GENERAL

AGREEMENT ON
TRADE IN
SERVICES
(GATS)
 SCOPE OF PRESENTATION

 INTRODUCTION
 MAIN PRINCIPLES AND SCOPE
 RELATED SECTORS AND SUB SECTORS
 HOW DOES GATS WORK?
 MODES OF TRADE
 GATS AND PUBLIC SERVICES
 GATS AND HEALTH CARE SYSTEMS
 CONCLUSION
 WHAT IS GATS

 The General Agreement on Trade in Services (GATS) was negotiated

under the Uruguay Round in the Context of single undertaking.

 It lays down rules and disciplines covering multilateral international

trade in services.

 The Agreement came into effect in 1995 and is part and parcel of the
WTO agreements.

 Provides for Most favoured nation and national treatment

 MAIN PRINCIPLES

 GATS follows many main principles of the original GATT

 The aim is to ensure progressive market liberalization and non-

discrimination between members

 GATS cover almost all services, in total 155 service sectors

 Does not cover services supplied in the exercise of government

authority
 RELATED SECTORS & SUB SECTORS OF GATS

 Business Services
a) professional services
- Medical and Dental Services
- Midwives, nurses, paramedical services

 Financial Services
- All insurance and insurance-related services

 Health Related and Social Services

a) Hospital Services
b) Other Human health services
 HOW DOES GATS WORK?

 Successive rounds of negotiations “ with a view of achieving a

progressively higher level of liberalization” in their service sector.

 WTO members make liberalization requests/offers of other member

countries in liberal secret meetings in Geneva.
 MODES OF TRADE

 Cross-border supply

 Consumption abroad

 Commercial Presence

 Movement of natural persons

 CROSS BORDER SUPPLY
Nbnbb

Service Supplier Service Consumer

Supplies service from Receives service in

territory of one territory of any other
country country

MODE MEANING EXAMPLE

Cross- border Trade takes place from - Tele Health

Trade The territory of country A - Passing of information
into that of B. by means of fax or mail
 CONSUMPTION ABROAD

Nbnbb
Service Supplier

Service Consumer Service Consumer

Receives service
territory of supplier

MODE MEANING EXAMPLE

Services consumed by - Tourism
Consumption nationals of country A in - Consumers who cross
Abroad territory of country B. borders to obtain
medical treatment
 COMMERCIAL PRESENCE
Nbnbb

Service Supplier Service Supplier

Receives service
territory of supplier

Service Consumer

MODE MEANING EXAMPLE

A service supplier of country - Establishment of a
Commercial A cross the border to private hospital by a
Presence establish and provide a European company in
service in country B. Ecuador
 MOVEMENT OF NATURAL PERSONS
Nbnbb

Service supplied
through presence of
natural persons of
one country in
territory of another
country
Service Consumer

MODE MEANING EXAMPLE

Temporry movement from Doctors moving to
Movement of country A to B to supply a another country to
Natural Persons service temporarily provide their
services
 GATS & PUBLIC SERVICES

 GATS does not apply to services “supplied in the exercise of

government authority

 A service is supplied in the exercise of governmental authority “only

when it is supplied neither on commercial basis nor in competition
with one or more service suppliers”

 GATS does not remove a government’s right to regulate services in its

country.

 Government regulation of a service should be “not more burdensome

than necessary to ensure to quality of service”
 GATS & HEALTH CARE SYSTEMS
Nbn MODE OF TRADE HEALTH SERVICES
bb
1) Cross- border supply - Telemedicine

2) Consumption abroad - Patients seeking health care in

foreign countries.
- Medical health educational services
provided to foreign students.

3) Commercial Presence - Foreign commercial presence:

a. In hospital operation/ management
sector
b. In the health insurance/education
sector

4) Presence of natural persons - Temporary movement of medical

health professionals to provide
services abroad.
 CONCLUSION

GATS is “ first and foremost, an instrument for the benefit of

business, and not only for business in general, but for individual
service companies wishing to export services or to invest and
operate abroad.
 REFERENCES

 https://www.slideshare.net/DhanyaAgri/gats-65497242

 https://www.coursehero.com/file/32557888/GATS-PPTppt/

 https://
www.international.gc.ca/trade-agreements-accords-commerciaux/wto-
omc/gats-agcs/index.aspx?lang=eng