Which Of The Following Is True Of The General Agreement On Trade In Services (Gats)

National Treatment (Article XVII) In areas where a member makes commitments in its timetable, each WTO member is required to give national treatment to service providers in other Member States. This means that the treatment should not be less favourable than the treatment given by the government to its own services and service providers. The service sector classifications mentioned in the GATS are defined in the “W/120 List”[4], which contains a list of all areas that can be negotiated under the GATS. The title refers to the name of the official WTO document MTN. GNS/W/120. There are twelve service sectors (business; communication; construction and engineering; distribution; education; environment; financial; health; tourism and travel; leisure, culture and sport; transportation; and “others” in sub-sectors. [5] While services currently account for more than two-thirds of world output and employment, they account for no more than 25% of total trade, as measured by the balance of payments. But this apparently modest proportion should not be underestimated. Indeed, the balance of payments statistics do not cover one of the types of services defined in the GATS, i.e. the supply by commercial presence in another country (mode 3). Although services are increasingly being exchanged in their own legislation, they also serve as essential inputs for the production of goods and, therefore, services, when value-added, account for about 50% of world trade.

All services are covered by the GATS, with the exception of those provided by governments on a non-commercial basis (for example. B central banks or social security). The GATS applies not only to the cross-border provision of services to consumers in other countries, but also to the provision of domestic services by foreign suppliers. Article I defines trade in services in four different types of procurement: the Internal Regulation (Article VI) The liberalization of services is made particularly complex by the fact that services are regulated by governments in order to meet a large number of national policy objectives such as health and safety. Such regulation has an impact on the degree of free service delivery. The governments of WTO member states are required to ensure that all laws, regulations, rules, procedures, decisions and national administrative measures relating to trade in services are managed in a “reasonable, objective and impartial” manner. Member State governments are also supposed to have courts, arbitration tribunals or administrative tribunals to which service providers can apply for a prompt review of administrative decisions and, where appropriate, appropriate remedies. While the concept of progressive liberalisation is one of the fundamental principles of the GATS, Article XIX provides that liberalisation takes place in accordance with national political objectives and the level of development of members, both in the various sectors and in the various sectors.

Developing countries will thus have flexibility to open fewer sectors, liberalize fewer types of transactions and gradually expand market access depending on their development situation. Other provisions ensure that developing countries have greater flexibility in implementing the policy of economic integration, maintaining constraints on the reasons for the balance of payments and determining access and use of their telecommunications networks and services. In addition, developing countries are entitled to technical assistance from the WTO secretariat.

Comments are closed.

We cannot display this gallery