WTO members advance discussions on key issues for unlocking services trade

At a series of meetings held from 2 to 4 June, the WTO Council for Trade in Services and its subsidiary bodies discussed a broad range of issues for possible future work, ranging from the services aspects of electronic commerce to the green services economy. Members also agreed to hold a dedicated workshop to share information on the recognition of foreign professionals' qualifications. Discussions continued on ways to help least developed countries better participate in services trade, facilitate remittance transfers, and improve the classification of environmental services.

WTO members advance discussions on key issues for unlocking services trade

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• Trade in services and LDCs
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• Council for Trade in Services

The Council for Trade in Services elected its new Chair, Ambassador Audrey Goosen of the Netherlands.

Facilitating recognition of professional qualifications

Following discussions at previous meetings spurred by a proposal to strengthen the implementation of Article VII of the General Agreement on Trade in Services (GATS) on the recognition of professional qualifications, a new paper submitted by Bangladesh, India, the Kyrgyz Republic, Nepal and Pakistan focused on notifications and data tools.

The proponents suggested that the Council hold a dedicated workshop for members to take stock of notifications made under Article VII and other information sources on recognition measures, and to share their experiences in this regard. The proponents emphasized that the objective of the exercise is to enhance transparency without creating any new obligations for members. The Council agreed to organize the workshop later this year.

Way forward�

Many members reiterated the importance of services trade and reaffirmed their commitment to reinvigorating the Council's work through enhanced deliberations on issues they considered key, in line with the guidance provided by the 13th Ministerial Conference (MC13).

Members acknowledged the value of last year's thematic sessions and suggested possible topics for future discussions, including green services and the recognition of professional qualifications. Members also expressed strong interest in discussing the services aspects of electronic commerce, emphasizing that services are "the engine of digital trade". In addition, some members underlined the importance of delivering outcomes on services that address the specific needs of least-developed countries (LDCs).

Participation of LDCs in services trade

Members continued to provide updates on their ongoing efforts to gather information, including through a questionnaire, on LDCs' services exports and the ways in which LDC service suppliers interact with consumers and businesses in other economies. Updates were provided in particular by those that have notified preferences in favour of LDC services and service suppliers under the�LDC Services Waiver.

Members highlighted that engagement with relevant stakeholders had shown that consumers of LDC services are primarily driven by considerations related to skills, cost efficiency and service quality rather than by the availability of preferential treatment under the Waiver. Several members highlighted some of the practical tools and programmes they have in place to help LDC service suppliers build capacity and participate more effectively in international trade.

The LDC Group also shared some of the challenges their service suppliers had identified, such as regulatory compliance burdens, market access restrictions, visa-related barriers and a lack of awareness of the Waiver. They urged members to continue sharing information and findings so that members could start considering next steps at the next Council meeting.

Other issues

The Council also reviewed several specific trade concerns raised by members, related to cybersecurity measures implemented by China and Viet Nam, certain services-related measures of the United States, India's measures affecting mobile applications, and two new acts currently under development in the European Union.

Trade in financial services

On 3 June, the Committee on Trade in Financial Services (CTFS) continued its discussions on facilitating cross-border digital payments and reducing the cost of remittance services. Members also heard about an initiative aimed at improving access to finance for women-led businesses through information sharing. Mr Will Nixon of Australia, Chair of the Committee, facilitated the discussion.

Members discussed how to build on the draft Ministerial Declaration on "Reducing the Cost of Cross-Border Remittances - A Lever for Sustainable Development" (WT/Min(26)/W/3/Rev.1), considered by ministers at the 14th Ministerial Conference (MC14) in March in Cameroon. Members did not reach a decision on the proposal, tabled by Morocco and the African Group and co-sponsored by India and Pakistan, at MC14 due to time constraints. However, the Chair of the Ministerial Conference requested continued discussions in Geneva.

Co-sponsors reiterated the importance of reducing the cost of remittances, in particular for developing economies, and expressed readiness to continue engaging with members to achieve meaningful outcomes.

Members also heard from the coordinator of the WTO Informal Working Group on Micro, Small and Medium-sized Enterprises (MSMEs) and the co-chair of the Informal Working Group on Trade and Gender. They briefed members on the�initiative on improving access to finance for women-led MSMEs involved in international trade, drawing attention to a Compendium of Financial Inclusion Initiatives and the related database accessible via the WTO website: Compendium of Financial Inclusion Initiatives for Women Entrepreneurs. They emphasized that the work is ongoing and encouraged more members to contribute information.

Members welcomed the tool developed by the two working groups as a good example of practical, member-driven deliverables. Broad interest was expressed in integrating related discussions into the Committee's work, highlighting the linkages with the 2023 CTFS Thematic Session on Trade in Financial Services and Financial Inclusion.

Classification of environmental services

On 2 June, the Committee on Specific Commitments continued its discussions on classification issues related to environmental services. The discussion was facilitated by the Chair, Mr Sirapat Vajraphai of Thailand.

The proponents of work on the classification of environmental services - Switzerland, New Zealand and the United Kingdom - proposed key elements for further discussion. They invited interested members to engage in consultations outside the Committee and indicated that they would provide periodic updates to members.�������������������������������������������������������������������������

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