RESTRICTED  WORLD TRADE  
ORGANIZATION  S/C/M/103 
29 March 2011 
 (11-1538) 
Council for Trade in Services  
  
 
 
REPORT OF THE MEETING HELD ON 7 MARCH 2011 
 
Note by the Secretariat
1 
 
 
1. On 7 March 2011, the Council for Trade in Serv ices held a meeting under the Chairmanship 
of Ambassador Elin Johansen (Norway).  The agenda was contained in document WTO/AIR/3705. 
2. Under Other Business, the Chairperson indicated that she intended to make a brief statement 
regarding consultations on the appointment of ne w chairpersons to the Subsidiary Bodies to the 
Council for Trade in Services for 2011.   
3. The agenda was adopted , as modified. 
A. NOTIFICATIONS PURSUANT TO ARTICLES III:3  AND V:7 OF THE GATS 
4. Starting with the notifications made pursuant to Article III:3 of the GATS, the Chairperson 
drew delegations' attention to the communication received from the Kingdom of Bahrain (circulated 
in document S/C/N/579). 
5. The Council took note  of the notification made.  
6. The Chairperson subsequently pointed to th e notifications pursuant to GATS Article V:7 
received from China and Chile (in document S/C/N/577);  China and Hong Kong, China 
(S/C/N/264/Add.4);  China and Macao, China (S/C /N/265/Add.4);  and Hong Kong, China and New 
Zealand (S/C/N/578). 
7. The Council took note  of the notifications, and referred  the agreements notified to the 
Committee on Regional Trade Agreements for consideration. 
B. COMPLIANCE WITH GATS NOT IFICATION REQUIREMENTS  
8. The Chairperson  opened the floor for delegations' comments.  
9. The representative of Switzerland  thanked the delegation of Bahrain for the useful 
notification it had just submitted.  As regards compliance with notification requirements, the 
representative indicated that the Swiss initiative to  discuss and exchange experiences on this matter 
had been appreciated by delegations.  It had incr eased Members' awareness of the issues and resulted 
in increased activity with regard to notifications, even though a lot of work still needed to be 
accomplished.   
                                                      
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/C/M/103 
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  10. Nevertheless, at that particular junction, work  in the WTO had moved into a different, more 
intense phase.  His delegation's own priorities, as t hose of many other Members, had shifted to other 
issues.  Accordingly, Switzerland did not intend to  pursue the issue of compliance with notification 
requirements at that point in time.  His delegati on would nevertheless welcome and take note of any 
new notifications submitted, continue to be dilig ent concerning its own notifications and encourage 
other Members to be equally attentive.  Switzerland w ould revert to this issue at an appropriate time. 
11. The Chairperson
 said that the Council would take note of the statement made. 
C. SECTORAL AND MODAL DISCUSSIONS  
12. The Chairperson  recalled that, at the meeting held  in November 2010, the Council had 
addressed two new Background Notes produced by the Secretariat on road freight transport services 
and on distribution services.  As indicated in the ai rgram, delegations would have an opportunity to 
revert to those sectors at the end of the discussion of this agenda item.   
13. For that meeting, the subjects up for discussion were engineering services and a review of 
statistics on trade flows in services.  In line with  the practice adopted at previous meetings, the 
substantive part of the debate would be held in informal mode.  The presentations by the Secretariat 
and by international organisations, and the statem ents of any delegations wishing to place their 
interventions on record would be incorporated in th e minutes of the meeting.  For the substantive part 
of Members' informal debate, instead, the Chairp erson would produce, under her own responsibility, a 
non-attributable summary.  The summary would be  circulated shortly after the meeting, and 
subsequently recorded in the minutes of the meeting.   
14. The Chairperson also recalled that the Counc il had agreed that, for the meeting, the 
Secretariat would invite, on an ad hoc basis, the OECD, which was not an observer to the Council, to 
share any relevant work it had produced on the topics under discussion. 
1. Engineering services (Background Note  by the Secretariat, S/C/W/334) 
15. A representative of the Secretariat  explained that the Note focused on engineering services as 
professional services, i.e. services provided by qualif ied engineers, and not on the economic activities 
of physical construction and rela ted engineering works, which had been addressed in a document 
S/C/W/302.  The engineering services Note discussed  the classification of the sector, its economic 
importance, regulatory features and trade restrictions, as well as the specific commitments Members had undertaken. 
