specific commitments it had undertaken in the Uruguay Round and then indicated 
clearly how the preferences were being granted. I t was not  Brazil's intention to give a conc ession 
to LDCs  that had alre ady been provided on an MFN basis . He woul d follow -up on that  question 
after consulting with capital. As to  the third question on  whether Brazil was providing better 
treatment to LDCs as compar ed to other Members in the areas mentioned, the answer was 
positive. For broker services, the wording referring to the DDA offer could b e confusing , as 
developments had taken place after 2005 . He wished to clarify that, for the purpose of the 
notification, Brazil had taken as a departure point its MFN commitments when  indicating  the 
preferences granted. If and when the time came to submit a revised offer, Brazil would have to S/C/M/130  
 
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  look at the DD A offer and clarify the issue. Therefore, f or the purpose of granting preferences to 
LDCs, the focus should be on the commitments already undertaken by Brazil and what was being 
offered as preferences.  
2.12.   On the fourth question concerning placement services provided under mode 1 and the 
footnote indicating that it was technically not feasible, his understanding was that,  while in the 
past this mode of supply was not possible , now it was  feasible . Therefore, it was likely that the 
footnote would not be needed anymore and  that, at a certain point , it would be revisited. Coming 
to the fifth question on preference erosion, he understood that  it applied to all preferences that 
had been submitted under the waiver. At a certain  point, Members would submit their revised 
offers in the context of the DDA negotiations and they would have to consider that the offers d id 
not erod e the preferences provided under the waiver. Brazil would take into considerati on this 
point at the appropriate moment , before submitting any DDA revised offer. Finally, on the last 
question concerning certain limitations on financial services, he would have to consult with the  
Brazilian re gulator, but his understanding was  the reasons for these limitations were prudential.  He 
added that t he first prohibition applied  also to nationals; therefore, it was  a non -discriminatory  
prohibition . He would consult further with capital and revert to the issue;  he would be happy to 
follow -up on the  other  issues raised and provide complete answers not only bilaterally, but  also at 
the following  Council  meeting . 
2.13.   The representative of Uganda  thanked Brazil  for the responses provide d and looked f orward 
to further responses to the questions raised .  
2.14.   The Chairman  suggested that the Council take note of the s tatements made  and said that 
the Council would  revert to that  item at its next meeting.  
2.15.   It was so agreed . 
3  ITEM  C – TRADE FACILITATION A GREEMENT FOR SERVICES  
3.1.  The Chairman  indicated that the item had  been added to the agenda of the Council at the 
request of th e delegation of India, which had  submitted a communication titled "Trade Facil itation 
Agreement for Services" ( S/C/W/372 ). He indicated that t he communication had  also been issued 
with the document symbols of the Working Party on Domestic Regulation  (WPDR) , where it had 
been introduced and discussed  on 14 March , and of the Special Session of the CTS  (CTS –SS).  
3.2.  The Representative of India had in troduced a draft legal text for an Agreement on Trade 
Facilitation for Services (TFS) for discussion. In the presentation of its proposal in the WPDR, India 
had explained  the key provisions of  the draft TFS and highlighted  the rationale behind the various 
proposals, indicating the relevant sources. India's presentation had been circulated in document 
RD/SERV/137 . In the Council, India also wished to highlight the main features of its proposal. The 
CTS had the mandate to carry out those functions that were a ssigned to it to facilitate the 
operation of the GATS and further its objectives. India believed that discussions of it s TFS proposal 
would further the role of the Council.  
3.3.  India underscored the importance of trade in services, especially for developing c ountries. 
The proposed TFS Agreement had been conceived as the  services counterpart of the goods Trade 
Facilitation Agreement (TFA), which had recently entered into force. The TFA had been a major 
sourc e of inspiration for the TFS and the need for a simila r framework for trade in services. India 
believed that the broad objectives of the TFA, which were simplification and transparency, 
reduction of transaction costs, streamlining of procedures, disciplining fees and charges, 
expeditious processing of applica tions and cooperation between competent authorities, among 
others, were equally relevant for facilitating trade in services. It was in the spirit of moving the 
discussions forward that India had proposed its draft legal text on a TFS for discussion. He then 
present ed a brief overview of the draft agreement , for a greater understanding of its proposal and 
a more efficient discussion.  
3.4.  In his presentation, he would address the motivations behind the proposal and  identify the 
relevant sources of inspiration for  those provisions . Then, he would  address the main aspects of 
the text itself. He would  end his presentation with some concluding remarks.  S/C/M/130  
 
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  3.5.  All Members recognized the importance of services trade, especia lly for developing countries, 
including in terms of GDP. Its potential to create jobs, as well as its export potential , gave India a 
strong motivation to consider services trade in a focused manner. The statistics contained in the 
presentation underscored the importance of services trade. However, as Member s had discussed in 
the CTS, as well as in other WTO bodies, there still remained both border and behind -the-border 
barriers to trade in services. In India's view, there was a need for a framework to facilitate trade in 
services, reducing bottlenecks and st reamlining procedures. As mentioned in the introductory 
remarks, taking inspiration from the TFA in the context of trade in goods, a counterpart agreement 
that addressed aspects that eliminated bottlenecks in trade in services, both at the border as well 
as behind the border, seemed to be necessary at that stage.  
3.6.  To be meaningful, the proposed TFS A greement needed to have a comprehensive scope, 
covering measures across all modes of supply relating to both entry as well as post -entry barriers. 
The TFS would  provide a framework that would make existing market access commitments, as well 
as those arising from future liberalization, more meaningful and effective. The proposal looked a t 
barriers in a holistic manner, as  it was not a piece -meal approach, and  addressed all four modes  of 
supply . At the same time, it was not about creating new market access, but making market access 
commitments more meaningful and effective. His delegation considered it very important to 
attribute different parts of the proposal to e xisting GATS provisions or other negotiating texts and 
instruments. Therefore, the source of each provision was listed in the presentation, showing the 
variety of ways in which the proposal had been enriched by various existing practices. He hoped 
Members would find value in India mapping the sources of its proposal in order to better 
understand  it. The inspiration for the language of the proposal was drawn from a range of 
instruments, including  the G ATS, the TFA, plurilateral FTAs, India's earlier submissi ons, as wel l as 
stakeholder consultations that had been a major motivating factor.  
3.7.  As to the roadmap at the WTO so far, India had been engaged on its proposal in various 
formats, star ting in October 2016, when India had tabled its proposal on a Concept No te for an 
Initiative on Trade Facilitation in Services and then moving to a paper containing p ossible elements 
of a TFS Agreement . It was  in the spirit of moving the discussions forward that India had pr oposed 
a draft legal text on a " Trade Faci litation Ag reement for Services" for discussion. Each of those  
stages had undergone a constructive process of feedback received from Members. The legal text 
was prompted by a desire to focus and pursue  discussions in a definite manner. Accordingly, on 
22 February 201 7, the same day the TFA had been ratified and had entered into force, India had 
tabled a draft legal text for discussion at the WTO.  
3.8.  The draft proposal comprised three sections containing a mix of language, from mandatory 
obligations to "best endeavour" l anguage. India understood the sensitivities of different Members 
to undertake onerous obligations and, therefore, the proposal  was an attempt to keep a balance 
between ambition and feasibility. India attached great importance to special and differential 
treatment and, therefore, development provisions (Section II of the TFS) were an essential part of 
its proposal. LDCs would not be required to implement the obligations contained in the proposed 
TFS Agreement .  
3.9.  The scope of the proposal covered only sectors where specific commitments had been 
undertaken, apart from Article 2 on transparency (publication and availability of information) and 
Article 8.2 on emergency authorization , which were proposed to apply to all services sectors. He 
reiterated that the proposed TFS Agreement was not about new market access, but making 
existing commitments more meaningful and effective. In that regard, he noted that the term 
"specific commitment" under GATS Article XX :1 meant  commitments under the "terms, limitations 
and cond itions on market access ", as well as under the "conditions and qualifications on national 
treatment ", set out in the Schedules of Specific Commitments.  In response to questio ns that had 
been raised by Members at the meeting of the WPDR , he wished to clarif y that it would not make 
legal sense to say that the proposed agreement applied only to scheduled commitments and not to 
the corresponding limitations given that, where commitments appeared qualified by limitations in 
the Schedules, those were not absolute  commitments. Therefore, when India said that the 
proposed disciplines applied to the Schedule of C ommitments, it meant that the proposal applied 
to what had been s cheduled along with the limitations and conditions inscribed therein.  
3.10.   The TFS proposal reco gnized Members' right to regulate, as per the Preamble to the GATS . 
Most GATS definitions applied to the proposal, except in certain instances where India had 
deviated from the GATS. In those cases, India had provided the sources of the definitions used  in S/C/M/130  
 
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  its proposal, as those definitions  had been used in previous negotiating discussions. They were 
also inspired by other trade agreements, inclu ding regional trade agreements already in force.  
3.11.   On transparency (Article 2), the obligation on publication applied to all measure s of general 
application relating to the supply of a service, in a non -discriminatory and easily accessible 
manner. The provision on transparency in Article 2  covered , inter alia, publishing requirements 
from competent authorities, requir ements and procedures relevant to the supply of a service, 
opportunity to comment before entry into force, as well as establishing enquiry points and 
notification requirements.  These provisions had been discussed in the WPDR.  
3.12.   Regarding administration of me asures (Article 3), the provisions dealt with obligations 
leading to the simple and transparent administration of measures relating to applications 
pertaining to authorizations and immigration formalities. Those provisions covered, inter alia, 
single windo w, application timeframes, acceptance of electronic applications, expeditious 
processing of applications, appeal and review, information and verifications requests, as well as 
endeavouring for a fast-track procedure for authorization and immigration formal ities for se rvices 
suppliers.  Inspiration had been  drawn from WPDR discussions, including the Australian proposal. 
As to fees and charges (Article 4), the aim was to avoid that these became barriers in themselves. 
The proposal stated that fees and charges should be reasonable, commensurate with the cost 
incurred by th e competent authorities and not in themselves restrict or impair the supply of the 
service.  
3.13.   On economic needs tes ts (ENTs) (Article 5), Members recognized that lack of information on 
scheduled  ENTs w as a barrier to the supply of service s and could have a chilling effect on potential 
service suppliers, as indicated in Turkey's proposal on ENTs. This provision dealt with the need for 
information pertaining to scheduled ENTs, which was very import ant, such as criteria on which the 
tests were based, as well as procedures and guidelines for their administration. It also required 
ensuring that ENTs d id not impose undue costs and d id not result in undue delays and unc ertainty 
for service suppliers. As to recognition (Article 6), the proposal built on the GATS. In India's view, 
providing opportunity for developing countries to accede to recognition agreements would go a 
long way to facilitating trade in services.  
3.14.   Article 7 dealt with an import ant elemen t of India's proposal:  the obligation to allow  cross-
border flows of information where such activities were for the conduct of the business of supply ing 
services from the territory of a Member into the territory of another Member, as per the 
commitments of  that Member in its Schedule. This provision also dealt with data privacy  
frame works. Members had the right to adopt measures to protect personal data. However, in 
India's view, Members should not impose barriers to cross-border flows of information, inclu ding 
personal information, in the course of conduct of business under scheduled commitments merely 
because the measures adopted by other Members for the protection of personal information were 
different. The  proposed provision came as a result of feedback received from stakeholders.  The 
proposal also required Members to provide adequate opportunity to other Members to negotiate 
their accession to recognition arrangements pertaining to data privacy and security, which were 
critical to facilitate trade in ser vices.  
3.15.   Article 8 of the proposal covered two aspects, insurance portability  and emergency 
authorizations related to the provision of certain service s under mode 2. As to insurance 
portability, Members should encourage insurance service providers in their t erritor y to enable 
insurance coverage in respect of health -related services availed of in another Member. Regard ing 
emergency authorizations, the proposal  aimed at expediting immigration formalities in respect of 
consumers seeking medical services in other  Members . This proposal aimed at facilitating the 
consumption of services in foreign jurisdictions by groups such as medical patients, students or 
touris ts. It was not linked to the sectoral commitments undertaken by  Members in their Schedules , 
as the inte ntion w as to make the provision  applicable to all sectors. India was aware of the 
broader context  of the proposal  and would be keen to understand the leew ay Members had to 
address the  issue, whether in  the Council or elsewhere.  
3.16.   The disciplines aimed at fac ilitating the movement of natural persons within the co ntext of 
Members' Schedules of Specific C ommitments (Article 9)  covered mainly three issues. First , on 
transparency, it required Members to make publicly available all explanatory material on all 
relevant immigration formalities pertaining to the operation of Members' scheduled commitments 
relating to the movement of natural persons. Second, it contained a best -endeavour clause to S/C/M/130  
 
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  grant multiple entry visas where specific commitments had been undertaken  by Members. Third, it 
provided that each Member endeavour to exempt natural persons of other Members engaged in 
the supply of services from social security contributions. Where such payments were not 
exempted, it required refunding relevant contributions to service suppliers at the time of return to 
the home country.  
3.17.   Cooperation among competent authorities (Article 10) was another important aspect of the 
proposal. The areas of cooperation were broadly listed and his delegation was open to includ ing 
other areas, if needed. India believed that a certain degree of cooperation among competent 
authorities would contribute to promot ing trade in services.  With respect to development 
provisions (Section II), the proposal accorded special and differential treatment  to developing 
countries in the form of a transitional period for the entry into force of the agreement (Article 11). 
In addition, LDCs would not be required to implement the obligations of the  agreement  
(Article  11.2). Recognizing the importan ce of techni cal assistance, t he proposal required developed 
Members, and developing Members in a position to do so, to provide technical assistance to 
developing countries to implement the agreement, as well as assist ance to service suppliers in 
those countries to mee t requirements in export markets and build their supply capacity  
(Article  12). Finally, the proposal contained some provisions on institutional arrangements and 
other final provisions.  
3.18.   To conclude, he reiterated that his deleg ation believed that there was  need for a 
counterpart framework agreement on trade in services, similar to the TFA. India considered that 
impediments to trade in services limited the benefit derived from the GATS for services suppliers , 
particularly from developing countries, SMEs and small exporters worldwide, especially from LDCs. 
He noted  that several el ements addressed in India's proposal would address several barriers 
identified in the LDCs Collective Request. Given the importance of trade in services, India believed 
that its propo sal presented an opportunity to address barriers affecting trade in services in a 
comprehensive and holistic manner. India looked forward to receiving constructive feedback from 
Members both bilaterally and in groups with the aim of facilitating trade in s ervices.  
3.19.   All delegations who took the floor  thanked India for its proposal and comprehensive 
presentation.  
3.20.   The representative of Paraguay  requested the Counc il to include in the minutes the 
statement made by his delegation in the meeting  of the WPDR . He had indicated  in the WPDR  
meeting  that India's  proposal was a constructive  effort  towards an agreement on trade facilitation 
in services.  The document covered several areas of negotiations, and propos ed some initial 
solutions that could be discussed toward s the Buenos Aires Ministerial Conference in December 
2017. It seemed appropriate to approach th ose negotiations with a methodology similar to that 
used in the TFA negotiations, which had proved successful since it had taken into account the 
constraints of  all Members and used a timeline to accommodate everyone 's implementation -
related concerns.  
3.21.   The representative of Brazil  said that , since October 2016, India had been consistently 
referring to i ts proposal for a TFS Agreement . He emphasized that the propos al was very 
comprehensive as it provided a complete overview  of the proposed TFS Agreement , from the 
Preamble to the institutional suggestions. Brazil shared India's view about the need to discuss the 
proposal in its totality  given that many of its article s cross -related to each other and, therefore,  it 
was important to have a sense of the whole  document. Th e substance of the document 
encompassed WPDR work, namely GATS Article VI :4, but also went beyond such provision. 
Therefore, the WPDR did not seem to be  the best place to discuss the proposa l and, for that 
reason, Brazil  had decided to present its first set of comment s in the Council.  He organized his 
comments under 14 topics ; some were general que stions inviting reflection, while others were 
more specifi c and referred to issues that presented  difficulties  for his delegation .  
3.22.   First, on the relationship between the propo sed TFS Agreement and the GATS, Brazil noted 
that references to the GATS  were found in the Preamble of the TFS Agreement, which explicitly  
referred to Articles I II (transparency) , IV (increasing participation of developing countries) , VI 
(domestic regulation) , VII (recognition) , XIX (negotiations of specific commitments) and the Annex 
on the Movement of Natural Persons , as well as in Article  14 of the proposed TFS Agreement (final 
provisions), paragraphs 3, 4 and 5 . Those were mainly the provisions connecting the GATS and the 
proposed agreement. However, by looking at the provisions together, it was not possible to S/C/M/130  
 
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  conclude that all necessary  connexions were clear enough. For instance, Article 14.3 of the 
proposal stated that "nothing in the agreement shall be construed as diminishing the obligatio ns of 
Members under the GATS ". Only p aragraph 4 made it clear that the GATS applied to the propos ed 
TFS Agreement, specifically with respect to  GATS exceptions and exemptions. Similarly, 
paragraph  5 referred to GATS Articles XXII and XXIII. However, there was no reference to GATS 
Article II and  he wondered whether the proposed agreement would be subje ct to the MFN 
obligation . If the answer was affirmative , it might be important to state it  explicitly in the proposed 
agreement , making it clear that the TFS Agreement would have to be implemented on an MFN -
basis.  This would clarify, for example, that it w ould not be possible to have different single 
window s applying to different Members  as the obligation would need to be implemented in a non -
discriminatory manner . It might also be necessary to includ e in the proposed agreement a 
provision similar to  Article V on economic integration agreements. He wondered, f or instance , what 
would happened if , in MERCOSUR, the relevant parties agreed to an obligation requiring  fast-track 
procedure for processing applications . Would it be possible for th e MERCOSUR members t o apply 
such procedure  to the MERCOSUR members only , or would they need to extend it to all other WTO 
Members? Those issues needed to be clarified, namely, the linkages between the GATS and the 
proposed TFS Agreement. The Preamble of the TFS Agreement stat ed that "desiring to clarify and 
improve relevant aspects of GATS Articles III (…)". It was important to clarify whether the 
proposed agreement  was clarifying or improving the relevant GATS provisions.  Besides, regarding 
the definition of "competent author ity" found in the proposal , it mi ght be necessary to include  a 
provision similar to  GATS Article I:3 regarding the fulfilment of obligations by  central, regional and 
local governments  in order to take account of the situation of  federal states.  
3.23.   On publica tion and availability of information (Article 2), it was important to be precise. 
Article 2.1.2 stated that "[e]ach Member shall promptly publish through printed or to the extent 
possible through electronic means (…)", and then Article 2.2.2 referred to pu blication  of measures , 
or making information on them otherwise publicly available. It was important to clarify what the 
provision would require. Brazil also sought clarification on  Article 4, paragraph 2 . The provision 
required Members to notify the offici al place where the items had been published. In the case of 
Brazil, a s well as of other Members, most of the measures were made public through the official 
gazette. He could provide the address of Brazil's electronic gazette. He wondered about  the 
implicat ions of such obligation, compared to  a regular notification  obligation  as provided for under 
the GATS . Besides, Brazil would have a problem with the publication of information in one of the 
official languages  of the WTO  (paragraph 1.2) , as that would go ag ainst the Brazilian Constitution  
which required the government to publish in Portuguese .  
3.24.   On single window and enquiry points , it was important to reflect on what was the rationale 
behind the  proposal . For instance, i t was not clear whether the enquiry  points would be associated 
with specific sectors or sub -sectors. Similarly, would there be a single window for each competent 
agency? If that was the case, implementing the proposal would require a considerable number of 
enquiry points and single windows. The  way in which those obligations would be implemented 
might require further thought. To clarify, the issue was not to merge competent authorities or 
have a unique competent authority. The issue was whether having a single window attached to 
each competent a uthority would be necessar ily the best approach to facilitating trade in services.  
As to electronic applications and acceptance of copies (Article 3.3), it was important to allow 
interested parties to submit any documents in electronic format and, therefor e, Brazil supported 
the proposal. In his country's experience, the use  of electronic signatures was very relevant , as 
they allowed governmental authorities to have legal certainty about the identity of the person 
submitting an application or uploading documents. As to appeals and reviews ( Article 3.5 ), several 
foreign trade decisions in Brazil were taken by the C hamber of Foreign Trade at Ministerial level, 
which meant that  it would be very difficult to have a higher authority reviewing such decision s. It 
would be necessary to request the President to review them. The proposal could clarify that it 
referred to lower ranking authorities , not decisions taken by higher instances , as the latter would 
require requesting reconsideration of the decision, not an app eal. Regarding fees and charges 
(Article 4), making them commensurate to the cost incurred by the competent authorities would 
pose difficulties  to Brazil given that, in  many cases , fees were used by government authorities to 
finance  their operation s. The p roponents might want to consider an alternative drafting, for 
instance, based on the proposal submitted by Australia and co -sponsors on administration of 
measures in the WPDR.  
3.25.   Regarding cross-border flow s of information (Article 7), besides being a sensit ive issue, it 
was difficult to understand what the provision was trying to address . The last sentence of the S/C/M/130  
 
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  second paragraph seemed to suggest that the problem was a "conversati on" between private 
shields . If the private shield of one country was differen t from that of another country, such a 
situation could be used as an excuse for not giving access in order to ensure the same level of 
security. If that was the problem, it might be necessary to revise the drafting to make it more 
precise  and avoid misunde rstandings . Article 10 of  the proposal seemed to exhort cooperation 
among competent authorities  of different Members . However , to a certain extent, competent 
authorities were already engaged in some sort of cooperation. Instead, it might be necessary to 
provide for cooperation among national authorities in charge of implementing the agreement a s 
new authorities  would need to be created . Besides , experience -sharing among those competent 
authorities might be desirable . Regarding Article 13 on institutional ar rangements, his delegation 
had no prob lem with the proposal, but had some suggestions to improve the  drafting . For  
instance, Article 13.1.1 could  specify where the Committee on Trade Facilitation in Services should 
be est ablished. Similarly, paragraph 1.4, could be more specific on the type of best practice s it 
was alluding to. His understanding was that those best practices could be linked to Article 10 on 
cooperation among competent authorities ; if that was the case, a cross -reference to that provision  
could be  added . Similarly, p aragraph 1.6  required the proposed Committee to review the operation 
and implementation of the agreement , but there was no indication as  to whom such body would be 
reporting to, or what would be the rationale behind the review. Th e proposed agreement used 
different wording, "operation", "implementation", "administration" , it might be useful to harmonize 
the language . Lastly, on paragraph 1.8, his delegation considered the approach  of encouraging ad 
hoc discussions among Members on specific issues under the proposed agreement , with a view to 
reaching a mutually satisfactory solution , to be interesting . It would allow two or more interested 
countries , for instance  on a bilateral or regional basis, to engage on the imple mentation of th e 
proposed agreement , which might not be of interest to the whole Membership. It could be added 
that any solution reached in that context would need to be reported back to the  Committee for all 
Members to be informed . He would be  happy to engage with India  to discuss any of the points he 
had raised.   
3.26.   The representative of Canada  said that his delegation  was still consulting  with domestic 
regulators  on the content of the proposal, but he had  some preliminar y comments and questions. 
In particular, Canada  wished to flag concerns with respect to aspects touching on immigration 
issues and social security.  Regarding Article 3 on admin istration o f measures, Canada noted  that 
much o f text tabled by India resembled  previously proposed disciplines on domestic regulati on, 
with an expansion of application by broadening the definitions of "competent authority " and 
"requirements and procedures ". He wondered how India  envisage d applying the DR -like provisions 
of Article 3 in the context of these expanded definitions ; how  rules on processing of applications 
would apply to a competent authority with responsibility for data management, cross -border data 
transfers, data security and privacy; and h ow they would apply with respect to a competent 
authority with res ponsibility for s ocial security. He asked if India  could provide concrete examples.  
3.27.   Regarding immigration formalities, Canada wished to seek clarification on whether India's 
intention was to capture only work authorizati ons, such as work permits,  or was  India inten ding to 
capture e ntry visas, which did  not authorize work, and  were generally applied for reasons of 
health, safety and national security. As to Article 3 on cross -border flow s of information, i n 
Canada 's view, barriers to the cross -border transfer of information had negative implications for all 
aspects of trade, including for trade in goods or electronic commerce and not just for the cross -
border supply of services. He wondered w hy India had limited its proposal to the supply of services 
under  mode 1.  With respec t to paragraph 2, the proposal would allow  all Members to adopt or 
maintain any measure to protect personal information, except for restrictions on the cross -border 
movement of information based on differenc es in privacy standards, and he enquired about the 
rationale for this exception.  
3.28.   Regarding Article 8 on f acilitating consumption abroad and specifically on the portability o f 
insurance coverage, Canada had  no mandate to influence how private insurance companies 
operate d their businesses. This was  not a  regulatory issue and represented  an example of where  
the proposal on the table went outside the sco pe of what a trade agreement could  accomplish. As 
to Article 9 on facilitating the movement of natural persons, Canada requested clarification 
regarding parag raph 1.3 as to whether India's intention was to remove other sources of 
verification of designation and/or competence, such as requirements to provide copie s of degrees 
and licenses, etc.  S/C/M/130  
 
