The General Agreement on Trade in Services (GATS) is an international trade agreement that aims to liberalize trade in services among member countries of the World Trade Organization (WTO). The GATS was established in 1995 as a result of negotiations under the Uruguay Round of multilateral trade negotiations.
The agreement covers a wide range of services sectors, including financial services, telecommunications, transportation, tourism, and professional services. The GATS aims to promote the growth of international trade in services by reducing barriers to trade, such as restrictions on foreign ownership or limitations on the number of service providers in a given market.
One of the key principles of the GATS is the principle of national treatment, which requires member countries to treat foreign service providers in the same way as domestic service providers. This means that foreign service providers should be given equal access to markets and should not be subject to discriminatory treatment.
The GATS also allows member countries to negotiate and agree on specific commitments to liberalize trade in certain services sectors. These commitments are made on a country-by-country basis and are listed in each member country`s schedule of commitments.
However, the GATS does not cover all services sectors. Some services, such as public services, are excluded from the agreement. Additionally, member countries are allowed to maintain certain measures to protect the public interest, such as measures to ensure the quality and safety of services.
The GATS has been criticized by some for its potential impact on public services, such as healthcare and education. Critics argue that the agreement may lead to the privatization of public services and may limit the ability of governments to regulate these services in the public interest.
Despite these criticisms, the GATS has been seen as a significant step forward in liberalizing trade in services and promoting economic growth. The agreement has been credited with increasing the flow of international investment and helping to create new business opportunities for service providers.
In conclusion, the General Agreement on Trade in Services is an important international trade agreement that aims to liberalize trade in services among member countries of the World Trade Organization. While the agreement has been criticized by some for its potential impact on public services, it has also been credited with promoting economic growth and increasing the flow of international investment. As global trade continues to evolve, the GATS is likely to remain an important framework for regulating trade in services.