China-electronic payment services: Discrimination, economic development and the GATS

Abstract

This paper provides a legal-economic analysis of the unappealed WTO Panel Report in China-Certain Measures Affecting Electronic Payment Services (WT/DS413/R). The core issue was whether China's measures that resulted in there being only one dominant supplier of electronic payment services (EPS) in China violated the specific commitments made by China under the GATS. The panel ruled that the measures did not violate China's market access commitments because there were no explicit limitations on the entry of foreign suppliers, but that the measures were inconsistent with China's national treatment commitments in that they modified the conditions of competition in favour of domestic suppliers. This case illustrates the complexity in interpreting WTO Members' commitments under the GATS. © 2014 Bernard Hoekman and Niall Meagher.