- 10 - 
 
  3.29.   The representative of Hong Kong, China  indicated that , as his delega tion was still reviewing 
the proposal , it did not have a positio n at that juncture . Nonetheless, his delegation  wished to seek 
some clarification s from India . As he had already referred to issues related to the domestic 
regulation aspects of the proposal a t the WPDR, he would now focus on questions related to the 
remaining aspects of the proposal.   
3.30.   On Article 7, his delegation  wished to seek clarification on why only mode 1 was highlighted , 
while the issue o f data flow s in effect would be relevant to all mo des of supply . There was also the 
question of  how to distinguish the flow of data for different modes.  Furthermore,  the requirement 
in paragraph 2 stating that "No Member shall impose any barriers to flow of personal information 
from its territory to perso ns in the territory of another Member, merely because the measures that 
such other Member adopts for the protection of personal information are different from its own " 
seemed  to undermine Members' rights regarding the enforcement of their  laws and regulati ons for 
the protection of personal information.  He requested clarification from India on the rationale 
behind  such provision . On Article 8 , paragraph 2, he sought clarification  on the meaning of "urgent 
and/or essential " medical services . As to  Article 9 , paragraph  1.2, his delegation had not come 
across ideas such as " adequate mechanisms for separate categories of visas that correspond to 
each category of natural person in respect of which commitments are taken " or "a scheme for a 
GATS visa applicable for categories of natural persons ". In addition, h is delegation did not 
understand the rationale behind the obligation in paragraph  1.3. On Article 13, related to the 
creation of a National C ommittee, it was important  to consid er whether it was appropriate  or 
whether replicating  the same set of institutional arrangements  would  create unnecessary burden s. 
In this regard, his delegation also sought clarification from India on the reasons for providing a 
review every two years, being even more ambitious than the T FA, which provided for a review 
every four years . His delegation would appreciate receiv ing feedback from India on those issues 
either in the meeting or bilaterally.  
3.31.   The representative of Ecuador  indicated that  his delegation was still revising the proposa l 
and had only preliminary comments at that stage . The proposal was a positive initiative, which 
could be used as a  basis for future discussions, although several aspects of the proposal needed to 
be clarified . That was the case, f or instance, of Section I  that made reference to new terms and a 
new regulatory framework . He pointed out that Article 9 was an important provision as it aimed at 
facilitating the movement of natural persons . In th at regard, having discussions on Members' 
experiences on such matte r would be useful in order to agree on parameters which could solve the 
challenges associated with mode 4. In Ecuador's view, the model set forth in the TFA for providing 
special and differential treatment to developing countries constituted a valid option  that could also 
be applied to trade in services. This issue should be discussed in connection with the proposal and 
the development dimension should govern any future negotiation. Several delega tions had stated 
that India's proposal went beyond the mandat e contained in GATS Article VI:4. His delegation was 
examining t he issue, which  should also be discussed by the M embership, as well as whether the 
proposal would affect Members' right to regulate given that disciplines on domestic regulation 
could have tha t effect. To conclude, he reiterated that the proposal constituted a positive step 
towards continuing discussions in  the Council.  
3.32.   The representative of the Bolivarian Republic of Venezuela  stated that the proposal was only  
available in English and needed t o be translated into Spanish  in order to facilitate co nsultations in 
capital. Bolivia requested the Counc il to include in the minutes th e statement his delegation had 
made at the meeting of  the WPDR. He had indicated in the WPDR that his delegation was not  a 
demandeur in domestic regulation discussions. Many elements of the proposal constituted  an 
additional burden for developing countries that did not have the necessary infrastructure to comply 
with these obligations. Additionally, a lot of elements went b eyond the domestic regulation 
mandate  of GATS Article VI:4, such as those strengthening GATS Article III on "Transparency ", the 
administration of measures (Article 3) and fees and charges (Article 4) .  
3.33.   The Chairman  indicated that the Indian proposal had  already  been translated into Spanish. 
The representative of the Bolivarian Republic of Venezuela  thanked the Chairman for the 
information.  
3.34.   The representative of Egypt  said that n ational consultations on the proposal with 
representatives of the Egyptian servi ces sectors  were still ongoing . Without prejudice to Egypt 's 
final position, he share d his country's preliminary views, questions and comments on some aspect 
of the proposal. As Egypt had mentioned  at the WPDR meeting, the provisions  of the proposed S/C/M/130  
 
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  agreem ent applied  to sectors "where specific commitments are undertaken " except for Article s 2 
and 8.2  of the agreement. In this regard , he sought clarification from India on whether the 
proposed agreement would cover  the whole of  a Member's partial commitments , or only the 
limitations. He asked what would happen i f, for example, a Member had scheduled "None except " 
in the sector -specific part of the sched ule, and how any  relevant limitations in the horizontal 
section of the schedule would apply.   
3.35.   Second, the pro posed agreement  appeared  to respect Members'  policy space, as stated in 
Article 1 .2. However, his delegation still had some  concern s. Article 1.2 did not contain a n 
obligation or right as such, but merely recognized  "the right to regulate ". Therefore , he enquired 
whether such  a provision would fit better in the P reamble , or whether the language might need to 
be strengthened. Also, in Egypt's view , Article 1 .2 should be read together with Article 14 .4. 
Therefore , he requested clarification from India on whet her the  proposed agreement would be 
subject to GATS Articles XIV and XIV bis.  
3.36.   Third, with regard to Article 2 on publication and availability of i nformatio n, he noted that  
not all services ministries  publish ed information in one of the WTO official langua ges, especially if a 
Member's official language was not one of the WTO official languages, a s also pointed out by 
Brazil . As the language used in paragraph s 1.1 and 1.2 of Article 2  implied obligation s of results , 
he suggested us ing softer language.  
3.37.   Fourt h, on institutional arrangements, Egypt wished to share some preliminary systemic 
concerns. The proposal co ntained 14 Articles  and most of the obligation s therein provided further 
detail  with respect to  the broad obligations of the GATS. Instead, o ther proposed obligations 
expand ed the scope of the GATS by in troducing new disciplines.  It was  unclear whe ther the 
proposal would  be an agreement stemming from the GATS , or whether it w ould be a stand -alone 
agreement.  Besides , in case of conflict between the prop osed agreement and the GATS, it was 
unclear which agreement would prevail. He looked forward to hearing India's  response s to the  
questions raised by his delegation  and to continuing engage ment with India bilaterally . 
3.38.   The representative of South Africa , speaking  on behalf of the African Group,  stated  that the 
Group had only made an initial assessment  of the proposal . However, the African Group wished  to 
share its preliminary views  generally and specifically on the current text. At the outset, the African 
Group was still contemplating what the proposed TFS Agreement meant for the Group , as 
developing countries and LDCs. The African Group acknowledged the well -documented constraints 
that Indian services suppliers continued to face. Like Indian services supplier s, suppliers 
originating from the countries of the African Group also faced impediments when trying to enter 
foreign markets . The LDC Services Waiver bore testament  of that fact. Africa's greatest export 
potential l ay in the movement of its persons , includ ing low -skilled workers , and hence the mode 4 
elements of the proposal seeme d useful to the African Group. However, after listening carefully to 
the introduction of the TFS , she wondered whether such a proposal was realistic in the current 
political climat e. The African Group, over the last decade and beyond , had  approached domestic 
regulati on from a perspective that gave  paramount importance and affirmation to, amongst other 
things, the right to regulate and the interlinkages between regulations and broade r domestic 
economic imperatives. The views expressed by the African Group at the WPDR under agenda i tem 
A, regarding three of the proposals , also applied  to the TFS. The African Group had  some general 
views about undertaking several new and potentially one rous multilateral obligations in an area 
that had not necessarily been anticipated. The Group was also concerned with the scope of the 
TFS, which was extremely broad. In an area such as trade in services, it seemed inappropriate to 
simply fit the TFA -templ ate, which was only limited to customs procedures, to an entirely new 
services agreement. In addition, it was unclear whether there would be any long -term gains for 
African countries, as net services importers.  
3.39.   The African Group also ha d some specific con cerns relating to the mandate. It seemed as if 
only a sub -set of provisions reflected in the proposal  fell under the GATS Article VI :4 mandate.  The 
proposed TFS raised several questions since there was no negotiating mandate for many of the 
elements propos ed in the text. She sought clarification  as to the role of  Council for Trade in 
Services and its subsidiary bodies and how the proposed agreement would be dealt with . The is sue 
of going beyond the mandate  should not be taken lightly as developing countries  were asking for 
mandates to be adhered to in  the rules-based WTO. She expressed  concern  with the enhanced 
transparency obligations that went beyond GATS Article III. Even though the TFS had been  
intended to be a development -centered proposal, many African  countries, in particular LDCs, did S/C/M/130  
 
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  not have enough capacity or resources to comply with the proposed  transparency obligations . In 
addition, t he African Group ha d serious concerns about how the proposed TFS would impact 
Members' right to regulate. The provision on administration of measures (Article 3)  was extremely 
broad and appear ed to expand market access commitments Members ha d taken.  Provisions on the 
single window  (Article 3.1) , appeals and fast -track (Article s 3.5 and 3.7 respectively ), the 
opportuni ty to comment  (Article  2.2.) were difficult to comply with for many African countries.  
Issues like the preambular language, the scope and implications of the provisions on publication 
and availability of information  (Article 2), fees and charges  (Article  4), administration of ENTs  
(Article  5) and facilitating the cross -border flow of information  (Article  7) required further analysis.  
The African Group was  still in the proces s of examining the proposed TFS  more thoroughly and 
wished to reserve the right to o ffer more technical and substantive views at th e following meeting.   
3.40.   The representative of South Africa  indicated that her  delegation associated itself with the 
statement made by the African Group. South Africa had expressed its views on the proposed TFS 
Agreement bilaterally and in small group consultation s. She wished to share with Members her 
delegations' preliminary views. Some of the ele ments that the proposed TFS Agreement  sought to 
address were very important, particular ly those relating to Mutual Re cognition Agreements , as well 
as bringing more  clarity to issues  relating to mode 4. The term "t rade facilitation" had  until now  
only been understood to apply to goods and custom s-related procedures. Applying "trade 
facilitation" to trade in services was  an entirely new concept and undertaking. Once Members  had 
started talking about the trade facilitating elements of services, they had gone far beyond what 
was understood to be comprised by  the GATS Art VI: 4 element s. The proposed TFS demonstrated 
that servi ces trade was  very different from g oods trade.  
3.41.   South Africa was  not a demandeur in services and had made extensive services 
commitments in the Uruguay Round, on par or greater than many developed countries. South 
Africa had also submitted a substantial of fer in the D DA. South  Africa’s participation in the services 
discussions was  in large measure contingent on the lev el of ambition and outcomes in a griculture , 
in respect of domestic support, and in the context of a balanced DDA p ackage. The TFS proposal 
went far beyond South Africa's  existing commitments to include trade facili tating measures in ways 
that might  greatly extend the application of her delegation's existing market acce ss commitments. 
South Africa had  great diff iculty in embracing this idea and was also concerned that Members' 
respective starting points for the  discussion, in terms of existing levels of openness and 
commitments, were not at the same level. I n other words, the playing field was not level. There 
were many elements in the proposal that would be burdensome for South Africa;  and, as a net 
services importer, South Africa would see little gains from trade.  
3.42.   South Africa had also some specif ic concerns on the TFS proposal, including the fact that t he 
proposal was  extremely broad in scope and reach, as i t was much more than simply bringing 
clarity to existing market access comm itments. South Africa viewed the  proposal as regulating 
issues on mode 4 , and then  regulating many other issues that were  firmly in the realm of domestic 
policy -makin g and regulations, all under o ne proposed agreement. I n its current framing, the 
proposal appeared to introduce elements of investment facilitation and e -commerce. South Africa 
was not in a position to agree to introduce any n ew issue into the negotiation s. Her delegation was 
also concerned that there was  no mandate to negotiate most of the elements of the proposed TFS. 
Ignoring or g oing beyond existing mandates was  a matter of great concern to South Afr ica and 
many other Members. In the context of profound  transformations in the glo bal economy where 
many goods were  being traded as services, the proposal could have far -reaching and unintended 
negative consequences for many Members.  Her delegation would  need to  have much greater 
clarity on, and a  more precise  understanding of,  the implications of the TFS proposal on the scope 
and depth of the existing GATS commitments  before further considering any new rules as 
suggested in the TFS proposal.  
3.43.    The representative of Colombia  said that his delegation was still r evising the proposal in 
capital. Colombia supported any initiative to strengthen and deepen multilateral disciplines on 
trade in services, as it firmly believed that it was a matter of priority interest for developing 
countries. By way of general comment, he noted that the proposal incorporated elements that 
seemed to go beyond the scope of services discussions, such as those contained in section II on 
development provisions. Therefore, Members could consider having a dedicated session to discuss 
the propos al in its entirety . On the substance, Colombia had some preliminary comments and 
questions. With respect to Article  1 (scope and definitions) , it seemed appropriate to have a 
transparency  provision applying to all measures . However, going beyond the specif ic commitments S/C/M/130  
 
- 13 - 
 
  undertaken by Members  in the case of  Article 8.2 seemed less clear considering that its scope 
would go beyond services providers . He sought further explanation from India on the envisaged 
scope of application of its proposed agreement . Besid es, the definitions  seemed to be very  specific 
and they could hold back discussions on the proposal.  As to publication and availability of 
information  (Article 2) , this incorporated discussions that were taking place in the WPDR, which 
were progressing ade quately. In his delegation's view, discussions on those aspects should take 
place in parallel, and the focus in  the Council should be on additional eleme nts not dealt with in  
the WPDR , to avoid hamper ing the progress reached within that body. In Colombia 's view, 
Article  3 on administration of measures should be revised to incorporate flexibility language , 
considering that Members had different legal systems and levels of government .  
3.44.   On fees and charges (Article 4), the obligations should focus on the possi ble negative effects 
derived from fees and charges rather t han on the structure or criteria used to determin e them. 
Colombia saw value -added  in having a provision on the administration of economic needs tests 
(Article 5) . Regarding cross -border flow s of information  (Article 7) , his delegation was a supporter 
of this type of obligations to facilitate business development , provided that a balance was struck 
between allowing the cross-border flow s of information and data protection.  Discussions on those 
issues , which had taken place in the context of the different communications submitted by 
Members on e -commerce, had proven to be sensitive for some Members. Therefore, he wished for 
India to elaborate on the differences between their proposal and the issues add ressed in the 
discussions on e -commerce. Colombia also wished to better understand  Article 8 on facilitating 
consumption abroad , particularly its objective and scope of application . In his delegation's view, 
the proposal went beyond the scope of the GATS a s it did not focus on services providers. To 
conclude, his delegation was interested in continuing with substantive discussions on the proposal 
and invited India to take into consideration Members' suggestions in order to make progress 
towards a balanced o utcome in the near future.  
3.45.   The representative of Chinese Taipei  indicated that her delegation appreciated the series of 
papers submitted by India, which identified some of the challenges faced by services suppliers in 
the current environment, as well as India's ambition in seeking to facilitate the participation of 
developing Members, and especially LDC Members, in trade in services. H er delegation wished to 
seek clarification from India on a number of aspects. First,  cross-border , or tourism , insurance was  
usually provided by private insurers ; as regarded Article 8.1 , therefore,  she sought clarification 
from India on the role th at governments could play in that  regard, and on what grounds they could 
make such a request to insurance service providers. In the  same vein, as the expeditious 
processing of immigration formalities for consumers seeking medical services pertained to 
Members' immigration frameworks and visa management (Article 8.2) , Chinese Taipei had 
concerns as to whether such access was covered by  the GATS Annex on Movement of Natural 
Persons Supplying Services .  
3.46.   Second , many Members were  of the view that implementation and administration of 
economic needs tests belong ed to their policy space and were  related to their willingness to make 
specific c ommitments. As such, this issue should be discussed together  with the market access 
issue and the CTS S pecial S ession might provide  a better forum.  
3.47.   Third, on facilitating the cross -border flo w of information, India had proposed  that Members 
should not imp ose barriers to the flow of information merely because th e measures adopted by 
another Member were different  from their own. In her delegation's experience , a government 
might  limit the transmission of personal information internationally where the country  receivin g 
the personal information lacked  the proper regulations on the protection of personal information, 
and it might harm the rights and interests of the party concerned. She sought clarification from 
India on the intended meaning and definition of th e word "different " in the context of the proposal.  
3.48.   Last but not least, th e proposal related to several GATS provisions  and some elements went 
beyond the GATS mandate . India had submitted its proposal in the  Council, the WPDR and the CTS 
Special Session . She invited India and other Members to give careful consideration to wh ich would  
be the best forum for future discussions.  To conclude, her delegation would be pleased to continue 
the dialogue with India and other Members  on this matter . 
3.49.   The representative of Switzerland  said that his delegation was still reviewing the proposal 
but welcomed  the idea of a services counterpart agreement to  the TFA, to  reduce regulatory and 
administrative burden  in trade in services . Switzerland had always placed a high importa nce on the S/C/M/130  
 
- 14 - 
 
  full implementation of the GAT S mandate under Article VI:4. Echoing previous comments , several 
elements of the proposal were potentially sensitive and had  to be analyzed and discussed 
carefully. Instead, other elements stay ed within the mandate.  In Switzerland 's view,  the DR -
elemen ts of the Indian proposal should  reflect at least the elements mandated by the GATS. In 
particular, the "necessity test " did not seem  to have been addressed in the proposal.  
3.50.   The representative of Turkey  stated that the  Indian proposal touche d upon several areas of 
interest to developing countries , such as movement of natural persons (Article 9) and cross-border 
insurance coverage (Article 8.1) . Turkey was a proponent of strong disciplines in the above -
mentioned areas an d, therefore, stood ready to continue discussions on the proposal. In this 
regard , Members should start discussions as soon as possible through either informal meeting s or 
dedicated sessions, if so agreed by the Membership, and on an article -by-article bas is, addressing 
the proposal as a whole. As some provisions required more brainstorming, Members could work on 
the language through informal meetings. D espite the fact that Members had diverse interests in 
different aspects  of the proposal, discussions should address  the proposal as a full package , due to 
its balanced nature.  In order to facilitate the process, Turkey suggested that all Members send 
their comments on the proposal in writing to the Secretariat within a certain deadline, to be 
decided by Membe rs. 
3.51.   The representative of Argentina  stated that his delegation was still reviewing the proposal , 
which could serve as a basis for future discussions , and viewed the document as evolv ing over 
time. In that sense, he thanked India for taking into considerati on some comments made by 
Members on its Concept Note and Elements Paper, such as the inclusion of flexibility lang uage in 
the text of the proposal  (e.g. "to the extent possible", "as far as practicable"). The fact that the 
TFS Agreement included  references  to the TFA was positive, although the language required 
further refinement. Argentina hoped that India would take into account comments on this matter.  
3.52.   His delegation also had some specific comments. On Article 2, paragraph 1.1(d), the 
reference to "norm al" time -frame posed some difficulties to his delegation , given that in Argentina 
there was not specific time -frame for processing applications , particularly given that relevant 
decisions  could be subject to review . In his delegation's view, the inclusion of the phrase "to the 
extent practicable and in a manner consistent with existing  law" would  provide the needed 
flexibility  considering the differences in Members' legal systems. On cross -border data flows, at 
first sight Argentina had no difficulties with  that provision. However, further discussion was needed 
in order to take account of an adequate system of personal data protection.  Articles 8.1 (cross -
border insurance coverage) and 9 (facilitating the movement of natural persons) were under 
review in cap ital and he would revert with comments at a later stage . To conclude, Argentina 
considered that the document provided a basis for discussion, but further work on the text was 
needed.  
3.53.   The representative of Chile said that his delegation appreciated the fact  that such a n 
important actor of  the international trade scene, particularly in  trade in services, took to  actively 
promote the WTO services agenda. His delegation was still reviewing the proposal.  Given the 
diversity of issues covered and the questions ra ised by several Members, he sought clarification 
from India on how it was planning to work with Members in order to build consensus and achieve 
concrete results at MC11. He also wished to seek clarification as to whether , in India's view, there 
should be a  link between the discussions taking place on its proposal and those held on other 
proposals submitted by other Members in the WPDR.  In particular, he asked whether  India view ed 
them as two separate proce sses, or instead as proce sses dependent  on each othe r. 
3.54.   The representative of Uganda  speaking on behalf of the LDC Group , said that the Group was 
still holding consultations on th e proposal and reserved the right to revert to it. The LDC Group 
welcomed the use in the proposal of agreed ad referendum language  text on special a nd 
differential treatment from the 2009 and 2011 WPDR Chair's text , and encouraged all other 
proponents to follow India's example. Some provisions, such as reduced fees and charges for 
developing countries (Article 11.3) , were inspired by  elements in the LDC collective request. He 
pointed out, however, that such reductions should be preferential in favour of LDCs, as they would 
help LDC service suppliers compete with suppliers from countries that had capacity and resources. 
Similarly, mode  4 suppliers  on temporary contracts  from LDCs should not be charged social 
security deductions . The proposal also addressed market access barriers for mode 4 suppliers, 
such as multiple entry visas and a possible  GATS visa , which w ere of interest to LDCs. He enquired 
as to the rationale for making the provisions of Articles 2 ( publication and availability of S/C/M/130  
 
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  information) and 8.2 ( emergency a uthorization) apply to a wider scope of measures , i.e. 
irrespective of the existence of specific commitments , than oth er articles. He asked whether the 
entire sector would be captured by the disciplines of the proposal if only a subsector had been 
scheduled by a Member. Regarding the single window (Article 3.1), he enquired  whether a single 
window w as operable in services  where a number of competent authorities were involved in 
making decisions and asked if India had conducted any cost analysis of how such a single window 
could work . He enquired whether  including market access issues , such as ENTs, as well as modes 
1, 2 an d 4, modified the architecture of the GATS and flexibilities for developing countries, as 
stated in GATS Articles IV and XIX.  
3.55.   The representative of Mexico  noted  the relevance o f the elements contained in the proposal 
and res erved the right to comment at a later stage , as the proposal was still being examined in 
capital.  Mexico view ed with interest some of the elements contained in the proposal , as they 
address ed some of developing country Members' interest s, such as mode 4. Mexico would be 
interested in hol ding bilateral consultations with India, and would come back with detailed 
comments  in the future .  
3.56.   The representative of China  noted  the importance that India attached to the rule -making 
function of the multilateral trading system and reserved the right t o revert to the proposal with 
specific comments in the future.  
3.57.   The representative of Uruguay  stated that  the Indian proposal was interesting and that it 
would be helpful to work on the basis of a concrete text. Uruguay was still reviewing the proposal 
in capital, but had some preliminary comments.  Several elements o f the proposal raised complex 
issues,  such as the relationship with the GATS . Therefore, more technical analysis and discussions 
on the  scope of the proposal  were needed.   
3.58.   The representative of New Zealand  said that h er delegation was still reviewing the proposal . 
New Zealand certainly agreed  broadly  with India that , while the TFA and its recent entry into force 
was obviously great news, it was  only part of the picture.  Services policy and market access were  
potential drivers of economic growth and employment in all countries.  Services and goods were  
intertwined in value chains, and a comprehensive approach to facilitation of trade in both goods 
and services required  effort to facilitate trade in s ervices and remove barriers in this domain.  After 
significant outcomes at recent Ministerial Conferences in the goods area in the form of the ITA II 
and the  TFA, New Zealand  agree d that it was  time for services to catch up and welcome d the 
interest from In dia in advancing the services agenda.  As part of what Members might do in 
services, domestic regulation disciplines were  important to facilitate uptake of market access 
opportunities.  These were  important good governance disciplin es in their own right, and  after 20 
years of discussion in the WPDR , Members should be able to make some progress at MC11.  
3.59.   New Zealand  welcome d the emphasis placed on publication and availability of information.  
India had  been inspired by the TFA text , rather than the papers under discussion in the WPDR , so 
the presentation on transparency disciplines was in a format that had not necessarily been seen 
before i n the services context, but her delegation would  continue  to analyse th e issue in capital . 
She had a number of preliminary qu estions  and welcome d the opportunity to find out mo re from 
India at that juncture . For example, she found the scope of India 's proposal somewhat challenging.  
Well-known d isciplines on domestic regula tion in the sense of Article VI: 4, i.e. measures related to 
licensing and qualification procedures, licensing and qualification requirement s and technical 
regulations, were  mixed up with disciplines relating to other "requirements and procedures ", which 
were very broad in scope . Besides,  some elem ents of Art icle VI:4 were missing and, in that regard, 
she sought clarification from India on  the underlying reasons . 
3.60.   Other areas, such as data flows, had  been the subject of some discussion in the WTO, but it 
had not been possible to find  any consensus, especially given  the high level of ambition proposed.  
She requested India to explain further the rationale  behind those  aspects  of its proposal. While 
New Zealand was interested in mode 4, this was  a sensitive area , and the proposed disciplines 
would  not necessarily lead  to greater liberalisation as they  could be administratively burdensome  
and even encourage Members not to go beyond their GATS commitments in their applied regimes.  
She sought  explanation of  the underlying problems  that India  was seeking to address . Besides , as 
noted by other  delegations , there were  other elements in the proposal that were  entirely new to 
services discussions in the WTO.  Finally, there were  some obvious elements m issing from the 
Indian proposal ; for example, one could have expect ed greate r mode 3 coverage given the role of S/C/M/130  
 
