. /.  WORLD TRADE  
ORGANIZATION   
S/FIN/25 
1 November 2011 
 (11-5521) 
  
  
 
ANNUAL REPORT OF THE COMMITTEE ON TRADE IN FINANCIAL SERVICES TO 
THE COUNCIL FOR TRADE IN SERVICES (2011) 
 
 1. Since its last Annual Report to the Council for Trade in Services (S/FIN/24), the Committee 
on Trade in Financial Services has held five fo rmal meetings and several informal meetings.
1     
2. The Committee continued to monitor the status of acceptance of the Fifth Protocol to the 
GATS, which has yet to be accepted by Brazil and Jamaica.  Following a decision by the Council for 
Trade in Services contained in document S/L/382 to  reopen the Protocol, the Philippines accepted it 
on 16 March 2011.  The Protocol entered into for ce for the Philippines on that date, as stated in 
document WT/Let/759. 
3. At its meeting on 16 November 2010, the Comm ittee continued its discussion on "Impact of 
Technological Developments on Regulatory and Comp liance Aspects of Banki ng and other Financial 
Services under the GATS", on the basis of a Background Note prepared by the Secretariat (S/FIN/W/74), as well as Members' perspectives inter alia  on the incorporation of technology and the 
necessary regulatory requirements in their financial sectors.  Upon a suggestion by the Chairperson, 
the Committee agreed that any fo llow up to this discussion be co nducted in further detail under the 
agenda item on Technical Issues.  
4. At its meeting on 9 March 2011, under th e agenda item on "Recent Developments in 
Financial Services Trade", the Committee di scussed a communication from Barbados entitled 
"Unintended Consequences of Remedial Measures taken to correct the Global Financial Crisis: 
Possible Implications for WTO Compliance" (JOB/SERV/38), which suggested potential amendments to the GATS in light of issues arising from the financial crisis.  The Committee took note of the 
statements made on this submission. 
5. Following an initial proposal by China, on 12  May 2011, the Committee held a Dedicated 
Discussion on Trade in Financial Services and Development.  The purpose of the discussion was to allow Members to share their experiences and pe rspectives on the relationship between trade in 
financial services and economic development, concerning inter alia  the impact of the liberalization of 
trade in financial services on economic growth  and development, the relationship between 
international and domestic liberalization of the fina ncial sector, and the role of financial sector policy 
and regulation in promoting economic  development.  As requested by  the Committee, the Secretariat 
had prepared a Background Note containing a review of  the literature on the role of trade in financial 
services in economic growth and development (S/FIN /W/76).  Discussions on this issue continued in 
subsequent meetings.  In light of the interest shown by Members in deepening specific aspects further, 
the Committee decided to organize a workshop in 2012.  
6. The Committee renewed its consideration of classification issues in financial services.  With 
a view to supporting those discussions, the Secr etariat prepared a Background Note overviewing 
                                                      
1  The reports of the formal meetings are contained in documents S/FIN/M/66 to 70 and should be read 
in conjunction with this report. S/FIN/25 
Page 2  
 
  classification issues raised in the past (JOB/SERV/79) .  As agreed by Members, the discussions were  
held in informal mode.  Informal summaries of  the discussions held on 21 June and 26 September 
2011 have been prepared by the Chairperson u nder his own responsibility, and circulated as 
documents JOB/SERV/83 and 87, respectively.  
 
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