Export Policies and the General Agreement on Trade in Services

Abstract

Compared to its counterpart in merchandise trade, the General Agreement on Tariffs and Trade (GATT) of 1947, the General Agreement on Trade in Services (GATS) contains a variety of conceptual innovations. In addition to cross-border supplies, the Agreement covers three additional types of transactions, i.e. supplies in a foreign country to consumers that have moved abroad as well as supplies provided by foreign-owned firms and foreign service professionals in a host market. At the same time, the GATS accommodates a range of measures, including the use of quantitative restrictions and discriminatory taxes and subsidies, which is clearly constrained under the GATT. Most notably in the current context, the Agreement offers particularly broad scope for various types of export-related interventions, regardless of ensuing market distortions. The social and economic relevance of such measures, not only in sectors such as education or health, but also in producer-oriented services, including transport, telecommunications or finance, is immediately evident. This article seeks to provide an overview and assessment in the light of relevant GATS provisions and WTO dispute rulings.