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  this mode as a facilitator for tr ade in both goods and services.  She looked forward to further 
engagement with the Indian delegation in response  to the questions raised.  
3.61.   The representative of Peru recalled the intervention made by his delegation at the meeting 
of the WPDR  on 14  March . In the WPDR , his delegation had recognized the importance of 
promoting the discussion o f some elements contained in India's  proposal , such as the 
administration of economic needs tests  (ENTs) , data fl ows, and mode 4, among others. These 
were topics of interest to  Peru. However, as the proposal tried to integrate various specific 
disciplines into one text, such as ENTs (Article 5), mode 4 (Article 9), e-commerce (Article 7) and 
domestic re gulatio n (Articles 1, 2, 4 and 6), it might be difficult to achieve  results in the short -
term.  Peru sought tangible results at  MC11, particularly in the area of domestic regulation.  
3.62.   The representative of El Salvador  requested the Council to include the statement made by 
her delegation in the WPDR  meeting . In the WPDR , she had stated that it was unclear how to 
proceed in the situation of several proposals seeking to achieve the same outcome  and enquired 
whether the discussions should focus on a single text or proce ed in parallel. On the substance of 
India's proposal, El Salvador  consider ed it to be a positive initiative which c ould serve as a basis 
for discussions. She pointed out that services  accounted for  a significant 65%  of El Salvador's 
GDP. In relation to  the coverage  of the proposal , it was important to reiterate the GATS principles , 
such as the r ight to regulate,  affirmation of policy space and application only to commitments. The 
proposal should be accompanied by flexibility stating that obligations shall a pply "in accordance 
with Members'  legal systems ". She had doubts regarding  several elements included in  Articles 4  
("Fees and Charges "), 5 ("Administration of Economic Needs Tests "), 6 ("Provisions pertaining to 
Recognition "), 8 ("Facilitating consumption abroad ") and  9.3 ("Social Security Contributions "). She 
believe d that th e agreement should follow the same approach as the TFA in relation  to special and 
differential treatment  (Article 11) . The possibility should be maintained for  every developing 
Member to designate those measures that it was able to  apply immediately, those that could be 
applied during a transition period , and those for which compliance required technical assistance in 
different categories.  A transition period , as proposed  by India,  might prove insufficient for such an 
agreement.  
3.63.   The representative of Norway  noted that the proposal was very comprehensive and was still 
being considered in capital. She requested the Council to include in t he minutes the statement 
made by her delegation in  the meeting of the WPDR. In that meeting, she had noted that there 
were many similarities between the Indian proposal and other proposals on the table, such as 
"Transparency " and "Administration of measures ", and enquired how India saw provisions on 
develop ment of measures currently absent from the proposal. She stressed the point previously 
made by her delegation, that social security (Article  9.3) and medical insurance (Article 8) issues 
were not open for negotiations. Those provisions, together with Artic le 7, required further analysis 
and discussion with India. She welcomed India 's decision to derive certain elements from the 2009 
WPDR Chair text, including definitions and disciplines on qualification and licensing requirements. 
As rega rded special and differential treatment (Article  11) and technical assistance (Article 12), 
she noted that those disciplines did not come from the 2009 Chair 's text. Regarding 
implementation, she suggested splitting Members in categories A (those that could implement the 
agreement at entry into force),  B (those with phased -in implementation) and C (those who needed 
technical assistance in order to implement the agreement), as in the TFA on goods. She noted the 
similarities between the wording of the institutional arrangements  provision (Article 13) and the 
corresponding provision of the TFA.  
3.64.   The representative of Australia  welco med the leadership role that India was  playing to push 
forward the services negotiation agenda . Before Australia could consider a text for a Trade 
Facilitation Agreement for Services, it was necessary to build a common understanding on some of 
the fundamental questions, including: What existing or future problem would a trade facilitation 
agreement for services solve? Would establishing rules on service s trade facilitation in the WTO 
solve the problems identified? What were the costs imposed by government regulation on services 
trade, and were those costs reasonable? Lastly, how would the known sensitivities of services 
negotiations  be avoided ? 
3.65.   The TFA w as aimed at reducing the red tape created by border formalities for goods. A TFS 
Agreement presented different and more complex challenges. Services trade facilitation was not a 
matter of simply streamlining requirements and procedures. The issues or barri ers to facilitating 
trade in services were not in the form of border formalities ; rather they existed behind the border S/C/M/130  
 
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  in the form of measures embedded in domestic regulations, laws and policies. To ask Members to 
rationalise fragmented regulatory environ ments to reduce compliance burdens for service suppliers 
would necessarily touch on sensitivities in relation to the right to regulate and to rules that 
prescribed particular regulatory approaches. Members should not detract from efforts to 
implement the T FA, particularly higher ambition notifications.  Implementation of provisions of the 
TFA would also assist with trade facilitation in services, for instance, single window and publication 
and availability of information , including electronically. Australia was interested in exploring what 
could be achieved in a future TFS negotiation, as some initial, proactive, exploratory discussions of 
trade rules to facilitate services trade were required. In the many consultations that her delegation 
had undertaken with  many Members to progress work in the WPDR, delegations inevitably end ed 
up talking about the relationship with the TFS and how a TFS Agreement would build on WPDR 
disciplines. From those discussions, it was clear that there was no common view on what a TF S 
Agreement should aim to achieve, what should be included or not included, and how to progress 
TFS discussions. She welcomed India’s proposal as a way to start discussions  with the 
Membership . Like many other Members, her delegation was still trying to un derstand the proposal 
and had some questions about some of the concepts raised in the in.  
3.66.   Australia wished to have a clear understanding of the scope of the proposal. As mentioned 
by India, with the exception for Articles 2 and 8.2 which appl ied to all ser vices sectors, its proposal 
was intended to be limited to Members’ existing GATS commitments. However, this was not clear 
from the text, which seemed to be much broader as it referred to any sector where specific 
commitments were undertaken and there did n ot appear to have any flexibility for scheduled 
limitations, unlike the kind of language that had been used in the WPDR. She had a number of 
questions on the intended scope of the proposal. For instance, i f a Member had scheduled 
commitments just for inter national legal services, would India’s proposal also apply to domestic 
legal services  or engineering services? If a Member had scheduled commitments with unbound for 
mode 1, would  India’s proposal apply to cross -border trade for those services? If a Member  had 
scheduled horizontal limitations, for example, setting out conditions on foreign investment, would 
India’s proposal apply to investment that fell outside those conditions? If the answer was in the 
affirmative, the scope of “in sectors where specific c ommitments are undertaken” was very 
ambitious, unlike the limited scope of the other WPDR proposals.  
3.67.   Australia welcomed India’s interest in negotiating ambitious disciplines on cross -border data 
flows. Facilitation of free flow of data across borders was c ritical for ensuring meaningful supply of 
mode 1 services. Her delegation noted the high level of ambition in the proposal and was 
interested to see that India had made a TPP -plus proposal. She was interested in better 
understanding how India’s proposal wo uld deal with other public policy objectives related to data 
flows. For Australia,  privacy was one important consideration, although she was still trying to 
understand the approach India had taken and how this would work in practice. There were many 
other elements that would also need to be considered as part of an appropriately balanced 
outcome on data flows, including how to deal with government information, consumer protection 
and localisation of computer facilities. Therefore, Australia considered data flows to be an essential 
part of e -commerce discussions. From what had been heard from Members, for many it was too 
early to discuss the sort of comprehensive disciplines that would be needed to address data flows. 
Her delegation looked forward to getting into those discussions in the future and she was pleased 
to see India taking such a lead role.  
3.68.   On the movement of natural persons, f acilitating the movement of skilled labour was crucial 
for service suppliers who wanted to build their business abroad or in crease their capacity and 
expertise in their own country. Lack of transparency in visa processes and outcomes, lengthy 
processing times, nationality and residency restrictions, economic needs tests (ENTs) and 
numerical limitations could all hamper services  trade. In this context, Australia would be interested 
to look further at how to facilitate services trade through movement of skilled labour, and had 
some initial questions about the mode 4 provisions in India’s proposal. While Australia supported 
increas ing transparency around the movement of natural persons, it was less clear how the 
proposal in 9.1.2 would facilitate trade. Strict requirements around visa categories for GATS 
commitments did not reflect developments in immigration systems and the facilit ation of skilled 
labour since 1994 and, therefore, they would seem to risk an outcome th at was less liberal and 
provided  less access. For many countries, this highlighted how out of date GATS commitments on 
mode  4 were in many cases, and raised the questio n of what Members could do to facilitate  the 
movement of skilled labour. For Australia, t he answer lay in facilitating trade in ways that were S/C/M/130  
 
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  relevant to service suppliers , such as  good regulatory practice and t ransparency in decision -
making.  
3.69.   There were a lso other elements that were critical to any discussion about trade facilitation in 
services and were missing from India’s proposal. For example, it was important to tackle 
localization and local content requirements across the board, not just those applyi ng to data flows. 
Australia would also see value in further focus on regulatory requirements for the establishment 
and operation of FDI. Examples of such barriers included , but were not limited to: (i) requirements 
to establish a joint venture with a local  partner in order to provide services; (ii) requirements to be 
a resident/national of the country in order to provide services; (iii) requirements to hire or train 
local workers; and, (iv) requirements to transfer technology or skills as a condition of ope rating in 
the country. The development of rules for services trade facilitation could not ignore such 
important issues. She thanked India for its continued efforts to start a discussion on TFS and 
looked forward to hearing views of other delegations , as mo re detailed ex ploratory discussions 
advance d, as to what and how Members could go about achieving services trade facilitation .  
3.70.   The representative of the European Union  indicated that h er delegation had only preliminary 
comments , as internal consultations were on -going . The European Union welcomed India's agenda 
for pushing forward a services agenda at the WTO, and shared its asses sment that trade in 
services could  be facilitated by global rules and multilateral regulatory disciplines . Her delegation 
agreed  with India that the overarching notion of trade facilitation for service s was valuable and 
promising, but, as stated in previous meetings, there was no need to work towards a formal 
agreement. The proposal could provide a valuable umbrella covering a univ erse of issues relating 
to trade in services to work on by MC11 and beyond , without recreating the constraints of  a single 
undertaking. The DR pillar was an important part of such a flexible umbrella that could be 
complemented by other elements subject to discussion. By combining different strands of 
negotiations that took place in their respective and appropriate environments, Members could 
potentially reach an outcome more rapidly , while achieving the same on substance. H er delegation 
preferred discussing  the substance of the proposal without prejudice to the format of the final 
outcome. The proposal was a useful contribution to DR discussions that would need to move 
toward s horizontal elements , as per the mandate of GATS Article VI:4  in the WPDR . 
3.71.   Moving t o the other non -DR elements of India 's proposal, he acknowledge d the str ong e -
commerce component of the  proposal. By proposing legally binding rules on cr oss-border data 
flows, India had  tabled one of the first e -commerce text proposals ahead of MC11 . There was  
value in looking more closely at e -commerce related issues and reflecting about what kind of 
multilateral rules could be helpful. On the specifics proposed by India, he wished to understand 
better the objective, the scope and the implications of the proposal on cross -border data flows. In 
addition, the European Union sought further clarification s from India,  on the exceptions it was 
proposing, how its  proposal would be compatible with the necessary policy space to devise rules 
on the protection of pri vacy, how it would address the localisation requirements that exist ed in 
many Members and whether the latter w ould be eliminated by the  proposal.  
3.72.   The proposa l contained  a number of issues going beyond the boundaries of what trade 
policy should deal with an d touched  upon sensitive issues. The E uropean Union had  never made 
commitments regarding multiple entry visas or insuranc e portability in any of its free trade 
agreements , and did not intend to change its  approach on these sensitive issues in the future.  
Equally, negotiations of international agreements on social security coordination were  the 
competence of EU Member States, outside t he international tra de remit, and Member St ates 
already had  several such agreements i n place, including with India. She  was a lso interested in 
understanding India's intentions behind the recognition -related provisions, which based on the 
European Union's  experience, seem ed to be extremely ambiti ous in a multilateral context. T he 
European Union welcomed  the development component and was  open to consider ing a flexible 
approach, but it would be necessary  to understand the perimeter of the proposal and the intended 
disciplines first, before moving to a detai led discussion.  To conclude, a t that  stage, her delegation 
saw value in conti nuing the conversation of all the trade policy related aspects of this proposal that 
could generate consensus and facilitate trade in services, also on certain elements currently not 
covered by the proposal, for example those related to mode 3. She looked  forward to continuing to 
work with India and other WTO Members to advance the services agenda in the WTO.  
3.73.   The representative of the Kingdom of Saudi Arabia  thanked India for  the informal 
consultations , where her delegation had raised its concerns relating to market access. Her S/C/M/130  
 
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  delegation was still re viewing the proposal and reserved its right to come back with substantive 
comments at future meetings.  
3.74.   The representative of Cameroon  said that  his delegation  associated itself with the statement 
made by South A frica on behalf of the African Group.  As focal point of the ACP Group, Cameroon 
wished to focus his comments on the section related to  development provisions contained in the 
proposal. The relevant title seemed to be drawn from the TFA, however the special  and differential 
treatment provisions contained in the proposal seemed to take a step backwards. He sought 
clarification from India on t he approach adopted and why the special and differential treatment 
provisions contained in its proposal seemed to be less ambitio us than  those contained in the TFA, 
particularly light of Article 44 of the Doha Ministerial  Declaration, on  which the Group  wished to 
see concrete results at MC11 .  
3.75.   The representative of India thanked all Members for their comments and for engag ing in the 
discussion on its proposal. India would not be able to respond to each and every comment made 
or question raised by Members at that meeting . However, India would provide some  general 
responses  to issues raised in the WPDR on 14 March, as well to  some issues raised  in the Council . 
India promised to revert  with responses to the remaining questions at the next earliest 
opportunity , either bilaterally or otherwise .  
3.76.   On the scope of the proposed TFS A greement  and its inter face with the DR-negotiations ; the 
objective of the proposal was to comprehensively address the numerous border and behind -the-
border barriers across all modes of supply , which  imped ed the realization of the full potential of 
services trade . To that extent , India's proposal was broade r than the DR -elements under GATS 
Article VI:4, which only covered certain behind -the-border measures , such as qualification and 
licensing requirements and procedures , as well as technical standards.  While it was important to 
address behind -the-border barr iers, it was equally , and perhaps more , critical, to address border 
or entry related measures impeding services trade. For instance , in trade in goods, it would be 
meaningless to address non-tariff measures before addressing border or tariff barriers. Indi a's 
experience  in services trade suggested that , unless border  measures were disciplined, addressing 
behind -the-border measures , as identified in the WPDR negotiations , would not be commercially 
meaningful. Therefore, disciplines on both types of measures were needed and complemented 
each other. For that reason , India did not approach the issue by dividing the elements as DR -
elements and non -DR elements. India would urge Members to consider its proposal as an 
opportunity to respond to the challenges confron ted by trade in services in a comprehensive and 
collective manner. After all, the GATS applied to all measures affecting trade in services and, 
therefore, a framework to facilitate the GATS should logically also apply to all those measures, 
especially if they were an impediment to the supply of services.  India had borrowed heavily from 
the Australian proposal on the administration of measures, but had expand ed the scope of 
administrative requirements and procedures to include other types of authorizations , such as those 
related to data transfer and p rivacy, foreign investment screening and approval, ENTs and labour 
markets tests, social security and immigrati on formalities, in addition to qualification requirements 
and procedures and licensing requirements a nd procedures . The various disciplines proposed 
under the administration of measure, such as single window, application timeframe s, and 
electronic applications,  were relevant for all types of administrative requirements and procedures.   
3.77.   On the issue of mandate, India reiterated that its proposal comprehensively  address ed the 
numerous  border and behind -the-border barriers across all modes  of supply , on all iss ues 
contained in the GATS. The c oncept of trade facilitation was embedded within the GATS, in cluding  
in the Preamble and in various  provisions such as Articles III (transparency), IV (increasing 
participation of developing countries), VI (domestic regulation), VII (recognition), XIX (negotiation 
of specific commitments ), and the Annex o n Movement of Natu ral Persons  Supplying Services 
under  the Agreement. All these provisions addressed critical issues for facilit ating trade in services. 
India's  vision of trade facilitation was that it was a natural corollary to the GATS and to the 
commitments  made by Membe rs under the GATS framework . In other words , the TFS  was 
necessary to implement and realize the benefits from existing  commitments and future 
liberalization as well. The  proposed TFS should not be seen  as a new issue, rather as a framework  
to further  the services agenda of the DDA. In addition to the GATS, the draft proposal  was also 
inspired by other familiar sources, as explained by India in its presentation. The various 
impediments to trade in services particularly impede d the benefits for SMEs and small  exporters 
worldwide, especially from developing countries and LDCs. This was critical considering the S/C/M/130  
 
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  increasing importance  of services in global trade. Given that the TFA has entered into force, there 
was a need for a counterpart agreement on trade in se rvices.  
3.78.   As to whether the proposal was limited to specific commitments, India confirmed that, 
except for Articles 2 (publication and availability of information) and 8.2 (emergency 
authorizations), the proposed obligations would be limited to sectors wher e Members had 
undertaken specific commitments. The proposal was not about new market access, but making 
existing commitments more meaningful and effective. Members might note that the term "specific 
commitments" under GATS Article XX :1 meant commitments wi th the  "terms, limitations and 
conditions on market access" and "conditions and qualifications on national treatment". Therefore, 
it would not make legal sense to say that the TFS applied only to scheduled commitments and not 
to limitations , given that a s cheduled commitment  qualified by a limitation was not an absolute 
commitment. The exception in Article 2  (publication and availability of information) essential ly built 
on GATS Article III  and had been  made  applicable to all sectors , whether scheduled or n ot. 
Article  III:1 of GATS was a general obligation irrespective of commitments.  Article 8.2 (emergency 
authorizations) was also applicable to all sectors, whether scheduled or not.  This proposal aimed at 
facilitating consumption of services by stakeholders , such as patients, students  or tourists,  
consuming services in foreign jurisdictions . It was not directed at services suppliers  and, therefore, 
the provision was applicable across  all services sectors . Both provisions could h ave a powerful 
facilitating ro le and India looked forward to h earing Members ' views  on them. India could consider 
making Article 2 applicable only to scheduled sectors, unless the Members share d a vision for a 
higher level of ambition. Similarly, on Article 8.2, India looked forward to  hearing Members ' views 
on the usefulness of such provision for facilitating trade in services.   
3.79.   On whether India's proposal was only about facilitating trade in services or rather extended 
to market access, she confirmed that the proposal was only about services facilitation and not new 
market access. The TFS could and  should result effectively  in new market access, but this would 
be purely a functional effect of the facilitation obligations that had been proposed. In this context, 
some Members mentioned t he provision on ENTs and cross -border flow s of information. She 
wished to clarify that GATS Article  XVI allowed  Members to inscribe ENTs in the ir Schedules of 
specific commitments. The proposal aimed at having more clarit y and certainty on the use of ENTs 
and did not prevent Members from using them. The objective was only to help better understand 
the criteria and  procedures for administering ENTs. Similarly, the objective of Article 7 on cross -
border flow s of information was to ensure meaningful implement ation of existing commitment s 
under  mode 1. At the same time, the proposal recognized that privacy and  protection of personal 
data were important and that  such protection could be afforded through comprehensive privacy 
laws or sector specific  laws, or laws that provided for the enforcement of contractual obligations 
assumed by suppliers and recipients with regard to the protection of personal information. The 
latter was confirmed by global best practices and recognized by an important RTA recently 
concluded.  Therefore, and in accordance with the spirit of GATS Article XIV, while recognising that  
countries might take exceptions to restrict cross -border data flows on grounds of privacy and 
protection of personal data, they should not discriminate in the methodo logy applied for such 
protection. This provision was meant at facilitating t rade in services through mode 1 and should 
not be understood as subsuming e-commerce discussions  in the proposal , which had a different 
and much wider ambit.   
3.80.   On publication and av ailability of information  (Article 2 ), some Members had expressed  
concerns about the potentially expa nsive scope of th ose obligations . She wished to clarify that the 
Indian proposal was not necessarily more burdensome than the GATS. I n fact, GATS Article I II 
itself obliged Members to promptly publish information on all relevant measures of general 
application. However, India looked forward to hearing the views of Member s on the scope of this 
proposal .  
3.81.   On cross -border insurance coverage  (Article 8.1) , this provision was important to make 
commitments more meaningful. It did not require Members to make private insurance companies 
extend insurance coverage  for treatment carried out in foreign territories. However, it was 
important to ensure that there were no r egulatory bottlenecks on the part of the government and 
sectoral regulator in extending such coverage.  
3.82.   On social security contributions (Article 9.3), India appreciated the support shown by some 
Members, especially the LDC Group.  Indeed, this related to a  major barrier faced by Indian 
services suppliers working on short -duration assignments in foreign jurisdictions. She also noted S/C/M/130  
 
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  the reservation by some delegations to negotiate this issue. When a foreign service supplier was 
required to make social securi ty payments according to foreign laws and regulations, the issue did 
not relate to the provision of services, but to compliance with domestic rules by foreign services 
suppliers, which affected trade in services.  To that extent, the argument that the provi sion of 
social security was a service supplied in the exercise of government authority and, therefore, 
outside the scope of GATS, seemed not to be relevant.  It was not from the supplier perspective, 
but from a compliance perspective, that India had include d such provision.   
3.83.   On fees and charges (Article 4) , Members had expressed concerns on the proposal limiting 
fees and charges. She emphasized that the objective of that proposal was to ensure that fees and 
charges not be unreasonable , so as to became in the mselves a restriction on the supply of 
services. The TF A also had a broad provision  on fe es, including costs being limited to the 
approximate cost of the service render ed. The provision was qualified by a clear footnote on 
regulatory autonomy  for fees rela ted to natural resources, payments for auction, etc. Also, the 
proposal only sought to streamline fees and charges that directly  impaired the supply of services.  
On the "necessity test ", the Indian proposal did not include provision on the matter . This was  in 
line with the overwhelming view of the Members hip that obligations relating to necessity test could 
be burdensome and curtail regulatory independence. However,  India would reflect if the language 
of any of the draft provisions, such as those on verific ation and information request , needed to be 
reviewed, as pointed out by some Members, to confirm th at approach.  On technical standard s, the 
proposal contained no disciplines on such matter, except for a limited obligation on publication 
under Article 2.3. It was India's understanding that the majority of the Membership was not 
prepared to undertake disciplines on technical standards. However, her delegation would continue 
to engag e on discussions of  the relevance of DR -type provisions on technical standards .  
3.84.   On the applicability of the proposal to mode 3, she wished to clarify that , indeed , all cross -
cutting elements such as publication, administration of measures, fees and charges, administration 
of ENTs and recognition and cooperation, were extremely rele vant to facilitating trade through 
mode 3.  There was no separate exclusive provision on mode 3, but practically all TFS provisions 
would facilitate mode 3. India would welcome suggestions for inclusion of elements with a specific 
focus on mode 3.  
3.85.   Regardin g development and special and differential treatment (S&D) provisions, India 
acknowledged the importance attached to S&D provision by a large part of the Membership. The 
two options available were the one based on the WPDR Chair texts and the TFA. The S&D proposal 
had been drawn from the 2009 WPDR Chairman text. India acknowledged the support of many 
developing countries and LDCs for such proposal. In response to concerns  raised,  especially by 
developing countries , regarding a potential compliance burden , she noted that su ch potential costs 
should be reviewed in the context of the overall benefits that were  likely to arise from a 
comprehensive TFS Agreement.  Even the TFA had resulted in compliance burdens , but that  should 
not deter Members from  ratifying it . India requested Members to look at the bigger picture. In 
addition, the proposal included  some safeguard s that should lessen the compliance burden, such 
as relying  on a mix of mandatory and soft law obligations. The proposal also provided a transition 
period for developing countries  to implement the TFS A greement  whereas LDCs where not required 
to implement the agreement . Members might also recall India's unprecedented preference as part 
of the LDC Services Waiver that waived visa fees for all service supp liers from LDCs . The elements 
proposed by India should address the ideas ident ified in the LDC Collective Request and  the TFS 
should result in increasing LDC participation and services exports . As already mentioned, t he 
proposal reaffirmed the right to reg ulate and ag ain she confirmed that there were  no elements of 
the necessity test in the draft proposal. India look ed forward to further engagement from Members 
on that particular issue.  
3.86.   On the form of the draft TFS Agreement, India noted that some Members h ad expressed 
their support for the substance of the agreement but not for the "stand -alone " approach used in 
the proposal. Some Members had suggested separating the proposal 's elements into two groups, 
namely, "DR -elements" and "non -DR-elements" . As India envisaged its proposal as a counterpart 
to the TFA, it was in favour of having a stand -alone, comprehensive and collective agreement by 
the full Membership . Nevertheless, India welcomed the engagement of those Members that had 
different views on how to pro ceed with re gard to those elements that were  perceived as 
substantive non -DR elements.   S/C/M/130  
 
