RESTRICTED
WORLD TRADE S/FIN/W/5
13February 1996
ORGANIZATION
(96-0539)
Committee onTrade inFinancial Services
ANNOTATED PROVISIONAL AGENDA FOR THE ELEVENTH MEETING
Note bytheSecretariat
Thefollowing items areproposed fordiscussion attheeleventh meeting oftheCommittee on
Trade inFinancial Services tobeheldon1March 1996.
1. Acceptance andimplementation oftheresults ofthefinancial services negotiations
According toitsterms ofreference, theCommittee istokeepunder continuous review and
surveillance theapplication oftheAgreement withrespect tothefinancial services sector, among other
responsibilities. TheDecision Adopting theSecond Protocol totheGATS of24July1995 bythe
Committee further states thattheCommittee shallmonitor theacceptance oftheSecond Protocol to
theGATS. TheCommittee might therefore wishtohearfromMembers concerned thecurrent situation
regarding domestic ratification andacceptance oftheProtocol. Anyother matters related tothe
implementation oftheresults ofthefinancial services negotiations might alsobediscussed.
2. Recent developments infinancial services trade
Asapartofitsreview andsurveillance function, theCommittee might wishtobeinformed
ofanydevelopments inMembers relating tofinancial services trade, inparticular withregard to
liberalization measures. Inorder tomaximize transparency, theCommittee might encourage Members
toprovide suchinformation inwriting, where appropriate.
3. Technical issues regarding theschedules ofspecific commitments andlistsofArticle II
exemptions infinancial services
TheCommittee isalsomandated toprovide aforum fortechnical discussions, toconduct studies
onmeasures ofMembers andtoconduct examinations ofanyother technical matters affecting trade
infinancial services. Delegates might therefore wishtodiscuss certain technical issues regarding the
scheduling ofcommitments andthelisting ofArticle IIexemptions infinancial services, which would
beofhelpwhen making possible future modifications totheschedules andlists. Examples ofsuch
issues might bethefollowing:
- thedistinction between Modes 1and2infinancial services issomewhat blurred by
thefactthatunder Mode 2,consumers donotnecessarily needtomove intotheterritory
ofanother Member physically tobeabletoconsume financial services, suchastomake
deposits ortoreceive loans. Itisnotalways evident whether theservice wassupplied
cross-border ortheconsumer consumed theservice abroad. Some countries have
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therefore chosen todefine Mode 1asinvolving some soliciting ofbusiness onthepart
ofthefinancial service supplier ofaMember intheterritory ofanother Member, while
Mode 2would notinvolve suchactivities onthepartofthesupplier. Isthisapproach
commonly accepted byMembers, orarethere anyother possible anduseful
interpretations?
- thesectoral classification offinancial services varies widely across Members. Some
Members havechosen tobasetheircommitments ontheclassification intheAnnex
onFinancial Services oftheGATS, some havechosen tocomplement thiswiththe
CPCclassification, andstillothers haveusednational classifications. Would itbeuseful
tothink ofways inwhich thecomparability ofsectoral classification schemes for
financial services across countries could beimproved?
Other technical matters related totheuseofcolumns andheadnotes orfootnotes intheschedules
could alsobediscussed.
4. Availability offinancial services data
Theneedtoimprove thequality ofservices statistics hasbeendiscussed intheCouncil for
Trade inServices. Theproblems withregard tocurrently available services statistics andthescope
andefforts forimprovement havebeenpresented intheSecretariat document "GATS andStatistics
onTrade inServices" (S/C/W/5). Although mostofthework might needtobecarried outinother
foraincollaboration withother international organizations, theCommittee might wishtoconsider in
whatways itmight beabletoassist suchefforts forimproving theavailability andquality ofdataon
financial services required inthecontext oftheGATS. Inparticular, theCommittee could consider
whether asystematic collection oflimited dataintheform ofaquestionnaire would beauseful tool
inthiscontext. Anyprogress inclarification ofdistinctions between modes ofsupply andharmonization
ofsectoral classification schemes achieved through work referred toinparagraph 3above might also
beuseful incollecting comparable dataacross countries forother sectors. Since thesupply ofservices
through commercial presence isparticularly important inthefinancial services sector, datawhich covers
thismode ofsupply willneedtobeidentified andcollected along withdataonother modes ofsupply.
5. Organization offuture work andtheestablishment ofpriorities
Since thelistofissues forpossible discussion could befairly long, theCommittee might wish
toestablish priorities andtoorganize itswork sothatmaximum efficiency willbeachieved infuture
meetings. Related procedural issues suchasthefrequency offuture meetings andthedesirability for
inputs from delegations might alsobediscussed.
6. Other business
Delegations might wishtoraisefordiscussion anyother issues relevant tothework ofthe
Committee. Such issues, ifnotified totheSecretariat, canbemade known todelegations ahead of
themeeting.