The General Agreement on Trade in Services (Gats)
The General Agreement on Trade in Services (GATS) is a multilateral agreement that was signed in 1994 by the member countries of the World Trade Organization (WTO) with the objective of liberalizing trade in services among countries. The GATS covers a wide range of services sectors, including professional services, financial services, telecommunications, and transportation, among others.
The main objective of the GATS is to promote the free movement of services across borders by removing trade barriers such as tariffs, quotas, and other non-tariff barriers that hinder the provision of services. This is achieved through the establishment of rules and regulations that govern the trade in services among countries, which are designed to ensure fair and non-discriminatory treatment of all service providers.
The GATS allows member countries to negotiate and enter into specific commitments with other member countries on the liberalization of trade in services, which are codified in their respective schedules of commitments. These commitments specify which sectors are open to foreign service providers, the extent of market access, and the specific conditions under which foreign service providers can operate in the host country.
One of the key principles of the GATS is the Most Favoured Nation (MFN) treatment, which requires member countries to extend the same treatment to all other member countries as they do to their most favored trading partner. This ensures that all member countries are treated equally and fairly, and that there is no discrimination against any member country or service provider from any member country.
Another principle of the GATS is the National Treatment principle, which requires member countries to treat foreign service providers no less favorably than their own domestic service providers. This principle ensures that foreign service providers are not subject to discriminatory treatment in the host country.
Overall, the GATS has had a positive impact on the liberalization of trade in services among member countries, leading to increased competition, greater efficiency, and improved access to services for consumers. However, there have also been concerns about the potential negative impacts of liberalization on certain sectors and vulnerable groups, as well as the need to ensure that the benefits of liberalization are shared equitably among all members. These issues will continue to be the subject of ongoing debate and negotiation within the WTO and among member countries.