- 22 - 
 
  3.87.   In response to the question raised by Australia as to what was India's proposal about and 
how to get there,  she said that  her delegation proposed negotiat ing a comprehe nsive agreement , 
covering measures across  all modes  of supply , relating to both entry and border measures, as well  
as post -entry or  behind-the-border measures. The TFS  would provide a framework to make 
current and future market access commitments more mean ingful and effective.  India welcomed 
suggestions from Members identifying additional elements that could facilitate trade in services. 
How would Members get there? The response was simple: a draft legal text drawn  from various 
sources was being proposed for discussion by Members. As for the question on h ow to deal with  
sensitivities expressed by Members on issues such as mode 4, immigration, social security, cross -
border flow s of information and ENTs,  India was certainly not presenti ng a "take -it or leave -it" 
text, as its proposal was a draft for discussion. Her delegation was open to hearing ideas from 
Members, and also looked for support from the Secretariat, in taking the text -based discussions 
forward. India wished to further hear from M embers on sensiti ve issues , with a view to finding a 
common ground, as long as Members took an open approach and did not simply exclude those 
issues  from the discussion. Turkey mentioned that Members might be interested in some 
provisions , but it was important to hold disc ussions on the whole package. A few Members ha d 
expressed concerns on mode 4 and immigration issues, cross -border flow s of information and 
ENTs, while other s had expressed a strong interest i n discussing those issues. It was necessary to 
build common groun d.  
3.88.   On DR -specific issues, India recalled that some delegations, particularly the EU , Australia, 
Switzerland and Hong Kong, China, had requested specific clarifications on several proposals 
related to the scope of the proposal, in the context of the propos ed draft disciplines on publication, 
administration of measures, and especially on single window, appeal and review, information and 
verification requests , fast-track procedures, ENTs, recognition agreements . India was thankful for 
the detail ed comments re ceived from some delegations, which had revealed  careful consideration 
of the relevant provisions. India proposed to intensify discussions on  those issues with those 
Members in the coming days , in order to better unde rstand their concerns and discuss what 
changes to the draft proposal  could be required . India noted the very useful comments made by 
Brazil and would reflect on them, especially on MFN and Article V, flexibility for sub -national 
entities, single window, insti tutional provisions, etc. India also noted the comments made by South 
Africa and other Members. It was not India's intention to amend the GATS . The TFS would not 
amend the GATS as it was envisaged as a separate stand -alone agreement, complementing the 
GATS. As to the forum for discussions, I ndia had tabled its first two papers only at the WPDR, and 
the proposa l for a TFS Agreement  at the WPDR, the CTS and the CTS Special Session. Given that 
India was interested in a compre hensive outcome to facilitate trade in services, it considered that 
the forum from now on could be the CTS or the CTS Special Session, if Member s deemed the latter 
more appropriate. Her delegation looked forward to continuing  discussions on its proposal and also 
to engaging  bilaterally with interested Members. India w ould continue reflecting on the various 
comments and questions raised and come back with more thought s in the coming days.  
3.89.   The representative of Cameroon  wished to flag that India had not answered the question 
raised by his delegation. He indicated that Cameroon looked forward to getting a response from 
India on the question raised.  
3.90.   The Chairman  suggested that the Council take note of the statements made  and revert to 
this issue at its next meeting . 
3.91.   It was so agreed . 
4  ITEM D - CERTAIN MEASURES REL ATED TO THE REFOR M OF THE UNIFIED GAS  
TRANSPORTATION SYSTE M OF UKRAINE  
4.1.  The Chairman  indicated that the item had been added to the agenda of the Council at the 
request of the delegation of the Russian Federation.  
4.2.  The representative of the Russian Federation  recalled her d elegation's previous statements in 
respect of the measures taken by Ukraine in the energy sector . The measures at issue concerned 
the adoption and impleme ntation of the Law of Ukraine No.  1645-VII "On amendments to some 
legislative acts of Ukraine on refor ming the management system of the Unified Gas Transportation 
System of Uk raine", and the Law of Ukraine No.  329-VIII "On the Natural Gas Market" of 
9 April 2015.  S/C/M/130  
 
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  4.3.  Despite numerous concerns expressed on a number of occasions since November 2014, 
Ukraine had failed to provide any legal justification on the consistency of its  Law with  the 
fundamental principles of the GATS, namely the MFN and n ational treatment  obligations , as well as 
with Ukraine's Schedule of Specific C ommitments. The Russian Federation again  called upon 
Ukraine to change the pattern of its behaviour , embrace a more re sponsible approach and bring its  
Law in full conformity with its obligations under the WTO Agreement.  
4.4.  The representative of Ukraine  said that his delegation had fully taken  into account the 
concerns continually raised by t he Russian Federatio n at CTS  meetings. T hat day's statement 
related to the reform of the unified gas transportation system of Ukraine. He  stress ed that his 
delegation  adhered  to the principl es and rules of the WT O and made every reasonable effort to 
clarify the provisions of national legislation on the issues  raised , demonstrating respect for the 
transparency principle by providing  answers to the set of questions posed by the Russian 
Federation.  
4.5.  Furthermore , Ukraine reiterate d its willingness to cooperate and to ensure clarity with respect 
to its obligations under t he WTO A greements . He drew Members' attention to the fact that no 
questions on that  matte r had been omitted or left unexplained. In respect of Ukraine' s oblig ations, 
his delegation  was ready to provide fur ther clarifications and explanations regarding the concerns 
raised  by the Russian Federation regarding the Law of Ukrain e "On the Natural Gas Market" of 
9 April 2015 , and other laws and regulations , in a reasonable period of time aft er receiving written 
questions. Finally, he  assure d the Council  that Ukraine remained  strictly commi tted to respond ing 
promptly to legitimate concerns raised on that issue by interested M embers.  
4.6.  The Chairman  suggested that th e Council take note of the statements made.  
4.7.  It was so agreed . 
5  ITEM E – WORK PROGRAMME  ON ELECTRONIC  COMMERCE  
5.1.  The Chairman  recalled that, at the November meeting , the Council had agreed, in principle, 
to hold a  seminar on e-commerce  as proposed by Chinese T aipei and co -sponsors. The Council had 
also agreed to  task t he Secretariat with the preparation of a draft programme that would reflect  all 
of Members'  comments and  concerns.  However, Members' agreement was conditioned on the 
Council approving  also the  proposal for a nother seminar , on mode 4 . Given that the  proposed 
seminar on mode 4 would be taken up under another agenda item,  and that in the case of the e -
commerce seminar Members had an "in principle" agreement, he suggest ed suspending the 
discussion of t his issue and reverting  to it after the mode 4 agenda item.  
5.2.  He then  invite d any delegation wishing to share information  with the Membership  under  the 
"exchange of information and experiences"  sub-item, to do so  at that juncture . As no delegation 
took the f loor, he suggested moving  to the four communications on the e -commerce Work 
Programme . In light o f the distinct elements that were  addressed in each paper , and in the 
interest of a fuller discussion, he suggested  that the Council  take up each submission in  turn.  
5.1  "Electronic signatures" (JOB/SERV/247)  
5.3.  The representative of Brazil  indicated that  the proposal had been subm itted, within the 
realms of the Work Programme , to the General Council and the four relevant subsidiary bodies. 
The proponents understood  that the issue of electronic signatures might be of a cross -cutting 
nature . However, the proponents  were not in a position to assume that it was the case indeed and, 
therefore , the proposal had been  submitted to the four subsidiary bodies. Electronic signat ures had  
been identified as a relevant issue for e -commerce  discussions . They  constituted one way of 
ascertaining a digital  identity.  In their  digital version, electronic signatures produce d the  same 
legal effect as written signature s due to the use  of digital certificates that  enable d the correct 
identification of the signature 's owner . Digital certificates , produced by authorized and registered 
providers , enable d third parties to ascertain the  authenticity of a signature and detect any fraud  
associated wi th it. As in the case of regular analogical identity , digital certificates enhanc ed the 
security of electronic tr ansactions in general.  
5.4.  The most important cross-cutting aspect  of digital signatures was that, as they enhanced  the 
security of electronic tra nsactions in general , they  were a powerful enabler of e-commerce in S/C/M/130  
 
- 24 - 
 
  different formats . For example, a  seller could  be sure about the identity of a buyer, if that  buyer 
was doing the purchase using a digital certificate  in the digital environment . Therefore , digital 
certificates  functioned as a sort of insurance regarding the digital ide ntity of the person on the 
other side of the electronic transaction . 
5.5.  One of the  most interesting uses of digital certificates , which was also very relevant to other 
discussio ns taking place at that moment  in the WTO, related to e-government. The use of digital 
signatures could enhance the quality of the relationship between government and consumers , or 
government and business es, in general , as government s would be sure about the identity of a 
person supplying information electronically . Some concrete examples include d electronic 
submissions or portals, as discussed in the c ontext of the Indian  proposal on a  Trade Facilitation 
Agreement for Services and other proposals . If the government had  legal certainty as to the 
identity of the person uploading documents , that would  increase  the quality of whatever system of 
electronic applications  Members might put in place, be it a single window  or any system of 
upload ing documents . The te xt contained in the submission had been negotiated among 
developing countr ies and constituted a negotiat ed outcome . The solution found in MERCOSUR to 
electronic signatures could  provide useful  input to  the discussions on e-commerce in the WTO .  
5.6.  All delegat ions who took the floor  thanked Brazil and the other co-sponsors for their proposal.  
5.7.  The representative of the European Union  said that h er delegation view ed the issue of 
electronic signatures as one of the topics on which progress could be made at the WT O. The 
submission and explanations were  very useful for the WTO's technical discussions on potential 
work on e -commerce.  Although suitable for bilateral or regional context s; the submission  certainly 
provided a good basis for assessing what could be achiev able in this area in the multilateral 
context in the future.   
5.8.  The representative of Hong Kong, China  said that his delegation had long supported  
discussion s on e -commerce.  His delegation  recognise d that electronic signature s were an 
important building bloc k for the development and further advancement of e -commerce by ensuring 
authenticity, integrity and confidentiali ty of online transactions. Development in this area was  
useful for fostering business es and consumers ' confidence in engaging in e -commerce.  He 
welcome d further discussion s in this area.  
5.9.  The representative of Chile said that h is delegation was convinced that discussions on e -
commerce should be held in the WTO and, therefore, we lcomed sharing regional and national 
experiences , as this could help to move deliberations forward . In Chile's view, the issue of 
electronic signatures was an important topic , on which progress could be made in the WTO given 
that it was less sensitive  for the Members hip. He invited other delegations to contribute 
constructi vely to the discussions.   
5.10.   The representative of Australia  welcomed  the discussion s on e-commerce and the various 
communications  submitted by the Members . Her comments focused more broadly on the issues 
raised in the various p apers, including the paper on e lectronic signatures. E-commerce was  a 
powerful driver of international trade, inclusive economic g rowth and development. Her delegation 
considered that the WTO could  contribute to trade -related aspects of e -commerce to the benefit of 
the entire Mem bership . Australia encouraged  Members to consider what progress on e -commerce 
could be made in the short term , including at MC11. This would not only help to ensure that all 
Members  better capture d the oppo rtunities offered by e -commerce , but would also signal th e 
WTO's continuing relevance in today 's rapidly evolving global trade environment. Australia 
acknowledged  that e-commerce was  a fundamental part of  global trade in services. It was  also 
widely accepted that GATS provisions a pplied  to aspects of e-commerce.  She would focus on some 
particular aspects of e -commerce, which were raised in the papers and related to trade in services, 
and particularly on issues in which the WTO could take action in the short term.  She acknowledge d 
that some of tho se elements might  also be relevant to other aspects of international trade, 
including trade in goods.  
5.11.   Electronic signatures a nd electronic authentication were  referred to in several papers for 
discussion  at that meeting , including the communication on "Electronic Signature s"; the mapping 
exercise s et out in the communication on " Trade Policy, the WTO and the Digital Economy" ; and 
the communication on " Aiming at the 11th Ministerial Conference" . By ensuring the authenticity 
and integrity of  online transactions, and  by reduci ng transaction costs, electronic signatures, S/C/M/130  
 
- 25 - 
 
  electronic contracts and electronic authentication methods facilitate d both domestic and cross -
border e -commerce. Appropriate domestic  legal frameworks were  required to ensure the 
recognition and validity of ele ctronic signatures and electronic authentication methods.   
5.12.   In Australia, uniform electronic t ransactions legislation provided  certainty for el ectronic 
transactions and allowed e -commerce to ope rate on the same basis as paper -based commerce. For 
example, th e Electronic Transactions Act 1999  allowed  a person to satisfy a legal requirement for a 
manual signature by using an electronic communication. The Electronic Transactions Act  was 
technologically neutral so it did  not set out a particular electronic signat ure tech nology to be used. 
This provided  flexibility for people and businesses to determine the signature technology that was  
appropriate to their particular needs. The Electronic Transactions Act  was based on the UNCITRAL 
Model Law on Electronic Commerce (1996).  
5.13.   Australia had  also made various commitments under its regional t rade agreements with 
respect to electronic transactions, electronic authentication and electronic s ignatures. Those 
commitments, which varied across a greements  and were subject to som e exceptions, include d: 
providing  assurance that  the legal validity of a signature was not denied solely on  the basis that 
the signature was  in electronic form; providing that a transaction , including a contract , was not 
denied legal effect, validity or en forceability solely on the grounds that it was  in the form of an 
electronic communication; allowing parties to an electronic transaction to mutually deter mine 
appropriate authentication  methods for a transaction; and allowing parties to establish before 
judicial or administrative authorities that their transac tion complied  with legal requirements 
relating  to authentication.  
5.14.   Another element identified in some of the papers that facilitated  electronic commerce and 
trade in services was  the moratorium on custo ms duties on electronic transmissions.  The 
moratorium on customs duties provide d certainty for consumers and businesses of all sizes 
engaged  in international online tra de. Given that some Members had  agreed not to impose 
customs duties on electronic t ransm issions in regional trade a greements, it was  important to 
ensure that the cus toms duties moratorium continued to apply at the  multilateral level, so that 
customs duties were  not imposed with respect to some electronic transmissions, potentially 
disadvantag ing MSME s' participation in global trade. To provide greater certainty to consumers and 
businesses, Australia encouraged  Members to extend the period of the customs duties moratorium 
beyond the current two year cycle or to make the moratorium permanent.  
5.15.   Australia also considered that there were  several other issues identified in the papers, 
including in the mapping paper, which  facilitate d e-commerce and trade in services. The 
Membership should engage in further discussions on these issues and share nationa l experiences 
with a view to considering possible options for action in the WTO in the longer term. Her 
delegation appreciate d India's ambitious approach to proposing strong disciplines on data flows in 
its Trade Facilitation Agreement for Service s proposa l. However, her delegation understood  that, 
for many delegations , issues such as data flows and location of computing facilities require d more 
preliminary discussions to build understanding and comfort. These issues should also be 
appropriately balanced by  public policy considerations , including , but not limited to , privacy  as well 
as other consumer  confidence -enhancing measures. She looked forward to delving i nto these 
discussions in the Council  to inform what Members could do in the longer term, as well a s on 
hearing from other Members on how the WTO could  further facilitate e -commerce.  
5.16.   The representative  of Canada  said that electronic authentication had  been raised by a 
number of Member s as an area of interest . It was explored in detail in the paper from  Argentina, 
Brazil and Paraguay , which provided  their collective experience and a useful basis for technical 
discussion s.  
5.17.   Canada had  opted for a less prescriptive approach to electronic authentication.  In May 
2004, Canada released its Principles for Elect ronic Authentication , which were developed through a 
multi-stakeholder working group  including representatives from industry, professional associations, 
consumer groups and various levels of government.  The principles , which were reaffirmed in 2009, 
were designed to function as benchmarks for the development, provision and use of electronic 
authentication services in Canada. They were  intended to form the basis of codes of conduct, 
voluntary initiatives and guidelines tailored to the requirements of specifi c industries and 
government. For individual and business users of authenticat ion services, the principles were  
intended to be a useful source of information and benchmarks against which to evaluate services S/C/M/130  
 
- 26 - 
 
  offered in the marketplace.  The principles addres sed six areas:  (i) the responsibilities of 
participants;  (ii) risk management;  (iii) s ecurity;  (iv) privacy;  (v) d isclosure requirements; and  
(vi) complaints handling.  Canada 's approach for electronic authentication allowed  contracting 
parties to use solut ions tailored for their circumstances and did  not impose burdensome regulatory 
processes.  His delegation would be happy to share more information on its approach to electronic 
authentication.  
5.18.   The representative of New Zealand  said that the  proposal p rovide d a concrete example of 
electronic signatures as an e -commerce regulatory discipline that had been agreed among st a 
group of  developing countr y Members  and facilitated  trade. Her delegation considered useful the 
approach of sharing  experiences on e -commerc e disciplines contained in Members' domestic 
regimes and in bilateral and regional trade agreements. This approach could contribute to move 
discussions forward and help assess what could be realistically achieved in the WTO on e-
commerce that  year and in t he long er term.  
5.19.   The representative of Cuba said that exchang ing experience s was a useful approach to the 
discussions on e -commerce , particularly if those experiences  came from developing countries. Her 
delegation was interested in better understanding the motivations behind the proposal , and the 
reasons why the subject of electronic signatures had been chosen among st the various topics  on 
e-commerce  by the proponents . Similarly, her delegation would be interested  in knowing more 
about the possible  challenge s faced by  developing countries  in regulating electronic signatures.  
5.20.   The representative  of Ukraine  share d some comment s on the elements contained in the 
different documents  submitted on e -commerce . Ukraine was in favour of enhancing  transparency 
on cr oss-border e­commerce policy. His delegation also supported  the need to exchange 
information on regulatory measures and procedures for supplying services that directly support ed 
cross-border e­c ommerce transactions , including  electronic and online payments, log istics and 
courier services, online customs clearance and other services to facilitate trade. Ukraine endorsed 
and supported  the proposal on the improvement of infrastructure and technical conditio ns for 
cross-border e -commerce, which were related to the e xchange of information about digital 
certificat es, electronic signatures and electronic authentication. Th is, in turn, should promote 
mutual recognition of digital certificates and electronic sig natures , which were  essential to ensure 
the reliability of e -commerce.  
5.21.   Ukraine attached priority to discuss ing and exchanging  information on Members' laws, 
regulations and  administrative measures relevant to cross -border e -commerce , which include d 
consumer protection, privacy protection and intellectual prop erty rig hts. Ukraine understood  the 
relations hip between trade policy and those issues in terms of increasing  consumer confidence in 
cross-border e­commerce and promoting  development.  Finally, h is delegation shared  the view that 
digitally -delivered ser vices and di gital products, such as  e-books, apps, music, videos,  were 
currently the fastest growing segment of  e-commerce . Furthermore, Ukraine recognized that it 
was necessary to openly discuss the means to protect tho se digitally -delivered services against 
discrimi nation in a similar way as their non -electroni cally disseminated analogues . 
5.22.   The representative of Singapore  said that his delegation welcomed the discussion on 
electronic signatures in the Council , and especially exchanging  Members' experiences , both 
domes tically and regionally. His deleg ation agreed that legislation giving legal recognition to 
electronic signatures increased  predictability and certainty of electronic transactions and, 
therefore, facil itated  e-commerce. He wished to share his delegation's experience  on the 
implementation of regulations on e -commerce . Singapore enacted its Electronic Transaction Act in  
1998, which was replaced by a new Electronic Transaction Act in 2010  to take account of new 
techno logies , such as biometrics , and to adopt a fresh approach to the regulation of certification 
authorities. The new Electronic Transaction Act included a number of key improvements. The new 
Act clarified that the parties had autono my to exclude or agree to the use electronic transactions , 
or to agree  to additional requirements as to the form of authentication of the contract  or 
transaction . It also clarified that t he agreement or consent of electronic transactions could be 
inferred  from the conduct of the parties, unless otherwise agreed or provided by  law. Furthermore, 
it provided  that requirements of  certain documents , record s, or information in original  form, could  
be fulfilled by submitting them in electronic record , subject to safety safeguards . The new Act  
mandated  regulatory authorities  to be technology -neutral. On e -government, the new Act clarified  
that public agencies were  empowered to : accept  in electronic form  the filing of documents and  the 
provision of information, the creation or retention of documents , and the issuance of permits and S/C/M/130  
 
- 27 - 
 
  paym ents without need to amend the legislation . His delegation was ready to share further details 
concerning this regulation with interested delegations .  
5.23.   The representative of China  said that electronic signature s were an important issue in e -
commerce  discuss ions, which had also been mentioned in China's submission. Hi s delegation 
would look into Members'  experience s in the consideration of that  issue in the context of e -
commerce discussions.  
5.24.   The representative of India welcomed the communication provided , which showed  the 
experience of MERCOSUR on electronic signatures. His delegation was still holding consultations 
with domestic sta keholders and reviewing the paper to better understand  its significance to the 
discussions. India considered  it important to enhance understand ing of  national frameworks  and 
Members ' experiences,  as well as the capacity challenges associated with the adoption  of such 
frameworks  domestically.  
5.25.   More b roadly, there had been an increase of new technologies  on electronic signature s and  
authentication to replace paper -based documents , but also on digitally authenticated documents . 
Many countries , including India,  had implemented  the IT Act and Electronic Signature Act based on 
the UNCITRAL Model Law on  Electronic Signature s, which had provided legal validity to digitally 
signed document s, in a manner similar  to manually signed paper documents. However, certifying 
authorities  recognised  in one country were not necessarily recognised in other countries and , 
hence, digital signature s and cert ifications issued by those authorities were invalid in other  
countries. This caused  inconvenience s to e-commerce users  involved in cross -border trade. 
Therefore, m utual recogn ition of certifying authorities  could be the way for recognition of digital 
signa tures in other countries . In addition, interoperable mutually recognised electronic 
authentication frameworks  for cross -border  paper less trading could  be useful and might require 
further discussion . India would continue to engage  in those discussions , to enhance its 
understanding  on this area , including of Members' e xperiences and challenges, as well as its 
relevance to Work Programme  deliberations in the CTS . 
5.26.    The representative of Brazil  thanked delegations for their comments on the  submission . He 
wished to respond to the question raised by Cuba on the motivation s behind the proposal. In 
Brazil's view, o ne of the biggest challenges in the digital environment  was the lack of certainty as 
to who was on the other side of the electronic  transaction. This lack of legal certainty seemed to 
be at the root of the denial of certain services or difficulties in processing certain electronic 
transaction s. India made a good  point regarding the problems stemming from the lack of mutual 
recognition  of digital certificates; an issue c ould arise, for example, if  the digital certificate  used by 
an SME in Brazil to export  to another country was not recognised by that importing country , and 
the SME was  not able to  export  due to th at reason . He indicated that he had  used t he exa mple of 
e-government because it was directly related to what had been discussed  in the Council, but there 
were certainly many applications and implications of using digital certificates . In Brazil's 
experience, having disciplines on electronic signatures and digital certificates had positive effects 
in the relationship between governments and society. Discussing  the issue on a multilateral basis 
could further enhance the confidence i n electronic transactions ; that was the overall rationale 
behind the propos al.  
5.27.   The representative of Paraguay  said that the pro posal was a MERCOSUR -negotiated  
outcome among developing countries and could serve as a basis for future discussions. Regarding 
the question raised by Cuba, the reco gnition of digital signatures was  a tool that could facilitate e -
commerce by ensuring the authenticity , integrity  and privacy of electronic transactions , and 
provided more certainty both to providers and consumers . His delegation  believed that sharing 
regional and  national experiences in the C ouncil w ould contribute to Members' understanding of  
the best uses  of digital signatures and , as such , he encouraged other delegations to share their 
experiences  as well .  
5.2  "Trade policy, the WTO, and the digital economy" (JOB/SERV/248)  
5.28.   The representative o f the European Union  introduced the submission on behalf of all the co-
sponsors and then  provided the EU's views on the questions raised in the paper.  The sponsors  
viewed e -commerce as  one of the key topics for future WTO work. T hey were interested in seei ng 
how the WTO could offer  tangible results to Members ' economies and citizens. The d igital economy  
had developed, but only limited progress could be achieved at the WTO. After months of S/C/M/130  
 
