ANNUAL REPORT OF THE WORKING PARTY ON domestic regulation
TO THE COUNCIL FOR TRADE IN SERVICES (2024)

1._       This report has been prepared pursuant to the Procedures for an Annual Overview of WTO Activities and for Reporting Under the WTO (_WT/L/105).

2._       Since its 2023 annual report to the Council for Trade in Services[1], the Working Party on Domestic Regulation (WPDR) held one formal meeting, on 24 January 2024[2] and one informal meeting, on 23 September 2024.[3]

3._       At the formal meeting on 24 January, the representative of the European Union stated that, further to consultations with the delegations of India and South Africa, a way forward had been developed to resolve the objections raised on the EU's request to integrate new additional commitments on services domestic regulation in its Schedule of Specific Commitments pursuant to the "Procedures for the Certification of Rectifications or Improvements to Schedules of Specific Commitments." Accordingly, the EU and any other delegation wishing to proceed in the same manner, would issue a Corrigendum to certification requests. Therein, the intended improvements related to services domestic regulation would be reflected as an attachment, notably as "Disciplines on Services Domestic Regulation" and "Alternative Disciplines on Services Domestic Regulation for Financial Services". No changes to the text of the disciplines that had been referenced in original certification requests would be made. Furthermore, the following four understandings would be included in the cover page of the Corrigendum, providing context to the new additional commitments:

1. For greater certainty, the present certification does not create a precedent for incorporating outcomes in the WTO, including from the Joint Statement Initiatives.

2. The additional specific commitments do not diminish the rights nor alter the obligations under the General Agreement on Trade in Services of WTO Members that are not undertaking these additional specific commitments. Furthermore, they do not diminish any obligation under the General Agreement on Trade in Services of WTO Members that undertake these additional specific commitments.

3. The additional specific commitments are without prejudice to the development of any necessary disciplines pursuant to paragraph 4 of Article VI of the General Agreement on Trade in Services.

4. Reference to "Members" or "Member" included in the disciplines are to be understood as referring to the WTO Member undertaking these additional specific commitments. Reference to "other Members" are to be understood as referring to "other WTO Members". The reference to "professional bodies of Members" is understood as referring to "professional bodies of WTO Members".

4._       The representative of India confirmed that following consultations with the EU, India was ready to lift its objections on certification requests that were corrected in the manner presented by the EU.

5._       The representative of South Africa recalled that, further to engagement with the EU and other concerned Members, it was ready to lift its objections on certification requests in line with the solution set out by the EU.

6._       The Chair expressed the view that the EU's presentation of the additional specific commitments on domestic regulation had been appreciated by the Working Party and had its blessing. The news regarding the successful outcome of the consultations between India, South Africa and the EU was likewise welcome. She also saw Members concurring that proceeding with the approach outlined by the EU could be a way forward for any Member interested in taking on additional commitments related to services domestic regulation.

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