Domestic Regulations on Services: A Big Win for Multilateralism

By January 2023, 61 WTO members who were participants of the Joint Statement Initiative on Services Domestic Regulations (JSI on SDR) notified request for certification of their updated GATS schedules. Objections to these certification requests were made by India along with South Africa as per S/L/84 procedures.

Inter alia, India highlighted that development of SDR disciplines is a mandated subject at the WTO and the Working Party on Domestic Regulations (WPDR) is the multilaterally mandated body as per GATS Article VI:4 to perform this role.

India articulated that obtaining approval of the WPDR on the way forward for those seeking to update their GATS schedules was required.

Further, India sought confirmation of the WTO members seeking to update their GATS schedules on the following key understandings:

• The certification of updated GATS schedules of these WTO members does not create a precedent for incorporating outcomes in the WTO, including from the Joint Statement Initiatives (JSIs).
• The additional commitments are without prejudice to the development of any necessary disciplines by the WTO members, that is, multilateral work, pursuant to GATS Article VI.4.
• The additional commitments being undertaken by the WTO members updating their GATS schedules are being MFNised, that is, being made available to all WTO members, even those not undertaking these commitments. The additional commitments do not diminish the rights nor alter the obligations under the GATS of WTO Members that are not undertaking these additional commitments.
• The additional commitments do not diminish any obligations under the GATS of WTO Members undertaking these additional commitments.

As an outcome of these consultations, as sought by India, the matter was brought to the WPDR for its approval in January, 2024. The key understandings sought by India were re-iterated in the said meeting and also outlined in the revised certification requests of these WTO members. After deliberation, the WPDR concurred with the way forward for those WTO members seeking to integrate disciplines on domestic regulation in their GATS schedules as additional commitments.

With approval of the WPDR, and confirmation on key understandings, India agreed to lift its objections to certifications of the updated GATS schedules of these WTO members.

Through this outcome on a multilaterally mandated topic in a multilateral body, India ensured that the multilateral character of the WTO is not undermined.