16. As in other professions, asymmetric information was the most important rationale for the 
economic regulation of engineering services.  That regulation usually took the form of (minimum) 
quality standards, enforced through qualificati on and licensing requirements and procedures.   
17. In terms of market structure, beyond the globa l engineering giants, national markets were 
characterized by the prevalence of small- and me dium-sized firms.  High labour-intensity was a 
distinguishing feature of engineering firms, with  qualified employees and pa rtners usually accounting 
for over half of employees.   
18. Engineering services were primarily supplied through the temporary presence of professionals 
abroad (mode 4).  Mode 3 was also another importa nt mode of supply.  The spread of high-speed 
Internet connections had expande d the potential for cross-border trade in engineering services 
(mode 1).    S/C/M/103 
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  19. In terms of commitments, 78 Members (counti ng EU-12 as one) had inscribed engineering 
services in their schedules.  The level of libera lization committed compared favourably with most 
other professional services, reflecting the relativ ely more open regulatory environment for the 
engineering services sector.  
20. The representative of China  registered his delegation's doubts with regard to the assertion, in 
paragraph 36 of the Note, that China appeared to apply quotas or economic needs tests to restrict the 
number of foreign suppliers in the engineering sector .  He indicated that China had undertaken full 
market access commitments in the sector, and had on ly scheduled limitations to national treatment.  
He reserved his delegation's right to come back to the Secretariat Note. 
21. The Council  conducted the rest of the discussion in informal mode.  The Chairperson  
produced the following summary of the main points raised (also contained in JOB/SERV/42). 
22. The delegations that took the floor underscored th at the Note provided useful information on 
the sector.  Attention was drawn, in particular , to the sector's economic importance and strong 
international focus, its diversity and constantly  evolving nature, the prominence of small- and 
medium-sized enterprises in national markets, the re cent trends in the industry, as well as the potential 
for increasing trade brought about by technological a dvances.  Some delegations considered that the 
Note was particularly timely and would prove usef ul in the upcoming discussions on market access in 
professional services in the context of the Doha Round negotiations.  
23. Some delegations appreciated the statistical in formation provided in the Note, but regretted 
that available data came mostly from developed c ountries.  Some others praised the analysis of 
classification issues contained in the Note.  One delega tion in particular suggested that the best way to 
deal with any possible ambiguities in the classificati on of the sector would be to take the broadest 
commitments possible across the relevant sectors.  A nother delegation noted in that regard that most 
of the recently acceded Members had made extensiv e commitments in engineering and integrated 
engineering services. 
24. Delegations also highlighted the overview of regul ations of the sector provided in the Note as 
well as the review of the literature on the impact of  regulatory restrictions in national markets.  One 
delegation criticized the characterization of nationa lity requirements as a trade negotiating tool and as 
an instrument helping to ensure familiarity with local rules (paragraph 15 of the Note). It was not 
clear that the latter view was supported by facts;  it should have been made clearer that it had been 
offered as explanation without implying that it was tr ue.  In replying to that comment, the Secretariat 
clarified that these observations had been taken from an OECD study. 
25. One delegation considered that the prominence  of mode 4 in the supply of engineering 
services highlighted the need to ensure that visas and work permits in particular did not act as barriers 
to this kind of services trade. Lack of recognition of qualifications was another significant impediment 
to trade in this sector.  One delegation also hi ghlighted the increasing importance of mode 1 as a 
means of supplying engineering services, which poi nted to the need – for both developed- and 
developing-country Members – of making commitme nts in this particular mode of supply.  
26. A couple of delegations considered that the po tential for burdensome regulation to impact 
negatively on competition in the market, and even tually on the prices and quality of engineering 
services, was another noteworthy observation of the Note, given the current discussions on domestic 
regulation. 
27. One delegation referred to para graph 36 of the Note, where it was stated that the Member 
concerned "appear to apply" Economic Needs Test s (ENTs) to restrict the number of foreign 
professionals or firms in the sector, while in fact its specific commitments on engineering and S/C/M/103 
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  integrated engineering services did not contain any reference to the existence of ENTs.  A 
representative of the Secretariat clarified that such  information had been drawn from an OECD survey 
of product market regulation that included inform ation on engineering services for OECD and some 
non-OECD members. 
28. Finally, one delegation clarified that, though be ing listed in Table 5 of the Note, the Member 
concerned had not made commitments in "relat ed scientific and technical consulting services". 
