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Info Service on WTO and Trade Issues (Feb24/25) Abu Dhabi, 27 Feb (D. Ravi Kanth) — India and South Africa have lifted their objections to the schedule of additional specific commitments on domestic regulation (DR) in services from more than 35 countries, including the United States and the European Union, paving the way for an agreement to be announced at the World Trade Organization’s 13th ministerial conference (MC13) in Abu Dhabi on 27 February, said people familiar with the development. However, contrary to the claims made by the WTO Secretariat, there are several legal issues that are yet to be clarified in the WTO’s Working Party on Domestic Regulation, and also that it was done apparently prior to MC13, said a source, who asked not to be quoted. While South Africa had lifted its objections earlier, India agreed to lift its objections only on 26 February, the source said. Earlier, the members of the Joint Statement Initiative (JSI) started negotiations on improving their schedule of commitments on domestic regulation in services under the coordination of Australia. Subsequently, based on a Reference Paper worked out by the JSI coordinators, its members submitted their additional specific commitments on services domestic regulation to be included under the GATS. India and South Africa raised severe objections and forced the JSI members to enter into consultations to satisfy the concerns raised on their schedules. Subsequently, negotiations conducted by the EU with India and South Africa resulted in the requisite changes. It appears that South Africa had agreed earlier while India gave its approval on 26 February, said people familiar with the discussions. In her opening statement at the plenary session on 26 February, the WTO Director-General, Ms Ngozi Okonjo- Iweala, thanked India and South Africa for lifting their objections on services domestic regulation. India and South Africa seem to have objected to a reference paper ostensibly over additional commitments in the GATS schedules of commitments of more than 35 member countries, said people familiar with the development. While India sent its objections to the 35 countries separately, South Africa included all 35 countries in its submission on 3 February. The 35 member countries that have to enter into consultations with India and South Africa include Albania, Argentina, Bahrain, Canada, Chile, China, Costa Rica, European Union (which includes 27 member countries), Georgia, Hong Kong-China, Iceland, Japan, Kazakhstan, Korea, Liechtenstein, Mauritius, Mexico, Moldova, Montenegro, Nigeria, North Macedonia, New Zealand, Norway, Paraguay, Peru, Singapore, Switzerland, Chinese Taipei, Thailand, Ukraine, United Arab Emirates, United Kingdom, United States of America, the Russian Federation, and Saudi Arabia. Both India and South Africa noted that the submissions by the 35 countries “contains schedules of specific commitments relating to services domestic regulations, submitted for certification pursuant to the Procedures for the Certification of Rectifications or Improvements to Schedules of Specific Commitments (document S/L/84).” India and South Africa said they consider that “further information and clarifications are required in order to assess the legal basis and the effect of the proposed improvements, particularly their interaction with Members’ existing rights and obligations under the General Agreement on Trade in Services and the Marrakesh Agreement Establishing the WTO.” Accordingly, the two countries notified their “objection to the certification of the schedules of specific commitments” of the 35 countries. India and South Africa said “further clarifications may be needed on other aspects of the schedules submitted for certification by the Members concerned and therefore, reserves the right to seek such clarifications.” According to paragraph two of the “Procedures for the Certification of Rectifications or Improvements to Schedules of Specific Commitments”, as agreed by the WTO’s Council for Trade in Services on 14 April 2000, “any Member wishing to object to the certification shall submit a notification to that effect to the Secretariat for circulation to all Members.” CSOs PUNCTURE CLAIMS A statement issued by the facilitator of the “Our World Is Not For Sale” network, Ms Deborah James, said: “the WTO Secretariat and sponsors of the Reference Paper on Services Domestic Regulation will attempt to spin on the announcement that India and South Africa have withdrawn their objections to its adoption through schedules to the WTO General Agreement on Trade in Services (GATS) as an outcome of this MC13.” “This is not an outcome of the ministerial,” said Ms James, adding that “this issue was addressed in Geneva” and “it is still being addressed in the correct forum mandated to address this issue, the Working Party on Domestic Regulation.” Further, she said, “there are several legal and procedural issues that remain outstanding and still need to be addressed, including how to ensure that procedural rules that relate to amending schedules of commitments do not get abused to circumvent the rules of amendment under the Marrakesh Agreement.” “Civil Society calls on the Members, as the next step, to discuss long-standing concerns with this reference paper in that proper forum,” she said. +
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