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S/WPDR/M/58  
 
30 August 2013  
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Working Party on Domestic Regulation    
 
 REPORT OF THE MEETING HELD ON 19 JUNE 2013 
  NOTE BY THE SECRETARIAT1 
The Working Party on Domestic Regulation (WPDR) held a meeting on 19 June 2013, chaired by 
Ms. Viràg Halgand Dani of Hungary. The agenda for the meeting was contained in airgram 
WTO/AIR/4141 dated 7 June 2013. An annotated agenda for the meeting was circulated in JOB/SERV/151 dated 4 June 2013. The agenda was adopted as proposed. 
 
1  ITEM A - DEVELOPMENT OF REGULATORY  DISCIPLINES UNDER GATS ARTICLE VI:4 
1.1.  The Chairperson noted that there were tw o sub-items under this point of the agenda. The 
first was the discussion of technical issues su bmitted by Members, while the second was the 
discussion of regulatory issues.  
1.2.   As on past occasions, the Chairperson pr oposed that the discussion on technical issues be 
undertaken in informal mode so as to allow for an easier and more open exchange of views. To 
structure the discussions, she suggested that Memb ers first provide any additional comments on 
technical standards, which was the theme considered at the previous meeting on 21 March 2013. The floor would then be opened for responses to questions under the themes of general provisions 
(question 2 to 9 in RD/SERV/68) and development (questions 83 to 90 in RD/SERV/68). Finally, 
Members would have the opportunity to comment on the submission made at the last meeting by a group of Members contained in a room document (RD/SERV/88) on the implications of discussions from November 2011 till December 2012 on the draft disciplines.  
1.3.  Discussions on these topics continued in informal mode. 
1.4.  The Chairperson then reverted to formal mode for the discussion of the Secretariat Notes on 
Regulatory Issues.
2 She recalled that, in accordance with the provisional schedule contained in 
JOB/SERV/134, Members would at this meeting address development; telecommunication 
services; computer and related services; audiovisual services; and modes 1 and 2.  
1.5.  The Secretariat was invited to introduce each  of the issues to be discussed at the meeting, 
including the additional Note requested by Memb ers on "Services-Related Regulatory Challenges 
Faced by Developing Countries" as contained in document S/WPDR/W/51. The Note analysed the challenges faced by developing countries when they introduce regulatory reforms in different services sectors, based on existing literature. It was also informed by technical assistance 
activities and the discussions that have taken place at the WTO. For analytical purposes, two 
different challenges had been highlighted, namely  the formulation of transparent and predictable 
rules, and the development of institutional structures. Both issues involved different types of policy 
decisions and different kinds of legal actions by governments and regulators. In the concluding 
remarks of the Note, the absence of a commensurat e international effort to support developing 
countries in facing regulatory challenges was observed. The Note made reference to the Aid-for-
Trade programme and suggested that it might be worth exploring how regulatory capacity building 
could be addressed as part of that programme. Furthermore, the Secretariat stressed that the Note should not be taken as an exhaustive study of the development-related challenges of 
                                               
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. 
2 "Regulatory Issues in Sectors and Modes of Supply", S/WPDR/W/48 of 13 June 2012 and "Services-
Related Regulatory Challenges faced by Developing Countries", S/WPDR/W/51 13 March 2013. S/WPDR/M/58 
 
