Operating within the framework of the World Trade Organization (WTO), the General
Agreement on Trade in Services (GATS) carries significant implications for international
trade in services By encouraging member states to move barriers to cross-border movement
of businesses, GATS seeks to facilitate such trade liberalization . The core principles of
GATS are nationalization, which obliges states to treat foreign workers more favorably than
their domestic counterparts, and market access, which imposes restrictions on the provision
of foreign services encourage a reduction in GATS takes a sector-specific approach, allowing
countries to gradually grant sectors with selectors. Importantly, it addresses the development
needs of countries, and allows developing countries the flexibility to shape the pace and
scope of their independence commitments The Convention addresses various aspects of trade
and allocates services based on four modes of delivery. Furthermore, GATS recognizes the
regulatory autonomy of member states, and protects their right to regulate services for
national policy objectives. With a dispute resolution mechanism in place, GATS helps to
streamline the overall trade and business processes, providing a comprehensive and balanced
approach to global trade.
The General Agreement on Trade in Services (GATS) is an integral part of the World Trade
Organization (WTO) system, which focuses on the liberalization of international trade in
services Here are some of the implications of GATS:
Trade liberalization in the industry: GATS aims to promote freedom of trade in the industry
by removing barriers and restrictions that impede cross-border movement of goods.
Domestic treatment: GATS member states are not required to treat foreign manufacturers
more favorably than their domestic actors. This principle is known as national remedy and is
intended to prevent discrimination in foreign employment.
Market Promotion: GATS addresses market access issues by encouraging member states to
reduce or eliminate restrictions on the provision of foreign services , and ensure equitable
access to each other’s service markets.
Progressive Liberalization:GATS enables countries to negotiate commitments in any sector,
and encourages a process of gradual liberalization in which countries can choose which
sectors they wish to open to foreign competition . . . .
