GATS

TheGeneral Agreement on Trade in Services(GATS)

isatreatyoftheWorldTradeOrganization(WTO)that
enteredintoforceinJanuary1995asaresultof
theUruguay Roundnegotiations.Thetreatywascreated
toextendthemultilateraltradingsystemtoservicesector,
inthesamewaytheGATTprovidessuchasystemfor
merchandisetrade.

Services
(GATS)

Goods
(GATT)

WTO

Others

Intellectual
Intellectual
Property
Property
(TRIPS)
(TRIPS)

Main Purpose of GATS

ThecreationoftheGATSwasoneofthelandmark
achievementsoftheUruguay Round,whoseresults
enteredintoforceinJanuary1995.TheGATSwas
inspiredbyessentiallythesameobjectivesasits
counterpartinmerchandisetrade,theGeneralAgreement
onTariffsandTrade(GATT):creatingacredibleand
reliablesystemofinternationaltraderules;ensuringfair
andequitabletreatmentofallparticipants(principleof
non-discrimination);stimulatingeconomicactivity
throughguaranteedpolicybindings;andpromotingtrade
anddevelopmentthroughprogressiveliberalization.

MODES OF SUPPLY

CRITERIA

Mode 1: Cross-border
supply

Service delivered within

the territory of the
Member, from the
territory of another
Member

Mode 2: Consumption
abroad

Service delivered outside

the territory of the
Member, in the territory
of another Member, to a
service consumer of the
Member

Mode 3: Commercial
presence

Service delivered within

the territory of the
Member, through the
commercial presence of
the supplier

Mode 4: Presence of a
natural person

Service delivered within

the territory of the
Member, with supplier
present as a natural
person

SUPPLIER PRESENCE

Service supplier not

present within the
territory of the member

Service supplier present

within the territory of the
Member

BASIC OBLIGATIONS UNDER

GATS
ObligationscontainedintheGATSmaybe
categorizedintotwobroadgroups:
1.GeneralObligations,whichapplydirectlyand
automaticallytoallMembersandservicessectors,as
wellascommitmentsconcerningmarketaccessand
2.NationalTreatmentinspecificallydesignatedsectors.

GENERAL OBLIGATIONS
1. MFN Treatment:UnderArticleIIoftheGATS,
Membersareheldtoextendimmediatelyand
unconditionallytoservicesorservicessuppliersofall
otherMemberstreatmentnolessfavorablethanthat
accordedtolikeservicesandservicessuppliersofany
othercountry.Thisamountstoaprohibition,inprinciple,
ofpreferentialarrangementsamonggroupsofMembersin
individualsectorsorofreciprocityprovisionswhich
confineaccessbenefitstotradingpartnersgrantingsimilar
treatment.

2. Transparency:GATSMembersarerequired,inter alia,
topublishallmeasuresofgeneralapplicationand
establishnationalenquirypointsmandatedtorespondto
otherMember'sinformationrequests.

SPECIFIC COMMITMENTS
1. Market Access:Marketaccessisanegotiated
commitmentinspecifiedsectors.Itmaybemadesubject
tovarioustypesoflimitationsthatareenumeratedin
ArticleXVI(2).
Forexample,limitationsmaybeimposedonthenumber
ofservicessuppliers,serviceoperationsoremployeesin
thesector;thevalueoftransactions;thelegalformofthe
servicesupplier;ortheparticipationofforeigncapital.

2. National Treatment:Acommitmenttonational
treatmentimpliesthattheMemberconcerneddoesnot
operatediscriminatorymeasuresbenefitingdomestic
servicesorservicesuppliers.Thekeyrequirementisnotto
modify,inlaworinfact,theconditionsofcompetitionin
favoroftheMember'sownserviceindustry.Again,the
extensionofnationaltreatmentinanyparticularsector
maybemadesubjecttoconditionsandqualifications.

HOW DOES GATS WORK ?

Successiveroundsofnegotiationswithaviewto
achievingaprogressivelyhigherlevelof
liberalizationintheirservicesector(ArticleXIX)
WTOmembersmakeliberalizationrequests/offersof
othermembercountriesinbilateralsecretmeetingsin
Geneva

SCOPE OF GATS
151countries(allWTOmembers)
Anysector(160)inanyserviceexcept:
-Servicessuppliedintheexerciseofgovernmental
authority(fire,policeetc.)
-Trafficairregulations

CONCLUSION
GATSisfirstandforemost,aninstrumentfor
thebenefitofbusiness,andnotonlyfor
businessingeneral,butforindividualservice
companieswishingtoexportservicesorto
investandoperateabroad
(EuropeanComission)

 Thank You