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  regulatory reform, nor as prescribing any particular approach, but rather as a contribution to 
Members' discussions. The Secretariat concluded by inviting Members to share experiences on regulating services sectors, and to provide any feedback on the information contained.  
1.6.  The Chairperson opened the floor for comments and reactions on "development", as well as 
on the Services-Related Regulatory Challenges Note. She noted that, given its crosscutting nature, 
"development" would be a standing item througho ut the programme of regulatory discussions on 
sectors and modes of supply.  
1.7.  The representatives of Brazil, South Africa , Australia, and the European Union thanked the 
Secretariat for the insightful and comprehensive Note which had provided very useful information.  
1.8.  The representative of Brazil said that the Note would help Members understand the needs, 
challenges and positions of developing countries on regulatory issues. In their view, the overall 
conclusions drawn in the Note were in line with the development provisions already contained in 
the GATS text. In Brazil's view, the Note conf irmed the importance of gradual liberalization, 
flexibilities, technical assistance, capacity building, and recognized a Member's right to regulate 
and introduce new regulations to meet national policy objectives.  
1.9.  In addition, the representative of Brazil made a specific remark regarding conclusion 4.1(d)3 
He said that while liberalization may drive th e regulatory reform agenda, such a finding or 
conclusion should be read in tandem with conclusion 4.1(e)4, which highlights the importance of 
pre-existing regulatory frameworks. Among other things, such frameworks can help ensure that 
the development of local supply capacity that would not be adversely affected by liberalization. All this suggested that regulations should be in place before, during, and after trade liberalization 
within a process of continuous regulatory and institutional development.  
1.10.  The representative of South Africa provided  some preliminary observations on the Note. He 
agreed that developing countries were faced with significant challenges in the formulation, 
streamlining and implementation of appropriate regulatory disciplines. He considered that these 
challenges were exacerbated by the lack of effective regulatory institutions in many developing countries. Moreover, where institutions exist these were sometimes under severe budgetary and 
capacity constraints. He explained that within developing countries there was a disparity across 
sectors. In the case of South Africa, the banking sector is ranked among the best in the world; 
however in the non-banking sector, many regulatory and operational challenges were being confronted, like the lack of skills and human resources in the regulatory bodies.  
                                               
3 Document S/WPDR/W/51, conclusion 4.1(d): "In terms of designing and im plementing regulatory 
frameworks, developing countries are considered to face particular know ledge, financial and human resource 
constraints. Overcoming these problems  requires considerable resources and expertise, as well strong political 
commitment on the part of the government. Moreover, given the time that might be needed to develop and 
strengthen institutional and regulatory capacity, tran sition periods, and the proper sequencing of the 
regulatory framework and the opening of sectors to market competition are important considerations. Equally important is the avoidance of "regulatory capture" by sp ecial interest groups who ma y obstruct the introduction 
of new regulations or institutions. This is a political economic problem that can occur even without any trade opening. In practice, it is often th e liberalization of market  access in a particular sector which drives the 
regulatory reform agenda, and govern ments have developed and evolved thei r regulations and institutions as 
part of the same process." 
4 Document S/WPDR/W/51, conclusion 4.1(e): "Inade quate regulatory frameworks, or their complete 
absence, may have implications on trade and investment, as well as inhibit the competitiveness of local service suppliers. Lack of experience in meeting regulatory requ irements and standards may also affect their ability to 
supply foreign markets. It is worth recalling that in Annex C of the Hong Kong Ministerial Declaration, it was agreed in the paragraph on technical assistance that ".. such assistance should be provided on, inter alia, compiling and analysing statistical data on trade in services, assessing interests in and gains from services trade, building regulatory capacity [emphasis added], particularly on those services sectors where 
liberalization is being undertaken by developing countries". However, while these have been recognized as 
important supply side constraints, "Aid for Trade" seem s to have been an underutilized avenue for addressing 
them. There are currently very few initiatives that are ai med at specifically addressi ng capacity constraints in 
the development of services-related regulatory and institutional frameworks. Similarly, there is relatively little on how service suppliers in developing countries can be  facilitated to meet requir ements and procedures in 
export markets. Finding ways to support regulatory ca pacity building and cooperation so as to complement 
services policy reform and minimize the effects of regulatory diversity across jurisdictions could do much to 
foster trade and development." S/WPDR/M/58 
 