- 28 - 
 
  discussions, there was recognition of the s everal gaps that existed in the WTO rule -book. A 
number of Members had shown  interest  in e-commerce through the various  submissions in the 
Council . In order to facilitate discussion s, the sponsors intended  to map -out trade policy -related 
issues that would impact e -commerce. The com munication had been originally submitted within 
the broader context of the Work Programme, but a number of Members had considered it useful to 
have technical discussions at the Committee level. Therefore, the paper had been re-submitted to 
the General Coun cil, the TRIPS Council, the Council for Trade in Goods, the C ouncil for Trade in 
Services  and the Committee on Trade and Development . It was particularly important to have the 
document on the CTS agenda given the strong services angle o f e-commerce.   
5.29.   Moving to the substance of the submission , the paper listed  a number of trade policy 
elements releva nt to e -commerce, which attempted  to cover  all relevant issues , including: rule -
making , liberalization commitments, facilitation  measures and the development dim ension , which 
was a cross -cutting issue. The submission did not contain an exhaustive  list of issues , nor it was a 
negotiating proposal, and i t was without prejudice to which elements the co-sponsors would  seek 
to pursue in the future.  For the sake of the discussion, the submission had tentatively grouped all 
elements under four potential clusters. The first cluster covered regulatory frameworks on  
enhanced  transparency, any type of rules promoting the confidence of consumers and trade 
facilitating measures . The second one was called open markets and covered  liberalization 
measures , which included market access is sues for goods and services , but also measures 
addressing other trade barriers such as cross-border data flow issues, localization requirements 
and source -code related measures. The third cluster covered initiatives facilitating the 
development of e -commerce ; there were many initiatives enhancing e -commerce , such as 
regulatory cooperation, customs facilit ation measures , and technical assistance. The fourth cluster 
related to transparency of  the WTO itself, where the WTO could continue to play an important role 
in contributing to enhance the transparency of Members' polices related to e -commerce . The co -
sponsors invite d the Members to consider the two questions raised at the end of the submission. 
The first one related to the list of issues and whether there were additional e -commerce elements 
that could be added , or that Members found important.  The second asked on what elements 
Members would wish to focus technical discussions . 
5.30.   As to the European Union's view s on the questions posed in the submission , his delegation 
saw value in looking into some concrete elements from the angle of those rules that facilitate d 
digital trade in services and those elemen ts that improve d legal certainty and transparency, 
especially for SMEs and  consumers. Looking at the list  of rules aimed at creating the right  enabling 
environment, his delegation believed that Members could have discussions on consumer protection  
rules and on any measures preventing deceptive practices  over the I nternet, as enabler s of e-
commerce . Likewise, Members could discuss measures linked to consumer  protection , such as  
spam  or unsolicited communications . Members could also have discussion s on electr onic contracts , 
even if  this issue  was not in the list because  it was  not part of the mapping ; but in any case, the 
paper  was a living document . Electronic contracts  were the back bone of electronic transactions and  
looking into them wou ld add value  to the discussions . Finally, he was happy to see the level of 
engagement on electronic signature s as further discussion s on this issue would also be valuable. 
His delegation believed that those were the areas Members could focus on, exchange national 
experiences  and, ultimately , reflect on how these  could be turned into concrete deliverable s at a 
certain point.   
5.31.   All delegations who took the floor  thanked the European Union and the other co-sponsors 
for their proposal.  
5.32.   The representative of Canada  said that the paper on the table had been drafted to stimulate 
discussi on on elements of trade policy that could be addressed to promote inclusive economic 
growth through e -commerce.  It had been  re-circulated to respond to requests from many 
Members for a bottom -up dis cussion of these elements. The CTS would  be an impo rtant forum for 
this discussion as  most of  the elements highlighted in the  paper relate d to trade in services, 
including : (i) r egulatory frameworks that promote d transparency and built  consum er trust in onlin e 
transactions; (ii) m easures that ensured  non-discriminatory ac cess to and u se of the Internet, 
facilitated  e-payments,  recognized  electronic signatures and contracts on a technologically -neutral 
basis, and ensured  competitive conditions for services supp liers; (iii) market a ccess in relevant 
sectors;  (iv) r ules ensuring that cross -border data flows were  permitted and disciplining 
localisation requirements, subject to appropriate policy exceptions, along with prohibition of 
requirements to transfer proprie tary business information , such as source code , as a condition for S/C/M/130  
 
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  providing goods or services;  (v) regulatory cooperation; and  (vi) m aking better use of the WTO 's 
transparency function to improve Membe rs' understanding of e -commerce -related measures and 
how they impact ed trade in services.  He noted the overlap between these elements and the issues 
raised in the other papers on the agenda, particularly the paper from China and Pakistan, the 
paper on e -signatures a nd the paper on e -commerce and d evelopment.  Over time, delegations 
would see value in a thorough examination of each of these areas in the CTS.   
5.33.   On transparency, G ATS disciplines were  technologically neutral and applied  to the supply of 
services through electronic means in the same way as all other means of supply.  This technological 
neutrality meant that measures that facilitate d or restrict ed digital communication would  fall within 
the scope of GATS Article III  because they impact ed trade  in services where Members had  taken 
specific commitments. As noted  in that meeting , Members, including Canada, had  not made 
significant use of the CTS notification facility.  Without judging the reasons for Members ' reluctance 
to notify measures under GATS Article III:3, Members could explore the possibility of unde rtaking 
a collective effort to make relevant measures public and to notify them to  the CTS . For example, 
Members could elaborate an illustrative list of measures that should be published.  This 
transparency would hel p build a common knowledge base,  facilita te work by organizations like 
UNCTAD in undertak ing comparative policy analysis and provide clarity for businesses on the 
conditions for investment and trade.  
5.34.   Regarding cooperation, M embers ' regulatory frameworks were  evolving to meet the rapid 
expansion of digital technology.  At the same time, there were  still many barriers that curb ed the 
full potential of e -commerce.  The Work Programme provided  a forum for Members to promote 
cooperation and to learn from the experiences of developed and developing count ries alike.  In 
recent years, the Work P rogram me had fallen short of its potential in this regard. Members should 
use the Work P rogram me to work together to facilitate the  use of e -commerce by MSMEs, as well 
as to s hare information and experiences on laws, regulations and programs in the  area of e-
commerce.  Furthermore, Members should actively  participate in the Work P rogram me to promote 
the development of e -commerce.  His delegation l ooked forward to further exchanges on e -
commerce in the CTS.  
5.35.   The representa tive of South Africa , speaking on behalf of the African Group  indicated that 
she would be presenting the Group 's preliminary views, generally and specifically , on the 
discussions on e -commerce. The African Group welcome d that the submissions  had been tabled in 
the CTS , in accordance with paragraph 1.1 of the Work Programme , and most recently reaffirmed 
in paragraph 1 of the Nairobi Ministerial Decision, where it was stated  that work under the Work 
Programme should continue  "based on the existing mandate and  guidelines and on the basis of 
proposals submitted by Members in the relevant WTO bodies as set out in paragrap hs 2 to 5 of the 
Work Programme" .  
5.36.   At the outset , she recalled  that, over the  last five years or so, there was  a greater sense of 
purpose in Afr ica that for sustainable grow th and development, her region needed  to move off a 
growth -path based on consumption and commodity exports. The  African Ministers of Trade had  
pronounced themselves clearly that continental integration, structural transformatio n and 
industrialisation remain ed the overriding priorities for Africa, following the establishment of the 
Continental Free Trade Agreement in line with "Agenda 2063: The Africa We Want ". Therefore, it 
was critical that the work undertake n in multilateral t rade fora supported  Africa 's continental 
integration agenda. In this context, the African Group approached  the exploratory discussions 
under the Work Programme from a perspective that gave paramount importance to the 
development implications of e -commerce,  taking into account the economic, financial, and 
development needs of developing countries .  
5.37.   After listening carefully to the introducti on of the submissions in the Council , there were a 
number of issues that would be better suited for a discussion in the  other relevant bodies, such as 
the Committee on Trade and Development , the Council for Trade in Goods and the TRIPS Council. 
Some of the issues that had been raised in some of the submissions were  outside the scop e of the 
Work Programme or were  being take n up extensively in other multilateral organisations. 
Therefore , she strongly urge d the proponents to refine their proposals spec ific to the body where 
they wished  discussions to take place, as per the Work Programme.  
5.38.   As Members embark ed on these discussio ns under the Work Programme, the African  Group 
wished the Council to take up issues that placed  the needs of developi ng countries and LDCs  at the S/C/M/130  
 
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  centre of any discussion on e -commerce, especially the challenges to and ways of enhancing the 
participation o f developing countries in electronic commerce, in particular as exporters of 
electronically delivered products, and the  role of improved access to infrastructure and transfer of 
technology, and of movement of natural p ersons. This included, but was  not lim ited to , scoping the 
range of issues relating to the digital, technological, infrastructure, industrialisation, workforce 
skills and income divides. In this context, the potenti al benefits of e -commerce could not  be 
assumed or simply asserted. For example,  Sub-Saharan Africa was home to nearly half of the 
global population living without electricity . It was  also the only region in the world where the 
number of peop le living without electricity was  increasing. According to the ITU, 5 3% of the 
world 's populat ion were  not using the Internet. Fix ed broadband penetration remained at 0.7% in 
Africa and the LDCs, and Africa was  the only region in the world where mobi le broadband 
penetration remained  below 20%.  
5.39.   The technologies and advances of the fourth  Industrial Revolution could not  bring about 
socially equalizing effects, including for developing countries ' MSMEs , if the above realities 
endure d, where some had  access to the digital technologies and , in fact , own ed these new 
technologies, whilst others had  only partial, or no access to, and did  not have rights over , those 
technologies. Part and parcel of that  discussion was  the need to address the asymmetrical nature 
of the existing global e -commerce sp ace to enable Africa to become "e -commerce ready" . 
According to  UNCTAD, four countries account ed for 80% of business -to-business e -commerce, 
which was  by far the largest form of e -trade . While bu siness -to-consumer e -commerce was much 
smaller, it appeared to be growing faster; however, the regional shares varied  consid erably , with 
the Middle East and Africa together accounting for only 2.5%  of the total . If these figures 
approximate d reality, they  underscore d the scope and depth of the digital divide.  
5.40.   The African Group wished for the CTS to take up the  issue in a meanin gful way.  One of the 
overriding questions the Group had  was how to build an inclusive growth and equitable 
development trajectory for all developing countries and LDCs. She encourage d Members to share 
their experiences with the African  Group on the measure s they had  employed to develop their 
capabilities in  the digital economy and trade. The African Group would greatly benefit from a 
discussion of  these issues, as the Group  explore d its own policy options in response to the 
profound changes brought on by th e so-called 'Fourth Industrial Revolution ' vis-à-vis Africa 's core 
development objectives.  The African Group was  committed to engaging in a com prehensive 
discussion in the CTS  on all issues relating to the development implications of e -commerce and 
looked forward to having a substantive discussion at the next meeting.  
5.41.   The representative of South Africa , speak ing now on behalf of her  delegation , supported the 
statement delivered by the African Group. Her delegation had  taken note of the submissions made  
in accordance with paragraph 1.1 of the Work Programme and paragraph 1 of the Nairobi 
Ministerial Decision.  The comprehensive Work P rogramme on e-commerce stated  that the Council 
for Trade in Services had to examine and report on the treatment of electronic c ommerce in the 
GATS legal framework. The issues to be examined u nder the auspices of the CTS were  further 
elaborated in document WT/L/274.  It was clear that many of the Members were  only just 
beginning to  come to grip  with what appeared would  be very profo und changes brought on by the 
digital transf ormation , of which e -commerce was integral. What was even clearer was that e -
commerce was  developing rapidly but unevenly across the world. The African Group had  provided 
the data , which painted  a stark picture o f the scope and depth of the digital divide on the one 
hand, and the highly concentrated nature of B2B and B2C e -commerce on the other.  South Africa 
was prepared to continue examining  e-commerce issues in a comprehensive manner in the WTO 
within the existi ng non -negotiating mandate. However, in her delegation's view, the current 
proposals need ed to be further refined and appropriately focused to ensure  a meaningful 
discussion that was  relevant to th e CTS as required by  the Work Programme.  
5.42.   As to the develop ment aspects of the dis cussion in the Council , and especially in terms of 
how they relate d to the GATS legal framework, South Africa propose d that the following issues be 
taken up for further examination: (i) t he proper  and full scoping  of the range of cha llenges 
developing countries need ed to overcome to be consider ed as being 'e-commerce ready '; (ii) the 
measurement c hallenges of e -commerce , which  had to be addressed  in order to build a body of 
accurate data  that was the prerequisite f or eviden ce-based po licy-making; (iii) how to build the 
capabilities of developing countries and LDCs to enable them to effectively participate  in cross -
border e -commerce; (iv) the impact of e -commerce on Afr ica's longstanding developmental  
objectives of industrial developmen t, structural transformation and employment. There was a need S/C/M/130  
 
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  to address  all these issues  with a view to promoting inclusive and equitable growth, trade and 
development  in the digital economy.  
5.43.   In that  context, her delegation raise d a few questions to stimu late a fru itful discussion  at 
the following  Council  meeting. What s pecific government measures had  been employed to support 
the development of e -commerce in other countries? Her delegation wished to better understand 
the measures and policies other Members  had employed to develop their capabilities in  the so -
called "digital economy"  and trade. South Africa saw considerable potential in establishing strong 
links between industrial policy, ICT -related infrastructure and skills development that support ed 
the d igital economy. At the same time, she had quest ions about the measures that would  need to 
be taken to address tax avoidance, market concentration, anti -competitive practices , and what 
was needed  to avoid the possible negative impacts on the longstanding ob jectives of improving 
labour conditions, growing employment and advancing i ndustrial development.  Those were  all 
questions related to the developmental impact of the  digital economy and e -commerce ; they 
deserve d consideration by Members in looking at the d evelopment  impacts and challenges that 
arose from the digital transformation and growth of e -commerce.  
5.44.   There were  references in the various non -papers to terms such as "digital trade"2, "digital 
economy"3 and "digital product s"4. These terms were  used inte rchangeably with the term "e-
commerce " by some Members. What did  they mean and how these terms related to e -commerce? 
What constituted  "digital, digitized or digitisable products" ? Were "digital products"  more akin to 
goods or services? What was an "electr onic transmission" ? How should "new services"  be 
classified? Was online service delivery mode 1 or m ode 2? Were goods delivered online  "goods " or 
"services "? These initial questions warranted further examination by Members, given the n umber 
of proposals on  the table and their  relevance to the GATS legal framework as per the Work 
Programme . In concluding, South  Africa was of the view that there was  certainly room for 
Members to share the ir experiences on what they had  done to build their capabilities as well  as 
their views on the definitions and classification issues raised .  
5.45.   The representative of Singapore  said that , in her delegation's view,  having the legal and 
policy framework in place could  help support e -commerce. Trade rules provide d businesses with a 
predictable environment to operate in and gave them more confidence to trade wi th overseas 
markets. E -commerce -related provision s found in Singapore's regional trade agreements  had also 
provide d more confidence to players when looking to set up businesses in Singapore. Many of 
those companies established in her country were  service  suppliers  interested in online marketplace  
in sectors such as payment services  and logistics services . Overall , her delegation considered  that 
the interaction , competition and co llaboration between these non -established players and domestic 
service  suppliers had enhance d the e -commerce environment  and also provided consumers with  
many more options , which ultimately help ed to foster innovation and growth. Therefore, the 
relevance o f cross -border e -commerce was undeniable . The proposal s on the table addressed 
three areas in which it would be useful to make progress in a services  context .  
5.46.   First, the mutual recognition of electronic signatures  and electronic authentication methods 
could facilitate smaller e -commerce businesses in  cross-border transactions. Second, electronic 
transaction or payment frameworks could provide  more certainty for electronic payment providers 
and could encourage these providers to enter new market s. There was  particular interest among 
Members in this area , as shown by  the seminar on financial inclusion and digital payments 
organized by the Friends of E -commerce for Development.  Likewise, this topic had  raised 
Members' interest in the Committee on Trade in Financial Services , where financial inclusion 
related to  e-commerce  had been discussed . In her delegation's view , there should be more 
opportunities  for in -depth discussion and experience sharing  in this area. In this regard, it would 
be useful for Members to share their  experiences i n dealing with their own domestic frameworks 
and how th is had contributed to facilitating  payments across borders. Finally,  transparency  and 
information sharing on e -commerce regulations  could benefit business , especially small 
businesses, to navigate the various e-commerce landscape s more confidently.   
5.47.   The representative of the Republic of  Moldova  said that her delegation shared the views of 
the paper on the table and wished to join officially the communication submitted by the Eur opean 
                                                
2 JOB/GC/94, p.1, JOB/GC/100, p1.  
3 JOB/GC/116, p.5.  
4 JOB/GC/94, p.2, JOB/GC/100, p3.  S/C/M/130  
 
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  Union and co -sponso rs (JOB/SERV/ 248). E-commerce was  essential to human development and 
this topic, together with investment , were the main priorities for  her government . The WTO had a 
role to play in helping to  leverage the digital economy for inclu sive economic growth and 
encouraging  closer economic integration among participating Members. D evelopments in her  
country on e -commerce included  the creation of a governance centre f or promoting  a government 
more open to public interest s by capitalizing on the value of ICT and promoting competitive 
polices. These actions  had improve d trade in services by ensuring the  digitalization of all services, 
according to Moldova's  National Agenda 2020 . The proposal (JOB/SERV/ 248) complemented her 
government's efforts  to capitalize on the opportunities offered by the creation of a multi -
stakeholder approach to Internet governance processes , which would ensure  a meaningful and 
accountable participation of all stake -holders including governments, the private sector , SMEs , civil 
societ y, technical and ac ademic communities , as well as  users . This approach also took into 
consideration the TFA, which had recently entered into force . Many of the Eastern Europea n 
governments were well -known for their IT specialists . The Republi c of Moldova  had th e sixth -
fastest I nternet speed in the world  by download  data capacity.  
5.48.   Replying the quest ions raised by  the proponents in JOB/SERV/ 248, her delegation also 
wished to offer some additional ideas and elements of guidance  for an i nteractiv e discussion on e -
commerce  in the WTO. A list of electronic ser vices should be included in the  communication in 
order to share national experiences on regulation s regarding electronic services. In this context, 
her delegation underlined the importance of e -commerce services such as  invoice services ; single 
electronic window; customs procedures ; the new system  based on enquiry points of information , 
which would be created by the national  Committees on Trade Facilitation ; state r egistry of 
inspection which offered a common on line platform all owing authorized control bodies  to 
automatize  the process of planning controls and registering planned and unplanned  checks, as well 
as publish ing them on  a public portal. She also referred to t he e-public procurement serv ices, well-
known under the GPA , and reporting services which offered the possibility to present annual 
reports through a unique portal . Similarly , e-licensing services provided a  full range of specialized 
functions to optimize the submission of licence app lication s from the licensing chamber . Another 
example was  the "Fast electronic statement ", which provide d an automatic system for filling and 
submitting fiscal reports by using the latest bi-dimensional  coding technology. Likewise, she 
mentioned electronic  fiscal record services  for concluding and sending fiscal documents online . 
There were many  other electronic services which sh ould be taken into consideration in technical 
discussion s in the WTO  and particularly in the CTS.  
5.49.   All the  cluster  elements  present ed in JOB/SERV/ 248 r egarding open markets and enhancing  
the transparency of the multilateral trading system and particularly, the initiatives to be taken in 
order to facilitat e the development of e -commerce,  were first and foremost about services. 
Members should engage in  a constructive debate in the relevant bodies , according to 
paragraph  1.1 of the Work Programme , including  notably in the CTS. Her delegation wished to 
focus on  the elements under the cluster on open markets and liberalization commitments o n 
services and goods , given that her delegation was analysing  the opportunities derived from joining 
the expanded ITA, which had been concluded at the Nairobi Minis terial Conference in 2015 . Her 
delegation strongly believed that discussion s could bring an outcome in the area of trade in 
services, e -commerce and competition policy , and di gital economy  at MC11.  E-commerce would 
always remain the fundamental pillar  of services trade policies. Her delegation  looked forward to 
having a constructive debate in ord er to attain concrete results at MC11.  
5.50.   The representative of Mexico  echoed the statements made by the European Union, Canada 
and the other co -sponsors  of the proposal  (JOB/SERV/ 248). She focus ed on the transparency 
element s of the proposal . The WTO Agreeme nts already contained specific transparency  provisions 
and some of the communications submitted contained concrete proposals for the exchange of 
information on measures and procedures applicable to e -commerce. Canada's idea  of notifying  e-
commerce measures  directly to the relevant WTO bodies, such as the CTS , was interesting . Mexico 
stood ready to work with interested Members in strengthening transparency and promoting  the 
development  of e-commerce , particularly taking into consideration  the benefits  for SM Es.  
5.51.   The representative of Hong Kong, China  noted that a wide range of issues should work in 
tandem to contribute to the ove rall development of e -commerce. The  paper submitted by the 
European Union and co -sponsors was very comprehensive  and could constitut e a useful  reference 
to stimulate  thinking on the elements that could be covered in e-commerce  discussions . His 
delegation deemed important the question posed by the European Union  on what elements could S/C/M/130  
 
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  be discussed in the CTS. H is delegation was very int erested on  knowing Members ' view on these 
issues and stood ready to  participat e constructively  in the  discussions .  
5.52.   The representative of Colombia  echoed the statements made by the European Union and 
the other co -sponsors . His delegation co nsidered the app roach of listing specific issues relevant to 
e-commerce that already existed or could exist in  the WTO appropriate . The elements proposed 
were grouped in four thematic categories  which contained key elements for the development of e -
commerce. H e encouraged  Members to use that  information in order to advance  discussions 
together in a balanced manner  towards concrete results in the future. He shared Colombia's  
experience o n consumer protection, one of the elements included in the "regulatory framework" 
pillar of the proposal .  
5.53.   In 2011, Colombia had adopted a new regulatory  framework on consum er protection  
(Law 1480) to promote the development of e -commerce . The objective was to provide to  
consumers purchasing goods through  electronic means the same level of pr otection accorded to 
consumers purchasing through traditional means.  The regulatory framework laid the foundations 
for institutional cooperation among the member s of the Pacific Alliance , whose  consumer 
protection agencies were exchanging  information and c reating tools for reinforcing the confidence 
on e-commerce among st the four countries.  His delegation believed that it was important to 
explore  grounds for technical co -operation and information exchange at the multilateral level , 
including through the ado ption of regulatory framework s that boost ed international e -commerce.  
5.54.   The representative of Chile said that several communications on e -commerce had been 
submitted by a number of Members last year. They contained useful ideas on how to advance 
discussions  on e-commerce and moved in the same direction , which was promising . His delegation  
echoed the statement  made by the European Union , as co -sponsor of the paper on the 
(JOB/SERV/ 248). The paper  provided a useful tool for facilitating discussions and a starting point 
for the debate as it contained a broad, tentative and  open list of trade policy elements relevant to 
e-commerce. The questions raised in the communication were also relevant,  particularly the 
question on what elements Members wished to ha ve focused technical discussions in the CTS , 
given the close link  between trad e in services and e -commerce. Some delegat ions had already 
replied to that  question  and that was positive , even if  comments  were preliminary . At the request 
of a number of Members, the d ocument had also been submitted to the oth er relevant bodies. His 
delegation looked forward to having a substantive and constructive discussion  in all relevant 
bodies given the importance of e -commerce for all WTO Members, regardless of their level of 
development.  
5.55.   The representative of the Russian Federation  said that her delegation welcomed and 
supported Members' efforts to discuss issues related to e -commerce. The comm unications 
submitted contained ideas that were worth discussing. At the same time, the different  papers 
focused on particular areas of e -commerce regulation, without building a common understanding 
on the scope of the discussions. In her delegation's view, any further substantial dialogue should 
be defined by scope and  definitions.  She indic ated that her delegation was in terested  in discussing 
the following topics related to e -commerce  in the Council : i) transparency in e -commerce  
regulation; ii) protection of online consumers and personal data; iii) regulation of u nsolicited 
electronic messa ges; iii)  authentication and recognition of e-signatures; iv)  use of ICT in 
government procurement ; v) improvement of electronic payment systems; and vi) participation of 
SMEs in e -commerce.   
5.56.   Moving to specific comments on  the communication submitted by th e European Union and 
co-sponsors, she requested further clarification s on a number of issues.  First, it was not clear 
whether the suggestion was to modify the GATS Annex  on Telecommunication Services and  the 
Telecommunication s Reference Paper  in order to incorporate provisions on e -commerce,  or rather 
to extend  their provisions to e-commerce.  On the  Reference  Paper, she required further clarity on 
whether the suggestion was to duplicate commitments or to negotiate new commitments. In case 
of overlapping com mitments, she wondered what would happen in those instances  where Members 
had not undertaken commitments u nder the Reference Paper . If the idea was to negotiate new 
provisions, she enquired how the proponents envisaged the realization of such an approach.  In 
terms of opening markets and liberalization commitments, as well as classification issues, her 
delegation's view was that, before starting discussions , a clear understanding was needed on the 
scope of e -commerce.  Moreover, i t was not clear how such libe ralization was envisaged , taking 
into account the different levels of commitments undertaken by Members . Her delegation believed  S/C/M/130  
 
