S/WPDR/ 26 
 
6 December  2022 
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ANNUA L REPORT OF THE WORKING PARTY ON DOMESTIC REGULATION  
TO THE COUNCIL FOR TRADE IN SERVICES (20 22) 
1.  Since its 2021 annual report to the Council for Trade in Services1, the Working Party on Domestic 
Regulation  (WPDR)  held one formal meeting, on 29 March 2022.2 
2.  At the meeting, the delegations of India and South Africa expressed concerns with respect to the 
development of disciplines on domestic regulation through a Reference Paper by the Joint Initiative  
on Services D omestic Regulation .3 Plurilateral negotiations such as those carried out in the Joint 
Initiative posed systemic challenges for the WTO  and its fundamental principles , and as the 
negotiated disciplines constituted new rules, they could only be brought into  the WTO through 
multilateral consensus.4 The Reference Paper did not address areas of interest for developing 
countries, such as qualification requirements and procedures, S&DT , or binding technical assistance . 
Recent research setting out potential gains  from implementation of the disciplines neglected to 
assess implications for developing countries with respect to compliance costs and regulatory space.  
India and South Africa invited suggestions from other Members to reinvigorate discussions under 
the WPD R on domestic regulation as per the mandate of GATS Article VI :4 with the aim of achiev ing 
multilaterally agreed disciplines that would increase the participation of developing countries in 
global services trade.  
3.  Nineteen  (19) delegations that are particip ants of the Joint Initiative stated that the GATS 
provided the possibility to Members to negotiate on regulatory measures such as those contained in 
the Reference Paper. They stated that a clear pathway for the integration of the disciplines into 
participa ting Members' Schedules of Specific Commitments existed in the WTO. The additional 
commitments undertaken by individual Members could not be considered as either full or partial 
fulfilment of the GATS mandate  under Article VI:4 and could not in any way und ermine existing 
GATS obligations. The Reference Paper reflected the results of negotiations among participating 
Members, including developing country Members.  Recent research by the WTO and OECD had 
pointed to significant trade cost savings and other poten tial economic benefits flowing from the 
implementation of the disciplines. Some delegations  considered  an outcome in the Joint Initiative as 
a steppingstone towards a multilateral outcome in the future.   
4.  No convergence was reached among Members.  
5.  In response to questions by other delegations on the process of giving legal effect to the 
disciplines, it was noted that the Declaration adopted by the  Joint Initiative's  participants5 set out 
that participants intended to incorporate the disciplines contained  in the Reference Paper on Services 
Domestic Regulation as additional commitments into their GATS Schedul es, following  the 
certification procedure contained in document S/L/84.6  Some delegations expressed an interest in 
reinvigorating multilateral work in the WPDR pursuant to the GATS Article VI:4 mandate.  
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1 Annual Report of the Working Party on Domestic Regulation (2021), S/WPDR/2 5, dated 
26 October  2021.  
2 The Report of the meeting is contained in documents S/WPDR/M/7 8, dated 9 May 2022,  and 
S/WPDR/M/7 8/Corr.1, dated 20 May 2022, and should be read in conjunction with this Annual Report.  
3 Reference Paper on Services Domestic Regulation, INF/SDR/2, dated 26 November 2021.  
4 As set out in document W T/GC/W/819 /Rev.1, dated 30 April 2021 . 
5 Declaration on the Conclusion of Negotiations on Services Domestic Regulation, WT/L/1129, dated 
2 December 2021.  
6 Procedures for the Certification of Rectifications or Improvements to Schedules of Specific 
Commitments", S/L/84, adopted 18 April 2000.