The General Agreement on Trade in Services (GATS) is a landmark 1995 initiative that revolutionized global services trade by promoting liberalisation and providing structured rules for foreign service providers. Students preparing for exams must understand its key principles, modes of supply, and the role of WTO in regulating trade, as it forms a crucial part of international trade policy studies.
This agreement, initiated by developed countries in 1995, focused on promoting the liberalisation of services globally, which meant limiting government restrictions on foreign service providers. It created a structured approach for countries to commit to opening their service sectors in a regulated manner.
GATS obligations are divided into two main categories for clarity and effective implementation.
The general obligations ensure a baseline of fair play for all countries, emphasizing non-discrimination and consistent standards.
Countries undertake specific commitments for particular service sectors, outlining the extent and mode of service liberalisation.
While countries technically choose which sectors to liberalise, negotiations are essential to achieve balanced commitments.
Recognizing disparities, GATS provides flexibility to developing countries, promoting balanced growth in services trade.
The GATS framework envisions ongoing negotiations to expand and refine liberalisation commitments.
The GATS 1995 framework is vital for understanding the global services trade landscape. It sets clear rules for general and specific obligations, defines four modes of supply, and offers flexibility for developing countries. For students and exam preparation, comprehending its structure and objectives is crucial to appreciate how liberalisation and negotiation shape international trade in services.
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