Meaning of Trade in Service, General Obligation, Specific Obligation in GATs

Trade in services refers to the exchange of services between countries, where the service is supplied from one country to another. Services can be supplied in a variety of ways, including through the movement of people, the transfer of information, or through electronic means. Examples of services include financial services, telecommunications, transport, tourism, and professional services such as legal and accounting services.

General obligations under GATS refer to the broad principles and rules that apply to all services sectors. These general obligations include the requirement for non-discrimination, which means that foreign service providers must be treated no less favorably than domestic providers. The general obligations also include the requirement for transparency in regulations and the provision of market access to foreign service providers.

Specific obligations under GATS refer to the commitments that each country makes in specific service sectors. These commitments may include the opening of markets to foreign service providers, the removal of regulatory barriers, and the adoption of international standards and best practices.

In order to liberalize trade in services, WTO member countries make commitments under GATS in individual service sectors. These commitments are contained in “schedules of commitments” that outline each country’s specific obligations in each sector. The schedules of commitments also specify any limitations or exceptions that each country may apply.

The GATS also includes a “most favored nation” (MFN) principle, which requires each country to treat all other WTO member countries equally with respect to trade in services. This means that any concessions or benefits granted to one country must be extended to all other WTO member countries.

Overall, the GATS seeks to create a more open and transparent environment for trade in services, while also providing flexibility for each country to maintain regulatory measures to protect public health, safety, or the environment.