2. A review of statistics on trade flows in services (Background Note by the Secretariat, 
S/C/W/329 and Addendum 1) 
29. By way of introduction, a representative of the Secretariat
 indicated that the Note had been 
produced by the International Trade Statistics S ection of the Economic Research and Statistics 
Division of the WTO.  It was intended as a follow-up to earlier, similar Notes, the last one of which 
had been issued in 2006.   
30. The Note consisted in fact of two parts:  document S/C/W/329 described data availability, 
compilation, and conceptual developments, while  the Addendum illustrated trade flows from 2000 to 
2010, mainly focusing on export trends at total and sector level, including partner detail.  It also 
included statistics on the sales of majority-owned affiliates.    
31. Since the previous Note in 2006, data availab ility had increased considerably for Balance of 
Payment statistics.  There had been a dramatic improvement in both the quality and quantity of 
statistics for the main items in the 5th edition of the Balance of Payments Manual (BPM5) (insurance 
services were reported by 148 countries, up from 136 in  2006, for instance), but also for more detailed 
items (computer services, for example, were reported by 73 countries), for many items in the 
Extended Balance of Payment Services classificat ion (EBOPS), as well as in the partner country 
breakdown.  As concerned Foreign Affiliate St atistics (FATS), some 40 countries approximately 
compiled statistics according to this new framework , and some more had put pilot projects on-going. 
32. The first-ever Manual on Statistics of Intern ational Trade in Services (MSITS), setting out 
recommendations for measuring trade in services, wa s published in 2002.  It had recently undergone a 
revision (MSITS 2010), aimed at keeping up with a number of changes in international classifications 
and at addressing important issues that deserved clarification.  The revised Manual was due for publication in the course of 2011. 
33. The Manual had to be updated to re flect revisions of international statistical standards, such 
as, the System of National Accounts (SNA), the 6
th edition of the Balance of Payments Manual 
(BPM6), or international statistical classifications such as CPC 2.0 and ISIC Rev.4. 
34. In addition to these updates, and following cons ultation and agreement between international 
experts, the new Manual included a chapter on “M easuring modes of supply”.  The chapter was 
needed to provide guidance to compilers on how to measure the GATS modes of supply, and in 
particular to address how mode 4 s hould be measured.  Finally, it contained new recommendations on 
the activities of foreign affiliates, which had orig inated from revisions of the respective OECD and 
Eurostat Manuals.   
35. The new structure of the MSITS 2010 could be described as focusing on three aspects:  BOP, 
FATS and statistics by modes of supply, includin g through the amendment of surveys to extract 
information about mode 4 (for instance, New Zealand and Hong Kong, China had started providing mode 4 information).  S/C/M/103 
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  36. MSITS 2010 used the term 'international trade in  services' broadly.  It measured the value of 
trade in services in the conventional sense of tran sactions between residents and non-residents based 
on the Balance of Payments framework.  It also covered services delivered through locally established 
but foreign-controlled enterprises.  Thes e transactions were covered by FATS. 
37. For a full evaluation of trade in services, additi onal indicators had been included, such as key 
performance indicators for telecommunications, finance or the transport sector.  These indicators 
included for example international tourist arrivals. 
38. Why was a revision of BPM5 necessary?  Following the strict application of the principle of 
"change of ownership"in the SNA 2008, items had b een reclassified from the services account to the 
goods account, and vice versa.  For example, merchanting, at present classified as a service under 
"other business services" would be shifted in to the goods account of an economy’s Balance of 
Payments.  When a good was bought by a merchant , a negative export was recorded, when it was 
resold a positive export was recorded.  The pro cessing of goods in other economies, currently 
classified as "goods for processing" in the goods account, would be considered a service, renamed 
"manufacturing services on physical inputs owned by others" and added to "other processing 
services".  For some economies, these activities were  economically relevant, and the changes would 
somewhat inflate or deflate their services or goods exports.  
39. Other changes concerned new aggregations (e.g . telecoms), more precise terminology (e.g. 
insurance) as well as new services components separ ately identified (e.g. maintenance and repair not 
included elsewhere).  The classification was product-b ased and could be partly linked to CPC Ver.2. 