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  1.11.  The importance of sequencing liberalizati on had been raised in the Note, and in South 
Africa's view regulation in itself was inadequate to deliver liberalization gains. To illustrate this point he shared South Africa's experience with the privatization of its national telecommunications operator in the mid-1990s. He explained that their regulator had established universal service 
targets. Requiring telecommunication companies to install eight million lines in underserviced 
and/or rural areas. Almost all of eight million lines were however eventually disconnected, because people could not afford the cost of telephone services. This was a big lesson for the government 
and the regulator in terms of designing univers al service requirements or targets. Those 
shortcomings were later addressed through technolo gy advances, with cellular or mobile telephony 
expanding to rural and poor areas. However, he explained that high costs continued to be a problem and when the telecommunications regulator attempted to introduce price reductions, 
telephone companies argued that it was necessary to keep high prices in order to recuperate 
capital investments in underdeveloped areas. In  this context, he mentioned the conundrum, 
particularly in WTO, with regard to the debate in terms of universal access versus universal 
service. The representative of South Africa also raised the issue of regulatory capture, which he 
considered to be extremely important. He cited the last sentence of paragraph 2.7 of the Note
5 
which mentions mechanisms that would be n eeded to avoid regulatory capture. Further 
elaboration on such mechanisms would be welcomed.  
1.12.  South Africa agreed with Brazil, and considered that the Note had rightly pointed out the 
fact that liberalization without regulation was no t prudent. He explained that there were sectors 
where regulations did not exist or were nascent. It would be important to learn from international 
best practices and to avoid replicating mistakes that other countries had made. He cited paragraph 
2.12 of the Note6 on cost-raising and discriminatory regulations that deter foreign suppliers and 
requested some examples on how these could also have a negative effect on services export 
performance. He noted that some studies had been referred to, such as the work by the OECD. 
Furthermore, he considered that Kenya's case study on business regulatory reform unit, mentioned in Box 1
7, was very interesting and asked if Kenya could do a presentation on this at a 
future cluster. 
1.13.  The representative of South Africa considered that the concluding observation 4.1(e) was 
extremely important, and that he would be interested in the compilation and analysis of statistical data on trade in services, and in assessing the interests and gains from services trade. In addition, 
he wanted to know how regulatory capacity had been developed in other countries, what initiatives 
and mechanisms had been adopted in order to regulate better. Regulation was constantly evolving and further work on these issues would be very useful.  
1.14.  The representative of Australia recognized that levels of services regulation may vary 
relative to a Member's level of development. She considered that the Note had made some 
interesting observations regarding constraints faced by developing countries' regulatory bodies, in 
particular structural weaknesses, limited access to information, and 'regulatory capture' by special 
interest groups. She asked developing country Members for their views on these constraints and the steps that might be required to mitigate or overcome these challenges, such as sectoral-level 
regulatory co-operation to help them build capacity. She also would like to know Members' views 
on how regulatory reform can contribute to more competitive services markets without increasing 
existing regulatory burdens. In Australia's view, well-designed regulation requires effective consultation, should be evidence-based, and sh ould be consistent with the principles of 
transparency and accountability. This approach wo uld enable regulators to identify and address 
market issues in a timely and effective manner so  as to maximise growth and economic benefits. 
1.15.  The representative of the European Union mentioned some of the challenges described in 
the Note to establish appropriate regulatory frameworks and institutions, in particular the scarcity 
of resources such as money, skilled staff, time, experience, and know-how. The EU considered that 
without an effective regulatory framework in plac e, developing countries cannot fully profit from 
                                               
5 Document S/WPDR/W/51, paragraph 2.7: "(…) [I]n other words, mechanisms are needed to avoid that 
regulations and decisions favour an y particular group at the expense of the general economic good." 
6 Document S/WPDR/W/51, paragraph 2.12: "(…) An important finding has been that cost-raising non-
discriminatory regulations not only deter foreign suppliers, but also inhibit the competitiveness of local firms. Various studies based on the OECD prod uct market regulation indices have also found that regulatory barriers 
have a negative effect on the local services sectors' export performan ce. (footnote omitted)" 
7 Document S/WPDR/W/51, Box 1 Aid for Trade Case  Study: Kenya Business Regulatory Reform Unit 
(BRRU). S/WPDR/M/58 
 
