- Existing Multilateral Disciplines on Trade in Services First agreement of multilateral and legally-enforceable rules aimed at the liberalisation of trade in services. The General Agreement on Trade in Services (GATS)

Key Features of GATS Progressive liberalisation of trade in services Progressive liberalisation of trade in services Basic principles inspired in disciplines applied to trade in goods Basic principles inspired in disciplines applied to trade in goods Specific commitments are to be bargained for, much like tariff bindings and rates in the GATT. Specific commitments are to be bargained for, much like tariff bindings and rates in the GATT. Institutional Provisions: Similar to trade in goods Institutional Provisions: Similar to trade in goods Annexes: Sectorial commitments. Annexes: Sectorial commitments.

Structure, Principles and Rules of the GATS Scope and Definition Scope and Definition General Obligations and Disciplines General Obligations and Disciplines Specific Commitments Specific Commitments Progressive Liberalization Progressive Liberalization Institutional provisions Institutional provisions Final Provisions Final Provisions Annexes: Article II exemptions, Movement of natural persons, Air Transport, Financial Services, Second Annex on Financial Services, Annex on Negotiations on Maritime Transport, Annex on Telecommunications, Annex on Negotiations on basic Telecommunications. Annexes: Article II exemptions, Movement of natural persons, Air Transport, Financial Services, Second Annex on Financial Services, Annex on Negotiations on Maritime Transport, Annex on Telecommunications, Annex on Negotiations on basic Telecommunications.

Scope and Definition Article I Trade in services: Trade in services:  From the territory of one Member into the territory of other Member  In the territory of one Member to a service consumer of any other Member  By a service supplier of one Member, through commercial presence in the territory of another Member  By a service supplier of one Member through the presence of natural persons of a Member in the territory of another Member  Applies to all measures at every level of government and non-governmental bodies in the exercise of delegated powers, except services provided in the exercise of governmental authority and most air transport. (General Exceptions: Article XIV, Security Exceptions: Article XIV bis)

General Obligations Most-Favoured-Nation treatment (Art.II) Most-Favoured-Nation treatment (Art.II) Annex on Article II exemptions Annex on Article II exemptions Economic Integration (Article V) Economic Integration (Article V)  Transparency (Article III): publication, notification, enquiry points.  Increasing Participation of Developing Countries (Art. IV): Negotiated best endeavour clause - “shall be facilitated through negotiated specific commitments”

Key Features of GATS Disciplines Four modes of supply of services, Four modes of supply of services, For each mode of supply, a country can offer either a full or partial commitment For each mode of supply, a country can offer either a full or partial commitment Transparency provisions Transparency provisions Avoidance of Restrictions on Foreign Investment Avoidance of Restrictions on Foreign Investment Provisions pertaining to individual Sectors Provisions pertaining to individual Sectors Market Access Market Access

General Disciplines Recognition of standards, authorization, licensing or certification (Article VII): adequate opportunity to negotiate agreements, non-discrimination. Recognition of standards, authorization, licensing or certification (Article VII): adequate opportunity to negotiate agreements, non-discrimination. Monopolies and Exclusive Services Suppliers (Article VIII): assure behaviour consistent with Article II and specific commitments. Monopolies and Exclusive Services Suppliers (Article VIII): assure behaviour consistent with Article II and specific commitments. Business Practices (Article IX): provides for consultations with a view of eliminating competition and trade restricting practices. Business Practices (Article IX): provides for consultations with a view of eliminating competition and trade restricting practices. Restrictions to safeguard Balance of payments (Article XII) Restrictions to safeguard Balance of payments (Article XII)

Specific Commitments Adopted through negotiations under Article XIX, positive listing provides for inscribing reservations. Adopted through negotiations under Article XIX, positive listing provides for inscribing reservations.  Market Access (Article XVI) National Treatment (Article XVII) National Treatment (Article XVII) Additional Commitments (Article XVIII) Additional Commitments (Article XVIII) Inscribed in the Schedules of Specific Commitments Article XX, possible modification of schedules as provided by Article XXI Inscribed in the Schedules of Specific Commitments Article XX, possible modification of schedules as provided by Article XXI Negotiations shall respect national policy objectives, take account of levels of development, there shall be appropriate flexibility for developing countries, right to regulate quaranteed. Negotiations shall respect national policy objectives, take account of levels of development, there shall be appropriate flexibility for developing countries, right to regulate quaranteed.

Disciplines Related to Specific Commitments Domestic Regulation (Article VI) Domestic Regulation (Article VI) non-discriminatory measures administered in a reasonable, objective and impartial manner. Negotiations of disciplines on DR (VI:4) non-discriminatory measures administered in a reasonable, objective and impartial manner. Negotiations of disciplines on DR (VI:4) Payments and Transfers (Article XI) Payments and Transfers (Article XI)

Special and Differential Treatment for developing countries in GATS Preamble: GATS should be applied in a way that facilitates the participation of developing countries in trade in services and their expansion of service exports. Preamble: GATS should be applied in a way that facilitates the participation of developing countries in trade in services and their expansion of service exports. Article V: More favourable treatment may be granted to firms of developing countries that are members of a regional trade agreement. Article V: More favourable treatment may be granted to firms of developing countries that are members of a regional trade agreement. …

Special and Differential Treatment for developing countries in GATS Article IV: Developed countries are committed to establish contact points to facilitate access to information. Article IV: Developed countries are committed to establish contact points to facilitate access to information. More development-oriented approach than previous Multilateral Agreements. Market Access and National Treatment are negotiated concessions. Positive List: Art. XIX. More development-oriented approach than previous Multilateral Agreements. Market Access and National Treatment are negotiated concessions. Positive List: Art. XIX.

Regional Integration Regional Integration Article V recognises the rights of Members to be part of agreements that liberalise trade in services. When only developing countries are involved, it is explicitly recognised that more favourable treatment may be granted to firms from these countries. (See attached power point presentation) Article V recognises the rights of Members to be part of agreements that liberalise trade in services. When only developing countries are involved, it is explicitly recognised that more favourable treatment may be granted to firms from these countries. (See attached power point presentation)

Unfinished Business: The built in agenda Rule-Making Rule-Making o Emergency safeguard Measures (Article X) o Government Procurement (Article XIII) o Subsidies (Article XV)  Domestic Regulation (Article VI:4)

The “Unfinished Agenda” cross-cutting issues (rules) cross-cutting issues (rules) sectoral agreements sectoral agreements functional policy areas such as labour mobility. functional policy areas such as labour mobility.