2. Services represent
the fastest growing sector
of the global economy
66% of global output 33% of global employment 20% of global trade
3. General Agreement
on Trade in Services (GATS)
The main text containing
general obligations
and disciplines
Annexes dealing
with rules
for specific sectors
Individual countries’
specific commitments
to provide access
to their markets
4. The coverage of GATS
The agreement covers all internationally-traded services
(banking, telecommunications, tourism, professional services)
It defines 4 modes of trading services:
1 Cross-border supply
2
3
4
Consumption abroad
Commercial presence
Presence of natural persons
5. General Obligations and Disciplines
of GATS
Most-favoured-nation (MFN)
treatment
Commitments on market
access and national treatment
Recognition
Transparency
Regulations
International payments
and transfers
Progressive liberalization
6. The annexes:
services are not all the same
Movement
of natural persons
Financial services Telecommunications Air transport
services
7. Summarizing the basic principles
• All services are covered by GATS
• Most-favoured-nation treatment applies to all services, except the
one-off temporary exemptions
• National treatment applies in the areas where commitments are made
• Transparency in regulations, inquiry points
• Regulations have to be objective and reasonable
• International payments: normally unrestricted
• Individual countries’ commitments: negotiated and bound
• Progressive liberalization: through further negotiations
8. Doha’s round of negotiations
• To open, improve and clarify the rules on regulations
• A la carte system
9. The Main concern
Does the GATS force governments to privatize and deregulate all services
to allow foreign competition from transnational corporations?
No legal obligation Right to set limits,
qualification requirements,
standards and introduce
new regulations
10. Key issues in the negotiation
New export
opportunities
Opportunities
for individual service
providers under mode 4
Similar opportunities Clear disciplines
on domestic regulations
11. Signalling Conference
• At ministerial level on 26 July 2008
• Opportunity to exchange indications on their commitments
as well as the contributions expected from others
12. The Negotiating method
Request-offer procedure The final offers then become
legally-binding commitments