GATS

(General Agreement on
trade in services)
Case study &
Its implications in international business
INTRODUCTION
• Operative from 1st Jan 1995
• ‘Important achievement’ of Uruguay round
• Extended internationally rule &
commitment in the international trade in
services.
GATS EXTENTION….
• Its rule extent to all forms of international
trade in services; except
“services supplied in the exercise of
Govt. authority”
Modes of supply:-
• Cross border
• Consumption abroad
• Commercial presence
• Presence of natural persons.
Area:-
• Economic reforms are taking place in India
in a number of Services sector such as
Financial Services, Telecom Services, Air
Transport Services, Education Services,
Health Services, Postal Services,
Professional Services.
Cont….

• Financial Services

- RBI road map for liberalizing presence of

foreign banks in India.

- Reforms undertaken by IRDA: Foreign

equity up to 26% permitted in Insurance
sector.
Cont….
• Telecom Services
- FDI limit raised to 74% in recent policy
reforms
• Postal Services
- Amendment to the Indian Postal Act
proposed with the objective to regulate
Courier Services.
• Air Transport services.
- Private sector participation in Delhi and
Mumbai airports
Cont…..

• Education Services
- Foreign Education Providers Bill under
consideration of the Government

• Health Services

- MRAs being proposed with Singapore

- Proposal mooted to raid various private

hospital.
GENERAL OBLIGATIONS AND
DISCIPLINES
• Article II Most-Favoured-Nation Treatment
• Article III Transparency
• Article III Disclosure of Confidential
Information
• Article IV Increasing Participation of
Developing Countries
• Article V Economic Integration
• Article V Labour Markets Integration
Agreements
Cont………..
• Article VI Domestic Regulation
• Article VII Recognition
• Article VIII Monopolies and Exclusive Service
Suppliers
• Article IX Business Practices
• Article X Emergency Safeguard Measures
• Article XI Payments and Transfers
• Article XII Restrictions to Safeguard the Balance of
Payments
• Article XIII Government Procurement
• Article XIV General Exceptions
• Article XIV Security Exceptions
• Article XV Subsidies