Transcript The General Agreement *on Trade in Services (GATS)

- Existing Multilateral
Disciplines on Trade in Services
The General Agreement
on Trade in Services
(GATS)
First agreement of multilateral and
legally-enforceable rules aimed at
the liberalisation of trade in services.
Key Features of GATS
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Progressive liberalisation of trade in services
Basic principles inspired in disciplines applied to
trade in goods
Specific commitments are to be bargained for,
much like tariff bindings and rates in the GATT.
Institutional Provisions: Similar to trade in goods
Annexes: Sectorial commitments.
Structure, Principles and Rules of
the GATS
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Scope and Definition
General Obligations and Disciplines
Specific Commitments
Progressive Liberalization
Institutional provisions
Final Provisions
Annexes: Article II exemptions, Movement of
natural persons, Air
Transport, Financial Services, Second Annex on Financial Services, Annex on
Negotiations on Maritime Transport , Annex on Telecommunications, Annex
on Negotiations on basic Telecommunications.
Scope and Definition
Article I
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Trade in services:
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From the territory of one Member into the territory of other
Member
In the territory of one Member to a service consumer of any
other Member
By a service supplier of one Member, through commercial
presence in the territory of another Member
By a service supplier of one Member through the presence
of natural persons of a Member in the territory of another
Member
Applies to all measures at every level of government and
non-governmental bodies in the exercise of delegated
powers, except services provided in the exercise of
governmental authority and most air transport . (General
Exceptions: Article XIV, Security Exceptions: Article XIV
bis)
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General Obligations
Most-Favoured-Nation treatment (Art.II)
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Annex on Article II exemptions
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Economic Integration (Article V)
 Transparency (Article III): publication,
notification, enquiry points.
 Increasing Participation of Developing
Countries (Art. IV): Negotiated best
endeavour clause - “shall be facilitated
through negotiated specific commitments”
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Key Features of GATS
Disciplines
Four modes of supply of services,
 For each mode of supply, a country can
offer either a full or partial commitment
 Transparency provisions
 Avoidance of Restrictions on Foreign
Investment
 Provisions pertaining to individual Sectors
 Market Access
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General Disciplines
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Recognition of standards, authorization, licensing
or certification (Article VII): adequate opportunity
to negotiate agreements, non-discrimination.
Monopolies and Exclusive Services Suppliers
(Article VIII): assure behaviour consistent with
Article II and specific commitments.
Business Practices (Article IX): provides for
consultations with a view of eliminating
competition and trade restricting practices.
Restrictions to safeguard Balance of payments
(Article XII)
Specific Commitments
Adopted through negotiations under Article XIX,
positive listing provides for inscribing reservations.
 Market Access (Article XVI)
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National Treatment (Article XVII)
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Additional Commitments (Article XVIII)
Inscribed in the Schedules of Specific Commitments
Article XX, possible modification of schedules as provided
by Article XXI
Negotiations shall respect national policy objectives, take
account of levels of development, there shall be appropriate
flexibility for developing countries, right to regulate
quaranteed.
Disciplines Related to Specific
Commitments
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Domestic Regulation (Article VI)
non-discriminatory measures administered
in a reasonable, objective and impartial
manner. Negotiations of disciplines on DR
(VI:4)
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Payments and Transfers (Article XI)
Special and Differential Treatment
for developing countries in GATS
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Preamble: GATS should be applied in a way
that facilitates the participation of
developing countries in trade in services
and their expansion of service exports.
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Article V: More favourable treatment may
be granted to firms of developing countries
that are members of a regional trade
agreement.
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Special and Differential Treatment
for developing countries in GATS
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Article IV: Developed countries are committed to
establish contact points to facilitate access to
information.
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More development-oriented approach than previous
Multilateral Agreements. Market Access and
National Treatment are negotiated concessions.
Positive List: Art. XIX.
Regional Integration
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Article V recognises the rights of Members
to be part of agreements that liberalise trade
in services. When only developing
countries are involved, it is explicitly
recognised that more favourable treatment
may be granted to firms from these
countries. (See attached power point
presentation)
Unfinished Business: The built in
agenda
Rule-Making
o Emergency safeguard Measures (Article X)
o Government Procurement (Article XIII)
o Subsidies (Article XV)
 Domestic Regulation (Article VI:4)
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The “Unfinished Agenda”
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cross-cutting issues (rules)
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sectoral agreements
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functional policy areas such as labour
mobility.