S/FIN/ 32 
 
16 November 2017  
(17-6242) Page: 1/2 
   
 
 
 
ANNUAL REPORT OF THE  COMMITTEE ON TRADE I N FINANCIAL SERVICES  
TO THE COUNCIL FOR T RADE IN SERVICES (20 17) 
 
Since its previous Annual Report to the Council for Trade in Services1, the Committee on Trade in 
Financial Services held three formal meetings , on 24 November 2 016, 15 March 2017, 
and 13 June 2017, as well as an informal meeting on 2 October 2017.2  
 
1  REGULATORY ISSUES IN  FINANCIAL SERVICES  
1.1.  In the context of the Committee's review of global financial regulatory reform and the 
implications for trade i n financial services, representatives of the Committee on Payments and 
Market Infrastructures (CPMI) , the Financial Stability Board (FSB) and the International 
Association of Insurance Supervisors (IAIS) made presentations on recent developments in their 
respective areas of competence. The presentations were followed by discussions with Members.  
2  TRADE IN FINANCIAL S ERVICES AND DEVELOPM ENT 
2.1.  The Committee focused on the issue of financial inclusion, on the basis of a Background Note 
by the Secretariat entitle d "Barriers to Financial Inclusion and Trade in Services" 
(S/FIN/W/88/Add.1). The Note provides an overview of barriers to financial inclusion (e.g. supply -
side and demand -side constraints, inadequate regulatory frameworks, institutional weaknesses 
and def icient financial infrastructure); shows, through various original case studies, how trade in 
services may help overcome those obstacles; and discusses the potential role of trade policy in 
services. As part of this discussion, China and Chinese Taipei provided information on their 
respective financial inclusion initiatives and policies.  
2.2.  The representative of China proposed  that Members focused discussions , and exchanged 
information,  on payment services directly supporting cross -border trade in goods. In th at 
connection, China provided an overview of recent domestic market trends and regulatory 
developments in the electronic payment services sector. Members are still considering China's 
proposal.  
2.3.  The representative of Costa Rica, speaking on behalf of t he Fr iends of E -commerce for 
Development  or FED  (Argentina, Chile, Colombia, Costa Rica, Kenya, Mexico, Nigeria, Pakistan, 
Sri Lanka and Uruguay) , briefed the Committee on the Seminar on Digital Payments and Financial 
Inclusion, which was open to all Members  and held in the WTO premises on 13 March  2017. 
Together with China, the FED group stressed that the main take -away from the seminar was the 
positive linkage between e lectronic payments, financial inclusion, and trade.  
                                                
1 S/FIN/ 31, dated 24 November 2016 . 
2 The reports of the formal meetings are contained in documents S/FIN/M/ 90 to 92 , and should be read 
in conjunction with thi s report.  S/FIN/32  
 
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  3  RECENT DEVELOPMENTS IN FINANCIAL SERVICE S TRADE  
3.1.  The representative of Jamaica, on behalf of the Members of the Caribbean Community 
(CARICOM), submitted a draft proposal for a seminar on de -risking and correspondent banking 
(JOB/SERV/244). Consultations on this proposal, between the proponents an d a number of 
delegations as well as within the CARICOM group, are still on -going.  
 
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