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  trade liberalization, and foreign service suppliers may be reluctant to establish in a country with a 
weak regulatory environment due to legal uncertainties, insufficient protection of property rights, or long and non-transparent licensing procedures. In addition, the absence of a sound regulatory framework also affects local service suppliers' ability to export.  
1.16.  The European Union observed that the Note rightly points out that the challenges faced by 
developing countries were not about having more or less regulation, but about having better regulation, which would be adapted to the realitie s of today's business environment. In the EU's 
experience of developing the internal market, it had learned that reducing regulatory barriers in 
the field of services, notably through the introduction of the Services Directive in 2006, had increased trade, productivity and competitiveness of EU companies.  
1.17.  The Secretariat welcomed all the comments and asked Members to specifically identify if 
there were any issues which needed further attention. It considered that the exchange of 
experiences would be a very valuable exercise to  build capacity on these issues, and therefore 
invited Members to provide more information as the discussions proceeded.  
1.18.  The Chairperson thanked Members for sharing their views on the Secretariat Note and for 
providing information on the experiences dr awn from their own regulatory regimes.  
1.1  Telecommunications  
1.19.  The Chairperson noted that, as with the other sectors and modes, a number of general and 
specific questions on telecommunications services  had been suggested in the Regulatory Issues 
Note8, and that these had been reproduced in the Annotated Agenda9. She opened the floor for 
comments and reactions. 
1.20.  The representative of Brazil observed th at the questions suggested in the Note by the 
Secretariat appeared to be mainly related to e-commerce. Whilst relevant, most of these issues 
seemed to extend outside of the scope of the horizontal disciplines pursuant to GATS Article VI.4, 
which, in principle, should be confined to licensing and qualification requirements and procedures, 
and technical standards. The representative said th at it seemed that in the context of the Work 
Program on E-commerce, the Council on Trade in Services (CTS) might be a more appropriate 
forum to undertake overarching discussions on e-commerce related regulatory issues. Given that 
the scope of the Working Party is limited by its te rms of reference, issues such as competition and 
intellectual property rights would also seem to fall outside of the mandate of this body. 
1.21.  The representative of Japan observed that  the Internet had grown because its regulatory 
environment had been very liberal. Expansion of the Internet had in turn allowed e-commerce to 
develop. However, as noted in the discussion in the Council for Trade in Services on e-commerce, even though Internet freedom was important, th ere was nevertheless a need for regulation on 
certain points. For example, there should be some  regulation concerning security, privacy and the 
protection of personal information. Japan had such regulations, but at a minimal level. Regulation of the Internet should be kept to a minimum, be cause of the importance of ensuring freedom to 
access information on the Internet.  
1.22.  The representative of the European Union noted that there were two critical aspects worth 
underlining. The first was licensing. For most telecommunication services, the European Union had 
opted for a simple notification procedure. This meant that most telecommunication services are 
authorised upon mere notification by the servic e suppliers to the regulatory authority (except 
when using frequency numbers). The European Union was convinced that streamlining licensing was a key factor in the development of the sector and was therefore an important regulatory issue 
to consider. The second was access pricing. With the expansion and diversification of ICT services, 
there would be greater dependence on networks for their delivery. Wholesale access and pricing was increasingly becoming a major issue, and could facilitate or hinder the development of new 
services. Further work on access would be welcomed by his delegation.  
                                               
8 "Regulatory Issues in Sectors an d Modes of Supply", Note by the Se cretariat contained in document 
S/WPDR/W/48 of 13 June 2012 
9 Annotated Agenda contained in JOB/SERV/151 dated 4 June 2013 S/WPDR/M/58 
 