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  that a constructive discussion  and exchange of ideas was needed to move forward on procedural 
and substantive issues in order t o achieve results at  MC11.  
5.57.   The representative of New Zealand  said th at her delegation considered that the mapping 
exercise  made in JOB/SERV/ 248 was useful for focusing the discussions  and further work. It 
showed that t here was no need to re -invent the wheel on e-commerce.  Members already had a 
workable and encompassing scope of work  in the WTO . From her delegation's  persp ective, it was 
important to stri ke a proper balance between work to advance the WTO' s core liberalization 
agenda and facilitation agenda as it affected , and was affected , by e-commerce.  In this regard, 
Members' GATS schedules contained low levels of commitments  for mode 1. This created 
uncertainty for those using electronic means to deliver services and could undermine the 
conditions for growth in electronic ally supplied services. There was a real opportunity for 
discussions on e -commerce to examine this issue and identify ways in which the GATS could  be 
used to improve the predictability and certainty of treatment for service suppliers , including SMEs , 
using electronic delivery means. Similarly, in the area of trade facilitation , encouraging the use of 
digital technology in services , such as electronic documentation and single electronic window s, 
could offer important benefits for goods and services  trade , and government procurement.  Efforts 
to promote global ly-accepted  standard processes , including  in areas such as  conformity 
assessment , were also core WTO areas of focus with clear relevance to e -commerce. Finally, her 
delegation also believ ed that the WTO had an important role to play in transparency.   
5.58.   The representative of Turkey  comment ed on the procedural aspects  of the discussions on e-
commerce . As a co -sponsor of the  paper  on the table , Turkey  believe d that the m apping exercise 
was of tremendous importance for the identification of  all the elements related to e -commerce , 
especially after listening to M embers ' ideas on the classification of e -commerce issues. As for the 
request made by South Africa, on behalf of the African Group , to refine the papers according to the 
mandate of the  relevant bodies , this refinement should better take place at a joint meeting. This 
would allow moving  forward without discussing  whether an issue fell  under the mandate of one 
body or an other.  A joint meeting would facilitate  discussions of  cross-cutting issues , as well 
decisions on  how and in whi ch forum cross -cutting issues  should be discussed . The mapping 
exercise  contained in JOB/SERV/ 248 could  be used by M embers  to decide which  elements f ell 
under the manda te of each Council or Committee and which elements were  cross-cutting in 
nature . This would allow faster and m ore effective progress . Therefore , Turkey  strongly 
encourage d Members to propose additions to the  mapping in line with their priorities and intere sts. 
5.59.   The representative of the Republic of Korea  said that the paper submitted by the European 
Union and co -sponsors was very comprehensive and relevant as it raised the whole range of issues 
related to e -commerce . Regulatory framework s, market opening s, transparency and development 
issues were key elements in e -commerce and had  to be discussed in a balanced way in the CTS. In 
that context, Korea supported  the proposal.  
5.60.   The representative of Norway  said that her delegation  welcomed  the various submissions o n 
e-commerce , and that  useful discussions were taking place in various committees in the WTO.  E-
commerce was important for WTO M embers and governments , as well a s for businesses and 
consumers. A pre -requisite for e -commerce to flourish was  a high degree of  trust in the digital 
environment. Consumers  trust enabled  the development of digital trade. Norwegians had been 
among the first to use new digital dev ices and payments on line, which was the  result of a high 
degree of trust in the digital environment. Therefore, i t was  crucial to continue support ing a good 
consumer environment online. Online consumer protection, as well as the protection of personal 
information and security issues , needed to be addressed appropriately. Furthermore, transparency 
was of outmo st importance  for e-commerce, related to both goods and services.  
5.61.   The mapping of e -commerce issues at the WTO  in the communication from Canada and co -
sponsors (JOB/SERV/ 248) gave an extensive overview of a long list of issues related to e -
commerce. The lis t was not exhaustive and provided a structured approach, and a good picture , of 
several aspects that needed  to be address ed. It was  also important to take into  consideration 
whether there were  specific aspects pertinent to developing Memb ers, particularly  LDCs, which  
should be reflected.  Norway agree d with China and Pakistan that M embers need ed to tackle the 
issue of e -commerce and digital trade step-by-step. A good first step would be to look at 
improvements in , and technic al conditions for , cross-border e -commerce, such as electronic 
signature s, authentication , and certificates pertain ing to e-commer ce, for both goods and services. 
Members  should seek for elements of commonality in  the submissions, especially what was S/C/M/130  
 
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  important for e -commerce to wo rk for the benefit of all, and  not least developing Members , and 
where WTO rules and guidelines could  make a difference . This would include  elements important 
to both trade in goods and services.  It would make a  difference in the sense that it would push  
Members t o put in place the ne cessary domestic rules to foster  their individual capacity f or 
international trade through e -commerce.  If Members  could  agree on just a few of such elements in 
the coming year, it would be real progress.   
5.62.    The repre sentative of the Plurinational State of Bolivia  said that JOB/SERV/ 248 was being 
reviewed in capital  and he reserved his delegation's  right to revert to it . While e -commerce was 
important for  all Members, it was also important that all Members benefit ted from e -commerce; 
however this was contingent on Members' level of development and different needs. E -commerce 
was a multidimensional  issue and Members were confronted with different challenges depending 
on their level of development and their economic size.  
5.63.   The 1998 Ministeri al Decision  instructed Members to examine all trade -related issues related 
to e-commerce, taking into account the economic, financial and development needs of developing 
countries. From his delegation's perspective , the proposals on the table did not inclu de enough 
elements in order to be consistent with that  mandate, particularly with regard to developing 
countries'  needs . The proposal submitted by the European Union and co -sponsors referred to a 
number of challenges hindering  the full realization of the b enefits derived from  the digital 
economy , including  inadequate infrastructure  and connectivity, as well as  insufficient access  to 
technology. H owever, the proposal did not elaborate on any of the se issues. The paper only 
mentioned some issues relevant to t he WTO such as transparency, exchange of information and 
market liberaliza tion; but did not touch upon other  issues that were identified  as challenges, or did 
so only marginal ly. For many developing countries, the problem was not regulatory development , 
but rather associated with their  needs, such as the development  of infrastructure , the increase of a 
skilled ICT workforce , as well as technology  transfer . The latter could be added to the list. T he use 
of definitions should be clarified, as terms  such as  "digital economy", "e -commerce" and 
"electronic transmissions" were often used interchange ably, even when  there were differences 
amongst them.  Clarifying the  terms  used could contribute to moving  discussions  further .  
5.64.   Members should also consider  how to make  e-commerce more  inclusive . Similarly , it was  
important to have more statistical information on Internet connectivity and broadband penetration 
in developing countries, developing countries' participation in e -commerce, existing regulatory 
framew orks on e -commerce , among others. In the General Council, a delegate from Africa had 
mentioned that the rate  of Internet penetration in his region was 16%. It was important for 
Members to deepen their understanding on  these issues and what rules were needed to tack le 
which problems.  His delegation would be interested i n having those elements covered in the non -
exhaustive list of issues provided in the paper , as a means of promoting further  debate.  In his 
delegation's view, discussions on e-commerce should not be used  to promote further market 
opening  and, therefore, those elements should be removed from the list . The issue was not 
developing regula tory framew orks on e -commerce, but instead  promoting  the productive  capacity 
both for services and goods.   
5.65.   The representat ive of Chinese Taipei  said that the communications submitted reflect ed the 
efforts being made to revitalize discu ssions on the Work P rogramme, which her delegation 
favoured . The proposal from the European Union and co -sponsors summarized most eleme nts 
relevant to e -commerce as it was quite broad and comprehensive , and as such , could provide a 
good reference for future discussions. T he proponents also indicated their willingness to include 
other elements. Her delegation looked forward to further discussions and experience -sharing, and 
welcomed  other proposals aimed at establish ing an open, fair and reliable global e -commerce 
environment for services suppliers from both developed and developing Members, including LDCs. 
As Members were aware, her  delegation had  proposed  the holding of a CTS thematic s eminar 
dedicated to discussing e -commerce -related issues from a services perspective. She believed  that 
such an exchange o f information and experience s could  provide an opportunity for Members to 
deepen their  discussions on specific elements of their interest, which would greatly contribute to 
future dialogue on  e-commerce . 
5.66.   The representative of Switzerland  welcomed the various contributions submitted on e -
commerce  and the positive response they had received in the C ouncil, as well as in other relevant 
bodies. The variety of topics raised required a balance d approach , as not all M embers had the 
same approach, needs or  challenges . His delegation congratulate d the Friends of E -commerce for S/C/M/130  
 
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  Development for the seminar he ld on Digital Trade and Financial Inclusion, which was an excellent 
example of how to build bridges across such complex subject s. Sharing of information and 
practices was an important way of enhancing common knowledge on e -commerce and focus  
deliberations . Switzerland appreciated particularly the elements  provided by the contribution 
submitted by the European Union and co -sponsors  (JOB/SERV/ 248), as well as the contribution 
submitted by Brazil and co -sponsors rega rding practices in MERCOSUR  (JOB/SERV/ 247). He stood 
ready to contribute to the discussions by sharing his delegation's experience in future meetings.   
5.67.   The representative of Cuba echoed South Africa's and Bolivia's comments  that the 
submission (JOB/SERV/ 248) was outside the scop e of the mandate of t he Work Programme , which 
clearly invited Members to examine e -commerce within the GATS framework.  While, on the one 
hand, some e lements were o utside the scope of the mandate,  on the other, a number of relevant 
elemen ts were missing from  the proposal . She s hared Bolivia's  view regarding the need to include 
the real challenges faced by developing count ries in the realm of  e-commerce , which were 
mentioned in the introduc tory part of the proposal but not addre ssed in the body of the document . 
According to the m andate,  discussion s on e -commerce should take into consideration  its 
development aspects  and therefore  the proposal should be revised to include the real challenges 
faced by developing Members.  She echoed South Africa's comments  on the need to address the  
digital divide. O ther issues affecting developing countries  and LDCs , such as discriminatory 
measures, also needed to be addressed in order for those countries to benefit from e -commerce. It 
was also necessary to discuss definitions and classification issu es. Therefore, the proposal required 
adjustment s and she reserved her  delegation's right to revert to  it.  
5.68.   The representative of Uruguay  said that the contribution (JOB/SERV/ 248) was very 
comprehensive. It contained a list of elements related to e-commerce  within the WTO framework  
to be included in the Work  Programme , such as regulatory frameworks, open markets, initiatives 
facilitating the development of e -commerce and enhanced transparency.   
5.69.   The representative of the Bolivarian Republic of Venezuela  said that the proposals were still 
being reviewed in capital and  reserved his  delegation's right to revert to the m. His delegation was 
aware of the implications derived from  technological development s and the fourth industrial 
revolution for most Members. E -commerce was only part of a more comprehensive  and complex 
revolution , for which not all M embers were ready on equal terms . The WTO had had the  foresight,  
in 1998 , to agree on  the moratorium  on electronic transmissions. He  welcomed the fact that the 
proposals  were based on the  Work Programme, which provided an adequate framework for 
discussions. However, his delegation echoed the comments made by South Africa, Cuba and 
Bolivia regarding the need to include  topics from a development perspective , taking into 
consideration opportunities provided by industrialization. This would provide a  better 
understand ing of the benefit s derived from e -commerce taking into account the existing 
inequalities among Members. Finally, the elements contained in the proposal should be  reviewed 
and reorganized according to the Work Programme.   
5.70.   The representative of Uganda , speaking on behalf of the LDC Group,  welcomed the 
communication submitted by the European Union and co -sponsors, which had t aken into account 
the process  suggested  by the Group  during the Dedicated Discussion on e-commerce.  In this 
regard, the LDC Group had suggested , inter alia , that submissions should be taken to the relevant 
bodies as set out in paragraphs 2 to 5 of the Decision on the E -commerce Work Program me. Only 
once the discuss ions in the relevant bodies had  matured, they should be reported to the General 
Council.  The Nairobi Ministerial Declaration, in paragraph 1, instructe d Members t o continue the 
work under the Work Programme  based on the existing mandate a nd guidelines and on the basis 
of proposals submitted by Members in the relevant WTO bod ies as set out in paragraphs 2 to  5 of 
the Work Programme. In addition, the General Council shall take up consideration of any trade 
related issue of a cross -cutting na ture. It was  also important to acknowledge the non-negotiating 
mandate es tablished in the Work Program me, which  was exploratory in nature.  
5.71.   He had  only preliminary comments on the proposal  at that juncture . In the near two 
decades after the adoption of the  Work Programme,  the digital divide for LDCs had  widened. The 
e-commerce  phenomenon, in theory, provided  a critical gateway for consumers and businesses in 
weaker countries , allowing them to surmount obstacles faced when competing domestically, and 
with enterprises in stronger markets  in the world trading system. However, in reality, most LDCs 
faced a number of constraints , due to insufficient basic infrastruc ture, inadequate access to 
electricity and the Internet , and high cost s of broadband c onnecti vity, amongst others,  as well as  S/C/M/130  
 
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  bottlenecks that hinder ed LDCs from taking advantage of opportunities theoretically available 
through e -commerce platforms.  
5.72.   Three things were critical for LDCs to be able to benefit from e -commerce: access, 
affordability and avai lability . In a ddressing these issues , it was  important to contextualize the LDC  
Group's situation. According to the  ITU "Facts and F igures " for 2016,  75% of th e entire population 
in Africa was  offline. Only 20  million households in LDCs had  Internet access , out of 1 billion 
households in the world. While more t han 50% of the LDC population was  covered by a mobile 
broad band signal, only 15% use d the Internet. Fix ed-broadband penetration remained  below 1% 
in Africa and among the LDCs; and only fi ve LDCs had a chieved the target on affordability set by 
the B roadband Commission  on Sustainable Development . The rest could not  afford  it. 
Infrastructure and connectivity were another major issue. By early 2016, total international 
Internet bandwidth had reached 185 '000 Gbit/s, up from 30'000 in 2008. Africa, which was  home 
to two -thirds  of LDCs, had  the lowest international conne ctivity of all regions: there was  twice as 
much bandwidth per inhabitant available in Asia and the Pacific, four times as much in the 
Commonwe alth of Independent States region, eight times as much in the Americas and more than 
twenty times as much in Europe. Lack of international connectivity was  a major bottleneck in the 
Internet infrastructure of LDCs. Wit h this low penetration rate in I nterne t use, LDCs would not be 
in a position to adequately take advantage of the benefits of e -commerce.  Indeed , without 
meeting the basic requirements, many LDC e ntrepreneurs  and consumers would  not be able to 
effectively participate in e -commerce and take adva ntage of its benefits . The discussions under the 
Work Programme should therefore focus on over coming challenges that were  impeding L DCs from 
being e -commerce -ready, including, access to electricity,  access to digital  infrastructure, 
inadequate IT s kills, access to cheap and fast broa dband  and technology transfer.  
5.73.   As a way forward, the LDC Group agreed with the African Group that most of t he 
submissions on the table were outside the scope and m andate of the Work Program me. Therefore, 
Members should  narrow th eir submissions to  the issues specific to  each particular body; and in the 
event that this was not possible,  they should focus on the development -related aspects of the 
Work P rogram me, such as improved access to infrastructure, transfer of technology,  move ment of 
natural persons and use of information technology in the integration of  developing countries. 
These were  issues at the heart of the digital divide that needed to be resolved with the view to 
building LDCs' e-commerce readiness.  
5.74.   As Members might recall, the African Ministers of Trade , in their  Decla ration issued in 
November 2016, had directed that any work undertake n within the WTO should be consistent with 
the African Union's Agenda 2063 , with a view to structural transformation and i ndustrializatio n in 
building "The Africa we want ". Therefore , work in WTO had to complement , and not undermine , 
that Agenda. It was important to examine the implications of e -commerce on the structural 
transformation and industrialisation of Africa, including the transfo rmations to traditional 
production  and supply chains most devel oping countries were  involved in, as well as  the impact on 
LDCs' domestic markets, manufacturers and service suppliers.  
5.75.   On the promise of technical assistance or aid for trade, it was  importan t that M embers, 
especially the proponents , adopt an approach of consistency in message and practice. As LDCs had 
stated in July, there was no reconciliation at all in that  endeavour.  All indications were  that aid for 
trade was  on a down ward trajectory and most of it went  to non -LDCs. In a seminar organised by 
the Friends of E -Commerce for Development in December 2016 , Members  had heard a harrowing 
tale from the Secretary General of the I nternational Telecommunications Union (ITU). The ITU had  
a plan to conn ect 1.5  billion  people to the Internet  by 2020. This strategy required  USD 450 billion  
to be operationalize d. While the ITU had been trying to mobilise  the requisite resources, the 
Secretary General  had been told that there was no money. In  the ITU Secreta ry General's view, 
and LDCs agreed with him, unless people were connected, e -commerce would not benefit  them; it 
would be like playing music to the deaf.  
5.76.   The representative of Paraguay  said that for Paraguay , a landlocked developing country, e -
commerce held great potential. I t was being discussed everywhere  except in the WTO. His 
delegation had co -sponsored the proposal (JOB/SERV/ 248) and attached great importance to 
regulatory disciplines on e-commerce, which the paper divided in to four groups: transparen cy, 
regulatory framework s, open markets and , importantly, special and differential treatment.  
Regarding transparency , it would be important to have mechanisms for the exchange of 
information in the different Committees, notifications on e -commerce, and that Trade Policy S/C/M/130  
 
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  Reviews cover e -commerce. His delegation had also co-sponsored a proposal with Argentina and 
Brazil  on electronic signatures  (JOB/SERV/247) . The regulatory framework s could include 
consumer protection, competition  policy and cybersecurity. A s to initiatives facilitating the 
development of e -commerce, it was important to facilitate open networks , electronic payments, 
electronic signatures and IPRs, among others. His delegation also supported the concept of "open 
markets" rather than market acc ess, which covered the elimination of customs duties or the 
moratori um on electronic transmissions,  disciplines on cross -border data flows, localisation 
requirements and access to source code. Finally, on special and differential treatment, an approach 
similar to the TFA, where  the requirement to implement the agreement was directly linked to the 
capacity of the Member to do so , was a good model to follow.   
5.77.   The representative of Peru said that his delegation  supported continuing discussions on e -
commerce an d had general comments which applied to all the papers submitted to the Council 
within the  framework  of the Work Programme . Echoing previous  comments , Peru c onsidered that 
e-commerce had an important and positive impact on economic growth and development, 
particularly for SMEs, which had a fundamental role in job cre ation, economic development and  
poverty alleviation. Peru had already included e -commerce c hapters in most of its RTAs, including 
the TPP. Furthermore, his delegation  was actively engaged in the  discussion of disciplines on e -
commerce and other subjects also linked to development  in other fora . His delegation recognized 
all elements contained in the Work Programme and was constructively engaged in deepen ing 
discussions and reach ing an outcome on e-commerce for the benefit of all Members . While 
supporting holding discussions in the relevant bodies , it was also important to hold joint meetings , 
to have an integrated debate which cover ed all topics of interest to Members. Any outcome on e-
commerce should be founded  on the princip les underpinning the system. His delegation  hoped that 
discussions would allow reaching a concrete outcome on e -commerce at MC11.  
5.78.   The representative of  Japan  welcomed the valuable  paper on the table , as his delegation 
believed  that the mapping exercise gave Members a good foundation for effective discussions in 
the CTS to identif y elements that were essential for engaging in digital trade.  For instance, the 
importance of the WTO 's basic principles , namely non -discriminat ion, as well as transparency and 
predictability , as referred to by Canada,  should be emphasized in digital trade.  Moreover, cross -
border information flows play ed an essential role in realizing digital trade. Ensuring cro ss-border 
information flows seemed to be a sensitive issue  at the WTO; h owever, it was truly essential for 
digital trade. Users had to access online shops to purchase goods or services.  In those  
transaction s, users transmit ted online their information to the online  shop's operators and the 
many oth er op erators associated with the  shop. Similarly, i t was self-evident that suppliers of 
online services such as download able music , video and e-books, cloud -computing  and social 
networks , had to transmit their services to their customers  via the Internet.  
5.79.   It was Japan's understanding that Members had approached the development aspect of e-
commerce  from two perspe ctives. On the one hand , based on the experiences of developed 
Members and several developing  Members, it was  highly likely that the promotion of e-commerce  
would enhance economic and development oppo rtunities in developing Members, including MSMEs.  
On the other hand, many Members still faced difficulties with some elements related to  e-
commerce that were fundamental to unleashing its full potential , including access to and use of 
ICT infrast ructure, payment s and logistics . While  these aspects  should be  left to ongoing 
discussion s at the CTD , it was important to identify what Members c ould do in this regard in the 
WTO.  
5.80.   The representative of Montenegr o, as co-sponsor  of JOB/SERV/ 248, thanked  those Members 
supporting the proposal and also welcomed the proposal s submitted by other Members. The 
expansion of the digital economy provided  new opportunities to promo te inclusive economic 
growth and  could help to connect urban  and rural  areas, afforded new channels of trade to 
landlocked economies and facilitate d the participation of MSMEs. Montenegro and the other co -
sponsors took in to account Members ' concerns  regarding the digital divide and the lack of 
appro priate infrastructure for an enabling environment, as well as those Members calling for more 
focused and concrete discussions in the future.  The paper was flexible enough to provide a 
substantive framework for future discussion s and for including new eleme nts on the creation of an 
enabling environment. Montenegro stood ready to continue discussion s in order to achieve 
concrete results at MC11.  S/C/M/130  
 
