The General Agreement on Trade in Services (GATS) is a comprehensive framework that provides guidelines and rules for international trade in services. The agreement covers various sectors, including telecommunications, finance, tourism, and professional services, among others. GATS sets a level playing field for service providers in different countries, enabling them to access markets and compete on equal terms. In this article, we will explore the 161 tradable services covered under GATS.
GATS divides services into four modes: cross-border supply, consumption abroad, commercial presence, and movement of natural persons. Cross-border supply involves services that are traded over the internet or other electronic means. Consumption abroad includes services that are consumed outside the provider`s country. Commercial presence covers services provided by foreign firms through subsidiaries, joint ventures, or affiliates located in the host country. Finally, movement of natural persons refers to the temporary movement of individuals to provide services in another country.
Under these four modes, GATS covers 161 tradable services. These services are broadly classified into 12 sectors, including business, communication, construction and related engineering services, distribution, education, environmental services, financial services, health-related and social services, tourism and travel-related services, recreational and cultural services, transport services, and other services not included elsewhere.
In the business sector, GATS covers accounting, legal, and management consulting services. Communication services include audiovisual, courier, and telecommunications services. Construction and related engineering services cover architectural, engineering, and surveying services. Distribution services include wholesale and retail trade services. Education services cover primary, secondary, and higher education services. Environmental services include sewage services and refuse disposal services.
Financial services are an essential component of GATS. The agreement covers banking and other financial services, including insurance and pension services. Health-related and social services cover hospital and social work services. Tourism and travel-related services include hotel and restaurant services, tourism promotion, and travel agencies. Recreational and cultural services cover services related to sports, entertainment, and museums. Transport services include air, sea, and land transport services. Finally, other services not included elsewhere cover services such as advertising, consultancy, and research and development services.
In conclusion, GATS covers 161 tradable services that are essential for the smooth functioning of the global economy. The agreement provides a framework for international trade in services, enabling service providers to access markets and compete on equal terms. By covering a broad range of sectors and services, GATS promotes economic growth and development, benefiting all stakeholders. As the world becomes more interconnected, GATS will continue to play a critical role in promoting international trade in services.