Answers:
GATS is a framework
agreement defining the rules under which trade in services must occur. GATS
aims at extending the rules covering trade in goods to trade in services. A
detailed rule has been included to take into account the differences between
goods and services and the way in which trade in services is conducted. Trade in
services cover a wide range of activities in the area of telecommunication,
information, banking, insurance and education. WTO has recognised over 150 service
sub-sectors.
The main objective of GATS is to
establish a framework for liberalising trade in services. It encourages
countries to modify their domestic regulations. This modification results in
elimination of restrictions applied to service products entering the country
and is applicable to international service suppliers who are carrying out business
in various modes. According to the GATS, MFN status and transparency is
applicable to all services. Other commitments such as national treatment and
market access are only applicable to services that are opened according to the specified
negotiated commitments. GATS covers services known as ‘consumption abroad’
where services such as e-commerce are used by the consumers in a host country
and citizens of a country travel overseas to consume products such as tourism
or education.