. /.   WORLD TRADE  
ORGANIZATION  S/FIN/24 
8 November 2010 
 (10-6001) 
  
  
 
ANNUAL REPORT OF THE COMMITTEE ON TRADE IN FINANCIAL SERVICES TO 
THE COUNCIL FOR TRADE IN SERVICES (2010) 
 
 1. Since its last Annual Report to the Council for Trade in Services (S/FIN/22), the Committee 
on Trade in Financial Services has held six formal  meetings and several informal meetings.  The 
reports of the formal meetings are contained in documents S/FIN/M/60 to 65.   
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,  Jamaica and the Philippines.  No progress was 
reported by these Members during this period.   
3. At its meeting on 2 November 2009, the Committe e carried out the eighth transitional review 
of the implementation by China of its WTO commitm ents and the related provisions of the Protocol 
on the Accession of the People's Republic of China (WT/L/432), pursuant to section 18 of this Protocol.  The report of that review is contained in document S/FIN/23.  At the same meeting, the 
Committee held a dedicated discussion on trade-related aspects of Islamic finance.  An informal Note 
prepared by the Secretariat, circulated as document JOB(09)/7 and Corr.1, served as background for 
the discussion. 
4. At the meeting on 26 April 2010, the Committee discussed a Background Note on financial 
services prepared by the Secretariat (issued  under double symbol S/FIN/W/73 and Corr.1, and 
S/C/W/312 and Corr.1).  The Note was part of the ongoing sectoral discussions in the Council for 
Trade in Services, but was also placed on the ag enda of the Committee upon Members' request.  It 
provides an overview of GATS provisions of particul ar relevance to financial services; analyzes 
GATS commitments and MFN exemptions; highlights the main trade barriers affecting the sector; 
reviews the long-term trends shaping the sector prio r to the financial crisis; and discusses main causes 
of the crisis, the remedial actions taken by gove rnments, and their impact on trade in financial 
services.  
5. On the basis of a proposal by the United Stat es, the Committee organized a seminar on trade 
in non-life insurance services, held on 28 June 2 010.  The event featured speakers from government, 
regulatory agencies, and the private sector.  It bene fited also from the participation of the Secretary-
General of the International Association of In surance Supervisors (IAIS).  The programme was 
divided into four sessions to address the following  topics: economic and commercial trends in the 
non-life insurance sector, regulatory aspects, national experiences with the liberalization of non-life 
insurance services, and challenges raised by the s upply of non-life insurance in foreign markets. 
6. Following an initial proposal by Argentina, Ec uador, India and South Africa, the Committee 
held a dedicated discussion on the financial crisis  and trade in financial services on 29 June 2010.  
The outline is contained in document JOB/SERV/9 and Add.1.  The purpose of that discussion was to allow Members to exchange information on their experiences, and to be informed about research 
activities carried out by other international organi zations.  The session was divided into two segments; 
one devoted to presentations by four internatio nal organizations (the Bank for International 
Settlements, the Financial Stability Board, the Inte rnational Monetary Fund, and the Organization for S/FIN/24 
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  Economic Cooperation and Development), followed by  a Q&A session; and the second allowing for a 
discussion among Members.  The papers and other material presented by the invited international 
organizations was circulated to Memb ers in documents JOB/SERV/12 to 15.  
7. At its meeting on 29 September 2010, following a proposal by Pakistan (JOB(09)107), the 
Committee held a dedicated discussion on the "Impact of technological developments on regulatory 
and compliance aspects of banking and other fi nancial services under the GATS".  The outline is 
contained in an informal Note by the Chairp erson (JOB/SERV/20).  Issues discussed included the 
following:  the impact of technological innovation and related market tren ds on national financial 
services sectors, the regulatory and supervisory ch allenges raised by technological developments, the 
regulatory approaches adopted by Members with rega rd to the domestic supply of e-finance and the 
cross-border supply of financial services through electronic means, as well as scheduling and 
classification aspects.  A Note by the Secretaria t, circulated as S/FIN/ W/74, provide d background 
information on these issues. 
8. In addition, the Committee has been consideri ng recently a proposal by China to discuss the 
relationship between trade in fina ncial services and development.  
 
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