 RESTRICTED  
  
S/C/M/143  
 
2 November  2020 
(20-7727) Page: 1/34 
Council for Trade in Services    
 
REPORT OF THE MEETING HELD ON 2 OCTOBER 2020 
NOTE BY THE SECRETARIAT1 
The Council for Trade in Services held a meeting on 2 October  2020, chaired by Ambassador Tan 
(Singapore ). The agenda was contained in document WTO/AIR/CTS/ 24. 
The agenda was a dopted . 
The Chairman  said that, u nder Other Business, the Secretariat would report briefly on the 
accessibility of the CPC Provisional.  
He recalled the that, as announced in the communication on organizational and technical 
arrangements for  the meeting he had  circulated on 29 September, delegations  were meeting both 
in-person and in virtual mode.  He trusted that delegations attending virtually were , by then , all 
familiar with the main technical aspects of remote participation.   
For the benefit of the interpreters and, ultimately, of all Members , he urged delegates to speak at a 
reasonable, moderate pace and, if possible, to provide the interpreters with an a dvance copy of any 
written statements they intend ed to deliver , to help ensure that interventions were properly 
conveyed and understood when translated in the other two official languages.   
1  ITEM A: NOTIFICATIONS PURSUANT TO ARTICLE S III:3, V:7 AND VII:4 OF THE GATS  
1.1.  With regard to the notifications made pursuant to GATS Article III:3 (Transparency), the 
Chairman  drew the Council 's attention to the communications received from  Albania in documents 
S/C/N/1020 and S/C/N/ 1021. He suggested that the Council take note of the notifications.  
1.2.  It was s o agreed . 
1.3.  Concerning the notifications made pursuant to Article V:7 (Economic Integration), the 
Chairman  drew the Council 's attention to the communications received from Peru and Australia (in 
document S/C/N/1015); the European Union and Viet Nam (in document S/C/N/1016); and  Canada, 
Mexico and the United States (in document S/C/N/1017).  He suggested that the Council take note 
of the notifications and that the agreements notified be referred to the Committee on Regional Trade 
Agreements (CRTA) for consideration.   
1.4.  It was so agreed . 
1.5.  The Chairman  then dr ew delegations ' attention the fact that, at its meeting scheduled for 18 -19 
November, the CRTA would  be considering two regional trade agreements th at cover ed services 
trade , namely:  the Free Trade Agreement between the EFTA States and the Philippines; and the 
Free Trade Agreement between Hong Kong, China;  and Australia .  
 
1 This document has been prepared under the Secretariat's own responsibility and is without prejudice 
to the positions of Members or to their rights and obligations under the WTO.  S/C/M/143  
 
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  1.6.  Turning to the notifications made under Article VII:4 (Recognition), he drew the  Council 's 
attention to the communication s received from Albania in documents S/C/N/1018 and S/C/N/ 1019.  
He suggested that the Council take note of the notification s. 
1.7.  It was s o agreed . 
2  ITEM B: OPERATIONALIZATION OF THE LDC SERVICES WAIVER  
2.1.  The Chairman  recalled  that, at the July meeting, the Council had reverted to th at standing 
agenda item for the first time after the dedicated session held a year earlier  to review the operation 
of the preferen ces notified under the Waiver.  
2.2.  The representative of Uganda , speaking on behalf of the LDC Group , said that the Group 
welcomed that agenda item and recalled the Ministerial  Decision s relating to the LDC services 
Waiver. LDCs also recalled the dedicated ses sion on the review of operation of notified preferences 
held by the Council in October  2019. That session had helped Members become aware of some of 
the challenges that LDC Members faced and the successes that had been achieved from the 
preferences granted  through the experiences that some of the LDC Members shared. It was critical 
that Members advanced the mandate of the CTS as per  the relevant Ministerial  Decision as well as  
the good results of the previous year 's review and workshop.  
2.3.  The COVID -19 pandem ic had taken LDCs into deeper waters. The Secretariat Note of 
8 June 2020 on "The COVID -19 pandemic and trade related developments in LDCs " showed that the 
picture was not good for LDCs. By way of example, taking the case of the tourism sector, a major 
sector for many LDC Members, the Note cited statistics of the World Tourism Organization estimating 
that international tourist arrivals could decline by 20 to 30 % in 2020, translating to losses of 
USD 300 to 450 billion in international tourism receipts , i.e. exports.  
2.4.  The Note state d that seven of the LDC Members dependent on tourism and related services 
were witnessing a significant drop in the ir incomes, partly due to travel restrictions . Air passenger 
traffic in some LDC Members , such as Cambodia,  had dropped by 90 % in April 2020.  Some LDCs,  
like Bhutan, had  completely stopped issuing tourist visas, with consequent impact on the local 
tourism economy . The number of tourists visiting the Serengeti in Tanzania (among the top five 
services exporters among LDC Members ) had  dropped from 6,000 per day to 24 in the wake of 
COVID -19. According to the Rwanda Convention Bureau, about 20 conferences and m eetings 
scheduled for March and April  2020, which had been expected to generate some US D 8 million for 
the local economy, had been  postponed as a result of travel bans . According to Vanuatu 's tourism 
office, 70 % of jobs in the tourism  sector , a sector which account ed for 40 % of Vanuatu 's GDP, had 
been lost since mid -March as a result of the pandemic. Th ose were only but a few examples of the 
current situation in many LDC Members.  
2.5.  Against that background , the LDC Group ha d reached out to the Secretariat to organize a 
webinar along that theme in the second half of November. The Group  hoped to focus on the setbacks 
for LDCs services impacted by COVID -19 and on measures taken by Members impacting the supply 
of services from LD Cs. They were  reaching out and would  continue to reach out to all notifying 
Members for their support in making th at webinar a success. The Group would indeed welcome the se 
Members ' contribution to the webinar , including the identification of LDC services users and 
especially importing enterprises. LDCs were also hoping and  looking forward to having the Chair man 
participate in th e webinar. They hoped to have continued information exchange between LDC service 
suppliers and LDC service  users in notifying Memb ers. 
2.6.  Furthermore, the Group was  proposing that Members and the WTO Secretariat , under the 
Chairman 's leadership, prepare a CTS virtual workshop with LDC service suppliers and consumers 
of LDC services in Members that ha d notified preferences. Th at would pa ve the way to knowing the 
synergies between LDC suppl y of services and consumers in notifying Members , as LDCs continue d 
taking the Waiver Decision forward. The Group request ed the Chairman to  hold consultations on the 
timing of the workshop , which LDCs foresaw could be in the first quarter of 2021.  
2.7.  In addition, the Group request ed that the Secretariat update the useful data supplied in 2019 
in preparation for the review session. LDCs would also appreciate information on new developments 
on services data that would improve the information available on LDC services and trade , by sector S/C/M/143  
 
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  and mode of supply. While recogniz ing that there was an agenda item on trade in services statistics  
at that meeting , the Group  also appreciate d that special data challen ges exist ed for LDCs. Data, 
together with the experience -sharing on LDC services supplied and the consumers demanding 
services from LDCs , would be useful for Members, as it could deepen Members ' understanding of 
the role of LDCs in services trade and where  to go in fulfilling the expectations of the preferences.  
2.8.  Finally, the Group thanked  once again all notifying Members for the preferences granted and 
continue d calling upon Members  which  had not done so to notify preferences for LDC services and 
service su ppliers.  
2.9.  The representative of Bangladesh  echoed the statement made by Uganda on behalf of the LDC  
Group . Bangladesh thank ed the Council for keeping th at item on its agenda and said that LDCs were 
grateful to all notifying Members for the  preferences  granted under the Waiver .  
2.10.   The multiple impacts of the COVID -19 pandemic, particularly on LDCs, were yet to be 
estimated. Many countries were under lockdown and travel restrictions , but LDCs were in the most 
difficult situation  of all. The progress achieved so far by LDCs towards sustainable development ha d 
started a reverse journey. With severe job loss es, increasing poverty and aggravating public health 
situations , LDCs were in a critical condition , and reinvigorated and unconditional support measu res 
from development partners would  be essential  for LDCs .  
2.11.   Bangladesh support ed the idea of a webinar on the impact of COVID -19 on LDCs ' services  
trade  and of a separate workshop with LDCs services suppliers and consumers. Bangladesh would 
also welcome an y initiative by the Secretariat to updat e LDC services data , to better inform Members 
on LDC services trade, by sector and mode of supply.  
2.12.   The representative of South Africa , speaking on behalf of the African Group , recall ed the 
Group's  intervention at the July  Council meeting . The Group continued to support the premise of 
document JOB/SERV/284. Without recalling all the elements  therein , it remained critical to enhance 
the exchange of information between Members and relevant stakeholders. The most effecti ve way 
to do so could be to convene a virtual workshop that would bring Members and stakeholders 
together. Since COVID -19 continued to wreak havoc on the economies of LDCs, the focus of such a 
discussion could be on a COVID -19 recovery plan that addressed services export diversification, 
infrastructure that impacted supply -side constraints, digital connectivity, the building  of coherent 
policy ecosystems and the issue of Aid for Trade.  
2.13.   A technical update from the Secretariat on the overall situation of LDCs in services trade and 
LDC services exports in notified sectors would be useful, and an analysis of trends and gaps in data 
would form a useful backdrop to inform discussions. Among many examples, the most interesting 
potential for LDCs ' services exports were through improvements for services supplied by Contractual 
Service Suppliers.  
2.14.   Transparency remain ed also important to inform discussions and exchanges  and in that regard 
the Group supported the call by LDCs for Members to improve their notifications. The improvement 
of disaggregated, sector -specific data on trade flows with trade partners remained critical. Raising 
awareness among LDCs and their service s stakeholders about services exports should be stepped 
up. Ensuring capacity building and technical assistance to support LDCs in the design of coherent 
and development -oriented domestic policies in the services sector remain ed a high priority. The 
Africa n Group conside red that a possible outcome of the suggested workshop  could  not only  be to 
bring stakeholders together but also to provide  the basis to agree on future endeavours . These  could 
include agree ing on series of LDC Services Trade 'platforms ' that might  be dedicated not only to 
bringing Members and stakeholders from various sectors together, but also to sharing information 
in a more granular and focused manner, looking at sector -specific issues that could yield further 
operationalization of the Waiver.  
2.15.   The representative of India reiterate d that her delegation  attache d utmost importance to the 
meaningful implementation of preferences granted under the LDC Waiver by all preference -granting 
Members with the ultimate objective of increasing LDCs ' share in global export s of services.  
2.16.   She recalled  that her delegation  had previously  provided specific information regarding the 
utilization of  the preferences that India had granted in the three areas of visa -related measures , S/C/M/143  
 
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  technical assistance and capacity building , and market access. India had agreed to waive the visa 
fees for LDC applicants seeking Indian business and employment visas. India was the only Member 
which ha d waived  visa fees under the Waiver. That had been  very well received by LDC s. India had 
also provided  preferential  market access in various sectors and subsectors and access for a number 
of categories of mode 4 professionals from LDCs, including foreign language teachers, chefs, 
sportspersons, tourist guides and tour operators, cons ultants, engineers and computer 
professionals, installers and servicers and so on , without the requirements of Labour Market Tests 
(LMT). Access  without LMTs was critical , as it ma de the preference s commercially meaningful and 
much more predictable and cer tain. Many of th ose professions had been  committed by India for the 
first time in any trade agreement.  
2.17.   India had also suggested that it might  be more useful if LDCs themselves identif ied areas in 
which they require d capacity building assistance for their better utilization of the preferences in 
future.  
2.18.   Enabling LDCs to increase their participation in international trade was an important part of 
making the multilateral trading system more inclusive. In that regard, her delegation  stood ready to 
continue to m ake concrete contributions to the effective implementation of the Waiver , with a view 
to providing swifter support for LDCs to further participate in, and benefit from, global services trade.  
2.19.   The representative of Australia  said that her delegation r emain ed committed to supporting 
the LDC Waiver and its implementation . She thank ed the LDC Group for their proposals at that 
meeting  and would like to explore further in particular the issue of data needs.  As a first next step, 
it would be useful if the  LDC proposals could be provided in writing for consideration by Members.  
2.20.   The representative of China  echoed previous  speakers, especially from LDC s and Members 
highlighting  the importance of the Waiver. His delegation was willing to work closely with other 
Members in further developing a strategy to make the Waiver more effective . China would be 
supportive in principle of the proposals put forward, while also hoping to see a more detailed written 
proposal . His delegation also voiced its preliminary support for a workshop as proposed by South 
Africa.  
2.21.   The representative of the United States  said that, like  Australia, that was  the first time his 
delegation was  hearing about th e LDC  proposal . The United States had always been interested in 
seeing how to help LDC  participation in services trade. However, his delegation would need to see 
the Group 's proposal in writing . At that point, the United States was not  in a position to support the 
ideas put forward  but wish ed to examine the LDC proposal s in writing so as to advance that issue.  
2.22.   The representative of the European Union  said that her delegation attache d great importance 
to the implementation of the Waiver and wished to  thank the LDC Group for their ideas regarding 
possible future work on that topic.   
2.23.   COVID -19 was having  enormous impacts  on trade in services across the globe . For instance, 
modes 2 and 4 had been  largely paralysed by travel restrictions. The European Union had developed 
responses through its development and aid programmes that also address ed the challenges faced 
by developing countries  and LDCs in services trade . For instance, the  Team Europe response package 
aimed to preserve developing countries ' production and trading capacities as well as support growth 
and employment in rel ation to challenges brought by the ongoing COVID -19 pandemic. The EU would 
be happy to share further information with interested Members.  
2.24.   With respect to a possible workshop, as other Members  had indicated , the E uropean Union 
would appreciate if the LDC Group could  provide further information in writing on their ideas, for 
further internal consultation and discussion among Members.  
2.25.   The representative of Uganda  thanked all Members who ha d intervened, and those who ha d 
made additional proposals, especially South Africa,  for the inputs  they had provided. With respect 
to the session that the LDC  Group was working on for November, she wished to clarify  that that 
event was something that the Group was  going to organize  outside of  the CTS . That session would 
be looking at COVID -19-related  measures and impacts on services trade and services providers from 
LDCs. The Group urged all notifying Members to participate . With respect to the second proposal , 
about the CTS organising a  workshop , the Group would present its ideas in writing as requested by S/C/M/143  
 