40. Annex C of the Hong Kong Ministerial Declar ation contained a reference to technical 
assistance, and spelled out that  such assistance should be provided on compiling and analysing 
statistical data on trade in services.  Since the Hong Kong Ministerial, the ITS unit of the WTO 
Secretariat had been organizing several national and regional seminars.  Regional seminars in 
particular had been undertaken in cooperation with other organizations, such as UNSD, UNWTO, 
IMF and the Commonwealth Secretariat.   
41. The new MSITS 2010 and respective EBOPS 2010 woul d bring about further clarifications in 
the definition of service sectors (for instance manufac turing services, research and development) as 
well as the search for alternative data sources.  But the new MSITS 2010 also required some further 
clarifications, such as on goods for processing (or manufacturing services on inputs owned by others, as it was now called). 
42. The inter-agency Task Force was currently fo cused on developing Compilation Guidance for 
the successful implementation of the MSITS 2010.  At the same time, co-operation and 
communication between national institutions, from Cent ral Banks to National Statistical Offices to 
relevant Ministries, was absolutely essential to highl ight respective priorities, encourage engagement, 
and assure the necessary financial resources.    
43. The Addendum to the Note highlighted ove rall BOP services trade flows between 2000 and 
2010, and for each sector illustrated to tal, bilateral as well as FATS data. 
44. World exports of commercial services on a BOP basis, which had grown steadily since the 
1980s, experienced a sudden and un precedented drop in 2009.  According to WTO estimates, world 
services exports stood at US$ 3,350 billion in 2009.  Their share in total world exports (goods and 
commercial services) increased from 16 per cent in 1980 to 21 per cent in 2009. 
45. In 2008, goods (on a BOP basis) and commercia l services recorded similar growth rates (15 
and 13 per cent, respectively).  In 2009 however, world goods exports dropped by 23 per cent, while S/C/M/103 
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  commercial services exports contracted significantly less, by 12 per cent, showing more resilience to 
the global economic downturn.  In 2009, all servi ces sectors were affected by the global economic 
crisis, though unevenly.  The transport sector was th e most affected, with a 23 per cent decline, the 
same fall registered by goods exports.   
46. Was trade recovering?  According to availabl e data, exports of commercial services were 
improving in all countries, with the Asian economies in the lead.  In the first half of 2010, for 
instance, the services exports of China and Chinese Taipei registered impressive growth rates.  
According to WTO preliminary estimates, in the first half of 2010, world exports of commercial 
services increased by 11 per cent compared to the same period in 2009. 
47. The information just presented was based on BOP statistics, which measured only residents to 
non-residents transactions and could not grasp what was estimated to account for the largest part of 
services trade, i.e. trade through the establishment of a commercial presence in a foreign country.   
48. To measure mode 3, FATS statistics were needed .  This new statistical domain, still in its 
infancy, measured outward sales or output of foreig n affiliates in the service sectors and provided the 
measure of the sales by affiliates of national firms established in other countries.  The overall amount 
of these sales for the US and for Germany, which were top exporters of commercial services on a 
BOP basis, was for instance double the valu e of their exports on a BOP basis.  
49. The Council
 conducted the rest of the discussion in informal mode.  The Chairperson  
produced the following summary of the main points raised (also contained in JOB/SERV/42). 
50. The delegations that intervened all welcomed th e Note.  One delegation asked to what extent 
statistics reflected the reality of what is being ne gotiated.  Problems of definition and classification 
available were in particular outlined.  Metho dology for measuring modes of supply was also 
mentioned.  A number of sectoral examples were provided to illustrate what could possibly present 
problems of coverage in the statistics, such as  packaging, warehousing, logistics, brokerage, 
distribution services or tourism.  The Secretariat replied that, although some questions might remain, 
the revised recommendations had tackled a lot of these issues. 
51. Delegations stressed the usefulness of the Note.  One delegation asked if the data presented in 
the Note was the same as disseminated on the WTO Web database.  It also enquired if FDI data were 
used.  Regarding Table 2 of S/C/W/329/Add.1, anothe r delegation sought clarification as to the choice 
of selected economies. 
52. One delegation encouraged the statistical experts to spread awareness of data compilation.  In 
relation to the statement on data ga ps between negotiators' needs and wh at statisticians could offer, in 
paragraph 65 of the Note, it sought information on in itiatives to reduce these gaps.  For mode 4 it was 
acknowledged that more work was necessary.  Dele gations encouraged the Secretariat to provide 
technical assistance and seminars on trade in services statistics for Members.  There should be a particular focus on improving the data availability for Least Developed Countries.  The Secretariat 
replied that international organisa tions were involved in a number of technical assistance activities, 
and that there were plans to continue in that direction.   
