RESTRICTED  
  
S/FIN/M/78  
 
18 November 2013  
(13-6355)  Page: 1/4  
Committee on Trade in Financial Services    
 
 REPORT OF THE MEETING HELD ON 28 OCTOBER 2013 
NOTE BY THE SECRETARIAT1 
The Committee on Trade in Financial Services held a meeting on 28 October 2013, under the 
chairmanship of Mr Wamkele Mene (South  Africa). The agenda is contained in 
Airgram WTO/AIR/4215. An annotated agenda (JOB/SERV/161) had been circulated prior to the meeting.  
 
1  ITEM A - ADOPTION OF THE ANNUAL REPORT 
1.1.  Pursuant to the annual reporting requirem ents to the Council for Trade in Services, the 
Chairperson invited Members to comment on the draft annual report contained in document 
S/FIN/W/86.  
1.2.  The representative of the United States noted that in summarizing the dedicated discussion 
on macroprudential policies and regulation, the draft report stated that "[s]ome Members made 
reference to the instability brought about by exte nsive and volatile capital flows and the need to 
apply capital flow management measures." However, absent from this summary was the fact that at least four Members had referred to the flexible and effective fram ework for prudential regulation 
and trade liberalization contained in the GATS. In his view, in summarizing these discussions, care 
should be taken not to give short shrift to some of the statements made by Members. However, he did not object to the draft or suggest any amendments. 
1.3.  The Committee took note of that statemen t and adopted the annual report as contained in 
document S/FIN/W/86. 
2  ITEM B - ACCEPTANCE OF THE FIFTH PROTOCOL TO THE GENERAL AGREEMENT ON 
TRADE IN SERVICES 
2.1.  The Chairperson recalled that Brazil was the only Member that had yet to accept the 
Fifth Protocol.  
2.2.  The representative of Brazil said that it was difficult to foresee when the domestic procedures 
for the acceptance of the Protocol would be concluded. All the necessary administrative actions 
had been taken though. He endeavoured to k eep the Committee abreast of any developments. 
2.3.  The Committee took note of that statement an d decided to revert to this agenda item at its 
next meeting. 
3  ITEM C - TRADE IN FINANC IAL SERVICES AND DEVELOPMENT 
3.1.  The Chairperson recalled that at the la st meeting, Norway and Pakistan had made 
presentations on mobile banking services in Pakistan. Both presentations were circulated as room 
documents (Branchless Banking in Pakistan, communication from Pakistan, RD/SERV/93, and 
Mobile Banking Services in Pakistan, communication from Norway, RD/SERV/94). The presentations were followed by a focused discussion, which touched upon not only various issues 
involved in mobile banking services like regulation, business models, interoperability of platforms, 
                                               
1 This document has been prepared under the Secret ariat's own responsibility and without prejudice to 
the positions of Members and to their rights and obligations under the WTO. S/FIN/M/78 
 
- 2 - 
 
  data security, payment risk management and cons umer protection, but also the broader issue of 
access to financial services.  
3.2.  As suggested by Members at the last meeting, he had held some informal consultations with 
individual delegations before this meeting. Thos e consultations showed that Members were willing 
to build upon the discussion started at the last  meeting, although it was not clear in which 
direction. In his view, two options were available: either to focus on the supply of mobile banking, 
which was growing in popularity with consumers and had prompted regulatory action in both 
developed and developing countries, or to discu ss more broadly access to financial services, 
addressing mobile banking in that broader context. In any case, the Committee could further explore the effects of mobile banking (or any other methods or policies) on financial development and financial inclusion. The focus should be on the role that trade in financial services might play. 
Once the focus of the discussion had been decide d, the Committee might look into the appropriate 
format for pursuing such work. Having said, he invited Members to discuss these options. 
3.3.  The representative of Chinese Taipei said that mobile banking was one way, among others, of 
achieving financial inclusion. Her delegation was open to the two options described by the Chair, 
but had a preference for a broad and general discussion on financial inclusion. In that regard, she said that Chinese Taipei had recently amended the regulations on domestic branches of financial 
institutions and eliminated the limits on the number of branches and mini-branches that might be 
opened by banks and credit cooperatives. The objective was to promote the establishment of 
branches and mini-branches in rural areas, thus  balancing the development of urban and rural 
areas. She added that her delegation would make a presentation on this issue at the next meeting.  
3.4.  The representative of Canada said that mo bile banking was a useful example of how trade in 
financial services could promote development and financial inclusion. However, it was not the only 
example. As shown by the presentations made by China at previous meetings, other policies and 
regulations might also contribute to financial inclusion. His delegation preferred not to 
unnecessarily narrow the discussion on trade in financial services and development to just mobile banking. Instead, Members should be free to share their unique experiences with trade in financial 
services and development, including with respect to mobile banking. He encouraged Members to 
participate and looked forward to further discussions. 
3.5.  The representative of the European Union supported the statement by Canada. In addition, 
she suggested that at the next meeting the Committee focus again on mobile banking, so that 
other Members could share their relevant experiences.  
3.6.  In concluding, the Chairperson said that the discussion at the next meeting would be based 
on the inputs by Chinese Taipei and other Memb ers, as suggested by the European Union.  
3.7.  The Committee took note of the statements ma de and decided to revert to this agenda item 
at the next meeting. 
4  ITEM D - REGULATORY ISSU ES IN FINANCIAL SERVICES 
4.1.  The Chairperson recalled that at the la st meeting the Committee had discussed regulatory 
issues in financial services, on the basis of a Secretariat Note, contained in document 
S/WPDR/W/48. The purpose of the Note was to provide background information on regulatory 
practices and issues in various sectors and modes to inspire discussions at the Working Party on 
Domestic Regulation (WPDR). He also recalled that the Committee had agreed to include this item 
in the agenda of today's meeting so as to give Members an additional opportunity to address the 
Note, either to explain their own approaches to sp ecific regulatory issues raised or contribute 
additional issues to the discussion. It was in this context that the suggestion was made for the 
Committee to keep close contact and interact, as necessary, with international standard-setting 
organizations. He suggested addressing the Secretariat Note first. 
4.2.  The representative of Chile noted that whil e paragraph 191 set out the objectives of financial 
regulation in a broad manner, there was no discussi on on the eventual discriminatory nature or 
discriminatory effects of those regulations. S/FIN/M/78 
 