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  several Members , so as to enable them to have a better sense of what the Group had in mind . LDCs 
looked forward to having all notifying Members join ing and support ing their efforts tow ards that 
workshop, which the Group  hoped to hold in 2021, perhaps in the first quarter.  
2.26.   The representative of Fiji noted the enormous challenges faced by LDC s and look ed forward 
to engaging  meaningfully in that regard , in particular with respect to the proposal s that the Group 
had put forward . His delegation look ed forward to impact ing meaningfully with the Group and  
discuss ing further the documents that they had submitted , and would continue to engage and 
support the G roup, and in particular the initiative that they  had just  presented.   
2.27.   The representative of the United States  said that his delegation was not ready to endorse any 
proposal until it was presented in writing and it had been able to consult  on it with Capital. His 
delegation was interested in working through th e proposal put forward  and some of the ideas that 
South Africa had suggested ; however, given that  that was the first time his delegation was  hearing 
about those suggestions and November was only one mo nth away, the United States  was not ready 
to agree without a full consultation .  
2.28.   The Chairman  said that the LDCs had put forward three ideas. First, they had announced the ir 
intention to hold a webinar in November, and they were accordingly informing Members and calling 
for their participation. Second, they had put forward a suggestion for the Council to hold a virtual 
workshop that would bring together LDC service exporters and importers in notifying Members. They 
had requested him to hold consultations on the specific content and timing of that event, which LDCs 
were hoping to hold in the first quarter of 2021. With regard to that second element, he called on 
the Group to provide  further details about the form and content of the proposed workshop  in writing , 
to enable Members to better consider their suggestion. Third, LDCs had requested that the 
Secretariat update the data on LDC services trade, and the Secretariat would rel ay their request to 
relevant colleagues in the Statistics Division . He then  suggest ed that the Council take note of the 
statements made. The Council would  revert to th at item at its following  meeting.  
2.29.   It was s o agreed . 
3  ITEM C: WORK PROGRAMME ON ELECTRONIC COMMERCE  
3.1.  The Chairman  recalled that , at its previous meeting, the Council had addressed a joint 
communication from a group of Members, titled "Exploratory discussions on supporting digital 
capability of business and consumers ", circulated as doc ument JOB/SERV/296/Rev.2. The 
communication proposed three questions as a way to structure discussions  in the Council .  
3.2.  The paper  had generated significant and substantive engagement, with nearly 40 delegations 
taking the floor. Several Members had provide d answers to the questions in the communication, had 
shared their own experiences and initiatives, and had indicated that they would be contributing 
further to those discussions. All Members who had intervened had welcomed the communication as 
a useful contribution to the Work Programme and valued its focus on development and the 
importance of bridging the digital divide.  
3.3.  He indicated that  a revision of the communication , Revision 3,  had just been issued to add 
Ukraine as a co -sponsor. He opened the floor to any delegation wishing to revert to the 
communication, as well as to Members wishing to speak to the sub -item on "exchange of information 
and experiences ", or to the Work Programme more broadly.   
3.4.  The representa tive of Nigeria  thanked Australia and fellow co -sponsors of th e communication 
which offered another occasion  to discuss the opportunities of digital trade as well as the challenges 
undermining the gains from the growth of global digital trade. Nigeria  believed the knowledge that 
would be gained from Members ' experience would  equip them with information needed to formulate 
and implement appropriate policy mix and programmes to drive their digital economic growth.  
3.5.  As mentioned in his delegation 's statement at the July meeting , the exponential growth in 
global digital trade notwithstanding, there exist ed disproportionate sharing of the benefits of the 
growth in e -commerce between countries and amongst domestic economic players. This was due to 
the North –South d igital divide and digital exclusion existing within the Nigerian economy. Members , S/C/M/143  
 
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  therefore , needed to think of innovative ways of addressing th at problem in order to optimize their 
gains from global digital trade.  
3.6.  Regarding the questions posed by th e com munication, on question 1 the representative said 
that some of the  challenges to deliver digital solution s and services include d the concentration of 
backbone investment  in major urban areas and inter -city routes  in Nigeria . That had resulted in very 
low fixed broadband penetration in Nigeria, with a household penetration rate of 0.04% as at the 
end of 2018 , according to the World Bank. Though Nigeria ha d the most competitive fixed -line 
market in Africa, with over 80 companies licensed  to provide fixed -telephony services, mobile 
systems , which account ed for 80% of all connections , were the primary means for carrying retail 
and enterprise data traffic in Nigeria. There was also the issue of lack of national backbone network 
through which  high-speed Internet connectivity could  be extended across the entire country. Th ose 
and other challenges , including low electrification rates, low digital literacy and issues related to 
affordability of broadband -enabled devices for the poor , were undermi ning the effective development 
of Nigeria 's digital ecosystem.  
3.7.  Those challenges notwithstanding, Nigeria was  continually striving to tap into the opportunities 
digital trade presented and drive growth. Given Nigeria 's large, young, and entrepreneurial 
population, digital entrepreneurship ha d the potential to become an engine of economic 
transformation and set the country on a new growth trajectory. Currently, Nigeria was experiencing 
a surge in telecom investments and smartphone purchases which was fuelling  growth in Internet  
usage. Nigeria  had the largest online market  in Africa , particularly for apparel and footwear , which 
was continually growing due to the dynamic development of trusted e -tailers, such as Jumia, Konga 
and others. Furthermore, an increasin g number of Nigeria 's MSMEs were taking advantage of the 
opportunities of digital platforms to engage in e -tailing. According to UNCTAD 's business to customer 
(B2C) report for 2018, Nigeria was the biggest B2C market  in Africa , both in terms of revenue and  
shoppers. In 2018 , the e -commerce spending in Nigeria was estimated at USD 12 billion and was 
projected to increase to USD 75 billion in revenues by 2025. Nigeria 's financial institutions were also 
taking advantage of their regional spread and networks to supply digital financial services in Africa.  
3.8.  Regarding question 2 , the representative said that, i n order to address Nigeria 's digital 
economy challenges and harness the opportunities therein,  the President, His Excellency, President 
Muhammadu Buhari, had approved the re -designation of the then Federal Ministry of 
Communications to the Federal Ministry of Communications and Digital Economy (FMoCDE) on 
17 October  2019. Th at wa s to ensure coheren ce in Government policies and programmes to drive 
the development of the digital economy. The Ministry ha d developed Nigeria 's National Digital 
Economy Policy and Strategy (NDEPS) 2020 -2030, with eight pillars carefully selected to include all 
the key aspe cts that Nigeria need ed to focus on in order to actively participate in the global digital 
economy. Th ose pillars were: Developmental Regulation; Digital Literacy and Skills; Solid 
Infrastructure; Service Infrastructure; Digital Services Development & Prom otion; Soft 
Infrastructure; Digital Society and Emerging Technologies; as well as Indigenous Content 
Development and Adoption. Nigeria 's regulators ha d also licensed some regional infrastructure 
companies to build the national broadband network and offer c apacity to all service providers on a 
non-discriminatory basis , with a view to extend ing high-speed Internet connectivity across the entire 
country.  
3.9.  On question 3,  Nigeria was stepping up its partnership with the private sector, international 
development institutions and development partners to address some digital economy -related 
challenges. One of such partnership had resulted in the establishment of the Nigeria –World Bank 
Growth and Employment project , which had ran from 2013 to March 2019. Through t hat project , 
Nigeria had been able to undertake the mapping of its Digital Economy Value Chain , especially in 
sub-sectors such as e -commerce, software development and outsourcing , as well as identify key 
interventions needed to drive growth. The project had also provided direct support for over 200 
start-ups and two innovation hubs. It had also provided support for 78 MSMEs with innovative 
business models that could contribute to the growth of the economy under the Aso Villa demo day 
programme. Furthermore, GE M, in partnership with International Business Machines Corporation 
(IBM) , had  delivered emerging technologies training to over 100 young digital entrepreneurs in 
Abuja and Lagos. Nigeria was also working with partners such as ITC  and the United Kingdom  to 
connect Nigerian  women digital entrepreneurs to the global digital market through the She Trade 
initiative. Today , increasing numbers of Nigeria 's women traders were applying digital solutions in 
informal trade.  S/C/M/143  
 
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  3.10.   Some of the cooperation activities mentioned  above notwithstanding, Nigeria was still saddled 
with some challenges. To effectively upscale Nigeria 's digital capability and address the digital divide 
challenges as they relate d to e-commerce, the need for support from development partners and 
internat ional development institutions could not  be overemphasized. Such supports could be 
provided under the eight pillars of Nigeria 's National Digital Economy Policy and Strategy mentioned 
above.  
3.11.   In conclusion, Nigeria believe d that d igital economy activities were key for economic 
diversification because they were systemic and critical in deepening the integration of the modern -
day global economy. In view of this, Nigeria  had designated 2 4 October of every year as "Digital 
Nigeria Day ", to promote the development of the digital economy in Nigeria. His delegation looked  
forward to constructive discussions with Members on how to further spur the development of th at 
sector.  
3.12.   The representative of China  thank ed the  co-sponsors of the communic ation and encourage d 
Members to continue the discussion s stimulated by th e document . Against the background of the 
COVID -19 pandemic, e -commerce ha d become even more important in helping the world economy 
cope and recover, as well as in bridging the digita l and development gap among WTO  Members. 
E-commerce was not only about the cross-border flow of data; it was also about the cross-border 
flow of goods and talents. China  hoped that, through more in -depth discussion, Members could  
better identify challenges  and opportunities in the digital age and find out what the WTO could  do to 
overcome th ose challenges and seize th ose opportunities.  
3.13.   China  was of the view that having and building a good e -commerce infrastructure was 
essential to benefiting from global e -commerce; at the same time, facilitating cross -border 
e-commerce was also key to the integration of national econom ies into the global economy and to 
a quick recover y from the economic downturn, especially for developing Members and Members 
heavily impacted by the pandemic.  
3.14.   China wished  to take th at opportunity to share some of its experience in promoting the 
development of the e-payment sector.  E-payment was an import ant enabler of e -commerce , and 
the rapid development of e -commerce was generating demand for a more effective e -payment 
system.  
3.15.   Recent years had witnessed rapid development of the Chinese e -payment market. On the 
one-hand, banking institutions were providi ng uniform mobile payment solutions to end -users, which 
were compatible with various mobile equipment and different e -payment technologies. In the first 
quarter of 2020, the Chinese banking sector  had facilitated 850 million mobile e -payment 
transactions, with a total value of RMB 389.2 billion (about USD 57 billion). On the other hand, non -
banking e -payment institutions were playing an ever -growing role in th e sector. At that juncture  
there were 236 non -banking e -payment institutions operating in China. Th e number of their annual 
e-payment transactions had grown  from 37.1 billion in 2013 to 808 billion in 2019, and the total 
value had increase from about USD 2.6 trillion to 42.7 trillion.  
3.16.   With the rapid development of the business models, Chinese regulator s were making 
unremitting efforts to create a better environment for the e -payment sector. On the one hand, 
continuous efforts were being  made to improve the sector's regulatory framework. The People 's 
Bank of China had implemented a series of legislations , which set out detailed requirements and 
guidelines for both banking and non -banking institutions providing e -payment services, thus creating 
a fairer business environment which encourage d competition and innovation in th e sector.  
3.17.   On the other hand, infr astructure was very important. China ha d established a multilayer e -
payment network composed of the Central Bank, banking financial institutions, licensed clearance 
institutions , non-banking payment institutions, etc. The People 's Bank of China establishe d and 
operate d specially designed systems, such as large -amount payment system s, small -amount 
payment system s, on-line and cross -bank clearance system s and RMB cross -border clearance 
system s, so as to provide low -cost and highly efficient clearance and settlement services for all e -
payment service suppliers.  
3.18.   Considering the important role of e -payment in the e -commerce eco -environment, China 
would be interested in hearing other Members ' experience s in that regard.  S/C/M/143  
 
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  3.19.   The representative of Brazil  said that, as  stated at the July CTS meeting, his delegation was 
pleased to co -sponsor the communication  on exploratory discussions on supporting digital capability 
of business and consumers and was also pleased to have the opportunity to share with Members its 
national and regional initiatives and experiences that look ed at fostering digital inclusion and the 
development of the digital economy.  
3.20.   At that juncture , his delegation wished to focus on the par ticular issue of electronic signatures 
and electronic certification, a fundamental element for the promotion of legal certainty and 
predictability in electronic transactions with clear benefits for both consumers and businesses,  and 
in particular for MSMEs . 
3.21.   In Brazil, there were almost  two decades of initiatives in th at area that had been  coordinated 
by the National Institute of Information Technologies (ITI), a federal office whose objective was to 
maintain the Brazilian Public Key Infrastructure (ICP -Brasil). It was the certification authority on the 
top of the hierarchical certification chain ( "AC Raiz "), and it ha d acted in numerous public initiatives 
that add ed security to electronic transactions using the ICP -Brasil digital certificate.  
3.22.   Since the first  initiativ e in the banking area with the adoption of the Brazilian Payments 
System (SPB) by the Central Bank, Brazil had  successfully established systems for electronic 
invoices, digital receipts, exchange contracts, certificates (sanitary, of origin, amon gst others), all 
with certified safe digital signatures, through  the ICP-Brasil standard digital certification technology.  
3.23.   Those initiatives cover ed numerous sectors of the Brazilian economy. In all business processes 
where digital certification had been  adopted, there had been reduction in fraud and bureaucracy. On 
top of that, there had been productivity gains  and a greater offer of digital trust se rvices that ensure d 
legal certainty to electronic transactions.  
3.24.   He introduced  a few examples.  In the trademark and patent registration sector, the adoption 
of more simplified processes, with less bureaucracy, require d the adoption of digital models. For 
digital software registration, for example, a process that took an average of one to two years for 
registration to be concluded  was now  done in seven days. For that to happen , it had been  necessary 
to redesign the process that had previously required the deposit of the software 's source code with 
Brazil 's IP authority (INPI) . Now the interested party simply submitted  digitally the source code and 
a registration request. Th at information was sent to the INPI, which automatically processe d the 
registration within seven  days. Th at unprecedented model ha d been extended to other trademark 
and patent registrations.  
3.25.   In the context of the COVID -19 pandemic, in April ITI had launched the digital doc ument 
validation service. In order to contribute to the actions of the Federal Government to prevent the 
spread of COVID -19, th at website allow ed doctors, patients and pharmacists to maintain the 
relationship 100% online and safe for the transit of documen ts. The objective was to validate a 
health professional 's digital signature on a medical prescription or leave certificate and the 
professional 's registration with the respective professional council. ITI had also supported the 
Federal Council of Medicine in launching an electronic prescription service . 
3.26.   Brazil  believe d that  there was a lot yet to accomplish in order to allow the same kind of 
benefits in cross -border trade.  In that regard, Brazil was looking to promote  the use of interoperable 
digital signat ures based on certification with other countries. The adoption of models similar to the 
Brazilian one, which follow ed international standards, allow ed documents or cross -border 
transactions between countries to be recognized as authentic and complete. Th at model brought  
countless benefits to trade between countries since all the documentation, from the contract to 
customs documents, could  be digital, reducing the processing time and adding security to 
transactions through electronic media. The recognition o f electronic signatures enable d new business 
models and innovation and enable d companies from different countries to establish contracts 
through digital means, with technical and legal security.  
3.27.   He wished to present very briefly an example on how cross -border trade  could be encouraged  
in that area. On 12  December 2019, the MERCOSUR member States had signed the "Mutual 
Recognition Agreement for MERCOSUR Digital Signature Certificates ". The objective of the 
Agreement was the mutual recognition of digital signature certificates issued by certification service 
providers in each State party, for the purpose of giving digital signature s the same legal and S/C/M/143  
 
