Which Of The Following Is True Of The General Agreement On Trade In Services (Gats)

Transparency: GATS members are required, among other things, to publish all measures of general application and to set up national investigative bodies to respond to requests for information from other members. While the overall goal of the GATS is to remove barriers to trade, members are free to decide which sectors will be progressively “liberalized” (i.e. commercialized and privatized); What type of delivery would apply to a particular sector and to what extent this “liberalisation” will take place over a fixed period of time. Members` obligations are governed by a ratchet effect: obligations are unilateral and cannot be terminated after resolution. The reason for the rule is to create a stable business climate (i.e. a market). However, Article XXI allows members to withdraw their commitments and, so far, two members have made use of this option (the United States and the EU). In November 2008, Bolivia announced that it was withdrawing its health commitments. Some activist groups believe that GATS risks undermining the ability and authority of governments to regulate commercial activities within their own borders, which will lead to the flight of power from the commercial interests of citizens. In 2003, the GATSwatch network published a critical opinion, supported by more than 500 organizations in 60 countries. [1] At the same time, countries are not required to enter into international agreements such as the GATS. For countries that like to attract trade and investment, GATS adds a degree of transparency and legal predictability. Legal barriers to trade in services may have legitimate political reasons, but they can also be an effective instrument for large-scale corruption.

[2] Most nations have adopted the nation`s most preferred principle when setting tariffs, which has largely replaced quotas. Tariffs (preferably quotas, but still an obstacle to trade) have in turn been constantly reduced in successive rounds of negotiations. Members are free to tailor the coverage of the sector and the content of these commitments as they see fit. Commitments therefore generally reflect the objectives and constraints of national policy as a whole and in different sectors. While some members have provided fewer than a handful of services, others have adopted market access and national processing disciplines in more than 120 services out of a total of 160. If you have any questions about this agreement or its use, you can send an email to the Office of Trade Agreements Negotiations and Compliance, which sends your message to the Department of Commerce`s supervisory officers designated for the GATS. You can also contact the control manager at: One of the main achievements of GATT has been indiscriminate trade. Any GATT signatory should be treated like any other, known to be the nation`s most privileged principle and entered into the WTO. The practical result was that, once a country had negotiated a tariff reduction with some other countries (usually its major trading partners), this reduction would automatically apply to all GATT signatories. There were escape clauses under which countries could negotiate exemptions if their domestic producers were particularly harmed by tariff reductions.

The GATS agreement includes four types of service provision in cross-border trade:[3] 5. Which of the following does not apply to the General Agreement on Trade in Services (GATS)? While the concept of progressive liberalisation is one of the fundamental principles of the GATS, Article XIX provides that liberalisation takes place in accordance with national political objectives and the level of development of members, both in the various sectors and in the various sectors.