53. A delegation mentioned a project currently taking place in the country concerned on the 
collection of data on trade in services.  This was conducted jointly by the statistical office and the Ministry in charge of trade.  The importance of  national institutions coope rating for the development 
of appropriate trade in services statistics in th eir economy as well as inter-agency co-operation was 
emphasized. The delegation asked if internationa l agencies could set up a central database, which 
would include a list of what types of information were  available, how to collect data and identify best 
practices.  One delegation informed that it was ve ry interested in implementing the new standards  S/C/M/103 
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  (Balance of Payments Manual 6th edition and Manual on Statistics of International Trade in Services 
2010).  
3. Sectors discussed at the meeting held on 18 November 2011 (road freight transport 
services and distribution services) 
54. The representative of Switzerland  said that, in the course of the discussions of road freight 
transport services and distribution services, the issue of small and medium-sized enterprises (SMEs) 
and independent professionals had come to the fore .  Starting with the very first Background Notes, 
his delegation's impression had been that aspects re lated to SMEs tended to be less well addressed 
than warranted, both in terms of figures, employme nt contribution and overall description.  The Note 
on distribution services was a case in point.  The descrip tion of the sector in that Note did not fit the 
characteristics of the distribution sector in Switzerland.  The same could be said of the Note on road 
freight transport services and the Notes on professional  services, such as that on accountancy services.   
55. He proposed that an additional paper be produced by the Secretariat, on the role of SMEs and 
independent suppliers in the sector s the Council had adressed.  He felt that such a paper could provide 
useful information for many delegations.  SMEs played a more important role in the services realm 
than in manufacturing, in terms of their contribution to employment and given their presence in 
virtually all services sectors, possibly save for air tr ansport services.  SMEs were active even in the 
financial sector:  in Switzerland, for instan ce, many asset managers operated as independent 
professionals.  He therefore suggested that the Secret ariat be tasked with the production of a Note on 
SMEs within a reasonable timeframe.  
56. A representative of the Secretariat  thanked the Swiss delegation for its interesting proposal.  
He indicated that the Secretariat would be happy to conduct some work on SMEs.  In order to respond 
to the Swiss request in the most meaningful manner, the Secretariat would reflect on the issue, in light 
of its cross-cutting nature, and report back at the ne xt meeting of the Council.  In the meantime, any 
specific suggestions by dele gations would be welcome. 
4. Further comments 
57. The Chairperson  thanked Members for their contributions.  She recalled that, as agreed, she 
would be producing a summary, under her own res ponsibility, of the main issues raised.  This 
summary (document JOB/SERV/42) would be circulat ed rapidly and subsequently recorded in the 
minutes of the meeting.  The minutes would also cont ain the presentations of the various papers and 
interventions that delegations had asked to be placed on record.   
58. She recalled that, with the two topics discussed at that meeting, Members had exhausted the 
sectors and modes that had been selected for discuss ion in the Council.  She therefore suggested that 
the Council take note of the statements made and reve rt to this item at the next meeting of the Council 
for any further comments on the two papers discuss ed as well as work by the Secretariat on SMEs.   
59. It was so agreed . 
D. RE-OPENING OF THE FIFTH PROTOCOL FOR ACCEPTANCE BY THE PHILIPPINES  
60. The Chairperson  drew delegations' attention to  document S/C/W/332, containing a 
Communication from the Philippines.  The Philippin es was requesting that the Council re-open the 
Fifth Protocol to allow its Government to deposit th e instrument of acceptance that would give legal 
effect to the commitments by the Phi lippines annexed to the Protocol.   S/C/M/103 
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  61. As usual in such cases, a draft decision, contained in document S/C/W/333, had been 
prepared by the Secretariat for adoption by the Co uncil, according to the standard format followed in 
similar cases.  
62. The representative of the Philippines
 said that, while regretful of the delay, his Government 
was pleased to confirm that it had completed the procedures necessary to accept the Fifth Protocol.  
He therefore asked that the Council agree to re-open the Fifth Protocol for a pe riod of 30 days in order 
to allow his Government to deposit its instrument of  acceptance and, thus, give legal effect to the 
Philippine's commitments annexed thereto. 