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  evidential value as handwritten signatures. The digital signature was increasingly useful in contracts, 
transactions with financial institutions, electronic invoices, among other applications. In MERCOSUR, 
Brazil  believe d that  the agreement would  contribute to increasing integration between the digital 
environments of the States' parties.  
3.28.   In conclusion, Brazil ha d been engaging also with other partners within and outside its region 
in order to facilitate th at kind of mutual recognition arrangements , and would be glad to share further 
details with interested Members.  
3.29.   The repres entative of Canada  said that the rapid  digital transformation was creating 
challenges for all countries, including for Canada. Technology ha d permanently changed the way 
Canadians connect ed and work ed. Access to high -speed Internet  was now considered an es sential 
service that enable d individuals and businesses to take advantage of opportunities and link s to 
markets.  
3.30.   The Government of Canada ha d a number of program mes aimed at addressing the digital 
divide and increasing digital capabilities for marginalized  or vulnerable groups, as well as in key 
targeted sectors, both within Canada and abroad.  
3.31.   At home, the Government of Canada ha d made funding available to build Internet 
infrastructure in rural and remote communities. Th at include d, for example, funding th rough the 
"Connect to Innovate " program. Th at initiative aim ed, among other things, to close the digital divide 
and ensure that people in rural and indigenous communities ha d access to opportunities, such as 
growing businesses online.  
3.32.   Canada had also recognized that women entrepreneurs face d unique challenges to starting 
and growing businesses. For example, women were less likely than men to incorporate competitive 
technologi es into their businesses. Th ose challenges ha d been exacerbated by the COVID -19 
pandemic. Through Innovation, Science and Economic Development Canada, the Government of 
Canada was supporting women entrepreneurs for "Tech Undivided, " as part of the Governme nt's 
recent top -up of CAD15 million to Canada 's Women Entrepreneurship Strategy (WES) Ecosystem 
fund. Th at initiative increase d the chances of women business owners partaking in e -commerce.  
3.33.   Turning to her delegation's  efforts abroad, Canada 's international  assistance priorities 
include d the promotion of an inclusive and green private sector through support for digital 
technology and literacy as well as employment skills, particularly for women in fields related to 
science, technology, engineering and mathem atics.  
3.34.   For example, through the APEC -Canada Growing Business Partnership project, Canada  
provide d support for MSMEs in the Asia -Pacific region to innovate, grow, and gain better access to 
global and regional markets. The Asia Pacific Foundation of Canada (APFC) and its development 
partners in Indonesia, Viet  Nam and the Philippines,  provide d complementary training, research and 
mentoring that pair ed local MSMEs with Canadian MSME champions to improve digital capabilities. 
For example, the project had worke d with the Cherie Blair Foundation for Women to develop an 
online platform that ma de it possible to provide support to a global network of women entrepreneurs. 
Participants had built their business skills and digital literacy through specialized training a nd one -
on-one mentoring, and had become part of a community of committed, ambitious entrepreneurs 
who were invested in each other 's success. The program me had helped women entrepreneurs gain 
confidence and build more successful businesses.  
3.35.   Another project , through the Organisation International e de la Francophonie , aimed to provide 
target countries in Africa with technical support so they could  create the conditions for sustainable 
and inclusive growth by relying on entrepreneurship and innovation as lever s for job creation for 
women and young people in strategic sectors and high -potential industries, including in the digital 
sector. Between 2015 and 2019, the program me had supported and trained more than 
27,000  women, young entrepreneurs and project leader s in entrepreneurship.  
3.36.   Canada look ed forward to hearing other Members ' contributions to th at discussion.  
3.37.   The representative of Norway  thanked Australia for the leadership of th at initiative . Her 
delegation  had been glad to co-sponsor the communication. Th e opportunities for the digital delivery S/C/M/143  
 
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  of services were plentiful and almost self -explanatory. The challenges were more complex, as they 
relate d largely to differences in both knowledge of , and access to , digital infrastructure among 
traders, consumers a nd regulators.  
3.38.   The importance of digital inclusion and the challenges of addressing the digital divide ha d 
been highlighted by the pandemic. A better understanding of th ose issues was needed in order to 
address the ir trade policy aspects in a meaningful w ay at the WTO. An exchange of information of 
Members ' experiences was a pertinent and necessary first step in th at respect.  
3.39.   Norway would  focus its intervention  on the second and third question s of the communication.  
3.40.   At the domestic level, Norway ha d introduced and implemented a variety of programmes to 
foster and support digitalisation of society. Most prominent among ongoing programmes that relate d 
to electronic commerce was a programme for digitalisation of public procurement procedures, aiming 
at comple te digitalisation by 2024. A core objective of the programme was to have new digital 
solutions that , to the largest extent possible , facilitate d the exchange of information in electronic 
format at all stages of the procurement process, between the procuring entity and tenderers. Once 
implemented, a digitalised public procurement system would mean a modernised and more efficient 
system that would  benefit suppliers, and in particular the small and medium sized enterprises.  
3.41.   In terms of general development cooperation policy, Norway had launched earlier in 2020 a 
whitepaper on "Digital Transformation and Norwegian Development Policy ". The paper was still at 
an early stage of implementation. Its focus was on digitalisation in all aspects of society, beyond 
trade. The intention was to contribute to more effective development co -operation, ensuring that 
no-one was digitally left behind and that developing  countries buil t capacities to make use of digital 
technologies.  
3.42.   With respect to on -going cooperation activities, Norway was targeting electronic commerce 
through the integration of digital trade in its Aid for Trade programmes, recognising the general 
trend towards digitalisation of trade.  Norway had chosen to cooperate with multilateral organisations 
in most of its Aid for Trade efforts. This was also the case for Norway's  support to digital capabilities 
and e -commerce.  In her delegation's  view, collectiv e action could  yield better results. Assistance 
delivered through multilateral channels reduce d the transaction costs for the partner Government  
concerned. Using multilateral channels was also a way of mobilising new donors and partnerships 
for development .  
3.43.   She shared  a few snapshots of digital capacity projects and programmes to which Norway 
was a donor . First, the Trade Facilitation Support Programme of the World Bank , of which one of the 
objectives was designing and implementing automated systems and in novative technologies to 
facilitate trade. Electronic Trade Information Portals ha d been set up in several countries, making 
all cross -border trade information easily available. Support was also provided for the establishment 
of National Single Window syst ems, allowing traders to submit all required information via one single 
electronic gateway.  
3.44.   Second, the World Bank 's Umbrella Facility for Trade . Giving policy advice on digital trade was 
one of the tasks of the Umbrella Facility. Together with other mult ilateral organisations, the Umbrella 
Facility ha d supported the creation and improvement of various trade databases. In Viet  Nam, the 
Facility had supported a project with the Women 's Initiative for Startups and Entrepreneurship 
(WISE), to explore what cha racteristics of blockchain -based solutions might increase the 
participation of women in international trade, foster their access to finance and help them get paid 
faster.  
3.45.   Finally, the International Trade Centre , which was well-known to WTO Members and which 
Norway  commend ed for being at the forefront of promoting e -commerce in developing countries. 
One example was the ecomConnect programme, which support ed small businesses through its 
training programme, research and facilitatio n of innovative solutions, digital tools and technologies. 
Another prominent example was the SheTrade s programme, which was doing a lot to help 
businesses owned by women engage in e -commerce.  
3.46.   Norway  looked forward to further exchange s of information among Members on th at issue.  S/C/M/143  
 
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  3.47.   The representative of Malaysia  commended the efforts undertaken by Australia and 
co-sponsors in generating discussions on digital capability and  the digital divide. With the on-going  
COVID -19 pandemic , the trend towards online services ha d accelerated , as businesses turn ed their 
attention to digital solutions while consumers prefer red online purchase s. 
3.48.   Malaysia  recognise d that challenges relating to the digital divide i.e. fragmented technology, 
lack of digital infrastructure re liability and lack of information -sharing across industries and 
Government , might  hinder the e -commerce adoption among online businesses. Thus, from 
Malaysia 's point of view, an e-commerce regulatory sandbox was needed in ensuring proper scale -up 
of businesses via a conducive environment . 
3.49.   Malaysia 's National Research and Development (R&D) Centre under MIMOS Berhad offer ed 
technology platforms, expertise and collaborative programmes with local technopreneurs in 
developing p roducts and services to support the Malaysian e-commerce ecosystem. Among the 
patented technolog ies that were actively being utilised and deployed in th at Centre were Artificial 
Intelligence, Big Data Analytics, Video Analytics, Traceability Platform, Inte rnet of Things and Digital 
ID. Through th ose programmes, SMEs and MSMEs that were e-commerce players or technology 
providers , could  kick start their e-commerce activities . 
3.50.   During the COVID -19 pandemic, the Government  of Malaysia  was cognisant of the challe nges 
faced by domestic SMEs and MSMEs. Among the initiatives provided by the Government to th ose 
players were the SME Automation and Digitalisation Facility (ADF) to automate processes and 
digitalise operations in order to improve productivity and efficien cy (financing purchase of 
equipment, hardware, software and IT services) . 
3.51.   Taking into account  the rapid development and wide application of e -commerce, it was also 
important to develop and implement sound policies for consumer protection and cybersecurity , to 
ensure a healthy e -commerce development environment.  
3.52.   The representative of the United Kingdom  recalled that, at the July CTS, her delegation had 
in menti oned a UK initiative, the 'SheTrades Commonwealth programme ', which aim ed to increase 
economic growth and job creation in Commonwealth countries by enhancing the competitiveness of 
women entrepreneurs and connecting them to international markets. She wishe d to share some 
further information about th at programme.  
3.53.   The programme focuse d on four Commonwealth countries , i.e. Bangladesh, Ghana, Kenya 
and Nigeria,  providing support for firms trading goods as well as services. For services, the 
programme focuse d on the IT, Business Process Outsourcing and tourism sectors. Since the 
programme had been  launched in 2018, it ha d provided training to nearly 3 ,400 women -owned 
businesses and helped to create more than 3 ,300 jobs.  
3.54.   Recently , the programme ha d focused on help ing women -owned businesses to adapt to the 
challenges of COVID -19, as well as to the broader trend towards operating online. Helping women 
to develop th ose skills was crucial both in response to the challenges posed by the pandemic, and 
to address the gend er divide in Internet  usage and digital literacy between men and women in 
developing countries.   
3.55.   Examples of work carried out under th e programme in the previous  quarter include d the 
delivery of a series of online training courses, providing an overall in troduction to the concept and 
practice of e -commerce as well as giving guidance on the importance of creating quality content for 
online initiatives. The courses had also familiarised participants with virtual marketplaces, enabling 
them to connect to new customers internationally.  
3.56.   The programme  had also sought to leverage partnerships with the private sector by working 
together with tech companies to deliver training in digital marketing. Th at had  included a series of 
webinars , delivered in partnership wi th Facebook Developers Circle and Google Business Group , 
focused on using digital marketing tools such as Google My Business, WhatsApp for Business, and 
Instagram.  
3.57.   That same project had also offered one -to-one online mentoring to IT and BPO businesses on 
the use of artificial intelligence, machine learning and data analytics. Businesses had learnt how to S/C/M/143  
 
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  develop a data -driven strategy; how to collect and store data to set the foundation for the 
development of future AI -powered products and services; and had been  introduced to analytical 
tools to help them monitor, evaluate, and inform their digital marketi ng practices.  
3.58.   The representative of Sri Lanka  thanked the proponents of the communication . The document 
was being evaluated and her delegation would offer its responses in due course . For that meeting,  
Sri Lanka wishe d to express its concerns in general on  that subject.  
3.59.   The digitalization of the economy was a growing policy priority of many Government s, 
including Sri Lanka, before the pandemic and, no doubt, it ha d widened since then. COVID -19 would 
give further impetus to the growing role of global digital  platforms, as electronic commerce and 
digital platforms with the widest reach were widely expected to be among the winners of the 
pandemic.  
3.60.   Developing countries were home to more than 80% of the world 's population, and it was said 
that they were the site  for a growing use of e -commerce. There were theoretical claims that 
e-commerce could bring significant benefits to firms in developing countries, but very few empirical 
studies were available about the actual outcomes of e -commerce implementation. Factors  such as 
the lack of telecommunication infrastructure, low average income of the population  or lack of credit 
card penetration further restrict ed the viability of using e -commerce technologies.  
3.61.   Big Tech companies ha d increased their subscriptions, volume a nd revenue, and the pandemic 
had resulted in powerful digital monopolies in a handful of countries fortify ing their position. For 
instance, if Microsoft were a country, it would be 65th in size in the world in terms of its GDP. As 
those handful of countrie s absorb ed more consumer spending, they also pa id minimal tax in the 
source country , while evading effective competition laws and other national regulations.  
3.62.   Most of the discussions in all four WTO bodies  under the e-commerce Work Programme had 
focus ed on the benefits of e -commerce. Sri Lanka was, however, concerned whether every country 
possessed  the necessary infrastructure and other requirements to have a fair share of th ose benefits. 
While e -commerce ha d created new  trade and investment opportunities, it ha d also posed several 
new infrastructure and regulatory challenges, which needed to be addressed, including the need for 
bridging the digital divide. If the promise of e -commerce was to be realized, developing small  
economies had to  improve Internet access and get 'e-ready '. To maximiz e the benefits from 
e-commerce opportunities, a broader strategy of both 'e-readiness ' and 'commerce -readiness ' was 
needed, as well as a healthy degree of scepticism about promises of d ramatically reduced transaction 
costs and trade without intermediaries . 
3.63.   Members  all discuss ed the digital divide in the form of hard and soft ICT infrastructure. There 
was, however, minimum or no attention on the data  factor, which was considered as the oil of the 
XXI century. The flow of data, access to data, ownership of data, and most importantly, the capacity 
to convert data into information and knowledge, in other words, data intelligence, were also part of 
the digital divide discuss ed in the current c ontext. Th at data divide gave 'first mover advantages ' to 
those who collect ed data, process ed it and convert ed it into information and knowledge.  
3.64.   The Work Programme provide d an exploratory mandate, but not a negotiating mandate. In 
that connection, her delegation was quite disturbed with parallel discussions on e -commerce under 
the Joint Statement Initiative with clear objectives of rulemaking, which clearly run contrary to t he 
exploratory mandate of the 1998 multilateral Work Programme.  
3.65.   The rapid growth of e -commerce during the COVID -19 pandemic , especially the sale of goods 
and services over the Internet , had fuelled a debate about the taxation regimes to be used. The shift  
from a physically  oriented  commercial environment to a knowledge -based electronic environment 
posed serious and substantial issues in relation to taxation and taxation regimes. Tax administrations 
throughout the world face d the formidable task of protecti ng their revenue base without hindering 
either the development of new technologies or the involvement of the business community in the 
evolving and growing e -market place. Sri Lanka's c oncerns centre d on the impact of e -commerce on 
state and local revenue.  Whereas  States could  impose a tax on residents ' purchases from out -of-
state vendors, they could not  impose an obligation on those vendors to collect the tax unless the 
vendor ha d a substantial presence, or nexus, in the State. Th ose problems were greater for small 
developing countries such as Sri Lanka, and t he shrinking of the tax base would  have a S/C/M/143  
 
