Trade in Services (Course, Master)

The objectives of the subject “Trade in Services. General Agreement on Trade in Services (GATS)” are the following:

1. To understand the importance of the General Agreement on Trade in Services (GATS)
2. To understand the key concepts related to the trade in services: modes of supply, most-favoured-nation, liberalisation, market access, and lists of commitments
3. To analyse the global market in services

Description: International Trade in Services. General Agreement on Trade in Services (GATS)

Since 1995 the General Agreement on Trade in Services (GATS) is in force. The main objective is to liberalise the foreign trade in services (exports and imports) transparently to increase the world trade.

The General Agreement on Trade in Services (GATS) covers all the exportable services (the WTO identifies twelve basic sectors and 160 sub-sectors): tourism, business services, information technology, transport, finance, education, architecture, telecommunications, healthcare, insurance, construction, engineering, distribution, environmental, cultural, and sporting services.

The General Agreement on Trade in Services (GATS) seeks to promote the trade in services of the developing countries.

1. In the developed economies, the services sector accounts for an average of 70% of the GDP, while in the developing countries is often below 50%.
2. The United States is the largest global services exporter (14% of the total), followed by the United Kingdom (6%), Germany (6%), China, France, India, Japan, and Spain.

Under the General Agreement on Trade in Services (GATS) the most- favoured-nation may apply.

The General Agreement on Trade in Services (GATS) identifies four modes in the form of providing a service abroad:

1. Cross-border trade
2. Consumption abroad
3. Commercial presence
4. Presence of natural persons

The General Agreement on Trade in Services (GATS) is perfectly compatible with Regional Trade Agreements (RTAs): Free Trade Agreements (FTAs) and Economic Partnership Agreements (ACE).

In many FTAs usually, we will find chapters on trade in services and labour markets so that we will analyse the US-Colombia FTA and the EU-Mexico FTA.

Non-tariff Measures

1. Sanitary and Phytosanitary Measures (SPS)
   1. WTO Agreement on the Application of Sanitary and Phytosanitary Measures (SPS)
2. Pre-shipment Inspection
   1. WTO Agreement on Preshipment Inspection (PSI)
   Technical Barriers to Trade (TBT)
   1. WTO Agreement on Technical Barriers to Trade (TBT Agreement)
3. Contingent trade-protective measures (Anti-dumping Measures, Safeguards)
   1. WTO Agreement on Safeguards (SG)
4. Non-automatic Import licensing, quotas and prohibitions

Trade Facilitation

1. WTO Trade Facilitation Agreement (TFA)
2. World Customs Organisation (WCO)
3. Revised Kyoto Convention (RKC)
4. International Convention on the Harmonization of Frontier Controls of Goods (UNECE)

The World Trade Organisation member states: Albania, Angola, Antigua and Barbuda, Argentina, Armenia, Australia, Austria, Bahrain, Bangladesh, Barbados, Belgium, Belize, Benin, Bolivia, Botswana, Brazil, Brunei Darussalam, Bulgaria, Burkina Faso, Burundi, Cambodia, Cameroon, Canada, Cape Verde, Central African Republic, Chad, Chile, China, Colombia, Costa Rica Croatia, Cuba, Cyprus, Czech Republic, Democratic Republic of the Congo, Denmark, Djibouti, Dominica, Dominican Republic, Ecuador, Egypt, El Salvador, Estonia, Eswatini (Swaziland), European Union, Fiji, Finland, France, Gabon, Gambia, Georgia, Germany, Ghana, Greece, Grenada, Guatemala, Guinea, Guinea-Bissau, Guyana, Haiti, Honduras, Hong Kong, Hungary, Iceland, India, Indonesia, Ireland, Israel, Italy, Ivory Coast, Jamaica, Japan, Jordan, Kazakhstan, Kenya, Kuwait, Kyrgyz Republic, Laos, Latvia, Lesotho, Liberia, Liechtenstein, Lithuania, Luxembourg, Macau, Macedonia, Madagascar, Malawi, Malaysia, Maldives, Mali, Malta, Mauritania, Mauritius, Mexico, Moldova, Mongolia, Montenegro, Morocco, Mozambique, Myanmar, Namibia, Nepal, Netherlands, New Zealand, Nicaragua, Niger, Nigeria, Norway, Oman, Pakistan, Panama, Papua New Guinea, Paraguay, Peru, Philippines, Poland, Portugal, Qatar, Republic of the Congo, Russian Federation, Romania, Rwanda, Saint Kitts and Nevis, Saint Lucia, Saint Vincent and the Grenadines, Samoa, Saudi Arabia, Seychelles, Senegal, Sierra Leone, Singapore, Slovakia, Slovenia, Solomon Islands, South Africa, South Korea, Spain, Sri Lanka, Suriname, Sweden, Switzerland, Taiwan, Tanzania, Tajikistan, Thailand, Togo, Tonga, Trinidad and Tobago, Tunisia, Turkey, Uganda, Ukraine, United Arab Emirates, United Kingdom, United States, Uruguay, Vanuatu, Venezuela, Vietnam, Zambia, Zimbabwe

1. Countries in process of accession to the World Trade Organization: Afghanistan, Algeria, Andorra, Azerbaijan, Bahamas, Belarus, Bhutan, Bosnia and Herzegovina, Comoros, Curacao, Ethiopia, Equatorial Guinea, Holy See, Iran, Iraq, Lebanon, Libya, Uzbekistan, Syria, São Tomé and Príncipe, Serbia, Somalia, Sudan, South Sudan, East Timor, Yemen
2. Government with observer status: Turkmenistan
3. Non-member country: North Korea