63. The representative of Australia  welcomed the Philippine's announcement that it was ready to 
accept the Fifth Protocol.  She noted that, once th e Philippines had completed the process, only two 
Members had to give legal effect to the commitment s they had annexed to the Fifth Protocol, notably 
Brazil and Jamaica.  She hoped that they  could proceed in the same direction. 
64. The representative of Indonesia  congratulated the Philippines and expressed his support for 
the Council's re-opening of the Fifth Protocol. 
65. The Chairperson  suggested that the Council take note of the statements made and agree to re-
open the Fifth Protocol for acceptance by the Philippines until 8 April 2011. 
66. It was so agreed . 
E. INTERNATIONAL MOBILE ROAMING  
67. The Chairperson  drew delegations' attention to th e Communication from Australia, Norway 
and the United States in document S/C/W/335, contai ning a proposal for a workshop on international 
mobile roaming and the applicability of the GATS.   
68. The representative of Australia  introduced the Communication her delegation had co-
sponsored with Norway and the United States.  The Communication contained a proposal for a workshop on international mobile roaming and the ap plicability of the GATS.  She explained that the 
OECD had recently conducted some work on intern ational mobile roaming and had highlighted a 
number of issues for consideration, amongst whic h the applicability of the GATS, its Annex on 
Telecommunications and the Reference Paper had been  very prominent.  She underscored that mobile 
roaming was an important issue, as it facilitated ec onomic interaction in trade, travel and business 
mobility.   
69. The WTO, and the CTS more particularly, was the most appropriate forum to discuss the 
issue.  Paragraph 6 of the Communication contai ned some questions that Members might like to 
consider.  These essentially focused  on the applicability of the various GATS instruments and the 
relationship between Members' commitments and intern ational mobile roaming.  In order to have a 
good discussion, and without prejudice to delegati ons' position on the issues themselves, a workshop 
would provide a valuable opportunity for Memb ers to better understa nd how relevant GATS 
obligations might apply to international mobile  roaming services.  The co-sponsors' proposal 
suggested a number of elements for the worksh op, with a view to guiding its structure and 
participation, allowing Members to exchange experien ces and have expert inputs into the discussion.   
70. The representative of Norway
 associated herself fully with th e statement made by Australia.  
Her delegation recognised the problem of high intern ational roaming charges and believed that these 
were an obstacle to an efficient use of mobile communication technology, which in turn might have 
negative effects on international trade relations.  Sh e specifically highlighted the work of the OECD  S/C/M/103 
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  in the area.  Her delegation believed that a works hop, as proposed, could be a very useful tool in 
advancing discussions on the issue. 
71. The representative of New Zealand  said her delegation was fully supportive of the proposal, 
which addressed issues raised in other fora, including the OECD and APEC.  Those issues could 
usefully be discussed in the WTO context and New Zealand looked forward to participating actively 
in the workshop.  She wished to  add an issue to those raised for discussion by the co-sponsors, 
notably that of MFN treatment and the effect it might have on the ability of Members to address 
mobile roaming on a bilateral or regional basis.  
72. The representative of the Republic of Korea  expressed his delegation's full support for the 
proposed workshop.  Considering that international mobile roaming played a very important role in 
facilitating economic activities, his delegation believed that the co-s ponsors' initiative was timely and 
relevant.  In particular, the proposed workshop coul d provide Members with a valuable opportunity to 
improve their understanding of how the GATS might apply to international mobile roaming.  His 
delegation intended to participate actively in th e workshop and hoped to have fruitful discussions. 
73. As one of the co-sponsors of the proposal , the representative of the United States  fully 
associated himself with Australia's statement.  Hi s delegation looked forward to participating in the 
workshop and having a robust discussion with expert s to help better understand the market forces at 
play in determining the roaming rates.  The Unite d States was also interested in learning about any 
steps other countries or private sector actors had ta ken to address the possible market deficiencies that 
led to the determination of roaming rates.  Similarly, understanding how new technologies, for 
instance mobile VoIP, could prov ide competitive alternatives to m obile roaming and how these new 
technologies were covered by existing trade commitm ents was of interest to his delegation.  
Engagement on the technical and commercial aspects  of mobile roaming was necessary in order to 
facilitate Members' view of the possible treatment of  the service.  The issue had been reviewed by the 
OECD, the ITU and APEC, amongst others, but trade -related elements had to be addressed by the 
WTO Membership.  Hence, sharing information on  the outcome of the workshop could serve as an 
important input to the work of those international bodies. 