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  disproportionate effect and further jeopardize its already fragile economy ; that loss of revenue could 
significantly impair the ability to provide basic servic es to its population.  
3.66.   In view of th ose implications, the extension of the existing Moratorium on  the imposition of 
customs duties beyond the current time period and inability to recover other related duties and 
charges on import s of digitalised products were posing formidable challenges to small developing 
countries such as Sri Lanka.  
3.67.   Her delegation , therefore, wish ed to see further progress in the e-commerce Work Programme 
exploratory discussions in the Council , as one of the multilateral Committees that that task ha d been 
assigned to.  
3.68.   The representative of Ukraine  indicated that her delegation had recently joined the 
communication JOB/SERV/296/Rev.3 as co -sponsor.  At the previous meeting, Ukraine had  already 
provided responses to the questions raised within the exploratory discussions on supporting digital 
capability of business and consumers. Her delegation wished to encourage other Members to join 
those exploratory discussions, which Ukraine  found  timely and valuable in terms of sharing 
experience s and seeking solutions to address the digital divide in the context of e -commerce.  Ukraine 
stood ready for further constructive engagement.  
3.69.   The representative of Hong Kong, China  said that, as a co-sponsor  of the communication, his 
delegation favoured  exploratory discussions on supporting  the digital capability of business and 
consumers and was pleased that Members were having active discussions at the previous  meeting  
and at that  one.   
3.70.   He wished to  share some  of Hong Kong, China's experiences in  enhancing digital capability 
and accelerating the digital transformation of enterprises, with particular focus on measures 
introduced to support business affected by the COVID -19 pandemic.  
3.71.   Over the years, Hong Kong, China had established an e -commerce -enabling , world -class ICT 
infrastructure and a legal environment providing solid foundation for e -commerce development. The 
influence of the COVID -19 pandemic ha d accelerated and sometimes necessitated changes t o the 
traditional mindset of Hong Kong, China's businesses. Due to lockdowns  and other restrictions 
imposed in many countries, more consumers  had shifted to online shopping, which was fast 
becoming the new normal. E -commerce players, which were better posi tioned to take advantage of 
those changes , were seeing significant growth in business. For example, a local online shop in 
Hong Kong, China  had reported doubled visits online, with daily orders rising 50% compared to 
pre-pandemic time in 2019. Online services  had similarly see n an increase in demand and supply.  
3.72.   Yet not all businesses were ready to adapt to e -commerce or ha d the capacity to do so.  Apart 
from cost and capacity concerns, some of the reasons hindering Hong Kong, China's  businesses in 
the adoption of e -commerce or new digital technology were often business -driven, such as the 
inclination to stick to current business models or lack of p ractical use.  
3.73.   To support enterprises to continue their business and services or , for some, even their 
survival, Hong Kong, China had launched a Distance Business Programme (D -Biz). Apart from 
creating business opportunities for IT service providers, the Pr ogramme help ed enterprises, 
especially MSMEs , to accelerate digital transformation.  
3.74.   The D -Biz Programme cover ed 12 IT solutions categories relating to distance business. Since 
its launch in May 2020, the Programme ha d received an overwhelming response fro m enterprises. 
The most popular IT solutions categories include d online business, online customer services and 
engagement, remote document management, cloud storage and remote access services.  
3.75.   In addition, a number of other measures had also been introduc ed to offset the impact of the 
pandemic and enhance the digital capability of Hong Kong, China's enterprises. For example, Hong 
Kong, China had: supported the FinTech sector to create new job opportunities and enrich its Fintech 
talent pool; promoted the u se of technologies in the provision of legal services by assisting the legal 
sector in procuring and upgrading IT systems and arranging relevant LawTech training for their staff; 
and launched an online dispute resolution (ODR) scheme to provide speedy and cost-effective means 
to resolve global and local COVID -19 related disputes, especially those involving MSMEs that might  S/C/M/143  
 
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  be adversely affected or hard hit by the pandemic. Those measures  would promote the wider use of 
ODR and strengthen Hong Kong, China's LawTech capability , and provided support and encourage d 
various sectors to deploy 5G technology in a timely manner.   
3.76.   Hong Kong, China had put innovation and technology at the forefront of its policy  agenda. 
Apart from the measures responding to COVID -19, Hong Kong, China was also implementing other 
programmes to enhance the digital capability of its enterprises.   
3.77.   For example, it had  launched the Technology Voucher Programme (TVP) in November 2016 
to provide funding support for enterprises to adopt technolo gical solutions to improve their 
productivity, or upgrade or transform their business processes. As of end -September 2020, more 
than 3 ,000 projects ha d been approved under TVP.  
3.78.   With no restriction on the types of technological services, TVP support ed a wide range of 
solutions, with more common ones being enterprises resource planning, mobile access systems, 
point-of-sales systems, and cover ed solutions using big data and cloud -based analytics, 
cybersecurity solution s and logistics management systems. Since  its launch, TVP ha d benefited 
various trades, including traditional wholesale and retail companies, as well as import and export 
trade and professional services.  
3.79.   Finally, in terms of overseas promotion, the Hong Kong Trade Development Council ha d also 
put in place various measures to help SMEs market their services and capture opportunities overseas 
through digital platforms and trade exhibitions and enhance their competitiveness and resilience.  
3.80.   His delegation  would be happy to provide additional information on the above programmes 
and welcome d further discussions and exchanges under th at item. 
3.81.   The representative of India said that the 1998 Work Programme on Electronic Commerce 
remain ed an important feature of the work of the CTS . Her delegation  welcome d the General Council 
Decision of December 2019 calling upon Members to reinvigorate the Work Programme, which ha d 
a non -negotiating and exploratory mandate.   
3.82.   As her delegation  had pointed out previously , while e -commerce ha d created new and exciting  
trade and investment opportunities, it also pose d several new infrastructure and regulatory 
challenges which need ed to be addressed , including the need for bridging the digital divide.  
3.83.   Some Members were pushing for new rules on e -commerce. In th at regard,  India's  considered 
view was that the gains from e -commerce should not be confused with the likely benefits of 
rulemaking in e-commerce. India believe d that  negotiation on rules and disciplines in e-commerce 
would be very premature at that stage , especiall y given the highly asymmetrical nature of the 
existing global e-commerce space.  
3.84.   India therefore wished  to reiterate its serious concerns with the parallel discussions on 
e-commerce under the Joint Statement Initiative with clear objectives of rulemaking , which clearly 
run contrary to the exploratory and non -negotiating mandate of the 1998 multilateral Work 
Programme, which ha d regularly been reaffirmed by all Members. India feared that the impact of 
some of the e -commerce rules being proposed under the JSI on e-commerce could be profound on 
existing trade rules, particularly GATS schedules that provide d Members  useful flexibilities  and could 
wither away due to the onslaught of the so called 'high standard ' e-commerce elements.  
3.85.   As regard ed the e -commerce Moratorium, India reiterate d its long-standing view that the 
Moratorium was harmful for developing countries not just from the revenue point of view but also in 
terms of negatively impacting developing countries ' efforts towards digital industrialisation. The 
COVID -19 pandemic ha d now further demonstrated the importance of retaining the flexibility to 
regulate imports of electronic transmissions.  
3.86.   Her delegation  looked forward to a me aningful and comprehensive discussion on the 12 issues 
mentioned under the e-commerce Work Programme . 
3.87.   The representative of South Africa  echoed the points made  by Sri Lanka and India. South 
Africa was convinced that the mandate of the 1998 Work Programme allowed delegations to have S/C/M/143  
 
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  efficient discussions on issues that were common to all Members. He also reiterated  his delegation's 
concern with Members' participation in the Joint Statement Initiative  specifically on e -commerce , 
which would prematurely develop rules that would reinforce the status quo and  enable those 
Members that had technologies and capabilities to further monopolise the growth  of e-commerce  
and related activities .  
3.88.   He then thanked the proponents of the communi cation. Having looked at the communication, 
he wished to note that paragraph 1 made a sweeping claim that "prior to COIVD -19, trade in services 
was the fastest growing sector globally". South Africa wished to know which Members and which 
sectors  that claim  would apply to. What about those Members that had been left behind  and had not 
necessarily experienced the same growth ? Also, with regard to paragraph  3 which stated that 
"businesses have rapidly responded to the changing operating environment", his deleg ation believed 
that that was a one -sided and misleading assertion. Which businesses had responded rapidly, and 
where? Had all businesses been equally able to rise to those challenges? To what extent was that 
true for that period , where COVID -19 was prevale nt? What had happened to those businesses that 
could not adapt  rapidly to the new reality ? 
3.89.   In South Africa's experience, t he digital divide had increased  during the COVID -19 pandemic , 
particularly in the small business sector and educational  services. A study recently conduc ted 
indicated  that 90 percent of South African small businesses had struggled to adapt and had to 
temporarily close during  COVID -19. Only 9 % of small businesses  reported that they had been able 
to operate as normal , with 78 % a significan t decrease in revenue.  
3.90.   COVID -19 had laid bare a significant challenge pertaining to the universal access not only to 
education streaming services , but had also  illuminat ed the digital divide between a country like 
South Africa  and other countries , and the serious consequences for human capital growth and 
development not just in South Africa but across the African continent  and the developing world .  
3.91.   From that point of view, the Council's discussion s must not be one -sided and sh ould not lead 
to outcomes where Members that already had the capability were able to enforce new rules that 
would further exclude and increase the digital divide and the ability of countries to catch up and be 
equal participants in the digital economy . 
3.92.   The Chairman  thanked all the delegations who  had spoke n and shared their experiences and 
perspectives. The discussion had been very helpful and enriching; it had not proven one -sided as 
different views had been expressed. He suggested that the Council take no te of the statements 
made . He said that the Council would  revert to that item at its following  meeting . 
3.93.   It was so agreed . 
4  ITEM D: UPDATE OF THE SECRETARIAT BACKGROUND NOTE ON MODE 4 – REQUESTED 
BY INDIA  
4.1.  The Chairman  indicated  that that item had been added to the agenda of the Council at the 
request of the delegation of India. 
4.2.  The representative of India said that, as had been emphasized by her delegation  on several 
previous occasions, India reiterate d its request for the update of Secretariat Ba ckground Notes on 
all four modes of supply  and also support ed further  Secretariat work on inter -modal linkages, as 
requested by one delegation.  
4.3.  As India had  clarified before , while her delegation welcome d the US proposal on the issue of 
inter-modal linkag es, that should not substitute the request to update the separate modal Secretariat 
Background Notes. 
4.4.  At the July CTS meeting, India had also identified the potential areas from the mode 4 
Secretariat Note of 2009 that could be updated. Those were merely s ome suggestions. India looked 
forward to engag ing with other interested Members on their views and suggestions on its proposal 
to update all the modal Secretariat Background Notes . India once again request ed that  Member s 
positively consider its proposal , which was inclusive and comprehensive. Her delegation  believe d S/C/M/143  
 
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  that the updating  of all the modal Secretariat Background Notes as well as the proposed additional 
Note on inter -modal linkages would  be a very useful exerci se for trade in services.  
4.5.  The representative of the United States  said that  his delegation's position on that issue had not 
changed. The United States did not support updating the Secretariat Background Note on mode  4, 
as that exercise would provide no added value . As for the Note on inter -modal linkages, that was 
not a US proposal, but only a suggestion, which his delegation was open to discussing further in 
light of the fact that that aspect had not been covered in past Secretariat Note s and might, as suc h, 
offer some added value. He said that rehashing old Secretariat Notes was not a constructive use of 
the Secretariat's time.  
4.6.  The representative of Uganda , speaking on behalf of the LDC Group , said that  the Group 
support ed the request by India to update t he background note on mode 4. In updating th at Note, 
the LDC Group would urge the Secretariat to include specific information on priorities of LDC 
suppliers , including mode 4 measures identified by the LDC Group in its quest to operationalize the 
LDC Waiver and notifications with mode 4 entries, as well as limitations.  
4.7.  The representative of India thanked the LDC Group for its support.   
4.8.  The Chairman  suggested that the Council take note of the statements made.  
4.9.  It was s o agreed . 
5  ITEM E: CYBERSECURITY MEASURES OF CHINA AND VIET NAM – REQUESTED BY JAPAN 
AND THE UNITED STATES  
5.1.   The Chairman  indicated that the item ha d been added to the agenda of the Council at the 
request of the delegation s of Japan and  the United States.  
5.2.  The representative of Japan  said that, r egarding "the Data Security Measures " and "the 
Regulations on the Administration of Commercial Cryptography " that that the Chinese Government 
had sought public comments on, the Japanese Government had submitted its comments to the 
Chinese Government in August and September, respectively.  
5.3.  Japan had  pointed out in its comments that the Chinese Government should ensure that the 
content of the regulations and the application of the provisions did not imped e foreign companies ' 
activities in China and entry into the Chinese market.  
5.4.  For example, "the Data Security Measures " stipulate d security screening on data activities 
(Article 22) and export controls on data (Article 23). "The Regulations on the Administr ation of 
Commercial Cryptography " stipulate d security screening (Articles 9, 27, 31, 38 and 40), certification 
(Articles 17, 20, 21), export and import permits (Articles 31, 32 and 33) and forced utilization of 
specific commercial cryptography (Article 39) . 
5.5.  If, as per  those Articles, the competitive conditions for foreign products and services bec ame, 
in effect, disadvantageous compared to domestic products and similar domestic services, th at could 
be a violation of the obligation of national treatment unde r Article XVII of the GATS. Japan  expect ed 
China to ensure consistency with the WTO Agreements.  
5.6.  Japan appreciate d China 's efforts to seek public comments from various stakeholders in view 
of transparency. Japan expect ed that the requests and concerns expre ssed in its Government 's 
comments would  be properly considered and taken into account in the enactment process going 
forward.  
5.7.  In addition, Japan continue d to have the concerns it ha d repeatedly raised at the CTS on the 
other related Chinese laws and regula tions on cybersecurity. His delegation would not repeat its 
concerns in detail at that meeting , but Japan continue d to pay close attention to th ose laws and 
regulations and expect ed China to ensure consistency with the GATS.  
5.8.  Turning to Viet Nam 's measures , Japan recognize d that the Government of Viet Nam was still 
deliberating the draft Decree relating to the Law on Cybersecurity. Japan  asked Viet Nam to take S/C/M/143  
 
