GATS is a treaty of the WTO that came into force in 1995 with the goal of extending trade rules to the services sector. It aims to ensure progressive liberalization of trade in services and non-discrimination between WTO members. GATS covers 155 service sectors across four modes of supply: cross-border supply, consumption abroad, commercial presence, and movement of natural persons. While GATS aims to open markets for services, it does not override governments' ability to regulate services and excludes services provided under governmental authority from its scope. GATS negotiations seek higher levels of liberalization through successive rounds of requests and offers between members.

1. General Agreement
on Trade in Services
INTERNATIONAL TRADE LAW

2. Introduction
 GATS is a treaty of WTO that came
into force in 1995 as a result of
Uruguay Round Negotiation.
 It was created to extend the
multilateral trading system to the
service sector.
 The members of WTO are signatories
to GATS.
 The principle of Most Favored Nation
applies to GATS as well.
BY

3. History of GATS
 WTO is an organisation where members have agreed to a set of
agreements.
 GATS is one of the main WTO agreements.
 1947- General Agreement on Trade in Services (GATS).
 1995- World Trade Organisation (WTO).
 Trade in goods+ intellectual property+ agriculture+ services.

4. Main Principles of GATS
 It mainly follows the principles of GATT.
 Its aim is to ensure progressive market liberalisation and non-
discrimination between members.
 GATS cover almost 155 service sectors.
 But, it doesn’t cover services supplied in the exercise of government
authority.

5. Related sectors and sub-sectors
Business Services
Medical and Dental Services
Midwives, Nurses, Paramedical
services
Financial Services
All insurances and insurance
related services.
Health related & social
services
Hospital service
Other human health service

6. Working of GATS
 Successive round of negotiations “with a view to obtain a progressively
higher level of liberalisation” in their service sector.
 WTO members make liberalisation requests/offers of other member
countries in bilateral secret meetings in Geneva.

7. Modes of Trade
Cross Border
Supply
Consumption
Abroad
Commercial
Presence
Movement of
Natural Persons

8. GATS and Public Service
 It doesn’t apply to services “supplied in the exercise of government
authority”.
 A service is supplied in the government authority only when it is supplied
neither on commercial basis nor in competition with one or more service
suppliers.

9. GATS and Domestic Regulation
 It does not remove a government’s right to regulate services in its country.
 Government regulation of a service should be not more burdensome than
necessary to ensure to quality of service- possibility of necessity test.

10. Future Negotiations
 To extend the number and extent of commitments made.
 To remove existing limitations on current commitments.
 To bind commitments so that they cannot be reserved.

11. Conclusion
GATS is the first and foremost, an
instrument for the benefit of business, &
not only for business in general, but for
individual service companies wishing to
export services to invest & operate
abroad.

12. Submitted and Presented by
MADHUR RATHAUR
40419103518
BBA LLB 8