Services: Introduction to WTO General Agreement on Trade in Services (GATS)
What is the GATS?
• The GATS sets out a framework of rules governing the conduct of international trade in services. These rules are legally binding on WTO Members including the UK and are supplemented by schedules of commitments for each WTO Member, detailing which sectors are liberalised in accordance with the GATS. These schedules are an integral part of the GATS. Together, the provisions of the GATS and the commitments scheduled by WTO Members represent a level of liberalisation in services markets to which WTO Members are bound. Further information is available on the WTO website, please use the related link on the right of this page
How do negotiations under the GATS operate?
• WTO Members choose in which sectors to offer binding commitments in response to requests from other WTO Members – this is known as the “request and offer” approach. Commitments are made in schedules opening up only the sectors included – this is known as the “positive list” or “bottom-up” approach.
• Agreement is not reached until all Members are satisfied with the totality of the package being offered.
• This does not prevent any country from making commitments unilaterally or liberalising autonomously at any time.
Why is services liberalisation important to the UK economy?
• The UK economy is underpinned by a highly competitive services sector. Increased liberalisation of global service markets offers the UK significant economic opportunities.
• Access to competitive sources of high quality infrastructure, transport, financial and other professional services, which the UK is well placed to provide, are vital to benefit developing countries economically.
• Consumers will gain better choice, value and quality from the effect of greater competition.
• Businesses will become more efficient in response to competitive pressures, which boost overall productivity, exports and prosperity.
Barriers to trade in services
• Although UK markets are largely open to foreign service suppliers, many markets around the world have significant barriers to trade in services, more so than goods. For the most part these barriers are mainly found in countries domestic regulation rather than at the border.
• Outside of WTO negotiations, the UK is supporting efforts to improve market access opportunities and dismantle trade barriers in other countries. A possible lever for achieving this objective is the EU’s Market Access Strategy and its associated Market Access Partnership (for further details please see the BERR Market Access page using the related link on the right of this page.
For further details please contact:
Andrew Dey
Tel: 020 7215 5590
Fax: 020 7215 4512
Email: andrew.dey@berr.gsi.gov.uk
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