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  Japan's  comments fully into consideration. Japan request ed that Viet Nam continue to ensure 
transparency and take into account the inputs of all stakeholders before finalizing the Decree and 
related laws and regulations.   
5.9.  The representative of the United States  said that it had taken note of China 's intervention at 
the July CTS meeting relating to the agenda item on China's  cybersecurity policies.  It was his 
delegation's sense that China 's intervention had focused mainly on the aspect of its cybersecurity 
and nat ional security regimes relating to its purchases of cyber -related goods and services.  
5.10.   However, China 's intervention had not appeared to address another concerning aspect of its 
cybersecurity and national security regimes, i.e. its  policies relating to cross -border data  flows and 
data localization. For some time now, the United States and other WTO Members ha d continued to 
express concerns regarding the trade -restrictive nature of China 's laws, implementing  measures , 
some of which were still under development , and policies that impose d, or threaten ed to impose, 
restrictions on cross -border data transfers and require d data localization.  It was obvious that th ose 
types of restrictions could have a negative impact on virtually any commercial presence, including a 
services commercial presence, in China, as well as on a range of companies providing services to 
China on a cross -border basis.  
5.11.   One p articular concern was in regard to measures implementing Article 37 of the 
Cybersecurity Law. That Article impose d data localization requirements on critical information 
infrastructure network operators, including when they gather ed "important information, " which in 
China was subject to a very broad or even unlimited definition.  
5.12.   In the past, his delegation had asked China to provide more information on the implementing 
measures it contemplate d relating to cross -border data  flows and data localization, and to confirm 
that it would  provide public comment opportunities and take into account the views of internatio nal 
stakeholders on th ose drafts. However, his delegation was very concerned that in practice, China 
was already moving forward with its policies whether or not it ha d finalized or reflected international 
stakeholder s' views in its implementing measures.  
5.13.   In terms of recent measures, his delegation noted that the delegate of Japan ha d raised 
concerns regarding China 's draft Data Security Law. As Japan ha d noted, Articles 22 and 23 of that 
draft Law, read together, might  suggest that China intend ed to impose security assessments on 
cross-border data flows. The United States share d Japan 's concern. As Member s might  remember, 
his delegation had  also raised concerns regarding other measures where China ha d set forth its 
intention to impose such security assessmen ts.  
5.14.   Some time earlier , China had stated to th e Council that it did not intend to restrict cross -
border transfers of data that was routinely transferred in the course of international business. At the 
July CTS meeting, China had not responded to the US request for China to provide a renewed 
confirmation of that policy. The United States  would appreciate China 's renewed confirmation of that 
policy at that meeting.  
5.15.   With regard to Viet Nam's measures, t he United States remain ed concerned about  Viet Nam's 
propo sed data localization measures in its draft cybersecurity Decree. His delegation underst ood 
that Viet  Nam might  be in the process of finalizing th at Decree.  
5.16.   The data localization and local presence requirements in th e draft Decree would affect an 
expansive array of services which were foundational to the digital economy and were frequently 
provided by foreign firms on a cross -border basis, ranging from e -mail to cloud computing to online 
payments.  Viet Nam also propose d to app ly even stricter data localization measures to Vietnamese 
companies, which would threaten Vietnamese firms ' ability to use the increasingly wide array of 
cloud -based services which may be supplied from abroad.  
5.17.   US and other foreign companies had to  be able to supply th ose services to Vietnamese firms 
on a cross -border basis, without being subjected to the additional burden of installing redundant 
computing facilities in the territory of Viet  Nam, consistent with Viet  Nam's GATS commitments.  S/C/M/143  
 
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  5.18.   The United States  urged Viet Nam to reconsider th at measure and to address concerns that 
the United States and other WTO Members ha d repeatedly raised at the CTS, in order to ensure that 
the Cybersecurity Law was implemented in the least trade -restrictive manner possible.  
5.19.   The representative of the European Union  said that her delegation follow ed closely the 
implementation of the Cybersecurity Law in China and share d the concerns expressed by other 
Members . As noted at previous CTS meetings, the scope of the requirements out lined in the Law 
remain ed unclear, and the European Union  continue d to be concerned that key terms – such as 
critical information infrastructure or secure and trustworthy products – had not been specified in 
sufficient detail.  
5.20.   Moreover, the European Union  noted with concern that the Cybersecurity Law already applie d 
and was enforceable, while the implementing measures that would clarify its implementation were 
still not in place. Th at create d significant uncertainty for economic operators.  The representative 
asked China to provide further information on the timetable of future implementing measures . 
5.21.   Furthermore, the European Union  welcome d the public consultation on the Draft Data Security 
Law, tabled in July for comments  and intended to complement the Cybersecurity Law but share d the 
concerns raised by Japan. The European Union  noted that the draft Law exceeded  its national scope, 
covering "data activities " within China, but also beyond the te rritory of mainland China that might  
harm China 's national security or public interests. The European Union  consider ed that to be an 
excessively broad scope of application.  
5.22.   Her delegation's  assessment was that many provisions of the draft Law were too broa dly 
defined, using very vague concepts , such as  "important data ", and lack ed guidance on how they 
might be implemented in practice, generating legal uncertainty.  
5.23.   The data security obligations on entities carrying out "data activities " were likely to 
consid erably increase the administrative burden for enterprises. It remain ed unclear which legal 
liabilities might  arise.  
5.24.   The Law outline d, but did not provide for , detailed procedures for national security or law 
enforcement authorities seeking data from privat e data holders and for providing data in China to 
law enforcement authorities abroad.  
5.25.   When it came  to the Vietnamese Cyber security Law, applicable as of 1 January 2019, the 
European Union  also share d other Member 's concerns about its potential economic impact and its 
compatibility with Viet Nam's commitments under the WTO.  
5.26.   The European Union would appreciate an update on the draft Implementing Decree on 
Cybersecurity. It hoped that Viet Nam would  seriously conside r the EU concerns on the Decree and 
would  continue the dialogue to ensure it align ed to international best practices. The European Union  
would also appreciate indications as regard ed further implementing measures and on the plans for 
taking into considerat ion comments from interested parties, including industry and stakeholders.  
5.27.   The European Union  encourage d Viet Nam to develop and implement the Cyber security Law 
and implementing measures in full respect of WTO principles, such as non -discrimination and 
proportionality , and to take into consideration available international standards and best practices.  
5.28.   Finally, the European Union kindly request ed that Viet Nam notify the Cyber security Law and 
the draft Implementing Decree, as well as any other planned imple menting measures, to all relevant 
Committees so that WTO Members could  provide comments within a reasonable time limit.  
5.29.   The representative of Canada  said that , in previous meetings, her delegation had  raised 
concerns related to new and draft measures on cy bersecurity developed,  respectively , by China and 
Viet Nam, and  those concerns remain ed.  
5.30.   At that meeting, Canada wished to raise its specific concerns related to China 's draft data 
security measure . More broadly , her delegation also noted that certain requirements for companies 
and individuals appear ed vague and  might render unclear the expectations with respect to the S/C/M/143  
 
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  security of data activities deriving from or being processed through China , whether  those data 
activities were occurring w ithin China or abroad.  
5.31.   In the context of the CTS, she also wished to highlight Canada 's concerns related to certain 
aspects of China data security measures that might  not be consistent with China 's commitments 
under the GATS . In particular, the representa tive highlighted article 24, which permit ted China to 
adopt a corresponding measure towards a country or region that adopt ed discriminatory 
prohibition s, limitation s or similar measure s against the People 's Republic of China.  
5.32.   For example, China ha d listed  no limitation on Market Access or National Treatment under 
mode  1 for computer and related  services or the subsectors for data processing services. Unilateral 
retaliation action in an investment or in a trade context with respect with data processing in th at 
regard could be construed  as a violation of China existing trade obligation s. Therefore , Canada  would 
appreciate receiving more information on China 's intention regarding next steps.  
5.33.   The representative of Australia  said that  her delegat ion appreciate d China 's efforts in 
consulting with interested parties on its draft measures related to cybersecurity , most recently on 
measures related to the Data Security Law, on which Australia had provided a written submission of 
views in August 2020.  
5.34.   Australia  continue d to urge China to take into account the concerns of business and WTO 
Member s in the implementation of th ose measures and development of future measures.  Her 
delegation  looked forward to continuing to work closely with China on draft measures that relate d 
to cybersecurity  
5.35.   Australia  also appreciate d Viet Nam's engagement on its cybersecurity measures. As her 
delegation  had stated  in previous meetings, like other Members, Australia  remain ed concerned with 
several concepts in Viet Nam's Cyber security Law and urge d Viet Nam to ensure its legislative 
measures align with its international trade commitments.  Her delegation  looked forwar d to 
continuing to work with Viet Nam on that Law and related measures . 
5.36.   The representative of New Zealand  said that his delegation recognize d the right of Members 
to take measures in order to protect legitimate matters  of public policy,  and appreciate d China 's 
assurances  that such measures should be implemented in a manner consistent with international 
obligations and minimizing negative impacts on trade. Lack  of clarity about how China would  
implement its cybersecurity measures create d uncertainty and introduce d additional unnecessary 
compliance cost s for foreign organizations.  
5.37.   New Zealand  encourage d China to have a more narrow and focused scope in implementation , 
including utilizing a targeted and clear definition of what constitute d "networks " and "critical 
information infrastructure ". His delegation also encourage d China to look at the trade implications 
of requiring  assessment  before the data was able to be trans ferred abroad. New Zealand  continue d 
to encourage China to implement its cybersecurity regulations in a transparent manner and 
consistent ly with the letter  and spirit of the obligations contained in the GATS.   
5.38.   Moving on to Viet Nam's  cybersecurity measure s, and recalling his delegation's previous 
interventions, the representative indicated that New Zealand  continue d to have a strong interest in 
those measures . New Zealand would welcome an update on  the implementing Decree of  Viet Nam's 
Cybersecurity Law of 2019 and would appreciate the opportunity to review the latest draft.  
5.39.   The representative of China  said thank ed Members who had intervened for their interest in 
China 's cybersecurity -related measures. As reiterated at previous CTS me etings, China ha d been 
drafting and implementing cybersecurity -related measures in accordance with the Law on National 
Security and the Law on Cyber security. The purpose of th ose laws and measures was to guarantee 
the security of critical information infra structure and its supply chain and safeguard national and 
data security.  
5.40.   China's measures appl ied equally to both domestic and foreign service suppliers,  they were  
not tailor -made or targeted at  any specific Member or enterprise . The Chinese Government  would  
abide by its commitments to the multilateral trading system and continue to provide a level playing 
field for service suppliers all over the world.  S/C/M/143  
 
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  5.41.   Having said that, the representative wished  to emphasize that in the context of WTO rules, 
cross-border data flow s were subject to a Member 's specific commitments. China, like many other 
WTO Member s, had not ma de full commitments on telecommunication services and computer  and 
related services across all the 4 modes, and China had  made no commitments on ma ny other 
services sectors. China was also aware of the fact that not a single WTO Member  had made full 
commitments on all the services sectors and subsectors across all modes; therefore, there was no 
blank check with regard to cross -border dat a flows in the WTO.  
5.42.   Some of the measures mentioned by Members were still under drafting and in the process of 
seeking public comments, and the drafting agencies would be willing to receive and consider 
comments and suggestions from all stakeholders. His delegation woul d take note and pass along to 
its Capital the comments made at that meeting . 
5.43.   The representative of Viet Nam  thank ed the Members who had intervened for their continued 
interest in Viet Nam 's legislative drafting process for the decree to implement certain a rticles of the 
Cybersecurity Law. He reiterated  that the proces s had been transparent , with an open mind and all 
stakeholders ' comments ha d been reviewed for the continuing  internal consideration.  
5.44.   The Chairman  suggested that the Council take note of the statements made.  
5.45.   It was so agreed . 
6  ITEM F: 5G-RELATED MEASURES OF AUSTRALIA – REQUESTED BY CHINA  
6.1.  The Chairman  indicated that the item had been added to the agenda of the Council at the 
request of the delegation of China.  
6.2.  The representative of China  recalled that his delegation had expressed its concerns on 5G -
related restrictions of Australia at previous CTG and CTS meetings. Australia restricted Chinese 
companies from supplying equipment and services without pr oviding any fact -based reasons. Those 
actions undermined the operation of Chinese companies in Australia, violated the MFN and 
transparency principles of the WTO, and were inconsistent with Australia 's commitments under the 
GATS.  
6.3.  At the July CTS meeting, Australia had provided some general remarks to China's  concerns, 
but had not provide d detailed feedback on its specific questions. Therefore, his delegation  wanted 
to take th at opportunity to ask Australia to provide further clarification s on the following questions.  
6.4.  First, could Australia please explain what laws or legislations provide d the legal basis for the 
Australian prohibition against Chinese companies?  
6.5.  Second, could Au stralia please explain how its measures could be in line with relevant WTO 
rules and its commitments, including GATS Article II (MFN treatment), Article VI (Domestic 
Regulation), Article XVI (Market Access) and Article XVII (National Treatment), as well as  
paragraph  5 of the GATS Annex on Telecommunication s and paragraph s 2 and 5 of the 
Telecommunication s Reference Paper?  
6.6.  Third, it seem ed that Australia was implementing those prohibitions according to its 
Telecommunications and Other Legislation Amendment Act 2017, which had not come into force 
when the prohibitions took place. In th at case, how could the Australian measures be in line with its 
transparency obligations at the WTO? And what were the specific criteria Australia use d to determine 
which telecom munication suppliers were to  be prohibited?  
6.7.  Finally, China wished  to take th at opportunity to urge Australia to respect WTO rules and its 
commitments to the multilateral trading system, and stop its discriminative measures against 
Chinese companies, so as to create a better environment for their bilateral economic cooperation. 
China reserve d its right to take further actions in the future.  
6.8.  The representative of Australia  had taken note of China 's statement.  That was the first time 
that her delegation  was hearing China 's additional questions , and the representative would  provide 
them to Capital for consideration. Australia was committed to upholding and actively participating S/C/M/143  
 
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  in a rules -based multilateral trading system and its position on 5G  networks was fully WTO 
consistent.  
6.9.  Australia  welcome d foreign business in the market, which it consider ed essential for the 
efficient and effective operation of Australia 's telecommunications sector.  Her delegation  remain ed 
open to bilateral dialogue with  Member s and would  continue to engage constructively.  
6.10.   The Chairman  suggested that the Council take note of the statements made.  
6.11.   It was so agreed . 
7  ITEM G: RUSSIAN FEDERATION FOREIGN -LICENSED FIXED SATELLITE OPERATORS 
MARKET ACCESS (DECISION OF THE SCRF NO. 17 -42-07, DATED 4 JULY 2017) – 
REQUESTED BY THE UNITED STATES  
7.1.  The Chairman  indicated that the item had been added to the agenda of the Council at the 
request of the delegation of the United States.  
7.2.  The representative of the United States  said that his delegation wished to follow -up on the 
concerns that it had  raised at the July  meeting regarding the measures by the Russian Federation 
related to foreign -licensed fixed satellite operators. Those measure s provide d a preference for the 
use of Russian satellites services over foreign satellites  services.  
7.3.  The responses from the Russi an Federation at the July meeting  had not been sufficient to 
answer the  US question . His delegation had not asked whether a ny foreign compan y had been 
rejected in using foreign satellite  services ; rather , it wished to know if foreign fixed satellite service 
providers  were allowed to provide services directly to customers in Russia without a requirement 
that those customers first use Russian fixed satellite services operator . His delegation had not  
receive d an answer to that question at the July CTS meeting nor since, and as such wished to repeat 
that question to the Russian Federation.  
7.4.  The representative of Canada  said that, a s noted in July, Canada was concerned about Decision 
No. 17 -42-07 of the Russian State Commission for Radio Frequenci es and the implications under 
Annex 3 for foreign satellite operators providing fixed satellite services into Russia.  
7.5.  There appeared to be a  requirement for telecommunication services providers in Russia to first 
seek satellite services from a Russian sat ellite service provider before being permitted to use a 
foreign satellite service provider in the event that the domestic provider was unable to provide such 
services . If that was the case , it provide d a clear market advantage to Russian providers by 
modif ying the conditions of competition in favour of Russian operators.  She therefore echoed the US 
question and sought to know if Canada 's understanding of the Decision , that operators had first to 
go to Russian providers before going to foreign providers , was correct .  
7.6.  Canada was concerned that Decision No. 17 -42-07 was not consistent with Russia 's national 
treatment commitments for fixed satellite services under the GATS.  
7.7.  The representative of the European Union  also reiterated her delegation's  concerns regarding 
the licensing procedures for the provision of fixed satellite services, that, in the European Union's  
view, create d an effective barrier affecting foreign satellite operators wishing to provide satellite 
services in the Russian market.  
7.8.  The European Union continue d to be concerned with the complex licensing system. Her 
delegation underst ood that there was a simplified licensing procedure for fixed satellite services for 
companies that were part of a list published by the Government . Those  that were not part of the list 
needed to apply through the general procedure. Her delegation  would appreciate some clarification 
on the criteria related to th at list.  
7.9.  Secondly, the European Union continue d to be concerned with the requirements included i n 
Decision  17-42-07 adopted in July 2017. The measure contain ed a requirement that companies 
operating on the Russian ground and wishing to rent capacity for connectivity from a foreign satellite 
operator need ed to provide the Russian State Commission for Radio Frequencies with a document S/C/M/143  
 
