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Rules for Trade in Services

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Chapter Summary

With the introduction of the General Agreement on Trade in Services (GATS), which entered into force on 1 January 1995, trade in services was added to the world trade order, which had previously been applicable only to goods. Art 1:3 lit. b GATS sets out what should be understood as a service: the GATS includes all services with the exception of those supplied in the exercise of governmental authority. The very ambitious (on account of its broad scope) legal framework of the GATS touches matters traditionally embedded into national economic and legal systems, and therefore have far-reaching provisions for national regulation. The GATS contains provisions and standards not only for trade in services and for monopolies and competition procedures, but also on financial transactions, establishment and entry. The GATS addresses matters concerning continuing liberalization more directly than the General Agreement on Tariffs and Trade (GATT) 1994.

Keywords: General Agreement on Tariffs and Trade; General Agreement on Trade in Services; legal systems; liberalization; national economic systems

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