- 3 - 
 
  4.3.  A representative of the Secretariat explaine d that the focus of the Note was on the type of 
measures falling under Article VI.4 of the GATS, which by definition would exclude market access 
and national treatment limitations. That explained why the Note did not contain any analysis of discriminatory measures within the meaning of Article XVII of the GATS.  
4.4.  After this exchange, the Chairperson turned to the issue of cooperation with international 
standard-setting organizations. He recalled that although the WTO had no observer status in any 
of those organizations and none of them had obse rver status in the Committee either, it had been 
common practice to invite those organizations to discuss specific issues with Members. This 
exchange of information took different forms. In 2010, for example, the IAIS participated in the 
seminar on non-life insurance services, while the BIS, the FSB and the IMF took part in the dedicated discussion on the financial crisis and trade in financial services. In 2011, the FSB and 
the IMF participated in the dedicated discussion on  trade in financial services and development. 
Since then, significant progress had been made in developing and implementing new financial regulations. It would be timely, in his view, to invite those organizations, together with IOSCO, to 
brief the Committee on recent developments in glob al financial regulatory reform and to discuss 
with Members the potential implications for trade in financial services. This could be seen as part of the Committee's monitoring of recent development in financial services trade. 
4.5.  The representative of Australia supported th e suggestion to invite the international standard-
setting organizations to brief the Committee. It would be interesting to focus on the impact of 
those regulatory reforms on trade in financial services. 
4.6.  The Chairperson said that this item would be included in the agenda for the next meeting, so 
as to give Members another opportunity to comment  on the Note by the Secretariat. The Chair of 
the Working Party on Domestic Regulation would be kept informed of these discussions. He added that he would conduct informal consultations on the appropriate format for the briefing by 
international standard-setting organizations. Hopefully, that briefing session could be held at the 
next meeting.  
4.7.  The Committee took note of the statements an d decided to revert to this agenda item at the 
next meeting.  
5  ITEM E - TECHNICAL ISSUES (CLASSIFICATION ISSUES) 5.1.  The Chairperson recalled that, at the previous meeting, the Committee had continued its 
consideration of classification issues. Since discu ssions had not been very substantive, he had not 
prepared a specific summary.  
5.2.  The Committee turned to informal mode to continue the discussion. 5.3.  After the discussion, the Chair indicated that he would conduct informal consultations. The 
Committee decided to revert to this agenda item at the next meeting. 
6  ITEM F - RECENT DEVELOPMENTS  IN FINANCIAL SERVICES TRADE 
6.1.  The Chairman said that, as a standing feat ure of the agenda, this item had been used by 
delegations to either present and discuss recent  developments in individual Members' markets 
or introduce proposals that eventually led to specific dedicated discussions or seminars, for example on macro-prudential policy and regula tion, on non-life insurance services, and on the 
impact of technology on regulation and supervision. This focus on recent developments was what 
distinguished this agenda item from others, which focused on technical issues or on the long-term 
impact of financial services trade on development. It was in the interest of all Members, and certainly within the competence of this Committee, to keep abreast of developments in the 
financial services sector, either at the global or country level. This agenda item would be the 
natural place in his view for the participation of international standard-setting organizations discussed previously.  
6.2.  There were no further interventions.  S/FIN/M/78 
 
- 4 - 
 
  6.3.  The Committee took note of the statement ma de by the Chair and decided to revert to this 
agenda item at the next meeting.  
7  ITEM F - OTHER BUSINESS 7.1.  No issues were raised under this agenda item. 
__________