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  5.81.   The representative of India welcomed the communication submitted by the European Union 
and co -sponsors, which cover ed around twenty -seven  elements grouped around clusters 
pertaining to regulatory frameworks, open markets, initiatives facilitating the development of e -
commerce and enhanced transparency.  He appreciated the approach taken by the proponents to 
discuss the paper in all the relevant bodies. The elements appeared to be very wide -ranging , 
covering trade in goods, services, TRIPS and so forth. A  number of very import ant concepts had 
been addressed in the submission, and t heir scope and ramifications would requir e further 
clarification.  In the Council, Member should discuss elements of the Work Programme relevant to 
the CTS  agenda.  
5.82.   His delegation agreed that e -comm erce was becoming a major driving  force of international 
economic activity , including international t rade. In India, e -comm erce was transforming the way  e-
commerce was done and was one of the fastest growing segments , which had  observed  an 
exponential growth in the  recent years . However, as any new emerging area of technology, the 
regulatory frameworks an d institutions to support e -commerce were still at an evolutionary stage. 
India agreed with the proponents that even after eighteen years, the original Work Programme 
remained relevant. Ministers in Nairobi had committed to continue relevant  work based on the 
existing mandate  and guidelines. The European Union had sought ideas from Members on issues 
that need ed to be discussed. At that juncture , his delegation had only some ideas , which were not 
particularly new  in the Council . In his delegation's view, fur ther clarity was required regarding : (i) 
the interface  between e -commerce and digital trade; (ii) the scope of terms that had not been 
defined in the Work Programme , such as electronic transmissions in the context of the moratorium 
on the imposition of cus toms duties; (iii) how to classify e-commerce transactions, i.e. whether as 
trade in services or trade in goods , or both ; and (iv) how to capture e -commerce transactions in 
national and international trade statistics.  Lack of credible  and comparable statistics related to e -
commerce was  a real challenge to many countries , including India.   
5.83.   On the core principles of trade policy as applied to e -commerce, his delegation believed that 
movement of data, skills and technology across borders had become critical to  the growth of e -
commerce and digital trade. However, at the same time, there was  a growing protectionist trend 
which included measures restricting the entry of skilled professionals or making it costly for 
companies to recruit foreign talent , or curb ing the movement of data and technology across 
international boundaries. It was also a well -known fact that m ost developing countries were 
grappling  with basic access and connectivity issues , such as p roviding  interrupted power supply, 
improving I nternet connec tivity and br oadband.  In India, 70% of the population did not have 
Internet access, especially amongst the rural population. According to an UNCTAD Report , 
business -to-business e-commerce  was by far  the main  form of e -commerce and  four countries 
account ed for 80% of all e-commerce. In short, there was a huge digital divide within and 
amongst Members, which needed to be addressed.  
5.84.   The growth of e -commerce  activities had raised new challenges, both for dome stic and 
cross-border trade , including : (i) issues o f consumer protection ; (ii) sale of pirated and 
counterfeited goods and services; (iii) safety  of on -line payments; (iv)  need to balance between 
free cross -border data flows and privacy concerns ; (v) a common framework for  recognizing  
electronic signatures , authentication  procedures  and digital signatures ; (vi) taxation issues related 
to the digital economy; (vii)  issues related to shortages of skilled man power ; (viii)  human 
resource development ; and (ix) logistics . In most developing countries, including India, regulator y 
frameworks on these issues were still evolving. There  was a need to discuss how Members were 
addressing these issues domestically within their development  context.  Given the growth of e -
commerce and digital trade, and the associated chall enges, cooperation amongst WTO Members 
by sharing best practices related to consumer protection , safety of on line payments , as well as on  
how to address sho rtages of skilled man power, human resource development and  so forth,  would 
be particularly useful . The collective focus should be on ways of reducing the digital d ivide, 
promoting increased Internet access , addressing the financial  needs of developing countries , 
particular ly LDCs, and ensuring digital infrastructure . 
5.85.   The proponents had indicated that th e mapping list was not a proposal for negotiation. In 
his delegation's view, in this initial  multilateral rule -making discussion on e -commerce, it would be 
appropriate to limit discussion s to a non -negotiating mandate. To conclude, e -commerce could 
become a driver of growth and development; however to realize its potential, significantly larger 
efforts were required by national governments and the international community to enhance the S/C/M/130  
 
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  readiness of countries to engage and benefit from e -commerce. He looked forward to continuing 
discussions on e -commerce in the Council as Members moved forward in the Work Programme.   
5.86.   By way of general comments, t he representative of Brazil  echoed previous comments to the 
effect that Members were working under the aegis of the Work Prog ramme and in a non -
negotiating spirit  to explore the issue. Members were not negotiating on e -commerce, but instead 
sharing experiences, as his delegation had done by sharing the MERCOSUR experience on 
electronic signatures. His delegation viewed  this exercise , as carried out in the Council and other 
bodies , in line with the spirit of the Work P rogramme.  Members were submitting proposals to the 
relevant bodies  because sometimes it was difficult to identify which body was relevant , there was 
more t han one relevant body or the issue was cross -cutting in nature. Therefore, in Brazil's view, 
Members were fulfilling the terms of the Work Programme.  He highlighted the importance of 
development issues and bridging the digital divide. E -commerce was not an  end in itself , it had the 
fundamental task of addressing the ne eds of developing countries. This  should remain the  
fundamental pillar to guide the discussions.  
5.87.   As to the way forward, Brazil had suggested in the past to hold joint meetings of the 
subsidia ry bodies tasked with the Work Programme. Turkey, Peru and other Members had made a 
similar suggestion  in order to facilitate discussion s. Members should consider whether it was 
efficient to discuss the same issues in different bodies in situations when  it was difficult to 
determine  the appropriate  body to submit  the documents to . At a certain point, Members could 
find better ways to deal with this issue. In the meanwhile, Brazil would be happy to discuss  in the 
CTS and the other bodies relevant aspect s of e-commerce that Members  might identify . 
5.88.   The representative of  Zimbabwe  said that  her delegation associated itself with th e 
statement made by South Africa on behalf of the Africa n Group, and also sh ared the views of 
Uganda, I ndia, Venezuela, Bolivia and oth ers. At that  juncture, her delegation had only preliminary 
comments on the EU et al.  proposal , which went beyond the mandate of the Work P rogram me 
and, in some cases, went even beyond the scope of WTO work. Firstly, her delegation request ed 
the proponents to narrow down the elements contained  in the ir proposal  to be in line with the 
mandate.  Secondly, the proponents had  not addressed the key challenges related to the digital 
divide in line with paragraph 2.1 of the Work P rogram me of 1998 , which listed  the elements to be 
examined, namely, "increasing participation of developing countries " in e-commerce.  It was 
important for developing countries to benefit from the discussions. Thirdly, regarding 
transp arency, the proposal  would result in burdensome and onerou s procedures for her country 
due to its  level of development and relatively low capacity.  Fourthly, it was important to have 
technical discussion s on definitions of e-commerce and digital trade.  Finally,  Members should 
discuss concretely  how to bridge the digital div ide, consider ways to improv e access  to 
infrastructure, promot e technology transfer , connectivity , as well as ways to reduc e knowledge 
gaps and regulatory gaps in developing countries. Likewise, it was important to have more data on 
the implicat ions of e-commerce for developing countries. SMEs could only benefit from , and 
participate in , e-commerce once these challenges had  been adequately addressed.  
5.89.   The representative of Argentina  said that the paper on the table (JOB/S ERV/248) was the 
most comp rehensive , and the mapping exercise was very useful to  meet the deliberative mandate 
of the Work Programme. Members should reflect on the disciplines that already existed and 
addressed many of the issues identified in the mapping exercise. This would allow  Members to 
discuss on the basis of well-known grounds, namely the GATS, as the  concepts were not new. 
Therefore, Members could start by identify ing those elements  focusing on the GATS to move 
discussions  on e-commerce  forward .  
5.90.   It was worth noting that , amongst  the few GATS disputes that had been brought before the 
DSB, three disputes had dealt closely with e -commerce issues . Therefore, it was surprising  that e-
commerce issues were perceived by some as being outside the WTO , when some of those issues  
had b een clarified  in WTO dispute s. Members should reflect on  whether it was preferable for 
Members  to shape the rules, taking legitimate concerns on e -commerce  into account , or, instead,  
leave these issues to be clarified  through the WTO dispute settlement , or even outsid e the WTO, 
as it had  happened on some occasions . The fact that Members were not discussing e -commerce 
issues in the WTO did  not prevent  those issues from  being discussed elsewhere. The WTO provided 
all Members, particularly small and medium -sized ones,  with an opportunity to discuss e-
commerce in a multilateral context. Many issues discussed at the plurilateral level were later on 
reverted to the WTO. This was not something new and  had already happened during  the Uruguay S/C/M/130  
 
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  Round with the Tokyo Round Codes, which had been negotiated by a sub -group of Members. 
Likewise, many of the disciplines agreed in 1947 mirrored  the trade bilateral agreements 
concluded by the United States in the thirties. Therefore, the  issue was whether Members would 
allow e -commerce disc iplines to be developed elsewhere , considering also that  Members were 
involved in FTAs.  
5.91.   As to the  comment s made by some delegations on the need for statistics  for continuing 
discussions , he recalled that, at the time the Uruguay Round  was conc luded , a similar situation 
existed  for services trade . However , that had not impede d the development of a multilateral 
framework . It was up to the Member s to identify those issues which posed problems in order to 
discuss them and find solutions , or adapt t hem to their particular viewpoints  or circumstances . To 
conclude, his delegation believed that the proposal on the table was the most comprehensive of all 
and could provide a good basis to move f orward  discussions on e -commerce in the WTO.  
5.92.   The representat ive of China  said that the communication submitted by the European Union 
and co -sponsors included a very comprehensive mapping of e -commerce issues under the Work 
Programme. Although his delegation did not necessarily agree with the categorization of certa in 
elements related to trade in services and their consistency with, or re levance to , the existing 
mandate,  China was willing to engage in further discussions. Any rule -making on e -commerce 
would need to be based on consensus an d be carried out progressive ly, putting the development 
dimension at the core of the discussions.   
5.93.   The representative of the European Union  said that he was pleased with the level of 
engagement shown in the Council , as the main objective of their paper was to trigger discussion s. 
His delegation looked forward to m oving to a more concrete discussion, based on the questions 
and issues put forward by Members. T he document contained a tentative mapping exercise which 
was not an exhaustive list of issues,  but an invitation to discuss and s ee what could be brought by 
Members. After digesting all comments on, and reactions  to, the paper, his delegation would 
continue discussions with Members.  
5.94.   The representative of Japan  said that some Members had indicate d that  certain elements in 
the mappin g exercise went beyond the Work Programme. In this regard, he recalled that the Bali 
Ministerial Decision , which had been agreed to by all Members , stated that the Work Programme 
should continue to examine the trade related aspects of, inter alia, enhancin g Internet connectivity 
and access to ICT and public Internet sites, the growth of mobile telephony, electronically 
delivered software, cloud computing, the protection of confidential data, privacy and consumer 
protection . 
5.3  "Electronic commerce and developm ent" (JOB/SERV/249)  
5.95.   The representative of Singapor e, on behalf of all developing Members co-sponsors  of the 
paper, indicated that the  motivation behind the submission was to promote discussion s and 
reflection on e -commerce and especially on the link betwee n e-commerce and development. In 
this regard, the submission identified some areas of potential interest to developing countries. E -
commerce opened up opportunities for businesses, especially SMEs, allowed to reduce the cost of 
doing business and to look beyond companies' own backyard.  This was happening not only in 
developed  countries , but also in develop ing ones. That said, the conduct of e -commerce in 
developing countries had certain unique characteristics ; for instance, cash delivery and mobile 
payment were still prevalent  in the conduct of e -commerce in many developing countries.  
Connectivity and access to reliable communication networks also posed particular challenges, but 
at the same time provided innovative opportunities for businesses.  Therefore, he encouraged 
Members to use the opportunity afforded by the  paper and the other papers submitted on -
ecommerce to engage at the technical level to discuss their areas of interest, including  the 
challenges they were  facing in leveraging e -commerce to achieve  the SDGs.  Enhance d information 
and experience -sharing would allow all Members to better understand e -comme rce and identify 
how the WTO could  help them achieve their policy objectives in e -commerce. The co -sponsors 
stood ready to work with other interested  Members to move work further in this area.  
5.96.   All delegations who took the floor  thanked Singapore and the other co-sponsors for their 
proposal.  S/C/M/130  
 
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  5.97.   The representative of Costa Rica  indicated that all contributions submitted were valuable 
and helped to understa nd the different aspects of e-commerce and the complexity of th e work to 
be carried out on the subject. As co -sponsor of the paper on the table, he echoed Singapore's 
statement. E-commerce was the  most efficient way of distributing  resources for both produ cers 
and consumers. His delegation believed that e-commerce was the only way for emerging countries 
and SMEs to be born globally , as it offered a unique opportunity to  overcome geographical, 
political  and technological  barriers . E-commerce could only grow as much as  the Internet  did. 
There were  4 billion people without Internet access, which implied  that e-commerce  was excluding 
the "un connect ed". This fa ct had significant implications and meant that  all those who could use 
the Internet, for instance to send emails or participat e in social networks, pertained to a minority. 
Inequality ha d been widespread  for centuries and socio -economic gaps among the different 
regions  and countries had been increasing over past decades . This fact had not been created by 
this generation and did  not constitute a digital gap. Instead, it was a socioeconomic disparity and 
Members now had the opportunity to reduce  it through technology and digital means.  
5.98.   The paper included elements that  his delegation considered important for  discuss ion, like 
the relationship between trade facilitation and e -commerce, infrastructure  gaps, access to 
payments solutions and online security.  He conclude d by quoting  the statement made  by the 
Minister of Foreign Trade of Costa Rica in a seminar recentl y held on electronic payments and 
financial inclusion: "If we think on where we were 12 years ago, there were no smartphones, cloud 
computing, social networks, cybercrim e or e -commerce as we understand  it today. In 12 years, 
around 2030, we will be far fro m where we are today.  As the time goes by , we have the option to 
become  passive obser vers or active creators of the  future". Costa Rica supported e -commerce 
initiatives with the aim of being an active creator of the future.  
5.99.   The representative of Hong Kong,  China  said that , as co-sponsor, he share d Singapore's call 
for associating e -commerce with development. There was no doubt that e -commerce had  become 
an es sential element in global trade , as it was  now integrated to every part of the supply chain, 
linking  consumers and suppliers in m any aspects.  In particular, his delegation  recognise d that 
some SMEs were  facing  difficulties to engage in the  global market place due to lack of resources, 
infrastructu re and technology.  Therefore , his delegation support ed any initiative that could help 
create a reliable business environment for SMEs to participate in e -commerce, including  with 
regard to consumer protection, access to services, privacy protection, online security, secured 
online pay ments and so forth.   
5.100.   The repr esentative of Thailand  said that  e-commerce was important to enable businesses, 
especially SMEs, to have access to markets and global value chains. In Thailand, SMEs played an 
important role in the economy as they represented around 90% of all enterprises.  If their capacity 
was enhanced to reach their potential,  they could be an engine of growth and contribute to 
sustainable development. Her delegation looked forward to hav ing an opportunity to discuss  e-
commerce issues as identified in the non -paper includ ing infrastructural gaps, access to payment 
solutions and online security.  In this context, she considered that sharing experiences and best 
practices among Members would be valuable. Thailand also appreciated cooperation undertaken in 
various internationa l frameworks , such as the WTO Aid for Trade programme and UNCTAD e-Trade 
for All, which helped to build capacity for SMEs to truly benefit from e -commerce.  
5.101.   The representative of Colombia  echoed the statements made by Singapore and the other 
co-sponsors. Hi s delegation believed that e -commerce had a positive effect on development , as it 
created new business opportunities, reduce d transaction  costs and provided MSMEs with an ideal 
platform to participate in world trade. A key issue for developing countries an d LDCs was to reduce 
infrastructure gaps  as a pre -condition f or a strong digital ecosystem  to promote e -commerce.  This 
was a key issue in e -commerce discussions and , therefore, he encouraged Members to exchange 
experiences on matters related to building in frastructure, particularly on private -public 
partnerships to increase I nternet access.  
5.102.   He shared  his country's experience in infrastructure develop ment and connectivity and how 
those elements became  invigorating factor s for trade. In 2010,  Colombia had designed the Plan 
"Vive digital " (Live digital ly) with the aim  of providing connectivity and I nternet access throughout  
the country. The aim was to generate a deployment of infrastructure that would lay the ground to 
provide connectivity  and I nternet access to all Colombian citizens . After only four years, it  had 
been possible to multiply I nternet connections  fourfold , from 2.2 million to more than 8.8 million, 
connecting 96% of  municipalities to fibre -optic cable. This had been possible due to public -private  S/C/M/130  
 
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  partnership s, which had allowed the optimiz ation of state resources  on infrastructure through open 
and transparent public tenders and auctions  that included  minimum coverage and quality 
requirements. The Plan had been implemented jointly with the private sector, whose needs had 
been identified and incorporated  based  on an open consultative process.  To conclude , his 
delegation was interested in continuing an integral discussion on all aspects  relevant to e -
commerce , as e-commerce was one of the main tools t o leverage countries' development.  
5.103.   The representative of Malaysia  indicated that , as co -sponsor, her delegation shared 
Singapore's comments  on the submission. She also welcomed the other contributions made by 
Members , which helped to enrich the discussion  on e-commerce and trade in services . Members 
were aware of the growing importance of e -commerce  in facilitating trade and enabling countries' 
integration into global value chains  and global markets , particularly for MSMEs . In Malaysia, e -
commerce 's contri bution to GDP was more than 5% and had the potential to grow significantly , 
particularly if more SMEs were given  the opportunity to participate in regional and global e-
commerce. Moreover, e -commerce was expected to grow in Malaysia between US$ 3 to 4 bill ion by 
2020.  
5.104.   Recognizing the importance of e -commerce for a developing economy like Malaysia, the 
National E-commerce Strategic Road map had been designed to promote the growth of the sector 
in a planned manner , so as to help achieve the countr y's targets  of improving  assets and digital 
economy readiness.  Improving  governance regarding transparency in e-commerce policies would 
also help to enhance SMEs ' participation in the online market place. As part of promoting and 
increasing e-commerce domestically , several initiatives had been announced , including for 
improving infrastructure  as in the case of broadband . In her delegation's view,  simplifying and 
facilitating e -commerce  as well as putting in place the needed infrastructure, access to payment 
solutions and online security were important elements to provide a competitive environment to  
small businesses . Her delegation welcomed the engagement shown by Members t o exchange 
information on th ose issues and advance discussion s on e -commerce .  
5.105.   The representative of Qatar  said that his delegation welcomed all contributions  submitted 
on e-commerce. As co -sponsor, h is delegation endorsed the statement made by Singapore and the 
other sponsors. The digitalization of businesses and e -commerce was a propeller towards 
development, especially for SMEs, as e-commerce provided them with the opportunity of reduc ing 
their cost of doing business and enhanc ing their participation in global trade. In his country, 
internal discussions had been taking place on e -commerce , with the i nvolvement of the public and 
private sector. At the fourth edition of Qatar's information and communication technology 
exhibition and conference (QITCOM 2017)  Qatar's Prime Minister had announced that all 
government  services would be available online by 20 20. This was a step to wards increasing  
transparency and accessibility for all service suppliers. Furthermore, Qatar was working to support 
SMEs ' participation in online activities. His delegation stood ready to actively engage in the Council 
and other bodi es in order to find a balance d outcome at MC11.   
5.106.   The representative of Turkey  said that e -commerce was crucial for MSMEs to integrate in 
world trade, especially in developing countries. Her delegation believed that linking e -commerce to 
development, as the  paper did, was relevant for both developed and developing countries.  Indeed, 
many issues , such as online security, payment solutions, logistics and trade  facilitation of goods 
traded  electronically, were identified as priority issues also in other papers.  In her delegation' s 
view, the  fact that the  paper on the table complemented the development elements included in 
other papers made it relevant to all Members . She looked forward to hearing Members' ideas on 
what issues should be given priority in the disc ussions on e -commerce for development and how 
e-commerce c ould contribute to integrat ing MSMEs into world trade.   
5.107.   The representative of the Plurinational State of Bolivia  said that his delegation attached 
great importance to development, which sh ould be at  the centre of the  discussions . He made  some 
comments on the proposal and requested clarifications about  some of the elements contained 
therein. First, the proposal referred to MSMEs , which certainly played an important role in both 
developed and developin g countries. However, t he submission assumed that MSMEs were alike in 
all countries; while there were differences amongst the MSMEs from developing countries and 
those from developed countries. He thought that the proposal would afford differential treatme nt 
to MSMEs from developing countries, but this was not the approach adopted by the document. 
There was a need to include different rules for MSMEs based on these considerations.  S/C/M/130  
 
- 44 - 
 
  5.108.   Second, t he proposal, in paragraph 1.3, stated that technology -enabled SMEs had higher 
trade activity and overall growth compared to tradition al SMEs. I t was also worth mentioning that 
traditional SMEs were usually found in developing countries. The second part of the same 
paragraph indicated that technology -enabled SMEs in develo ping countries performed just as well  
as similarly techn ology -enabled SMEs in developed countries. He enquired about the meaning of 
"similarly sized", as  it was import ant to clarify the size of SMEs . Paragraph 4 provided some 
statistics, which reinforced t he need for statistics on developing countries' participation in e -
commerce, Internet p enetration and  access to broadband  when discussing e -commerce . If 
Members were going to discuss e -commerce and development, those issues needed to be 
addressed.  For inst ance, it would be interesting  to know the share that  the enterprises mentioned 
in paragraph 1.2 of the submission had in the global market  place.  
5.109.   Third, t he table contained in the document raised interesting questions, which his 
delegation would address at a future opportunity. As to inf rastructure gaps, the paper enquired 
how to better target technical assistance towards plugging the critical gaps. However, the 
document made no reference to financial assistance , which was important given the paper's focus  
on the development dimension of e -commerce. While infrastructure gaps were part o f the 
problem, he did not agree  that, at the same time, they provided innovative opportunities  for 
businesses . He also disagre ed with the appro ach taken  to tackle infrastruct ure gaps. In his 
delegation 's view, development issues on e-commerce went  beyond MSMEs and developing 
countries should keep that in mind.  
5.110.   The representative of China  said that his delegation believed that the development 
dimension should be at the core of  the discussions on e -commerce . Therefore, the  submission was 
important , as it identified certain potential areas which would enrich the discussion on specific 
aspects related to e -commerce and the development dimension. His delegation would revert with 
specific comments on the submission at a later stage.   
5.111.   The representative of Uruguay  said that the paper contained topics of particular interest to 
developing Members , such as trade facilitation and e -commerce, access to payment solutions, 
online security, i nfrastructure, and so forth. Her delegation shared the view that e -commerce 
provided MSMEs with the possibility of reaching a wider market and reduced the costs usually 
associated with penetrating foreign markets.  Therefore, e -commerce had the potential to  boost 
economic growth and development. Her delegation s upported advancing discussions particularly 
on issues of interest and importance to developing countries.   
5.112.   The representative o f Chinese Taipei  said that her delegation welcome d the  proposal  
submitted  by Singapore and co -sponsors  and share d the view that e -commerce had  completely 
changed the way of doing trade in the modern world. It had  allowed MSMEs, as well as young 
entrepreneurs, to gain access to global market s for the first time. In that regard, her delegation 
firmly believe d that the WTO should play a crucial role in facilitating  e-commerce. She reiterated 
her deleg ation's  engagement in future  discussions.  
5.113.   The representative  of Cuba said that her delegation was still examining the proposal and 
would come back with further comments at a later stage. She echoed Bolivia's statement  in the 
sense that , while some of the elements contained in the submission, such as infrastructure gaps, 
were important , the way these  were addressed was not the most appro priate. Furthermore, there 
were other issues, including some related to developing countries' urge nt needs , that were missing 
in the proposal and , therefore, a detailed analysis was needed . 
5.4  "Work Programme on Electronic Commerce " (JOB/SERV/243/Revision.1)  
5.114.   The representative of China  said that, at that stage, the discuss ions o n e-commerce in the 
WTO should be based on the existing mandate, uphold the development dimension, focus on areas 
of common interest  to Members and embody the inclusiveness of the  multilateral trading system . 
The discussions should not involve the issue of market access . Instead, they should focus on the 
promotion and facilitation of cross -border  trade in goods enabled by the Internet, together with 
services directly supporting such trad e in goods, like payment and logistic s services.  
5.115.   At the November meeting , many Members had made positive comments on China's 
communication  and also raised some questions for clarification , including  after the meeting. 
Although China had initially  focused on aspect s related to trade in goods,  in light of  the questions  S/C/M/130  
 
