Agreement On Trade In Services (Gats) Focussed On

It`s a marketing specialty. With the privatization of pension fund management in Chile, Chilean financial service providers have become highly developed and successful. They are now exporting pension fund management services to other Latin American countries. Similarly, Ugandan engineers are successfully exporting their expertise in water supplier management to neighbouring countries. In a slightly different approach, China has developed an effective strategy to obtain technical assistance from industrialized countries and then re-sustain this export know-how to other developing countries. As far as services are concerned, the situation is more complex: in many cases, the supplier and the customer are on the same site as for tourism. This means that there are four possibilities for movement: the service moves across the border; The customer travels across the border to get the service. The manufacturer crosses the border to provide the service through a commercial agency; or the manufacturer only crosses the border temporarily to provide the service. As a result, the GATS agreement defines four “types of supply” for trade in services (see box). Only two sectors do not have significant investment potential: sectors that are constrained by the need for large reserves for hard currencies, such as financial services, insurance or reinsurance; and sectors controlled by cartel agreements, such as . B transport lanes.

Like the General Agreement on Tariffs and Trade (GATT), which deals with trade in goods, the GATS has two main objectives: first, to ensure that all signatories are treated fairly in terms of access to foreign markets; and second, the promotion of a gradual liberalisation of trade in services (over time, removal of trade barriers, in order to allow greater participation in the markets of the other). back-office operations with higher added value than basic data entry. This includes not only more traditional data collection and processing, but also electronic publishing, site design and management, customer call centre, medical records management, hotel reservations, credit card authorizations, remote secretarial services, online technical assistance, indexing and abstraction services. , research and technical writing as well as technical transcription. Manufacturers are increasingly attributing product design, logistics management, research and development, and support for after-sales service. Promote improved access for service companies in development and transition economies to projects funded by international financial institutions. The MFN applies to all services, but some specific temporary exemptions have been admitted. By the time GATS came into force, a number of countries had already entered into preferential agreements on services they had signed with trading partners, either in bilateral terms or in small groups. WTO members felt that it was necessary to maintain these preferences temporarily. They have given themselves the right to continue to give more favourable treatment to certain countries, particularly service activities, by listing exceptions to the MfN in addition to their first obligations.