Question

Discuss the General Agreement on Trade in Services (GATS) in terms of the framework agreement, the GATS Annexes and the GATS Schedules of Specific Commitments and consider whether “Progressive Liberalisation” is a realistic long-term objective for GATS. (7 marks. Word limit Maximum 450 words)

I am from Australian institute so that please provide the answer in accordance

Answer 1

Ans- The General Agreement on Trade in Services is a treaty of the World Trade Organization which entered into force in January 1995 as a result of the Uruguay Round negotiations.

The GATS was inspired by essentially the same objectives as its counterpart in merchandise trade, the General Agreement on Tariffs and Trade (GATT) which seeks creating a credible and reliable system of international trade rules; ensuring fair and equitable treatment of all participants (principle of non-discrimination); stimulating economic activity through guaranteed policy bindings; and promoting trade and development through progressive liberalization.

The GATS allows members to negotiate regional trade agreements in services, on condition that these are comprehensive in their scope and do not increase barriers to service suppliers of other WTO members.These duly got under way and were rolled into the Doha Round of trade negotiations that began in 2001.

The Annex applies to measures affecting natural persons who are service suppliers of a Member, and natural persons of a Member who are employed by a service supplier of a Member, in respect of the supply of a service.

The schedules are complex documents in which each country identifies the service sectors to which it will apply the market access and national treatment obligations of the GATS and any exceptions from those obligations it wishes to maintain.  

Progressive liberalization is a one way street to a world where everything is privately owned where governments serve a corporate ideal, their every "measure" geared always towards enhancing their profits.(source).

The GATS text commits WTO Members to achieving a progressively higher level of liberalisation through successive GATS negotiating rounds. Thus, the GATS text is itself not neutral; it assumes liberalisation is generally beneficial and seeks to expand its adoption as economic policy. Critics argue that this feature of GATS means that, even if a country chooses not to liberalise a sector in the current GATS 2000 round, it will come under pressure to liberalise that sector - or remove existing limitations if the sector has already been partially liberalised - at some point in the future. A number of GATS proponents argue that 'progressive liberalisation does not mean that the inevitable long-term outcome of GATS is total liberalisation.