What is GATS?
The General Agreement on Trade in Services:
- an international trade agreement of the World Trade Organisation (WTO)
- establishes the trade rules governing cross-border trade in services for WTO member countries that are supposed to make it easier for services and service providers to move from one country to another.
- failure of any WTO member to adhere to GATS rules may open them up to dispute settlement proceedings in the WTO, or even a trade war with sanctions.
Where did GATS come from?
GATS was negotiated during the 1986-1994 international trade negotiations, the so-called Uruguay Round. Developed countries wanted a set of international trade rules similar to the GATT (General Agreement on Trade and Tariffs, the thing we had before the WTO, which dealt with trade in goods) that would apply to trade in services - especially banking, telecommunications, and financial services. Many developing countries wanted rules to ensure their citizens could take their labour into developed countries to be included. This resulted in the current GATS, which took effect on 1 January 1995 along with all the other WTO agreements and rules.
GATS 2000 negotiations
- GATS requires WTO Members to embark on additional negotiations to further liberalise trade in services. The latest round of GATS negotiations was launched in 2000.
- current negotiating work program for the WTO agreed in Doha, Qatar, in November 2001 - known as the "Doha Development Round", as it is supposed to address issues of sustainable development around the world.
- "requests phase" - on 30 June 2002, Members submitted their initial requests of areas they wished other countries to "open up"
- "offers phase" - by 31 March 2003, Members are now expected to respond to these requests by submitting offers of areas they agree to open up
- then phase of negotiating what is left - whole process is scheduled to finish by 1 January 2005.
What does "services" mean in GATS-speak?
- GATS defines "services" as "any service in any sector except services supplied in the exercise of governmental authority" (GATS Art. I:3(b))
- Put simply services are known as anything you can't drop on your foot. This includes everything from rail transport to sports referees, which is why GATS has such huge potential to affect people's lives.
- All services sectors are initially covered except those sectors supplied "neither on a commercial basis, in competition with one or more service suppliers". This could include public services that have some element of private sector involvement such as health and education.
Who are the major players in the GATS negotiations?
- industrialised countries such as the US, the EU (both as whole as and individual countries)
- Japan - most active, seeking further and faster GATS liberalisation.
- see www.gatswatch.org for the EU's leaked draft GATS requests - gives clear indication of the extent of services liberalisation sought by the EC.
Who else is pushing for GATS?
- professional lobby organisations representing the services industries in the EU and the US (like the European Services Forum and the US Coalition of Services Industries).
Adapted from FoE - GATS Primer: Understanding the WTO General Agreement on Trade in Services (Nov 2002)
Further Reading on GATS
WDM briefing: Stop the GATSastrophe (July 01)
WDM briefing: Out of Service (March 02)
P&P briefing: What's Wrong with the GATS (Jan 01)
FoE briefing: GATS Gotta Go (Nov 02)
FoE: GATS Primer (Nov 02)
These briefings are available at the respective websites:
FoE: www.foe.co.uk/campaigns/global_trade
WDM: www.wdm.org.uk/campaign/GATS.htm
P&P: www.peopleandplanet.org/tradejustice/
Information also available at:
GATSWatch: www.gatswatch.org