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  1.23.  With respect to questions raised under paragraph 105 of the Secretariat Note, the European 
Union was open to take a closer look at emerging Internet regulation. He said they would also agree to further exchange of information on ne w and emerging practices, and to review GATS-
related implications. Since the drafting of the GATS reference paper on telecommunications, the 
European Union's regulatory frameworks had dramatic ally evolved, as had their experience in FTAs 
covering telecommunication services. The representative therefore saw value in taking a more detailed look at new issues and their relationship with the GATS, and possibly to consider whether 
more could, or should be, done on those issues at the WTO. 
1.24.  The representative of Brazil took the floor to address the telecommunication-specific aspects 
of the Note. Regarding universal service obligations on public services such as telecommunication 
or electricity services, Brazil's aims were to ensure rights of accessibility, availability and 
affordability to every person or institution regardless of their location or socio-economic condition. 
While some believed that universal service obligations might become both impractical and unnecessary, others saw them as key to universal broadband access, a service which could also 
contribute to mitigating climate change and its effects. This debate differed from country to 
country depending on political factors, as well as on the need for, and supply of, communications services. For Brazil, in particular, the establishm ent of targets on mobile operators made possible 
the access to second and third generation mobile technologies in every municipality. New concepts 
of universal service to expand coverage to rural areas and access to broadband services were subjects of discussion. Brazil firmly believed in  market mechanisms and recognized the progress 
achieved by liberalization and privatization of the sector; it also believed that balanced State 
intervention, where market failure exists, was necessary and desirable. 
1.25.  In Brazil, the Internet for regulatory purposes had long been considered to be a value-
added service and not a telecommunication service.  It was not therefore subject to additional 
regulation other than some cross-regulation of the type mentioned by Japan. Spectrum policies 
should also be viewed with caution, as spectrum is a scarce resource in which States reserved their public policy space. Brazil believed that improving awareness of emerging practices would be 
valuable, and wished to pursue this idea, especially in areas such as privacy, new spectrum 
management practices, and international mobile roaming where wholesale and retail prices were artificially high. Brazil wished to see further discussion on mobile termination rates. In this regard, as also expressed by South Africa, Brazil believ ed that sharing experiences in the Working Party 
would help others in this challenge. For example, Brazil had implemented a competitive plan for 
the market and reduced termination costs based on efficiency gains. In the near future, the plan 
would be based on cost modelling. Brazil would also like to see a debate on interconnection 
charges and the interconnection exchange points for the Internet, especially in view of the current 
scenario where Internet providers of developed countries interconnected at no charge among themselves. Whereas when they interconnected with developing countries, significant charges 
were imposed to access Internet services. 
1.26.  The representative of the United States noted that Brazil had raised an interesting question 
about the appropriate forum for addressing some of  the issues raised in the Note, and considered 
that the Council for Trade in Services and the e-commerce work program might be the appropriate 
place. The United States tended to agree with  Japan and to some extent with Brazil that 
governments should not assume that telecommunication regulation would be applied to the Internet, or that traditional telecommunication regulations should be applied to computer and 
related services or that restrictive content policies be extended to Internet-based services. The 
representative said that the United States agreed with the European Union that there were a number of emerging new issues that were importan t to examine in relation to the GATS. However, 
in this regard, Members needed to reflect furthe r on whether the WPDR or the CTS would be the 
most appropriate forum. 
1.27.  In response to issues raised by Brazil, th e Secretariat observed that some questions in the 
Note did touch on some of the basic elements included in both the e-commerce work program and 
the terms of reference of the Working Party. Th e terms of reference for the Working Party were 
three-fold: one was the development of horizontal disciplines, which was currently underway and had been for some time; the second, was the consideration of sectoral disciplines on domestic 
regulation; and the third, drawn from its predeces sor – the Working Party on Professional Services 
– was to look into disciplines for professional services. The work program on e-commerce, which in the broader context of the WTO was divided across the Goods, TRIPS, and Services Councils, and 
had seen a very substantial number of its issues addressed in the latter. Discussions in the S/WPDR/M/58 
 
