The agreement aims to create a framework for the liberalization of trade in services among WTO member countries.
Key features of the GATS agreement include:
|
Mode |
Feature | Description |
|
Mode 1 |
Cross-border supply |
Services supplied from one country to another. |
|
Mode 2 |
Consumption abroad |
Consumers traveling to another country to receive services. |
|
Mode 3 |
Commercial presence |
Foreign service providers establishing a commercial presence, such as through subsidiaries or branches, in another country. |
|
Mode 4 |
Presence of natural persons |
Individuals providing services in another country, such as through temporary work or migration. |
Special Treatment for Developing Countries: GATS recognizes the special needs and circumstances of developing countries and provides flexibility for them to implement liberalization commitments.
Dispute Settlement: Like other WTO agreements, GATS has a dispute settlement mechanism that allows members to seek resolution for disputes related to the interpretation and application of the agreement.
The GATS has two parts: the framework agreement containing the general rules and disciplines, and the negotiations themselves. The pace and extent of negotiations are set by the WTO's 140 member governments.
Since it entered into force in 1995, the GATS has been the subject of numerous negotiations and discussions, intending to promote the progressive liberalization of trade in services.
The GATS agreement reflects the recognition that services play a crucial role in international trade, and liberalization in this sector can contribute to economic growth and development. The GATS negotiations continue, with members periodically submitting new offers and engaging in discussions to further liberalize trade in services.
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