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Ceneral AgreemenL on 1rade ln Servlces

W ls a LreaLy of Lhe World 1rade CrganlzaLlon
(W1C) LhaL enLered lnLo force ln !anuary 1993
as a resulL of Lhe uruguay 8ound negoLlaLlons
W 1he LreaLy was creaLed Lo exLend Lhe
mulLllaLeral Lradlng sysLem Lo servlce secLor ln
Lhe same way Lhe Ceneral AgreemenL on
1arlffs and 1rade (CA11) provldes such a
sysLem for merchandlse Lrade
W All members of Lhe W1C are slgnaLorles Lo Lhe
CA1S 1he baslc W1C prlnclple of mosL
favoured naLlon (Mln) applles Lo CA1S as
well Powever upon accesslon Members may
lnLroduce Lemporary exempLlons Lo Lhls rule
PlsLorlcal background
lour Modes of Supply
W (Mode 1) Cross border Lrade whlch ls deflned as dellvery of a
servlce from Lhe LerrlLory of one counLry lnLo Lhe LerrlLory of oLher
counLry
W (Mode 2) ConsumpLlon abroad Lhls mode covers supply of a
servlce of one counLry Lo Lhe servlce consumer of any oLher
counLry
W (Mode 3) Commerclal presence whlch covers servlces provlded
by a servlce suppller of one counLry ln Lhe LerrlLory of any oLher
counLry and
W (Mode 4) resence of naLural persons whlch covers servlces
provlded by a servlce suppller of one counLry Lhrough Lhe presence
of naLural persons ln Lhe LerrlLory of any oLher counLry
W
SecLors addressed
CrlLlclsms
W A naLural person ls a human belng as dlsLlncL from legal persons such as companles or
organlsaLlons CounLrles can freely declde where Lo llberallze on a secLorbysecLor basls lncludlng
whlch speclflc mode of supply Lhey wanL Lo cover for a glven secLor
W
W 1he Lourlsm secLor Lhe flnanclal servlces secLor and Lhe LelecommunlcaLlons servlces secLor are
examples of servlces secLors
W
W uurlng Lhe uruguay 8ound of Lhe Ceneral AgreemenL on 1arlffs and 1rade (CA11) Lhe Ceneral
AgreemenL on 1rade ln Servlces was drafLed and became enshrlned as one of Lhe four plllars of Lhe
lnLernaLlonal LreaLy comprlslng Lhe World 1rade CrganlzaLlon AgreemenL ln 1993
W
W 8eglonal Lrade ln servlces agreemenLs are also negoLlaLed and slgned beLween reglonal economlc
grouplngs such as CA8lCCM norLh Amerlcan lree 1rade AgreemenL (nAl1A) and ASLAn
W
W Some examples of Lrade ln servlce would be banklng checkups done by a docLor and l1
(lnformaLlon Lechnology)