GATS, or the General Agreement on Trade in Services, is a vital component of the World Trade Organization (WTO) agreements. It helps promote fair competition and expansion of trade in services between member countries of the WTO.
GATS sets out rules and principles that member countries must follow when trading services. The agreement covers a wide range of services, including financial services, education, tourism, and communication services.
One of the primary objectives of GATS is to ensure that member countries do not discriminate against foreign service providers. This means that countries cannot favor their own domestic service providers over foreign ones, and they must treat foreign providers equally in terms of market access and conditions for doing business.
GATS also allows member countries to regulate services and adopt measures to protect the public interest. However, such regulations must be non-discriminatory and based on objective criteria.
Furthermore, GATS also provides a framework for member countries to negotiate and improve their commitments on trade in services. This means that countries can make specific commitments regarding liberalization of trade in particular service sectors, such as telecommunications or banking.
Overall, GATS plays a crucial role in facilitating trade in services and promoting fair competition between member countries of the WTO. By ensuring non-discriminatory treatment of foreign service providers and providing a framework for negotiations, GATS helps to promote economic growth and development around the world.