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  Working Party could be expected to feed into the consideration of possible future disciplines. 
Discussions in the Council were undertaken more from a deliberative, informative, and policy perspective, with a view to exploring possible joint action by the membership such as the Ministerial Decision on the Work Program, and the moratorium on duties on electronic 
transmissions. Therefore, two separate channels ex isted. Of course, there was an overlap in terms 
of the questions and issues discussed, but the wa velengths of the discussions were a bit different. 
This had not presented problems in the past as it had been possible to have discussions on the 
same subject from different perspectives and for different purposes.  
1.28.  The Secretariat also clarified, with respect to the Note, as it had indicated in the past, that 
although the focus of the work here was on the regulatory measures referred to in GATS 
Article VI.4, the Note had tried to explain and pr oject the broader, more comprehensive regulatory 
picture in each of the sectors. This approach ha d been taken to allow the Secretariat to provide 
more information, and also to avoid being judgmental about which measures fell within the scope o f  A r t i c l e  V I . 4 .  I t  w o u l d  u p  t o  M e m b e r s  t o  d e c i d e  o n  w h a t  i s s u e s  f e l l  w i t h i n  t h e  s c o p e  o f  t h e  
Working Party. Some questions, such as those relating to institutional reforms or competition 
policy, strictly-speaking would not fall within GATS Article VI.4. However, other questions did 
relate to regulatory measures covered by Article VI.4 and might be worth considering. It would be 
completely up to Members to decide issues could be acted upon in the Working Party.  
1.2  Computer and Related Services 1.29.  The Chairperson moved on to the agenda sub-item on computer and related services and 
opened the floor for comments. 
1.30.  The representative of Brazil was of the vi ew that given their complexity other international 
organizations, such as the International Telecommunications Union and others, must be invited to 
discuss issues such as the appropriate forum to discuss the trade effects on computer and related 
services and emerging regulation. Concerning net neutrality, Brazil, like other countries, faced the 
same debate, but up to now, no more than a simple principle against discriminatory access to content had addressed the issue without resort to more normative rules and complexities. Net 
neutrality had to be addressed as a commercial, rath er than technical, issue and this might require 
further analysis and a cautious approach. 
1.31.  The representative of Japan recalled that in recent analyses by his government, the 
domestic market sales for computing services were expected to quadruple in the five years from 
2011 to 2016. He noted concern about emerging regu lations in terms of property rights, privacy, 
national security and cyber-crime. Although there was a need for some regulation in such respects, it was important to strike a balance between regulation and a free market environment.  
1.32.  The representative of Australia said that suggestions from some Members that there were 
issues that could be taken to the Council for Trade in Services was very positive, and that further 
invigoration of the e-commerce work programme was welcome. The representative noted that 
there was nevertheless also considerable merit in the discussions on regulatory aspects within the 
Working Party. There was still much room in the Working Party to explore the impact of domestic regulations, and the discussion of regulatory issues could inform the negotiations. The representative said its government was mindful of some of the comments made by the Chair, 
noting that the e-commerce workshop had raised a number of regulatory issues that were 
obviously of interest to a number of Members. Broadband services and cloud computing, and the 
related privacy considerations, all merited discussion in the Working Party. The Australian 
government would continue to reflect on these issues and on some of the questions posed by the 
Secretariat, and might have further comment s on this agenda item in the future. 
1.33.  The Secretariat commented that it might be  useful to revisit some of the conclusions in 
relation to e-commerce adopted by the Services Co uncil in its interim report of July 1999 to the 
General Council. This report addressed the application of GATS provisions to e-commerce. Some cross-cutting threads might exist, such as the rele vance of e-commerce to all sectors, and the idea 
that, in line with the principle of technological neutrality, the GATS makes no distinction between 
the different technological means through which th e services could be supplied. Also, the report 
noted the cross relevance of e-commerce to the four  modes of supply, rather than only to cross-
border supply. The report examined different prov isions of the GATS and how they relate to e-S/WPDR/M/58 
 