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  received , her delegation  had also looked into the services -related aspects . She share d her 
delegation's view on this issue and would  welcome information from other Members on the 
developme nts of services trade in the e-commerce environment , as well as their regulatory 
policies and framework s. 
5.116.   According to China 's preliminary view s, there were two types of participants in the e -
commerce ecosystem of cross -border  trade in goods enabled by the Internet. One type was "the 
third-party e-commerce platform ", which was a brand new business model. Some industry people 
tended to regard this as belonging  to trade in services. It refer red to any legal person or other 
organization that provide d two or multipl e parties to an e-commerce busin ess transaction with 
services of webpage domain , virtual operation sites, business match -makin g and information 
release , among others , thus  enabling the independent  transaction activities by th e relevant 
parties. The second  type was the "e-commerce business operator ", i.e. any natural person, legal 
person or other organization , other than a third -party e-commerce platform , which  sold goods 
cross-border via the Internet and other information  networks, or directly provide d indispensable 
services to such cross -border sales. 
5.117.   The cross -border sale of goods itself  seem ed to be relate d to distribution ser vices. To 
support such sale s in the e -commerce environment, payment and logistic s service s were 
indispensable. In the system,  there  were also specialized services related to exportation and 
importation, such as customs clearance, i nspection declaration  and tax rebate , which c ould be 
provided in an integrat ed manner to businesses engag ed in the cross-border sale of goods , 
especially SM Es. It was worth noting that, in practice, a participant in the e-commerce ecosystem 
could  be both a third -party platform and a business operator at the same time.  
5.118.   In China, e -commerce participants sh ould apply for business registration  according to 
Chines e law, since they engaged in busines s activities. The requirement was not a special 
regula tory measure for e-commerce participants , as it was a bas ic obligation to be observed by all 
business opera tors, whether in side or outside of  the e-commerce environme nt. Upon business 
registration , e-commerce participants were required to  operate according to  the law and to obtain 
the relevant administrative licences,  or complete the relevant filing registration according to 
relevant laws and regulations.  Apart from th ose generally applica ble administrative procedures o n 
licensing or regist ration , there were other specific  ones. For example, China had special 
administrati ve procedures for releasing information on the Internet related to special products , 
such as medicin es. The exportation and importation of certain goods  was also subject to specific 
administrative procedures , which were very familiar  to all Members ; those procedures  were 
addressed in various WTO bodies under the Council for Trade in Goods . 
5.119.   Payment servic es were an indispensable link in the e-commerce ecosystem of cross -borde r 
trade in goods , as no transaction in the e-commerce environment c ould be completed without 
payment service s. Thanks to the booming of e-commerce, besides payment service s provided by  
traditional banking institutions , also payment services provided by non -banking or non -financial 
institutions using  the Internet, mobile communication and other  new ICT had achieve d rapid 
development. On the one hand, there was a need to support these new ly emerging payment 
institutions and Internet payment business es, with a view to encouraging the innovative 
development of the payment service market . This was particularly important in order to bring  into 
full play t heir advantages  of enabling small amoun t transactions, expeditiousness and convenience 
for consumers , as well as their special features catering to e-commerce developme nt. On the other 
hand, it was important to safeguard the legitimate rights and interests  of relevant parties against 
payment risks.  
5.120.   Logistic s service s were certainly another indispensable element in the e-commerce 
ecosystem . They  covered a wide range of services , includ ing express delivery service s, freight 
transport service s and other related services. In China, an expr ess deliv ery business license was 
needed for the provision of logistic s service s, and a transport business licen ce was also needed for 
freight transport and related services , according to the different modes of transportation.  The 
development of e-commerce ha d boosted the rapid progress of express delivery service s in China, 
creating huge employment opportunities , but also  posing new challenges to the regulation of the 
express delivery  industry. As a result, before the industry regulator issu ed the express delivery 
service licences,  China require d express del ivery service providers to file  their agreements with  
entrusting consignor s who were business operators of on -line shopping. Express delivery 
enterp rises providing also "cash on delivery " (COD) services were requ ired to  establish strict cash S/C/M/130  
 
- 46 - 
 
  management, security management , and risk control systems. The contract between express  
delivery enterprises and the consignor s had to provide the rights and obligations of COD services, 
and was subject to the authority of the  financial regulator , according to relevant financial 
regulations.  Logistics service s were also provided not only by express delivery enterprises, but also 
by postal enterprises. In this regard , China suggest ed that the WTO invite the Universal Postal 
Union to make a  present ation on  the relationship between postal services and e-commerce, to 
enhance Members'  understanding.  
5.121.   While going through the trade in services aspects of the communication, China had 
preliminary observations on two issues . The first one was transparency. Along  with the rapid 
development of e-commerce, some directly services -related  secto rs had experienced an 
unprecedented innovative development , as well as new risks and challenges. Members ' regulatory 
policies should adapt a nd change corr espondingl y, and t hese changes w ould, in turn , exert majo r 
impact on the development of e-commerce . Therefore , transparency was of particular significance . 
The second issue concern ed electronic  signature s, e-authentication , e-contract s and e -invoice s. An 
important character istic of the e -commerce ecosystem was  that all the links in the system were 
becoming  increasingly paperless. Therefore , there was a need  to address  problems relating to the 
digitisation  of trading documents in order to eliminate barriers to e-commerce development, so as 
to preserve  the legitimate rights and interests of participants and safeguard  the secu rity of 
electronic transaction s. She encourage d delegations to share t heir information and views . China 
would continue discussion s with M embers with a view to exploring  what progress could be made 
under the WTO framework.  
5.122.   The representative of Canada  said that China's intervention was very interesting and 
informative.  China provided a number of  useful ideas for Members to consider, particul arly with 
regard to transparency,  paperless trade and electronic authentication , which  were worth exploring. 
He agreed that the sectors mentioned  by China (such as financial services, logistics, transport 
services) were critical for e -commerce. However, he  wondered how China could identify  all those 
sectors  as important , but still insist that market access should not form part of e-commerce 
discussions.   
5.123.   The representative of Turkey  said she appreciated the work undertaken by China and 
Pakistan in their sub mission , which helped Members to  better  understand  the application of 
multilateral trade rules with a view to allow ing developing countries and their SMEs to better 
participate in global trade through cross -border e -commerce. At the November meeting , Membe rs 
had attached great importance to the possibility of holding an informal joint meeting of the WTO 
bodies  tasked with the Work Programme , without necessarily delegating any issues to the relevant 
bodies.  Although it was  pragmatic to prioritize so me less c ontroversial issues with a view to  
achieving  an outcome by MC11 , Turkey wished to discuss more services -related issues. A ny e-
commerce outcome should not be limited to facilitating cross -border trade in goods enabled by the 
Internet.  Besides, Turkey suppor ted making the moratorium on  customs duties on electronic 
transmissions permane nt. While it  was not easy , this could constitute  a simple and impressive 
MC11 outcome.  
5.124.   The representative of Colombia  indicated that e-commerce was key to fostering economic 
growth, as it made it possible for businesses to offer their products and services in the global 
market  place. Therefore, Colombia supported any initiative aimed at facilitating e -commerce.  As 
the proposal on the table was being reviewed in capital, he had o nly preliminary comments  at that 
juncture . From a services perspective, it was appropriate to take into consideration those services 
which supported directly trade in goods, such as payment and logistic s services , and the rules 
aimed at boosting e -commerce  development. Colombia supported increasing  transparency in e -
commerce policy -making, as well as the extension of the moratorium on customs duties on 
electronic transmissions. His delegation was particularly interested in exchanging  information on 
regulati ons concerning e -commerce payment systems  as, based on Colombia's national 
experience,  this was one of the main barriers to e -commerce. His delegation would be interested 
in continuing discussi ons on the proposal on the table.  
5.125.   The representative of Ecuador  share d his delegation's views on the various 
communications submitted on e -commerce. As e-commerce was an important topic that was 
constantly evolving , he welcomed proposals that  contribute d to enrich ing the debate . His 
delegation agreed that discussions on e-commerce should not lead to new market access 
commitments and had to remain within the mandate of the Work Programme. Members should not S/C/M/130  
 
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  discuss issues that went beyond th at mandate , given t he big digital divide among Members . 
Infrastructure and socia l gaps deserved priority attention , in order for concrete solutions to be 
found according to developing countries' economic, financial and development needs.  
5.126.   Regarding the document submitted by Canada and co -sponsors, his delegation welcomed 
the efforts p ut in mapping out e -commerce issues. Although  the proponents made it clear that the 
document was not a proposal, it went clearly beyond the scope of the Work Programme. While 
including elements for debate, the proposal also included others which involved m arket access 
negotiations. Therefore, his delegation considered that the proposal required refinement in order 
to conform to the mandate. As to the proposal on Trade and Development submitted by Brunei 
Darussalam and co -sponsors, it highlighted the potenti al of e -commerce for MSMEs and focused on 
finding solutions to problems faced by developing countries in promoting e -commerce.  It was an  
interesting star ting point for discussions on the digital divide. Ecuador supported any initiative 
within the mandate o f the Work Programme . Many of the elements included in past proposals were 
pointless  given that most Members did not have minimum Internet access , for instance . He agreed 
that the purpose of the proposals should be to exchange information and experiences, without 
laying the foundations for future negotiations. Again, discussions should conform to the Work 
Programme contained in the 1998 Ministerial Decision.  
5.127.   The representative of the European Union  stated that his delegation subscribed to the 
approach of f ocusing discussions on the elements that would facilitate e -commerce for both trade 
in goods and services. The European Union also supported  concentrating on creating an enabling 
environment conducive to the integration of SMEs into the digital economy, as  well as  facilitating 
access of consumers to e -commerce. There were many other elements mentioned in the paper and 
in China' s intervention, such as  electronic payment s, electronic sig natures  or authentication, which 
could facilitate trade in goods and serv ices. He looked forward to discussion of those topics.  
5.128.   The representative of Paraguay  said that, at the November  meeting , his delegation had 
posed two questions to the proponents:  one related to the services sectors addressed in the 
proposal, and the other on transparency issues. Paraguay had  supported  the participation  of other 
intern ational organizations working on e-commerce  in WTO meetings. More cooperation with other 
organizations would allow the identification of action areas in the WTO. Therefore, h is delegation 
considered it appropriate to continue discussions with the participation of representatives of the 
UPU. However, it would be important to identify the specific topics  that would be discussed . On 
transparency, China's in tervention showed the c omplexit y of each national regulatory system . In 
the case of China, there were a number of  authorizations and licences that businesses had to 
obtain before selling their products on the marketplace or over the Internet , which, in turn, was 
also subject to specific regulations . Finally, he recalled that Paraguay had co-sponsored a  
document submitted jointly with Argentina and Brazil on electronic signatures . His delegation 
looked forward to continuing discussions  on the subject .  
5.129.   The representative of New Ze aland  welcomed the various papers on e -commerce and the 
fact that they had been submitted by a number of developed and developing Members. Th is 
diversity of interest s in e-commerce demonstrated its broad relevance across the Membership and 
also underscored  the wide r transformative effects digital technologies and services were  having in 
Members' economies , including in the area of international trade . The growth of e -commerce and 
its potential to lift the engagement of developing countries in international trade highlighted  the 
need for the WTO to make progress in its core work of improving trade access, reducing tariffs and  
addressing non -tariff barriers, as well as in trade facilitation, for instance  improving customs 
procedures.  On the Chinese and Pakista ni paper, she believed that it was  useful to have a concrete 
proposal on how Members  could structure discussions on e-commerce across the range of bodies 
dealing with th e issue, in order to keep an overview.  A dedicated session to bring together the 
variou s discussion s taking place in the relevant committees deserved  consideration.  Her delegation 
looked forward to hearing more from China and Pakistan on the services elements of their proposal 
and how e -commerce could  facilitate the increasingly interconnect ed trade in goods and services.  
5.130.   The representative of China  invited Members to approach his delegation if they had further 
comments and questions . He replied  to the question from Canada on why market access issues 
had not been addressed . Firstly, discussi ons in the WTO should be kept within the mandate of the 
Work Programme and his delegation believed that there was scope for considerable work within 
the mandate. As mentioned during China's intervention, rapid developments in e-commerce, some 
of which were  directly related to services  sectors,  were unprecedented and posed new risks and S/C/M/130  
 
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  challenges. Members ' regulatory policies would need to adapt and change accordingly. At the same 
time, t hose changes could have a  major  impact on e -commerce developments. The refore, 
Members had a lot of work to do within the existing mandate on e-commerce. This was also 
related to the question raised by Paraguay on transparency , given that the submission aimed at 
enhancing the policy framework applicable to cross -border trade and e -commerce was one of its 
key elements. T o the  extent that the elements concerned related to trade in services, the GATS 
itself was relevant , as it already had rules on transparency. The on -going discussions and 
negotiations on domestic regulation  under the GATS framework were also very relevant. 
Therefore, his delegation would like to conti nue exchanging  views with Members on how to use 
existing rules , in order to prom ote and facilitate the development of e -commerce.  
5.131.   The Chairman  thanked all delegatio ns who had submitted contributions and those who had 
participated in the debate . A rich discussion and useful exchange of views had taken place, and 
there were many issues on the table which required further reflect ion. Many questions had been 
raised  including on the evolution and growth of  e-commerce, statistics, whether Members should 
focus on certain issues or look at them in a comprehensive way, and whether current rules were 
sufficient or not . These were among st the issues that would give food for thou ght to Members  in 
future discussions . He suggested that the Council take note of the statements made  and revert to 
this issue at its next meeting . 
5.132.    It was so agreed . 
6  ITEM F – MODE 4 – ASSESSMENT OF BARRIE RS TO ENTRY  
6.1.   The Chairman  recalled that, at the Nove mber meeting , the Council had addressed a 
communication  by India,  contained in document RD/SERV/135 , proposing that the Council  hold a  
seminar on mode 4.  While most delegations could support the proposal, subject to clarifications 
and am endments to the sug gested agenda, no consensus could be found  at that meeting.  
Therefore, i t was agreed that the Chairman would hold consultations  to try to find a way forward.  
Following consultations, and subsequent discussions amongst delegations, on 27 February India 
had circulated a revised proposal for a Council thematic seminar on  mode 4, which was  contained 
in document RD/SERV/135 /Rev.1.  
6.2.  The representative of India said that his delegation had made a proposal for a thematic 
seminar on barriers to mode 4. While several delegation s supported holding the seminar,  others 
were concerned about the scope of t he event . Based on informal  consultations h eld and 
subsequent work, his delegation had revised  the proposal to reflect some of the concerns raised by 
Members.  The proposed  programme  for the seminar contained two parts. The objective was to 
look at mode 4 in its entirety, in terms of scope, mode 4 commitments , as well as practices. The 
first part of the seminar would provide an overview of the scope of commitments and exempt ions 
related to mode 4, the practice under RTAs and the economic impact of mode 4 in terms of 
estimated trade through th at mode of supply. The second part would deal  with mode 4 in action 
and how commitments under th at mode of supply were administered with in the broader regulatory 
frameworks;  issues such as barriers  faced by various countries and Members' experience s could be 
discussed under this item. His delegation view ed the seminar in an experience -sharing mode , 
where interested Members could propose sp eakers with a view to having  a good sharing of 
experiences on the various aspects outlined. He hoped the Council could agree, in principle, to 
holding the seminar, and looked forward to working wi th the Secretariat on the organization of  the 
seminar.  
6.3.  The representative of the United States  thanked the Chai rman for his efforts in holding 
consultation s. His delegation appreciated the work that India had done to revise the proposal and 
for the constructive and cooperati ve approach shown  over the previous months, as both 
delegations  discussed the  issue. The new  proposal had gone a long way toward s addressing his 
delegation's  concerns.  While the United States still had some concerns with the wording of the 
proposal  by India , consistent with the approach taken with the proposal to hold a seminar on e -
commerce, his delegation would have no objection to moving the process forward  to the concrete 
planning stage . He reserved his delegation's right to comment on the substance of  the program me 
as it was developed , and l ooked forward to continued engagement by the pr oponent . S/C/M/130  
 
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  6.4.  The representative of the European Union  thanked India for the constructive approach shown 
in revising the proposal and taking into account his delegation's concerns. From that perspective, 
the propos al by India could be taken forward to the agenda -setting  stage .  
6.5.  The representative of Australia  welcom ed the significant work done by India to revise and 
refine the proposal , which  went a long way to addressing some of the qu estions raised at the 
November  meeting . Her delegation  would see value in examining  whether elements of the 
proposal could be fu rther refined as the program me was developed . Australia  encourage d 
delegations to cons ider further which elements of mode 4 in action w ould be  of most interes t and 
value to M embers, private sector  representatives and regulators, p articularly looking at how to 
build on , and no t just repeat , discussions had on the movement of natural persons in the past . Her 
delegation was  interested in being consulted on the development of  the seminar program me as it 
moved  forward.  
6.6.  The representative of Canada  thanked  India for its receptiveness to feedback from Members 
on its proposal.  His delegation support ed, in principle , holding a thematic seminar on "Mode 4 at 
work". Canada  would like to see further refine ment to  the agenda . His delegation would also see 
value in exploring market access mo re fully in the  seminar. P erhaps under RTA experiences in the 
first session, Canada would like the seminar to  address the importance of co mmitments on 
presence of natural persons in addition to entry. He also emphasize d the importance of starting 
with the basi cs, namely  GATS commi tments , as, without market access,  regulatory barriers would 
be irrelevant.  He was confident that, with those com ments, t he Secretariat could develop an  
agenda that met everyone's interests and Canada would be happy to participate in any 
consultations as the agenda developed.  
6.7.  The representative of Turkey  said that mode 4 had been the most neglected mode in terms 
of its contribution to services trade. Her delegation supported setting strong disciplines on mode 4 
and, therefore, welcomed India's proposal for a mode 4  seminar  which could contribute to the 
sharing  of experiences .  
6.8.  The Chairman  said that , after having hea rd Members' comments  with regard  to India's 
revised proposal, his sense was that there was an emerging consensus for the Council to hold the 
proposed seminar on mode 4. Therefore, he suggested t asking the Secretariat with the  
prepar ation of  a draft program me for the seminar, taking into account the comments made and 
concerns ra ised. The Secretariat draft programme would  be distributed to Members for their 
approval . He also suggested that the Council take note of the statements made . 
6.9.   It was so agreed . 
7  ITEM E – WORK PROGRAMME ON EL ECTRONIC COMMERCE (CONTINUED)  
7.1.  As agreed, t he Chairman  revert ed to the Work Programme on Electronic Commerce. In light 
of the agreement reached under the previous agenda item to hold a thematic seminar on mode 4, 
he propose d that the  Council also agree to hold the thematic seminar  on e-commerce proposed by 
Chinese Taipei and co -sponsors.   
7.2.  It was  so agreed . 
7.3.  The representative of Chinese Taipei  welcomed the Council's agreement to hold the two 
seminars. On behalf of all the proponents of  the seminar on e -commerce, she assured the 
proponents' readiness to engage i n the process of making t he e-commerce seminar come true  as 
soon as possible. She looked  forward to discussing the draft programmes to be prepared and 
circulated in the near futur e by the Secretariat. In this regard, she expressed her gratitude to the 
Secretariat for its invaluable organizational work.  
7.4.  As for the timing of the seminars on e -commerce and on mode 4, the Chairman  suggested 
that both seminars take place in June, with the specific dates for each seminar to be defined.  He 
also suggested that the  Secretariat circulate a draft programme for each event  in the coming days .  
7.5.  It was so agreed . S/C/M/130  
 
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  8  ITEM G – OTHER BUSINESS  
8.1.  The representative of the Republic of Korea  said that o ne of the major functions of the 
Council was to conduct peer review s to monitor the operation of the GATS among M embers. In this 
context, he wished to raise his delegation's concern  on recent developments in the tourism and 
distribut ion service s sectors in China , which were  having a negative impact on trade in these 
sectors between the two countries. It was  known th at Chinese travel companies had  been 
disallowed from selling group tours to Korea. This would cause serious damage to related 
industries in both count ries. Moreover, a Kore an distribution company that had  made heavy 
investments in China was  facing  difficulties in its normal business activities in China.  Korea was  
deeply concerned about the situation.  Since China had made specific  commitments in  the tour ism 
and distribution service s sector s under the GATS, Korea believed  that bilateral trade in those 
sectors should be carried  out in full compliance with China's  obligations under the relevant WTO 
rules.  His delegation  was consider ing bringing up this issue as a formal agenda item at  the 
following Council meeting and urged  China to pay close attention to th e matter.  
8.2.  The representative of China  indicated that his delegation was surprised with the intervention 
made by the representative of Korea. He said that the latest developments in the Korea n peninsula 
had triggered strong feelings in the general public  in China . However, the Chinese government had 
always had a positive attitude  towards economic and trade exchanges with Korea.  The two  
countries were close neighbours . Therefore, China regretted  the Korean intervention. He  noted 
that the Korean Vice-Premier responsible for economic affairs had been quoted in the media as 
saying that Korea had no evidence that any measure had been taken by China. Bearing that i n 
mind, his delegation would oppose  Korea's request  to formally include  that item in the Council's  
agenda  for the following meeting .  
8.3.  The representative of the United States  thanked Korea for bringing the issue to the attention 
of the Council. H is delegati on was interested in knowing more abou t this matter  and would  contact 
Korea on this issue.  
8.4.  The representative of Canada  requested clarification from the Secretariat o n the issue raised 
by China. Canada strongly valued the transparency function of the Counc il and his underst anding 
was that any Member could request items to be placed on  the agenda , as long as the prescribed 
time-frame was respected. He was not aware of any capacity  for a Member to veto the inclusion of 
an item. Therefore, he requested the Sec retariat to provide clarification  on the matter.  
8.5.  A represe ntative of the Secretariat  indicated that , according to the Rules of P rocedure  for 
Meetings of the Council  for Trade in Services , it was the right of any Member to propose items for 
inclusion in the agenda of the Council. It was open to any Member to bring matters of interest 
within the scope of the Council 's work . Article IV :5 of the WTO Agreement Establishing the WTO , 
on "Structure of the WTO ", provided that the Council for Trade in Services was re sponsible for 
overseeing the functioning of the GATS. Therefore , any matter arising  within that realm was within 
the competence of the Council. As to the agenda, it was up to any Member to request the inclusion 
of items in the agenda  of any given meeting.  
8.6.  He further stated that Rule 3  of the Rules of Procedure state d that " [a] list of items proposed 
for the agenda of the meeting shall be communicated to Members together with the convening  
notice of the meeting", the latter being the airgram. Rule 3  also st ated that "[i] t should be open to 
any Member to suggest items for inclusion in the proposed agenda up to , and not including , the 
day on which the notice of the meetin g is to be issued." The last part  related  to the timing, wh ich 
was not under discussion. R ule 4 stipulated that " [r]equests for items to be place d on the agenda  
of a forthcoming meeting shall  be communicated to the Secretariat in writing , together with 
accompanying documentation  to be issued in connection with that item. " The proposed agenda 
would be circulated by the Secretariat and the usual  procedure would follow. Rule 6 further 
provided  that " [t]he first item of business at each meeting shall be the consideration and approval 
of the agenda. Representatives may suggest amendments to the propo sed agenda , or additions to 
the age nda under "Other Business ". Discussion s of item s under Other Business were  not supposed 
to be substantive in nature and no  decisions would normally be taken under Other Business . He 
hoped that the explanation had clarifie d the issue .  
8.7.  Turning to the next item of Other Business, t he representative of the Russian Federation  
indicated  that U kraine continued  to multiply its WTO -inconsist ent legislation. First ly, on 21 S/C/M/130  
 
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  February 2017, Ukraine had adopted the Decree of the Manage ment Board of the Na tional Bank of 
Ukraine No. 12 " On amendments of some legal acts o f the National Bank of Ukraine"  (hereinafter 
referred to as "the Decree") . In accordance with these new amendments , Ukraine required  
individual licenses for transfers of p ayments abroad. The reasons for the denial of such individual 
licenses were arbitrary and related to part icular States. Such restrictions on payments were  not 
justified under the GATS and were  incompatible with Ukraine's obligation s in services sectors  
where specific commitments had  been undertaken , particular ly under mode 1 . In accordance with 
GATS Article XVI , if a WTO Member had undert aken market access commitment s in relation to the 
supply of a service through mode 1 , and if the cro ss-border movement of  capital was  an essential 
part of th e service itself, that Member was  thereby committed to allowing such movement of 
capital.  The measures adopted by Ukraine put the services suppliers of the Russian Federation,  
and their services , in a less favourable pos ition compared to  services and service suppliers from 
any other Member  not subjected to lik e restrictions . Such measures were  inconsistent with GATS 
Article II. The Russian Federation urged  Ukraine to bring  its Decree in line with the GA TS and its 
specific  commitments  under the GATS .  
8.8.  Secondly, the Ukrainian President's Decree on restrictive measures regarding banks with the 
participation of Russian State banks' capital had been signed  a day earlier . Amon g these restrictive 
measures were  bans on transfers o f capital from the territory of Ukraine, returns of interbank 
deposits and credits, payments of dividends and banks' interests , as well as restrictions on the 
distribut ion of profit and capital in those financial institutions. The Russian Federation consid ered 
that such measures were inconsistent with GATS Article II ("MFN treatment" ), Article XI 
("Payments and transfers" ), Article XVI ("Market access" ), Article XVII ("National treatment" ), as 
well as with Ukraine's Schedule of Specific C ommitments .  
8.9.  Her de legation  believe d that these measures against banks with Russian participation w ould 
have a considerable negativ e impact on the Ukrainian economy. Finally, she emphasize d that 
restrictions on Russian b anks' operations in Ukraine would  not remain unnoticed.  The Russian 
Federation reserved  its rights under the WTO Agreements.  
8.10.   The representative of Ukraine  said that his delegation had taken  note of the statement s 
made by the Russian Federation concerning Ukraine's commitments on financial services. At that 
juncture, h is delegation was not in a position to discuss the substance of the concerns raised by 
the Russian Federation with regard to the sanctions imposed on Russian -owned banks operating in 
Ukraine. His delegation wished to assure Members that the decisio n at issue had been adopted 
consistently with WTO rules and Ukraine's commitments. Ukraine would hold internal consultations 
with its national authorities  on th e matter . Given that the issue had been  raised under "Other 
Business", he reserved his delegatio n's right to submit answers  at a later stage . His delegation 
would be thankful if the Russian Federation could submit its questions  in writing .  
8.11.   The Chairman  suggested that the Council take note of the statements made.  
8.12.   It was so agreed . 
8.13.   The meeting was adjourned . 
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