What is the WTO Agreement on Trade in Services?
The WTO Agreement on Trade in Services (also known as the General Agreement on Trade in Services, or GATS) is an international treaty that sets guidelines for international trade between countries in services and services-related investments. This agreement was established by the World Trade Organization (WTO) in 1995 to promote free and fair trade in services. The agreement covers a wide range of services including, but not limited to, banking, financial services, construction, telecommunications, and tourism. GATS also includes provisions that promote foreign investment in these sectors and the free movement of natural persons to provide services. GATS sets out general rules and disciplines for international trade in services such as transparency, most-favored-nation treatment (MFN), national treatment, and market access. Transparency requires WTO members to publish laws and regulations related to trade in services. MFN requires WTO members to provide the same treatment for services and service providers from any other WTO member. National treatment guarantees that services and service providers from another country will not be subject to a less favorable treatment than domestic services or service providers. Market access requires WTO members to allow services and service providers to enter their markets. The WTO Agreement on Trade in Services is important for Delaware and the US economy because it encourages foreign investment, promotes competition, and allows US companies to access foreign markets. Additionally, by protecting the rights of Delaware companies and individuals to provide services abroad, GATS provides a more level playing field for Delaware businesses and workers.
Related FAQs
What is the WTO Agreement on Trade-Related Investment Measures (TRIMs)?What is the North American Free Trade Agreement (NAFTA)?
How do countries negotiate trade agreements?
What are the key differences between Customs and Tariff laws?
What is the impact of trade on the environment?
What is the most effective way of resolving disputes over international trade?
What is the Trans Pacific Partnership (TPP)?
What is the purpose of the Bali package?
What are the advantages and disadvantages of international trade?
What is the WTO Agreement on Sanitary and Phytosanitary Measures?
Related Blog Posts
Introduction to International Trade Law & Its Benefits - Key Considerations for Businesses - July 31, 2023A Comprehensive Overview of WTO Rules and Regulations - August 7, 2023
Navigating the Tangled Web of International Trade Regulation - August 14, 2023
The Different Types of International Trade Agreements - August 21, 2023
Using Investment Treaties to Facilitate Cross-Border Transactions - August 28, 2023