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  commerce transactions and, as a report of the Council, it represented what Members themselves 
had observed. 
1.34.  The representative of the European Union strongly supported the link made in the Note 
between a vibrant market for computer services an d the availability of a modern and affordable 
communications infrastructure. The interrelations between the regulation of telecommunications 
a n d  c o m p u t e r  s e r v i c e s  w e r e  n u m e r o u s .  T h i s  w a s  a  f a c t o r  t h a t  r e g u l a t o r s  n e e d e d  t o  t a k e  i n t o  account when regulating the telecommunications sector. Among the challenges highlighted by the 
Note, the European Union saw, in particular, two issues of critical importance. The first one was 
the issue of security, or cyber security: it was a cr oss-cutting issue, mixing regulatory and security 
issues. It was a very important topic that contributed to enhancing trust and confidence of consumers in internet-based services, and could contribute to the development of cross-border 
trade in computer services. The second issue was privacy, which was also a critical element in 
building trust and confidence. Ensuring privacy of personal data was a fundamental right within the 
European Union, implemented by regulators at many different levels.  
1.35.  With respect to the questions raised in paragraph 72 of the Note, on the appropriate forum 
to discuss the trade effects of emerging regulations on computer and related services, the representative of the European Union observed th at issues raised in conjunction with computer 
services were cross-cutting and went beyond the remit of services. The European Union was open 
on how and where those issues could be further discussed. Maybe the work programme on e-commerce, as a truly cross-cutting programme with i n  t h e  W T O ,  c o u l d  d e a l  w i t h  s o m e  o f  t h e s e  
aspects. The European Union did not think that work  should focus on the application of Article XIV 
to computer and related services and other affected  services industries. However, further work on 
the interplay between regulations governing di fferent sectors would certainly be welcomed. 
1.36.  The representative of India observed that  the note by the Secretariat highlighted data 
security and privacy. The representative recogniz ed these to be legitimate concerns and very 
delicate issues. India agreed that adequate steps needed to be taken to ensure protection of data and privacy. However, the experience of their service suppliers had been that, in some 
jurisdictions, the measures taken to ensure data  privacy were becoming increasingly cumbersome 
and onerous without necessarily improving data se curity. Members needed to ensure that such 
conditions did not become opaque and burdensome. India believed that Members needed to discuss this issue in greater detail, so that exceptions under Article XIV were not applied in such a 
way as to become a disguised restriction on trade in services. This issue was very relevant for 
computer and related services and IT-enabled se rvices, and cross-border supply of services in 
general. The questions raised by the Secretariat Note regarding the appropriate forum to discuss 
the trade effects on computer and related services of these emerging regulations and the 
relationship to Article XIV were thus extremely important and topical. Various views on the appropriate forum had been expressed earlier in the meeting. It was an extremely complex issue 
on which India reserved the right to come back at a later time with more details, and would be 
open to discussing what might be the most appropriate forum to address them.  
1.3  Audiovisual Services 1.37.  The Chairperson moved to next sub-item on audiovisual services contained in 
paragraphs 106 to 119 of the Secretariat Note.
10  
1.38.  The representative of Japan made a general comment on convergence-related regulatory 
issues. Broadcasting services were a very sensitive area subject to many regulations, including 
domestic content regulations. However recently , due to the development of telecommunications 
networks, contents which would usually be conveyed as broadcasting services had become available on the Internet. When these services were  delivered over the Internet they would not be 
subject to many regulations as it would be considered to be a kind of telecommunication service. 
In many countries, including Japan, the distributi on of broadcasting programmes over the Internet 
would be considered as separate from broadcasting services. In the WTO, audiovisual services have been a very sensitive sector, and therefor e not many commitments have been made. This 
situation might change in the future.  
                                               