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  stating that Russian satellite owners did not have enough capacity themselves, and that the foreign 
company ha d such a capacity. In addition, for all existing and future contracts with a foreign satellite 
operator, the Sta te permission to use radio frequencies could not  be extended for more than three 
years.  
7.10.   As a result , foreign satellite providers, having committed to the enormous capital investment 
of deploying and maintaining satellites in orbit to cover the territory of  the Russian Federation, were 
prevented from gathering customers for their services on equal grounds as their Russian 
competitors, as there was great uncertainty about their ability to reliably provide continuous service 
more than a small number of months into the future.  
7.11.   The European Union was concerned that th ose requirements were in breach of the Russian 
Federation 's GATS commitments, which require d non-discrimination between national and foreign 
fixed satellite services. The European Union renew ed its request that the measure be brought in line 
with Russia 's GATS commitments.  
7.12.   The representative of the Russian Federation  thank ed Members for their interest in the 
legislation  of the Russian Federation . The representative referred to her delegation's previous 
statement on th at matter at the July  meeting of the Council . The Russian Federation was c urrently 
conducting internal consultations with relevant authorities and business operators regarding 
potential practical difficulties that Members ha d referre d to in relation to the implementation of the 
Decision . 
7.13.   The Chairman  suggested that the Council take note of the statements made.  
7.14.   It was so agreed . 
8  ITEM H: RUSSIAN FEDERATION SOFTWARE PRE -INSTALLATION MANDATE (FEDERAL 
LAW DATED 2 DECEMBER 2019 NO. 425 -FZ "ON AMENDING ARTICLE 4 OF THE LAW OF 
THE RUSSIAN FEDERATION 'ON PROTECTION OF CONSUMER RIGHTS '") – REQUESTED BY 
THE UNITED STATES  
8.1.  The Chairman  indicated that the item had been added to the agenda of the Council at the 
request of the delegation of the United  States.  
8.2.  The representative of the United States  said that his delegation had raised that issue at the 
July meeting of the Council. His delegation had also  subsequently  provided the Russian Federation  
with its written questions and concerns about the software pre -installation mandate and looked 
forward to receiving answers  in writing  to those questions.  His delegation's  intervention at that 
meeting was a follow -up to that effort.   
8.3.  The United States would  continue to en gage with  the Russian Federation to ensure that the 
measures establishing the mandate  were implemented in a manner consistent with Russia's  WTO 
obligations. His delegation remained concerned about th ose measures , which appeared to favour 
Russian software p roviders, thus violating the Russian Federation's national treatment  commitments 
in a number of services sectors .  
8.4.  It would be helpful to know the expected publication date for the implementing regulation for 
the rules on pre -installation of software on co nsumer products . His delegation understood  that 
compan ies had to comply with that Law  as of 1 January 2021, but the implementing regulations ha d 
not been issued  yet.  
8.5.  The United States  also wished to know which Ministry or agenc y of the Russian Government 
was responsible for drafting th ose regulation s and if  the industry group would have an opportunity 
to review and comment on the draft regulations.  In line with the fast -approaching implementation 
date and in the absence of implement ing regulation s, he asked if the regulators  had indicated any 
flexibility regarding  the implementation of the Law, for example on the implementation date, the 
scope of the mandate or the availability of the list of Russian software.   
8.6.  The representative of the European Union  shared the concerns expressed by the United States 
on the Russian Federation 's software pre -installation mandate. The European Union had also raised S/C/M/143  
 
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  that issue in the Committee on Technical Barriers to Trade  and the Council for Trade in Goods earlier 
that year.  
8.7.  According to the draft decree "The list of certain types of specified technically complex goods, 
the order for drawing up and maintaining the list of Russian software that must be pre -installed, as 
well as th e order for the pre -installation, shall be defined by the Government of the Russian 
Federation ". The European Union would appreciate an update from Russia about what type of 
equipment would be covered. Her delegation  would be also interested in the list of  Russian software 
that had to  be pre -installed.  
8.8.  The envisaged measures raise d her delegation's  concerns as regard ed their compliance with 
the GATS commitments of the Russian Federation in certain services sectors. Namely, the European 
Union would welcome Russia 's explanation on how the obligation to pre -install certain Russian 
software would comply with the commitments Russia ha d made in computer and related services 
(CPC 84) and in telecommunication services (in particular, CPC 7523).  
8.9.  The European Union  looked forward to receiving feedback from the Russian Federation  on that 
measure raised by EU and other Members.  
8.10.   The representative of Canada  said that her delegation was also concerned about the software 
pre-installation mandate under Federal Law No. 425-FZ and echoed the concerns expressed by the 
United States and the European Union. She recalled that her delegation had also initially shared its 
preoccupations  at the July meeting . 
8.11.   By requiring certain Russian software to be pre -installed on all "techn ically complex goods " 
that enter ed the Russian market, Russian digital service providers of that software were provided 
with a market advantage over foreign providers of similar or "like" digital services.  Canada was 
concerned that th at requirement might  not be consistent with Russia 's GATS national treatment 
commitments, such as on electronic mail, as the requirement might  modify the conditions of 
competition  in favour of Russian digital service providers.  
8.12.   Her delegation looked forward to receiving answers to its written questions and to continuing 
engagement on that issue.  
8.13.   The representative of Japan  recalled that, as  stated at the July meeting of the Council, Japan  
had a general concern that Russia 's software preinstallation mandate could  hamper the principle of 
level playing field, depending on the specific details of the Regulation and the manner in which they 
were administered. Japan request ed the Russian Federation to ensure consistency with its GATS  
obligations . 
8.14.   The representative of the Russian Federation  reiterate d that its Law did not contain any 
provisions inconsistent with Russia 's GATS commitments. It did not impose restrictions on foreign 
services suppliers or their software. The Law did not prohibit pre -installation of foreign software or 
require de -installation of such software. The Law equally applie d to all producers of technically 
complex goods on the Russian market, including Russian producers of such goods.  
8.15.   The implementing acts were currently being developed. The Russian Federation  welcome d 
specific proposals from WTO Members ' business operators on how to make th e Law operational , and 
stood  ready to take such proposals and comments into due account.  
8.16.   Her delegation had  conducted bilateral consultations with interested Membe rs to clarify the 
specific concerns  those Members had  regarding the Law. At that moment , her delegation was  
expecting reaction s to the particular questions and additional clarifications regarding those concerns.  
8.17.   The Chairman  suggested that the Council take note of the statements made.  
8.18.   It was s o agreed . S/C/M/143  
 
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  9  ITEM I:  MEASURES OF THE UNITED STATES RESTRICTING TRADE IN SERVICES – 
REQUESTED BY CH INA 
9.1.  The Chairman  indicated that the item had b een added to the agenda of the Council at the 
request of the delegation of China.  
9.2.  The representative of China  said that his delegation wished to express its concerns about  a 
series of trade -restricti ve measure s taken by the US Government . 
9.3.  The U nited States implemented a series of trade -restricti ve measures since August  2020, such 
as Executive Order 13942 and 13943 issued on 6 August, Executive Order issued on  14 August, and  
the Announcement issued by Department  of Commerce on 18 September. Th ose measures : 
prohibited "any transaction by any person, or with respect to any property, subject to the jurisdiction 
of the United States, with ByteDance Ltd., Beijing, China, or its subsidiaries, in which any such 
company has any interest "; requested that ByteDance, its subsidiaries, affiliates, and Chinese 
shareholders, divest all interests and rights in "any tangible or intangible assets or property, 
wherever located, used to enable or support ByteDance 's operatio n of the TikTok application in the 
United States ", and "any data obtained or derived from TikTok application or Musical.ly application 
users in the United States "; and prohibited "any transaction that is related to WeChat by any person, 
or with respect to any property, subject to the jurisdiction of the United States, with Tencent Holdings 
Ltd., Shenzhen, China, or any subsidiary of that entity ". 
9.4.  Without any fact -based reasoning and due process, the United States had prohibited 
transactions with WeChat and TikTok in the name of "national security ". The US Government  had 
even directly intervened in the business consultations between private companies. Th ose measures 
were clearly inconsistent with WTO rules.  
9.5.  The measures by US Government obviously restrict ed cross-border trade in services with China 
and were thus violating the basic principles and objectives of the multilateral trading system.  
9.6.  The US measures were also violating the United States'  obligations under GATS. The US 
measures were targeted at transac tions related to apps developed by Chinese Internet  companies, 
constituting discrimination against Chinese service suppliers and thus violating GATS Article II (MFN 
Treatment). The US measures were not based on "objective and transparent criteria " and were 
clearly "more burdensome than necessary to ensure the quality of the services ", thus violating GATS 
Article VI (Domestic Regulation). Furthermore, considering that the above -mentioned measures 
would "significantly affect trade in services ", China wished  to know when the United States would  
notify th ose measures to the Council  pursuant to  GATS  Article III (Transparency).  
9.7.  The US measures were also inconsistent with its specific commitments under the GATS. Tik Tok 
and Wechat were providing various services, o n which the US ha d made specific commitments in its 
GATS schedule, such as computer  and related services, advertising services, market survey, 
photographing, telecommunication, audio -visual services, distribution, education, financial services, 
tourism services and entertainment services. The United States had  excluded from or restricted 
Chinese suppliers in its market, thus violating its M arket Access and N ational Treatment  
commitment s under Article s XVI and XVII of the GATS.  
9.8.  The US measures had severely disrupted and impaired the operation and investment of Chinese 
companies in the United States , violating their lawful rights and causing havoc with the market. They 
had also undermined the confidence of global investors in the US market. Moreover, th ose measures 
were clearly inconsistent with the basic WTO principle of trade liberalization. His de legation  wished 
to take th at opportunity to express its strong concerns. China  urged the United States to stop its 
violation of WTO rules immediately and reserve d its right to take further actions in the future.  
9.9.  The representative of the United States  said that the US actions cited in China's intervention 
served to protect its national security. After a thorough  review by the United States, it was 
determined that the mobile applications of the covered Chinese companies  posed  specific , identified 
national s ecurity risks . The US actions were designed to mitigate th ose national security  risks.  
9.10.   The representative of China  said that the United States had  restricted the use of WeChat and 
TikTok in the name of "national security " but had failed to provide any concrete evidence that its S/C/M/143  
 
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  national security was being impacted. Th at was a clear abuse of the "national security exception " 
clause.  
9.11.   First, the US mea sures were inconsistent with Article XIV bis (Security Exception) of the GATS. 
Article XIV bis allowed Members to take actions "necessary for the protection of its essential security 
interests " only in three occasions: actions "relating to the supply of serv ices as carried out directly 
or indirectly for the purpose of provisioning a military establishment ", actions "relating to fissionable 
and fusionable materials or the materials from which they are derived " and actions "taken in time 
of war or other emergen cy in international relations ". However, none of the above circumstances 
could be established to justify the US measures against WeChat and TikTok.  
9.12.   Second, the US measures were inconsistent with the interpretations on the security exception 
by previous cas es and known WTO jurisprudence. In DS512, the panel had found that "an emergency 
in international relations would, therefore, appear to refer generally to a situation of armed conflict, 
or of latent armed conflict, or of heightened tension or crisis, or of  general instability engulfing or 
surrounding a state ". WTO Members had to  implement the Agreements in good faith, and not "use 
the exceptions in Article XXI as a means to circumvent their obligations under the GATT 1994 ". 
DS567  had also referred to this i nterpretation in DS512.  
9.13.   Third, the US measures were tampering with legitimate and established business practices. 
The US Government  had questioned TikTok for collecting data from its users, but in fact that was  a 
common practice for thousands of apps worl dwide. As a matter of fact, Tik Tok had established its 
Transparency Centre  and published its policies for content review and  the source code of its 
algorithm. That was  a very responsible undertaking which no similar technical companies ha d ever 
made. Accor ding to a report from New York Times, the assessment by the CIA to the White House 
showed that there was no evidence that the Chinese Government ha d access to data of Tik Tok's 
users.  
9.14.   Fourth,  the Chinese Government  always attache d great importance to data security. Article 
12 of China's  Law on Cyber security guarantee d the lawful, orderly and free flow of data. The Chinese 
Government did not,  and would  never , request Chinese companies to provide data collected overseas 
against local  laws. China had reiterated th at position at the International Seminar on Global Digital 
Governance on 8 September 2020.  
9.15.   The Chairman  suggested that the Council take note of the statements made.  
9.16.   It was so agreed . 
10  ITEM J:  MEASURES OF INDIA  RESTRICTING TRA DE IN SERVICES – REQUESTED BY 
CHINA  
10.1.   The Chairman  indicated that the item had b een added to the agenda of the Council at the 
request of the delegation of China.  
10.2.   The representative of China  noted with concern that India was taking a series of discriminat ory 
and restrictive measures on trade in services . 
10.3.   First, investment restrictions. The Indian Ministry of Commerce & Industry had issued Press 
Note No. 3 on 17 April 2020, which had modified India's  FDI policies in the name o f "curbing 
opportunistic takeovers/acquisitions of Indian companies due to the current COVID -19 pandemic ". 
The Press Note required that "an entity of a country, which shares land border with India or where 
the beneficial  owner of an investment into India i s situated in or is a citizen of any such country, can 
invest only under the Government route. " In essence, th at measure ma de prior approval mandatory 
for Chinese investment in India.  
10.4.   Second, restrictions on apps. The Indian Ministry of Electronics & Info rmation Technology had 
issued several announcements, banning the use of altogether 224 apps in India. Most of the banned 
apps were developed and operated by Chinese Internet  companies.  S/C/M/143  
 
