The General Agreement on Trade in Services (GATS) is a set of international regulations that were developed to govern the way in which countries conduct trade in services. The GATS was created as part of the World Trade Organization (WTO), which is an international organization designed to promote global trade.
The framework agreement of the GATS sets out the basic principles that govern trade in services. These principles include the obligation of member countries to provide access to their domestic markets for foreign service providers, the prohibition of discriminatory practices, and the requirement for transparency in the regulation of services.
One of the key objectives of the GATS is to promote the liberalization of trade in services. This means that member countries are required to gradually remove barriers to trade in services. This can be achieved through a process of negotiations and the development of specific commitments by member countries.
To become a member of the GATS, a country must first make specific commitments relating to the liberalization of trade in services. These commitments are known as schedules of specific commitments. Countries may choose to make commitments in certain sectors of the economy or for specific types of services.
The GATS also provides for the protection of certain fundamental public policy objectives, such as the protection of public health or the environment, and ensures that member countries have the right to regulate their service sectors in the public interest.
Overall, the general agreement on trade in services provides a framework for the liberalization of trade in services, while also ensuring that member countries have the right to regulate their service sectors in the public interest. The GATS has played a significant role in promoting global trade in services and has helped to create a more open and transparent international trading system.
