Gats Agreement Is for Trade in

The General Agreement on Trade in Services, otherwise known as GATS, is a multilateral agreement that governs international trade in services. This agreement was established by the World Trade Organization (WTO) in 1995, and its aim is to promote fair and open trade in services between countries.

GATS covers a wide range of services, including telecommunications, transport, financial services, tourism, and professional services such as legal and accounting services. The agreement aims to remove barriers to trade in these services and to ensure that services are provided on a fair and non-discriminatory basis.

One of the key principles of GATS is that countries must treat foreign service providers in the same way as they treat their own domestic service providers. This means that foreign service providers should have the same access to local markets as domestic providers and be subject to the same regulations and standards.

Another important principle of GATS is that countries are allowed to regulate their service sectors in order to achieve certain public policy objectives, such as protecting consumers or promoting cultural diversity. However, these regulations must be applied in a non-discriminatory manner and must not be used as a means of protecting domestic service providers from foreign competition.

In order for a country to participate in GATS, it must make commitments to open up its service sectors to foreign competition. These commitments are known as “schedules of specific commitments”, and they outline which service sectors are open to foreign competition, what level of access foreign service providers will have, and any conditions or limitations on that access.

Overall, GATS is an important agreement that promotes fair and open trade in services between countries. By ensuring that foreign service providers have the same access to local markets as domestic providers, and by allowing countries to regulate their service sectors in a non-discriminatory way, GATS helps to create a level playing field for international trade in services.

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