- 26 - 
 
  10.5.   China believed that  the above -mentioned restrictions on investment and use of apps 
undermined the transparency, stability and predictability of Indian market, and deviated from the 
basic WTO principles.  
10.6.   First, the Indian measures were violating basic principles under the GATS. Th ose measures 
were highly targeted and discrimi natory, imposing unnecessary restrictions for Chinese service 
suppliers in India, thus violating GATS Article II (MFN Treatment). The Indian measures were not 
based on "objective and transparent criteria " and were clearly "more burdensome than necessary to  
ensure the quality of the services ", thus violating GATS Article VI (Domestic Regulation). 
Furthermore, considering that the above -mentioned measures would "significantly affect trade in 
services ", China wished  to know when India would  notify th ose measures to the CTS pursuant to 
GATS Article III (Transparency).  
10.7.   Second, the Indian measures were also inconsistent with India's  specific commitments under 
the GATS. The apps banned by  the Indian Government cover ed a series of service sectors, including  
sectors where India ha d made specific commitments in its GATS schedule, including computer  and 
related services, telecommunication, audio -visual  services and financial services. Banning those 
apps would  undermine the supply of services by Chinese supplier s via mode s 1 and 3 , thus violating 
the M arket Access  and N ational Treatment  commitments made by India under GATS Article s XVI 
and XVII.  
10.8.   The above -mentioned measures of India were impairing the lawful rights of Chinese service 
suppliers and the interest s of Indian consumers. China was therefore  express ing its strong concerns 
in th at regard. China  urged the Indian Government to stop those discriminat ory measures 
immediately, so as to provide a level playing field in India for Chinese service suppliers and s ervice 
suppliers all over the world. China reserve d its right to take further actions in the future.  
10.9.   The representative of India wished to emphasize  at the outset  the importance of receiving in 
advance a clear statement laying down the specific concerns of  the Member raising an item on the 
agenda. In th at case, China ha d not provided a statement  in advance outlining the specific measures 
of India for the item on  the CTS agenda. Her delegation  had written to China to seek details regarding 
their concerns, and India's  response at that meeting was  based on the brief information her 
delegation had  received informally from China.  
10.10.   India's measures were fully compliant with its commitments under the GATS. India was  
committed to upholding its WTO obligations.  
10.11.   India value d the democratic rights of its citizens , and that include d access to goods and 
services while ensuring privacy. Her delegation found it curious that the Member  who ha d imposed 
signific ant barriers on international trade in services, especially on digital services, was concerned 
with India's  measures.  
10.12.   India's track record in transparency, upholding the principles of the multilateral trading 
system and leading initiatives for inclusive tr ade in services was well known. For th ose reasons, 
India was recognized as a valued and trusted partner. Even during the COVID -19 lockdown, India's  
services industry had fulfilled its global commitments. It was expected that the Member  who ha d 
raised the i ssue should first reflect on its own  track record on transparency and allowing open trade 
in services.  
10.13.   In conclusion, the representative reiterated that India's  measures were fully compliant with 
India's  obligations under the GATS and in case any Member  had any issues, her delegation was 
always open for a constructive dialogue.  
10.14.   The representative of China  said that his delegation had had a bilateral consultation with 
India and had provided preliminary information regarding the statement his delegation would make 
under th at item. His delegation would send its written statement to India immediately after the 
meeting and expect ed India to provide  more concrete responses to the concerns  China had  raised 
in its statement.  
10.15.   With regard to India 's argument that China was also taking similar restrictive measures as 
the Indian measures, he clarified that China ha d not taken any blanket measures against foreign S/C/M/143  
 
- 27 - 
 
  apps and service suppliers of an y particular origin . China manage d cross-border data flow s carefully 
and cautiously in line with its specific commitments under the GATS, as China had not made  make 
full commitments on telecommunication and computer -related services across all modes.  
10.16.   The Chairman  suggested that the Council take note of the statements made.  
10.17.   It was so agreed . 
11  ITEM K: THE COVID -19 PANDEMIC AND IMPLICATIONS FOR TRADE IN SERVICES  
11.1.   The Chairman  recalled that the Council had addressed this issue at its meeting in July, with 
many d elegations sharing their experience on the effects of the COVID -19 pandemic on their services 
sector and on services trade. Many Members had highlighted the importance of transparency and of 
exchanging information and experiences, including on trade -facilitating services measures adopted 
to respond to the crisis. A number of delegations had underscored that Members' trade -restrictive 
measures had to be timebound, proportionate and non -arbitrary.  
11.2.   Several delegations had welcomed the Secretariat's Information  Note on "Trade in services in 
the context of COVID -19", as well as the Secretariat's collection of COVID -related services measures. 
Some delegations had called for continued analysis by the Secretariat, and for the Secretariat to 
present its work. Hence, he had invited the Secretariat to provide an overview of the analysis it had 
undertaken of services trade in the context of the COVID -19 pandemic.  
11.3.   A representative of the Secretariat  explained that services sectors and services trade had 
been heavily affec ted by the pandemic. The impact, however, had varied significantly across different 
services sectors and modes of supply. Sectors and modes that relied on physical proximity between 
suppliers and consumers had been most affected, given the limits on mobili ty and social distancing 
measures adopted by governments to respond to the health situation. Modes 2 and 4 had been 
largely paralyzed in the earlier phase of the pandemic and continued to be significantly constrained.  
11.4.   Another general trend was that the de cline in merchandise trade due to an economic 
slowdown had contributed to a decline in related services trade, such as transport services. However, 
early on, limits on the movement of transport workers had, in turn, impacted goods trade. Further, 
social di stancing measures had strongly affected certain sectors that, by their nature, relied more 
on physical proximity, such as retail, construction or entertainment, and this had impacted trade 
under mode 3.  
11.5.   At the same time, another important trend was that th e crisis had led to a greater focus on 
online supply of services in various sectors. ICT networks and applications had permitted tele -work 
and online education, but had also enabled tele -medicine, online retail, food delivery, and contactless 
payments. In various instances, online supply had fostered greater resilience, offsetting declines in 
other economic activities. The crisis had resulted in increased demand of ICT infrastructure, in 
particular telecom services. This was reflected in high levels of data  traffic, as exemplified by a 48% 
increase in international Internet traffic between January and August, with growth in all regions. 
Suppliers had accelerated efforts to expand online operations and consumers had adopted new 
habits; this could contribute t o a profound and long -term shift towards online services, which would 
translate into increased trade through mode 1. The crisis had accentuated technological and 
connectivity disparities; those that did not benefit from high -speed internet access, for exam ple, 
had suffered more than in normal times.  
11.6.   Turning to the impact in selected sectors, the representative noted that tourism services had 
been the most negatively affected sector by the pandemic. International tourist arrivals had dropped 
by 65% in the fi rst half of 2020, including a decline of 93% in June 2020, year on year. The impact 
had important economic consequences, given the sector's contribution to GDP and to services 
exports, especially for LDCs and developing economies. While travel restrictions  had started being 
relaxed gradually since May, governments remained cautious and, as of early September, 43% of 
international destinations remained completely closed to international tourists, according to the 
World Tourism Organization.  
11.7.   Air transport had  also been heavily affected. As of September, the International Civil Aviation 
Organization expected global air passenger traffic to drop by 60% in 2020. This had also impacted S/C/M/143  
 
- 28 - 
 
  air cargo transported in passenger airlines; the belly capacity for internation al air cargo had shrunk 
by 70% in July 2020, compared to July 2019. This had been partly compensated by a 30% capacity 
increase in freighter aircraft, but capacity remained constrained and, consequently, air freight rates 
had increased by an estimated aver age of almost 50% worldwide.  
11.8.   With respect to maritime transport, container shipping had declined significantly in the earlier 
phases of the pandemic but had been on an upward trend since mid -May 2020. While container 
shipping was now close to pre -pandemic levels in certain markets, there were important variations 
across countries and regions, with some regions still seeing markedly lower traffic than in previous 
years.  
11.9.   Even though it was not its main area focus, the Information Note also observed that 
governments had adopted a wide array of measures in response to the crisis, aside from limits on 
mobility and social distancing measures. The Secretariat had compiled information on over 
100 COVID -19 measures affecting trade in services, as part of a broader m onitoring exercise. As 
pointed out in the Note, most of those measures were of a facilitative nature, though some also 
appeared trade restrictive. Information on COVID -19 measures relating to trade in services had been 
made available on the WTO website and  continued to be updated.  
11.10.   In conclusion, the representative observed that the crisis had further underscored the 
importance of services and services trade. The negative impact in a number of services sectors and 
modes of supply had carried broad social and  economic implications, given the sector's contribution 
to GDP and employment, as well as the importance of services value added in goods trade. The 
pandemic had further underscored the role of key services sectors in facilitating trade in goods as 
well as  enabling digital supply, which had increased.  
11.11.   The representative of South Africa , speaking on behalf of the African Group , appreciated the 
presentation and update by the Secretariat. Developing countries, in particular members of the 
Group, remained dispr oportionally affected by the COVID -19 pandemic. That had a direct effect not 
only on governments' ability to provide fiscal stimulus in response to the economic fallout, but also 
on the health and humanitarian crisis. Even though supply had been scaled up,  personal protective 
equipment remained in short supply especially for developing countries, as pointed out in the 
Information Note of 18 September 2020.  
11.12.   COVID -19 had severely affected supply chains, and many of the Group's landlocked 
countries still exper ienced substantial delays. The Group called on WTO Members to not unduly 
impede the transport of medical goods and other essential products.  
11.13.   The African Group had also taken good note of the trade -related IP measures that had been 
taken by 24 Members and reiterated the importance of the flexibility that the TRIPS Agreement 
provided in dealing with the pandemic. Technology transfer remained a critical condition for 
developing countries to achieve their development goals. The African Group welcomed any initi ative 
that could facilitate transfer of technology and knowhow to fight COVID -19.  
11.14.   Finally, the Group appreciated analysis on the facilitation of tele -medicine and e -health 
solutions. Such initiatives would go long way in addressing the health situation, b ut also many of 
the infrastructure and capacity constraints faced by several developing Members.  
11.15.   The representative of India thanked the Secretariat for the detailed and useful presentation. 
She also supported the statement by South Africa, which made very  valid points. The presentation 
rightly pointed out that the services sector had been heavily affected by the COVID -19 crisis. Mode 
2 and mode 4 had been largely paralyzed and continued to remain constrained.  
11.16.   The pandemic had only further demonstrated the importance of cross -border movement of 
healthcare professionals, including doctors and nurses as well as other essential service suppliers. 
Members should not only improve their specific commitments in this regard, but also commit to 
commercially meaningfu l disciplines, as per the mandate of GATS Article VI:4, to facilitate the 
movement of essential professionals. COVID -19 had exposed the vulnerabilities of countries with 
the world's best medical infrastructure facilities. Lack of resources or funds had not  been the reasons 
for the hardship and mortality. Availability of greater number of skilled healthcare professionals 
could have helped in that situation. Leveraging labour market complementarities for the movement S/C/M/143  
 
- 29 - 
 
  of skilled essential professionals would h ave been a win -win outcome for all Members but would also 
have helped to save more lives. She hoped that Members would meaningfully engage on India's 
proposal for domestic regulation disciplines for mode 4 service suppliers.  
11.17.   The representative of Malaysia  asked the Secretariat if recent efforts by certain governments 
to establish travel bubbles or travel corridors had been analysed. He invited Members that had 
adopted such measures to share information with the Council.  
11.18.   The representative of the Secretariat  indicated that the Information Note, which had been 
issued in May, did not contain an analysis of travel bubbles and travel corridors.  
11.19.   The Chairman  noted that one example was the establishment of so -called reciprocal green 
lanes between Malaysia and Singapore. That was an innovation that Members could consider, 
depending on the public health concerns.  
11.20.   The representative of Canada  thought that the Secretariat's presentation had proven very 
useful. She asked whether the analysis had considered the impact on women entrepreneurs, since 
many of the sectors that had been highly affected by COVID -19 employed a high percentage of 
women. S imilarly, she expressed interest in knowing about other underrepresented groups as well.  
11.21.   The representative of the Secretariat  indicated that the Note underscored the importance of 
services sectors for women employment, including in sectors like tourism, w hich had been most 
affected. He mentioned that the WTO Secretariat had produced another Information Note that 
focused on the economic impact of the crisis on women in vulnerable sectors and economies.  
11.22.   The representative of the European Union  thanked the Se cretariat for the Information Note. 
She noted that the services sector indeed had been badly affected by the current health and 
economic crisis. At the same time, the presentation had shown that services trade was important 
for the recovery. Telecommunicat ions and computer services were key for online supply, while 
distribution, transport and logistics were important to facilitate trade in goods, which in turn, would 
be important to support economic growth. The Note contained interesting examples regarding the 
accelerated efforts of service suppliers to expand online operations. While acknowledging data 
limitations, she expressed interest to learn more on the sectors and regions where that shift was 
most prominent.  
11.23.   The representative of Uganda , speaking on b ehalf of the LDC Group , appreciated the 
information provided by the Secretariat on services trade measures relating to COVID -19. The Group 
noted that most of the measures in the last reporting had been relaxations to allow flexible 
procedures and licensing  to provide more telecommunication bandwidth and platforms. In earlier 
reporting, the Group had applauded LDCs that had taken measures. For instance, Rwanda had 
temporarily waived fees on mobile money transfers and all contactless transactions in order to 
reduce the risk of COVID -19 transmission. Myanmar had introduced several measures to tackle 
COVID -19, such as lowering reserve requirements for banks and the interest rate by the Central 
Bank, and removing license fees for telecom operators to encourage mo bile financial payments and 
reduced storage fees for unloaded ships.  
11.24.   The Group noticed that some of the relaxations in developed countries had been for existing 
foreign or domestic providers and not for other providers. They wondered if those relaxations 
discriminated in any way with regard to other foreign providers. With respect to measures taken to 
suspend the entry of natural persons supplying services, the Group believed that this should not be 
arbitrary or amount to unjustifiable discrimination. Membe rs should adhere to the requirement in 
GATS Article XIV that measures not "constitute a means of arbitrary or unjustifiable discrimination 
between countries where like conditions prevail, or a disguised restriction on trade in services". That 
was especiall y important where the impact of COVID -19 on LDCs would be more severe and 
devastating than in non -LDCs.  
11.25.   The representative of Japan  underscored the usefulness of the Information Note and said 
that his government had taken some facilitating measures in resp onse to the COVID crisis, including 
in the financial sector. He noted that some Members had taken restrictive measures and called for 
those to be lifted when no longer needed. Discussion of those matters in the Council was very 
important.  S/C/M/143  
 
