. /.  WORLD TRADE  
ORGANIZATION  RESTRICTED 
S/FIN/W/85 
20 November 2012 
 (12-6351) 
Committee on Trade in Financial Services  
  
 
- DRAFT - 
 
 
ANNUAL REPORT OF THE COMMITTEE ON TRADE IN FINANCIAL SERVICES  
TO THE COUNCIL FOR TRADE IN SERVICES (2012) 
 
 1. Since its Annual Report of 2011 to the Council for Trade in Services
1, the Committee on 
Trade in Financial Services (CTFS) held four fo rmal meetings, respectively on 31 October 2011, 
19 March, 27 June and 1 October 2012.2   
2. The Committee continued to monitor the status of acceptance of the Fifth Protocol to the 
GATS.  Following a decision by the Council for Trad e in Services contained in document S/L/395 to 
reopen the Protocol, Jamaica accepted it on 16 Octobe r 2012.  The Protocol entered into force for 
Jamaica on that date, as stated in document WT/Let /866.  The Protocol has yet to be accepted by 
Brazil. 
3. At its meeting on 31 Oct ober 2011, the Committee discussed a proposal by Ecuador for 
furthering work on regulatory meas ures in financial services (S/FIN/W/80).  The proposal called for 
the inclusion of a paragraph in the Declaration of the Eighth WTO Ministerial Conference whereby Ministers would "instruct the Committee on Trade in Financial Services to continue to review the WTO rules so as to promote and ensure the preservation of policy space for macroprudential 
regulations and the integrity and stability of the fi nancial system".  The proposal received the support 
of several Members, while some others considered it unnecessary to include the issue in a Ministerial 
Declaration.  Members continued discussing the issues raised in the Ecuadorian proposal in 
subsequent meetings.  In the course of those discussions, different suggestions were made to 
complement that proposal, and divergent views were expressed on what to discuss and how to 
proceed.  On 26 June 2012, Ecuador submitted a new proposal "for discussing progress in respect of macroprudential regulation and its  relationship with GATS rules" (S/FIN/W/84).  During the 
discussions, many Members showed their willingness to share their experiences with macroprudential 
regulation.  However, positions diverge on the pro posed preparation of a Background Note by the 
Secretariat and the participation of experts from inte rnational organizations.  At the meeting held on 
1 October 2012, Ecuador agreed to present a revised  proposal taking into account the comments made 
by Members. 
4. A Workshop on Trade in Financial Services a nd Development was he ld on 26 June 2012, 
under the auspices of the Committee.  The Workshop , originally proposed by China, was a follow-up 
to a dedicated discussion on the topic held in 2011.  The programme (JOB/SERV/99/REV.1) was 
organized on the basis of three broad topics identified by Members, namely:  a) the contribution of trade in financial services to economic growth and development;  b) ways to (i) enhance Members' 
capacity to carry out effective and efficient supe rvision and regulation over the financial sector 
                                                      
1 S/FIN/25, dated 1 November 2011. 
2 The reports of the formal meetings are contained in documents S/FIN/M/71 to 74 and should be read 
in conjunction with this report. S/FIN/W/85 
Page 2  
 
  (including of foreign financial institutions), and (ii) promote in formation exchange and cooperation 
between home and host country regu lators;  and c) the relations hip between financial services 
liberalization, the regulatory framework, and fina ncial stability.  Speakers at the Workshop came from 
academia, international organizations (IMF, FSB, UNCTAD), and national governments (nominated 
by Members).  An informal summary of the main  issues addressed in the Workshop was prepared by 
the Secretariat (JOB/SERV/116).  The Committee w ill continue exploring th e relationship between 
financial services trade and development. 
5. The Committee continued with its consideration of  classification issues in financial services.  
As agreed by Members, the discussions were held in  informal mode.  Informal summaries have been 
prepared by the Chairperson under his own responsibility. 
6. Pursuant to section 18 of the Protocol on th e Accession of the People's Republic of China, 
on 31 October 2011 the Committee conducted the final re view of the implementation by China of the 
WTO Agreement and of related provisi ons of the Protocol.  The report of that review is contained in 
document S/FIN/26. 
7. At the meeting held on 1 October 2012, Pana ma made a statement regarding "Argentina - 
Certain Measures that Affect Trade in Financial Services".  Argentina replied and the Committee took 
note of the statements made. 
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