GATT and GATS were agreements that aimed to liberalize international trade. GATT, in effect from 1948 to 1995, sought to eliminate trade barriers and boost global trade following World War II. It established a forum for negotiating tariff reductions between member states. GATS, created in 1995 under the WTO, extended GATT's principles to the services sector and aimed to progressively reduce barriers to trade in services. Both agreements established principles of non-discrimination between trading partners, including most favored nation treatment and national treatment. They also sought to increase transparency around members' trade policies and provide dispute resolution mechanisms for resolving trade issues.

1. SUBMITTED BY:-
PRINCE KUMAR MAURYA
16-mbak-76
mba 2’nd year

2. BUSINESS ENVIRONMENT
GATT &GATS

3. GATT
The General Agreement on Tariffs and Trade was the first
worldwide multilateral free trade agreement. It was in effect
from June 30, 1948 until January 1, 1995. It ended when it was
replaced by the more robust World Trade Organization.
PURPOSE
The purpose of GATT was to eliminate harmful trade protectionism.
That had sent global trade down 65 percent during the Great
Depression. By removing tariffs, GATT boosted international trade.
It restored economic health to the world after the devastation of World
War II.

4. INTRODUCTION
 Set of multilateral tradeagreements.
 To provide an international forum – expansionof world trade That
encouraged free trade between member states.
 By regulating and reducing tariffs on tradedgoods.
 Providing a common mechanism for resolvingtrade disputes
eliminating discrimination.

5. GATT the predecessor of the WTO, was born in 1948 as
result of the international desire to liberalize trade . It
was set up on October 30,1947 inGeneva.
 with 23countries as its founder members.
 India was the founder members of GATTalong with World
Bank ,IMF and WTO.
 The primary actions of organization were to freeze and reduce
tariff levels on various commodities.
 It was originally set up as a temporary arrangements to bring
about trade liberalization.

6.  GATTplayed a prominent role in settlement of trade disputes between
2 countries.
 Free trade has been the motto of GATT.
 It later became an important and permanent set-up to attend to all
trade issue among the members countries.
 Protocol for provisional application(PPA)- it provide relaxation for the
country that enforced the law which violate the AGREEMENT of
GATT.

7. OBJECTIVE OF THE GATT
 To provide equal opportunities to all countries in terms of trade in
international market.
 Minimize tariffs and other restrictions on trade.
 Provide best solutions to dispute relatedto international trade.
 Ensure better living standard.

8. FUNDAMENTALPRINCIPLE OF GATT
 No discrimination.
 Concept of consultation aims to avoid damage to trading
interests of contracting parties.
 GATT provides frame work within which the negotiations
can be held for reduction of tariff another barrier to trade and
structure for embodying results of such negotiations.

9. FUNCTIONS OF GATT
 Matters related to the tariff and related matters granted to any of the
trading partner.
 Ensures that any tariff reduction or any other trade concessionis
extended to all GATT parties.
NATIONAL TREATMENT:
 GATT members must give imported goods treatment equal to that of
domestic goods.
 No restrictions on charges like rates may be applied to imported
goods unless equally treated.

10. Protection throughtariff:
• Prohibits quantitative restrictions / Quotas.
• Contracting parties are expected to provide protection by
means of tariffs which are transparent and subject to
negotiations in the GATT.
DISPUTESETTLEMENT:
• Procedures from Uruguay round negotiations provides
more automatic and effective resolution of disputes
between member nations.

11. GATS
General agreement on trade in services (GATS) was one of the
agreements that were signed under the purview of the world trade
organization (WTO) which entered into force in January 1995.the
treaty was created to extend The multilateral.
 All members of WTO are signatories to the GATS.
 While the overall goals of GATS is to remove barriers to trade, members are
free to choose which sectors are to be progressively that mode of supply
would apply to a particular sector like trade.

12.  The WTO general agreement on trade in services is bundle of
framework for future liberalization of services trade.
 in February 2000 , WTO members have entered intoa new round
of multilateral negotiations on services mandated by GATS.
 Currently 140 economies are GATSmembers.
 Main aim of GATS is to liberalize inservices.

13. Main principles and scope
 GATS follows many main principles of the original GATT.
 The aim is to ensure progressive market liberalization and non-
discrimination between Members.
 GATS cover almost all services, in total 155 services sectors.
 Does not cover services supplied in the exercise of
government authority.

14. How Does GATSwork?
 Successive rounds of negotiations “with a view of
achieving a progressively higher level of liberalization”
in their service sector.
 WTO members make liberalization requests/ offers
of other member countries in bilateral secret
meetings.

15. Modeof services
 Mode 1:- cross-border trade.
eg. The purchase of insurance or computer software by a consumer
from a producer located abroad.
 Mode2:- consumption abroad.
eg. Tourism ,education or health services.
 MODE 3:-COMMERCIAL PRESENCE.
eg. Domestic subsidiaries of foreign insurance companies and hotels
chains.
 Mode4:-Movementof naturalperson.
eg. Accountants, doctors and teachers.

16. OBLIGATIONS OF GATS
OBLIGATIONS
General
MFN
Treatment
Transparency
specific
Market
Access
National
Treatment

17.  MOST FAVOUR NATION TREATMENT
This requires equal and consistent treatment of all foreign trading
partners. It means:
• Providing equal opportunities in that sector for all foreign service
providers.
• mutual exclusive treatment for all service providers.
 TRANSPARENCY
• GATS Members are required, to publish all measures of general
application.
• And establish national enquiry points mandated to respond to other
Member's information requests.

18.  National Treatment
It requires equal treatments for foreign providers and domestic
providers .Once a foreign supplier has been allowed to supply a
service in one’s country there should be no discrimination in treatment
between the foreign and domestic provider’s
 MARKET ACCESS
Market access is a negotiated commitment in specified sectors.
Eg-
limitations may be imposed on the number of services suppliers,
service operations or employees in the sector; the value of
transactions; the legal form of the service supplier; or the
participation of foreign capital.

19. Thank you