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  11.26.   The representativ e of Barbados , speaking on behalf of the ACP Group , thanked the WTO 
Secretariat for the presentation. The Group wanted to take the opportunity to supplement its 
statement under this agenda item at the July meeting.  
11.27.   At the outset, the Group wished to stress  that GATS Article XIV did not allow for unjustifiable 
or arbitrary discrimination in the application of emergency measures. Regarding some of the 
reported relaxations, the Group urged Members to observe their national treatment commitments, 
and to avoid r elaxing measures in a manner that was discriminatory and not relevant to respond to 
COVID -19. The Group had noted that some relaxations might have increased licenses, reduced fees, 
and increased bandwidth for certain services providers, but not for others.  
11.28.   The actions related to banning mode 4 entries and mode 2 travel warnings of tourists as 
consumers of services in ACP States might be deemed necessary to contain a pandemic. However, 
those measures should equally meet a more scientific, or health assessmen t as to the level of risk 
and protection in ACP States in order to avoid an arbitrary or unjustifiable impact. Where safety 
measures and rules on social distancing were in place in ACP States, travel advisories should not be 
so stringent as to cause furthe r damage to the tourism sector.  
11.29.   Some ACP States had taken measures and provided more incentives for telework from scenic 
environments typical of resorts and other accommodations. It was disconcerting to have taken those 
steps in ACP States and to then find  random travel warnings targeting ACP countries where the level 
of COVID -19 infections was low compared to the home countries of the tourists or teleworking staff. 
The ACP Group would continue to monitor the impact and implications of the COVID -19 pandemic  
on trade in services and to be engaged on that issue in the Council and other bodies as necessary.  
11.30.   The representative of China  thanked the Secretariat for the presentation and welcomed 
further information on the impact of COVID -19. He expressed support fo r the statement of Barbados, 
on behalf of the ACP Group, that measures taken in response to COVID -19 should have a scientific 
basis. Measures taken in the name of general or security exceptions should be evaluated on a trade 
basis in order to lessen their impact.  
11.31.   The Chairman  thanked the Secretariat for the presentation and delegation s for their 
interventions. He noted two personal takeaways. First, the COVID -19 pandemic had indeed impacted 
severely services trade. Second, the situation had provided an impe tus for innovation. For instance, 
a group of East African countries had utilized digital technology to facilitate the clearance of truck 
drivers across borders. He noted that there were challenges, but with innovation and a spirit of 
corporation, the crisi s could be overcome.  
11.32.   He then suggested that the Council take note of the statements made.  
11.33.   It was so agreed . 
12  ITEM  L: I-TIP SERVICES TRADE POLICY DATABASE  
12.1.   The Chairman  recalled  that the Council  had been meant  to address  that item, which  had been 
added  to the agenda  at the request  of the delegation  of the Russian  Federation,  at the July meeting.  
However,  due to lack of time, the Council  had agreed  to postpone  its consideration  to that meeting.   
12.2.   A representative  of the Secretariat  presented  an overview  of the I-TIP Services  interface  with 
a focus on the most recent  feature  included,  the Services  Trade  Policy  Database  (STPD).  He recalled  
that I-TIP Services  was a joint project  of the Secretariat  and the World  Bank Group  based  on a 
Memorandum  of Understanding  that had been signed  in 2013.  
12.3.   The I-TIP Services  database  consisted  of four modules.  Firstly,  Members'  GATS  commitments,  
including  MFN exemptions  and LDC Waiver  notifications.  Secondly,  commitments  and reservations  
made  by Members  in the context  of regional  trade agreements.  Up to that moment,  around  
90 regional  trade  agreements  had been coded  and validated  in the process.  That module  was linked  
to another  project  by the World  Bank Group  on the architecture  and design  of regional  trade  
agreements,  which  would  be incorporated  in the I-TIP Services  database  as well. Thirdly,  the module  
on trade  in services  statistics,  with regular  updates  by the Economic  Research  and Statistics  Division.  
Fourthly,  the STPD,  which  had been released  and presented  during  a "Simply  Services " session  on S/C/M/143  
 
- 31 - 
 
  16 January  2020.  The module  contained  information  on regulations  and policies  for 77 economies  
on the basis of a coherent  and consistent  approach  in terms  of data collection  and classification.  This 
information  was complemented  by an improved  Services  Trade  Restrictions  Index  (STRI)  that had 
been built on the basis of the previous  World  Bank STRI.  
12.4.   31 services  subsectors  were covered  in the STPD.  For all economies,  information  was available  
on professional  services,  telecommunications,  distribution,  transportation  and financial  services.  For 
nine economies  recently  added  in the STPD,  the database  had been further  extended  to cover  other  
services  subsectors,  including  architecture,  engineering,  computer  services,  health  and construction  
services.  The Secretariat  planned  to further  expand  the economy  and sector  coverage.  
12.5.   The STPD allowed to select the policy information, as well as information on the STRI. The 
regulatory information in the STPD had been collected using the methodology establi shed ten years 
earlier by the World Bank, whereby questionnaires had been filled out by lawyers identifying in 
regulatory material the policy information pertinent to services trade. The database further contained 
comments aimed at clarifying  the responses and the underlying legal reference. The STRI had been 
integrated into the database. The I -TIP Services interface allowed to access the STRI for each 
economy, mode of supply and sector, as well as to download the entire dataset. The coverage of the 
STPD, as well as the STRI, would be expanded. The policy data was being collected for countries in 
Africa, and there were plans to cover economies in Central Asia and Pacific islands.  
12.6.   The notifications  made by Members in the context of the LDC servi ces Waiver had been 
introduced as a new feature of the GATS module in I -TIP Services. The new feature allowed to view 
the notifications in the application, as well as to be able to directly compare those with GATS 
commitments.  
12.7.   I-TIP services also included information on applied policies sourced from other WTO data 
sources, in particular DG monitoring reports and trade policy reviews. Lastly, the module on regional 
trade agreements would be expanded and complemented by missing bilateral and regional 
agreemen ts. 
12.8.   The representative of Australia  considered the database to be an extraordinary effort and an 
interesting tool that Australia would look at and follow up with the Secretariat in case of further 
questions. She expressed her particular interest in knowing  how the data were linked to the 
measures, given that a lot of Members had been thinking about that in terms of the transparency 
efforts. Furthermore, she asked whether there was a direct link or a way to keeping the database 
up to date.  
12.9.   A representative o f the Secretariat  explained that for half of the Members covered in the 
database, the information had been directly sourced from the OECD in order to avoid duplicative 
work. For the other half of the Members, the information had been collected by local law  firms 
contracted by the World Bank Group through the use of questionnaires, that had been reviewed by 
the World Bank Group and WTO Secretariat to ensure consistency within and across sectors. 
Furthermore, the I -TIP Services website provided information on  the legal source, mode of supply 
and a comment describing the measure. He further noted that the World Bank Group and the WTO 
Secretariat were planning to update the database to 2020. Regarding Members covered by the 
OECD, the data were updated on an annu al basis. Ideally, the Secretariat would like the policy 
information included in the STPD to also be updated periodically. The representative would welcome 
any ideas of Members on that aspect.  
12.10.   The representative of Switzerland  noted that all Members had di fficulties to access specific 
data on trade in services and therefore thought that the database was a very useful tool that 
Switzerland would look forward to further exploring and using.  
12.11.   The representative of Lao PDR  said that Lao PDR had undertaken a simi lar initiative 
consisting of a website and a database. He asked whether Lao PDR could collaborate with the 
Secretariat to improve its own database as well as expand the information in the STPD as he had 
not seen Lao PDR in it.  S/C/M/143  
 
- 32 - 
 
  12.12.   A representative of the Secre tariat  confirmed that, for the time being, Lao PDR was not 
covered by the STPD, but that the Secretariat was gradually expanding the coverage of Members. 
The Secretariat would be interested  in discussing ways of integrating Lao PDR in the database.  
12.13.   The Chairman  asked whether the Secretariat had information about the traffic on the website 
since the launch of the database. He further asked whether the Secretariat had prepared or was 
considering preparing a user guide that could benefit Members who mig ht even disseminate it to 
relevant stakeholders.  
12.14.   A representative of the Secretariat  replied that the information about traffic could be 
provided but was not available at the time of the meeting. He further explained that the Secretariat 
had already prepar ed a user guide accessible on the I -TIP Services website. Further research papers 
were also available to show how the information from the database had been put to practical use in 
terms of analysing trade  policy in services. For instance, this had been do ne for services trade 
policies since the last financial crisis in 2008 -2009. He invited Members to look at the user guide 
and to contact the Secretariat in case of doubts or questions.  
12.15.   The Chairman  thanked the Secretariat for the presentation and delegatio ns for their 
interventions. He suggested that the Council take note of the statements made.  
12.16.   It was so agreed . 
13  ITEM  M: RECENT DEVELOPMENTS IN TRADE IN SERVICES STATISTICS  
13.1.   The Chairman  recalled  that, in 2016,  the Council  had agreed  that the Secretariat  would  
present  to the Council,  on a yearly  basis,  the latest  developments  in trade in services  statistics.  
Hence,  the Secretariat  had once again  been invited  to update  the Membership  on recent  
developments  in trade  in services  statistics.  
13.2.   A representative  of the Secretariat  noted  that, trade in commercial  services  had expanded  by 
9% on average  in 2018,  whereby  all services  had recorded  very dynamic  and healthy  growth.  Among  
others,  services  that were closely  linked  with trade  in goods,  such as freight  transport,  manufacturing  
services,  construction,  but also tourism  and international  passenger  transport  had grown  rapidly.   
13.3.   However,  the data revealed  a different  picture  for 2019.  Services  trade  had experienced  
negative  growth  and stagnation  reflecting  the adverse  economic  context  and a decrease  in goods  
trade  by 3%. A large part of services  connected  to trade  in goods,  notably  freight  transport  and 
manufacturing  services  had declined.  For the first time, also tourism  had slowed,  showing  a 1% 
increase  in 2019 as comp ared to 8% in 2018.  The UNWTO  had reported  a slowdown  in international  
tourist  arrivals  worldwide  in 2019 due to tensions  and less disposable  income  in a number  of 
countries.  Only computer  and information  services  had continued  to thrive  in 2019,  recording  
double -digit growth.  
13.4.   Weaker  services  growth  and the COVID -19 pandemic  had had a severe  impact  on the services  
sector  in 2020.  According  to preliminary  estimates  by the Secretariat,  world  services  trade  had 
stagnated  in January  and had started  to decline  in February,  by 3%. With the first lockdown  
measures  implemented  in various  countries,  especially  in Europe,  services  trade had dropped  by 
15% in March  on a year-on-year basis;  continuing  to worsen  in April and May with a fall of 29% on 
average.  Services  trade had seen a slight  recovery  in June with a decrease  of 24% as some  countries  
had started  to loosen  transport  and travel  restrictions,  whereas  July had not shown  much  further  
improvements  with a decline  of 22%.  Although  data for August  were not available  yet, the prospects  
were negative  given  the surge  of the COVID  crisis worldwide.  
13.5.   In the first quarter  of 2020,  services  exports  had decreased  by 8% worldwide.  Growth  was 
negative  especially  in Asia, but also in Europe  and America,  while some  countries  in other regions,  
such as Africa,  had still experienced  an increase  in services  exports.  Based  on preliminary  estimates  
by the Secretariat,  services  exports  in the second  quarter  of 2020 had declined  by 25%.  Whereas  
China's  exports  had decreased  less in the second quarter,  other  regions  such as Latin America  had 
substantially  worsened  in terms  of services  exports  growths.  According  to preliminary  estimates  for 
July, China  had been slowly  recovering,  with 0% growth,  whereas,  by contrast,  India had recorded  S/C/M/143  
 
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  a sharper decline  of 11%.  Worldwide,  countries  had recorded  negative  growth  in services  exports,  
especially  in Southern  Europe,  but also in the US and Canada,  among  others.  
13.6.   Looking at the tourism sector, UNWTO had estimated international tourist arrivals to hav e 
declined by 28% in the first quarter; the Secretariat had recorded a decrease in travel exports by 
24%. Especially Asia, with various LDCs heavily dependent on tourism, had experienced sharp 
declines, by 30 to 40%. In the second quarter, as transport and  travel restrictions had been 
implemented by most countries, international tourist arrivals had dropped by 95% based on 
estimates by the UNWTO. Air passenger transport had fallen by 66% for 2020 based on estimates 
by IATA.  
13.7.   Another sector heavily affected  by the pandemic was construction, with exports recording 
sharp declines in the first quarter, especially in Europe. However, financial services, IP -related 
services and other business services exports had in general increased in the first quarter of 2020. 
The sector that had fared better during the pandemic were ICT services, and more so computer 
services, as the pandemic had accelerated the trend towards digitalization of services.  
13.8.   LDCs were the most vulnerable to the pandemic, as their share of services ex ports in mode 2 
was estimated as twice as big than in other developing countries and four times bigger than in most 
advanced economies. Lockdown and quarantine measures, as well as transport and travel 
restrictions, were hindering services exports  from LDC s. At the same time, LDCs were still facing a 
profound digital gap and thus the decline for services exports in the first quarter had been more 
pronounced than for other countries. In contrast, LDCs had been growing more rapidly than the rest 
of the world in the past, predominantly due to the tourism sector. However, similarly to the rest of 
the world, a small increase in computer services and financial services exports had been observed 
in the first quarter of 2020.  
13.9.   On a final note, the representative upda ted the Council that the WTO -OECD Balanced Trade 
in Services dataset (BaTiS) would be released by the end of October 2020. The dataset would cover 
bilateral trade for more than 200 economies in various services sectors. She further recalled that 
the Secret ariat had highlighted the lack of detailed trade in services statistics, and in particular of 
bilateral trade in services statistics, at the dedicated  session on the LDC services Waiver in 2019. 
The Secretariat had addressed that data gap and soon Members would be able to consult the BaTiS 
dataset, which was fully consistent with the data published on the WTO Data portal.  
13.10.   The representative of Côte d'Ivoire  considered the presentation by the Secretariat to be very 
interesting. He pointed out that, when look ing at the charts in the presentation, Africa appeared 
mostly in grey. He noted that one did not get much of an idea of the situation in Africa for services 
trade. He asked whether the reason was the lack of available data or whether that was the status 
quo. For instance, in Europe, where the situation was very serious, the chart was red, but also in 
America and China. However , for Africa, one did not see the relevant information necessary to judge 
the situation there. He further noted that the impact of CO VID-19 was probably very serious given 
the impact on LDCs, many of which were in Africa and were less dynamic than the LDC Group in 
general. He said that having the data was essential to be able to take the necessary measures and 
would help in the decision -making process.  
13.11.   A representative of the Secretariat  responded that indeed Africa was shown as grey because 
of the lack of data. However , that did not mean that there was not any data because it might just 
be the case that data was missing for the latest q uarter. For some countries, there was only data 
for the last quarter of 2019, but not yet for the first quarter of 2020. Also, in some countries, the 
capacity of statistical offices had been seriously affected by the crisis, which was a problem across 
the board. Therefore, some data was coming in a little bit late, especially for tourism, which was 
very important for LDCs and Africa, and some other regions. Due to the lockdown, surveys could 
not be carried out.  
13.12.   The representative expressed her hope that inf ormation on the first quarter of 2020, 
including for Africa, would be available in the next few weeks. She further noted that the pandemic 
had shown once again the importance  of short -term data collection such as on a monthly basis. The 
pandemic had increa sed the demand for high -frequency services data, such as on a daily basis, 
which were extremely useful, but practically impossible to capture in official statistics.  S/C/M/143  
 
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  13.13.   On the question about LDCs, she noted that the Secretariat had already informed the Sub -
Committee on LDCs that there was a group of LDCs in Asia that was far more dynamic and was the 
engine of the LDC Group. The estimates with respect to LDCs covered almost all LDCs in Asia, some 
in the Pacific Islands, and many in Africa, including Ethiopia, which, being a major exporter of 
services, and air passenger transport services in particular, had a major impact on transport data.  
13.14.   The Chairman  thanked the Secretariat for the presentation and suggested that the Council 
take note of the statements made.  
13.15.   It was so agreed . 
14  ITEM N: OTHER BUSINESS  
14.1.   A representative of the Secretariat  recalled that the website of the United Nations Statistics 
Division (UNSD) had stopped providing access to the Provisional Version of the Central Product 
Classification. Upon New Zealand's request, the Secretariat had been in regular and repeated contact 
with UNSD on that matter. The Secretariat was pleased to report that the entire series of the CPC 
was now available, in a user -friendly format, on the UNSD classifications website. All CPC versions 
were included, from the Provisional CPC to the latest CPC Version 2.1, in English and, for some 
versions, in other languages as well. Users could browse the classification structure, navigate among 
different levels, and conduct searches. They could also nav igate among the correspondences 
between the CPC versions.  
14.2.   The representative  from New Zealand  expressed his thanks to the Secretariat and said that 
his colleagues in capital would be very happy to hear the news.  
14.3.   The Chairman  said that the Council would take note of the statements made.  
14.4.   The meeting  was adjourned . 
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