10 See footnote 2 above (S/WPDR/W/48). S/WPDR/M/58 
 
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  1.39.  The representative of the European Union noted that the revision of the EU's Television 
without Frontiers Directive (TWFD) and its re placement by the Audiovisual Media Services 
Directive (AMSD) mentioned in paragraph 114 of th e Note, provided an example of an existing 
regulatory framework being adapted to a new business and technological environment. The new 
Directive entered into force in December 2007 and expanded its coverage to all audiovisual media 
services, including online and on-demand audiov isual content, and drew a distinction between 
linear services, with a programme schedule such as conventional television, and non-linear 
services, such as video on-demand.  
1.40.  As the Note pointed out, non-linear se rvices were subject to a number of rules on 
advertising, protection of minors, prohibition of illicit content, etc. on the same footing as traditional linear services to ensure similar treatm ent. In other cases, non-linear services were 
subject to less strict rules, recognizing the fact that consumers have greater control and choice 
over non-linear services as well as the different impact these services have on society as a whole (i.e., one-to-many transmission versus one-to-one transmission).  
1.41.  In April 2013, the European Commission published a Green Paper called "Preparing for a 
Fully Converged Audiovisual World: Growth, Creation and Values" with the objective of seeking views and asking for evidence on whether the current differentiated treatment between linear and 
non-linear services was distorting the market. This was an on-going exercise that would 
concentrate efforts and attention in the European Union in the months to come.  
1.4  Modes 1 and 2 1.42.  The Chairperson recalled that issues concerning modes 1 and 2 were contained in 
paragraphs 262 to 267, and opened the floor for comments on this section of the Note.  1.43.  No comments were made under this sub-item of the agenda.  1.44.  The Chairperson thanked Members for their comments and views on the topics scheduled 
for current meeting. She took note of all the stat ements and reconfirmed that at the next meeting 
the Working Party would take up the sections listed for meeting three, namely: development; maritime transport services; logistics services; distribution services; postal and courier services. In 
addition, she invited Members to continue providing comments on any of the other sections of the 
Note. It was so agreed.  
2  ITEM B – FUTURE WORK  2.1.  Turning to future work, the Chairperson told Members that the Working Party had nearly 
completed the 93 questions posed by Members under technical discussions. In accordance with the 
Indicative Work Plan11, there was only one more meeting scheduled under this area of work.  
2.2.  While with regard to the Regulatory Issues Note, two more meetings were scheduled, though 
more meetings could be added if Members found it necessary. Thus, with these issues in mind, the 
Chair invited Members to give their views on what  would be the future work of the Working Party 
upon completion of the present cycle of work.  
2.3.  The representative of Hong Kong, China noted that there was still work to be concluded in 
the two tracks of discussions that Members were holding, and asked how Members would 
summarize or share their insights from the discussion  of technical issues and regulatory practices. 
He considered that this could be a possible direction of work for the Working Party. In terms of 
timing, he said that it would be natural to revive the negotiations and fulfil the Working Party's 
mandate after the Bali Ministerial Conference, where the overall WTO negotiations would probably become clearer.  
2.4.  The representative of Switzerland recalle d the negotiation mandate of the Working Party 
contained in the GATS, and considered that future of work of the Working Party should include the 
continuation and conclusion of that mandate.  
                                               
11 "Indicative Work Plan of Technical Issues Subm itted for Discussion" contained in RD/SERV/71 of 
1 November 2011. S/WPDR/M/58 
 
- 9 - 
 
  2.5.  The Chairman thanked Members views, took  note of the statements, and said she would 
continue consultations on this issue and would revert to it at the next meeting.  
3  ITEM C - OTHER BUSINESS 3.1.  No items were raised under this agenda item.  
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