74. The representative of Japan  expressed her delegation's support for the proposal.  The 
proposed workshop offered a very useful opportuni ty for Members to share ideas on international 
mobile roaming from the perspective of the GATS. 
75. The representative of Israel  endorsed the proposal, and indicated that the questions raised by 
the co-sponsors were relevant and important.  By  examining those issues, Members could better 
understand how technological developments, in correspondence with GATS commitments, could 
promote global trade. 
76. The representative of Hong Kong, China  expressed his delegation's support and interest in the 
proposed workshop.  Having a discussion in a workshop format would be benefi cial to getting a better 
understanding of the applicability of GATS obligati ons.  His delegation looked forward to hearing 
more details on how the workshop was going to be organised. 
77. The representative of the European Union  also supported the proposed workshop.  His 
delegation believed that the initiative was valuable  and timely, since other organisations like the 
OECD were also looking into the issue.  It was therefore important that WTO Members reflect on the 
applicability of the GATS on international mobile ro aming.  The EU welcomed in particular the 
discussion of the impact of existing instruments,  such as the Annex on Telecommunications or the 
Reference Paper, as this could be one of the main achievements of the workshop.  Decreasing 
roaming charges had been a long-standing policy obj ective within the EU and his delegation would be S/C/M/103 
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  happy to share its experience at the occasion of th e workshop.  The EU was ready to work with the 
co-sponsors and the Secretariat to make the initiative a success. 
78. The representative of Turkey
 highlighted the merit of the proposal which she endorsed.  Her 
delegation would examine the co-sponsor's communica tion in detail, in order to try to answer the 
questions raised and to see whether it could furt her contribute.  A Turkish leading mobile phone 
operator, which was the third biggest in Europe, also provided GSM services internationally.  The 
company had roaming agreements with 639 operators  in 208 countries as of 2009 and claimed, as a 
market leader, to be very competitive in respect of  roaming charges.  Her de legation had not contacted 
the company but she was optimistic that it would be r eady to contribute, if the event were to be open 
to private sector representatives, po ssibly with a view to highlighti ng the difficulties faced in entering 
other markets.   
79. The representative of Indonesia  welcomed and supported the interesting proposal.  He 
believed that experts from the ITU should be invited to contribute to the workshop, given that the ITU 
was the forum where the technicalities of interna tional mobile roaming were addressed.  The ITU's 
presence could be valuable to WTO Members' di scussion of the applicability of the GATS.  He 
stressed that the workshop shoul d not exclusively focus on market access elements, but also address 
the developmental needs of developing countries. 
80. The representative of Chinese Taipei  expressed his delegation's support for the workshop.  In 
particular, his delegation was interested in the pa per by the OECD on "International mobile roaming 
services – Next steps and recommendations", where the OECD recommended that consideration be given to how existing WTO instruments, and mainly the GATS, might be used to deliver mobile 
roaming services on more competitive terms and conditions .  In this regard, his delegation was of the 
view that the Council for Trade in Services was the appropriate forum for Members to exchange 
views on the issue. 
81. The representative of India
 said that, since his capital was still examining the proposal, his 
delegation needed more time before it could convey  its final views on whether to hold the workshop, 
its agenda and format.  In general, India was al so wondering about time constraints, as delegations 
were in an intensive phase of negotiations. 
82. The representative of China  expressed his delegation's support and interest in the proposed 
workshop.  The event could be very helpful to  Members' understanding of the ever-advancing 
information technologies and looked forward to the discussion. 
83. The representative of Pakistan  expressed his delegations' suppor t for the proposed workshop, 
but wished to obtain more detail on the content of an d participation in the workshop.  Pakistan would 
have a few suggestions to add to the questions pr esented in paragraph 6 of the co-sponsor's proposal, 
which illustrated probably only one side of the issue.  There were other elements to consider, such as 
the determining factors of pricing in the local ma rket, competition and investment issues and other 
regulatory constraints that could affect the prici ng of services such as international roaming.  His 
delegation wished that a distinction be drawn be tween how far market access commitments under the 
GATS went and the scope of domestic regulatory policy.  A discussion of such issues would be very useful, as these were not limited to telecommunicati on services but might in future affect other sectors 
as well. 
