Four ways of international trade in services under the General Agreement on Trade in Services

Four ways of international trade in services under the General Agreement on Trade in Services

The terms of the GATS itself are made up of preamble and six sections. Article 28 is a framework agreement, which sets out the principles and rules for the liberalization of trade in services, and article 29 is an annex (a total of eight annexes). The main contents include: scope and definition, general obligations and discipline, specific commitments, progressive liberalization, institutional clauses, final clauses, etc. The core is MFN, national treatment, market access, transparency and payments and transfers the free flow. The General Agreement on Trade in Services (GATS) applies to policy measures taken by Members to influence trade in services, including policy measures taken by the central government, regional or local governments and authorities and non-governmental organizations that authorize the exercise of their authority.

The purpose of the General Agreement on Trade in Services is to expand global trade in services under the conditions of transparency and gradual liberalization and to promote the economic growth of its members and the development of the services of developing countries. The agreement takes into account the imbalances in the development of trade in member services and allows members to undertake the necessary management of trade in services and encourages developing country members to participate more in world trade in services by improving their domestic service capacity, efficiency and competitiveness.

The General Agreement on Trade in Services stipulates that the international trade in services specifically includes four ways:

Cross-border supply;

(2) Consumption Abroad;

⑶ commercial existence (Commercial Presence);

⑷ natural mobility (Movement of Natural Persons).

The GATS listed services include the following 12 departments: Business, Communications, Construction, Sales, Education, Environment, Finance, Health, Tourism, Entertainment, Transportation, Others, specifically divided into more than 160 sub-sectors. The Agreement sets out the steps to be followed by the common obligations and principles, consultations and dispute settlement that members must follow.

In accordance with the provisions of the Agreement, the WTO established the Council for Trade in Services, which is responsible for the implementation of the Agreement.

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