84. The representative of Australia
 thanked delegations for the su pport they had expressed.  In 
reply to India's question on timing, she did acknowl edge that delegations were facing a period of 
intensification of work but noted that the CTS's ag enda would be somewhat less heavy following the 
conclusion of the sectoral and modal discussions.  This would allow delegatiosn to set aside some 
time for a workshop, maybe not on the CTS agenda itself, but possibly as a dedicated CTS discussion  S/C/M/103 
 Page 11 
 
 
  or a separate event.  There would be some room in the CTS agenda that could be usefully devoted to 
such a discussion, particularly as the issue to be addressed was the GATS and Members' commitments 
under the GATS.   
85. With regard to questions some delegations had raised about the content of the workshop, she 
indicated that the co-sponsors had purposefully so ught to have a discussion about Members' existing 
commitments, and not about the new commitments th at might arise from market access negotiations.  
The workshop was not about trying to prompt more commitments from Members, neither did it aim to 
recommend different pricing or competition policies.  The idea was simply to have an exchange of 
experiences with some expert input to better unders tand the mobile roaming issue, which was quite a 
complicated one, and how the GATS and the related instruments applied.  For that reason, the co-
sponsors had focused on participation from Governme nts, rather than industry.  They were not 
looking at the issue as a commercial one, though cl early there were commercial dimensions.  If there 
was sufficient interest, there would be scope to take  that aspect further, perhaps looking more at the 
commercial side of the issue.  But as a first step, Members should exchange experiences and having 
some expert input into the discussion, to better understand how GATS obligations  applied.  In terms 
of timing, it might be appropriate to seek the Secr etariat's guidance on whether the workshop could fit 
alongside the CTS timeframe for future meetings. 
86. The Chairperson  concluded that delegati ons had expressed a substantial amount of support 
and interest in the proposed workshop.  Howeve r, some questions still needed to be addressed, 
including on timing and content, before the Coun cil could decide on the issue.  She therefore 
proposed that informal consultations be  undertaken on how best to proceed. 
87. It was so decided . 
F. OTHER BUSINESS  
88. As she had mentioned at the beginning of the meeting, the Chairperson  made a brief 
statement regarding the chairpersonships of the subs idiary bodies to the Council for Trade in Services 
for 2011.  In accordance with the Guidelines for the Appointment of Officers to WTO Bodies 
(WT/L/510), the outgoing chairperson of the Counc il would normally conduct consultations on the 
appointment of the new chairpersons of the Council' s subsidiary bodies, with a view to proposing a 
list of names to these bodies.  She accordingly intend ed to conduct such consultations in the weeks to 
come.  Delegations having interest in the matter were  invited to approach her, and she would set aside 
time slots for her consultations. 
89. As delegations were aware, in accordance with the rules of procedure (S/L/15), the election of 
the new chairpersons of the subsidiary bodies to  the Services Council normally should take place at 
the first meeting of the year and should take effect at the end of that meeting.  Since the two Working 
Parties had held their first formal meeting of th e year in February and the two Committees would 
meet that same week, before she could undert ake her consultations, the election of the new 
chairpersons to the subsidiary bodies would, as a resu lt, take place at the beginning of the next formal 
meeting of those bodies. 
90. She proposed that the Council take note of the statement she had just made. 
91. It was so agreed . 
G. APPOINTMENT OF THE NEW CHAIRPERSON  
92. Based on the consensus reached in th e General Council, the Chairperson  indicated that she 
was very happy to pass on the chairmanship of the Council for Trade in Services to Ambassador S/C/M/103 
Page 12  
 
  Erwidodo of Indonesia.  She was confident that with his experience, wisdom and personality, 
Ambassador Erwidodo would guide the future work of the Council skilfully and efficiently.  
93. As the outgoing chairperson of the Council, she said that she had enjoyed working with 
delegations over the previous year and had appr eciated their cooperative and constructive spirit, 
energy, skills and knowledge.   
94. She then proposed that the Council elect Ambassador Erwidodo by acclamation as the new 
Chairperson of the Council for Trade in Services. 
95. The Council elected
 Ambassador Erwidodo by acclamation. 
96. The new Chairperson,  Ambassador Erwidodo, thanked Ambassador Johansen for her kind 
words, as well as delegations' trust and support.  He  would do his best to chair the Council for Trade 
in Services and was confident that, with delegations ' co-operation and the Secretariat's assistance, the 
Council's work would move forw ard smoothly and fruitfully. 
97. He then suggested that the Council take note of th e statements made and adjourn the meeting.   
98. The meeting was adjourned . 
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