Manual on Statistics of International Trade in Services

2. The General Agreement on Trade in Services  
(a)  Structure and guiding principles of GATS 
2.8. GATS establishes a set of rules and disciplines 
governing the use by WTO member countries of trade 
measures in services. Such measures consist of laws, 
regulations, administrative actions and decisions 
affecting the purchase, payment or use of a service or the 
presence of foreign service suppliers.  The GATS 
disciplines extend across all government levels, 
including non-governmental bodies in the exercise of 
delegated powers. 
2.9. 
The pillars of GATS are a set of general 
obligations, many of which apply directly and 
automatically to all WTO members and all services; 
specific commitments resulting from negotiations, whose 
scope is limited to the sectors and transactions in which 
a member has undertaken access obligations; and several 
annexes covering specific sectors or trade-related 
matters such as the movement of natural persons. 
2.10.  First and foremost among the general obligations 
is the principle of most-favoured-nation (MFN) 
treatment, which forbids any form of discrimination 
between services and service suppliers originating in 
different countries. Thus, regardless of whether or not a 
country allows foreign competition in a sector, it must 
apply the same conditions to services and service 
providers from all other WTO member countries.
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Another general obligation (transparency) requires WTO 
members to publish all trade-related measures and 
establish national enquiry points to respond to other 
members’ information requests. 
2.11.  Specific commitments, relating to market access, 
national treatment and any additional undertakings, are 
specified and bound in national schedules as a result of 
negotiations.
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  While the GATS requires all member 
countries to submit such a schedule, it does not obligate 
                                                 
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  An annex on MFN exemptions allowed WTO members to list 
exemptions for measures existing at the date of entry into 
force of GATS. These exemptions should in principle last no 
longer than 10 years; they are subject to review and must be 
(re)negotiated in subsequent trade rounds.  New exemptions 
can be granted only in special circumstances and require a 
waiver under the WTO Agreement.  
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  When commitments are “bound” in national schedules, this 
means that in general they cannot be easily modified or 
withdrawn; because “unbinding” is a difficult process, the 
commitments are virtually guaranteed conditions for foreign 
exporters and investors. 

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them to assume commitments in any particular sector.  
In turn, this leaves scope to adjust the level and structure 
of commitments to country specific objectives and 
constraints.  Specific commitments may be undertaken 
with regard to any of the four modes of supply covered 
by GATS: cross border supply, consumption abroad, 
commercial presence, and presence of natural persons.  
For a given sector and mode, the relevant commitment 
may vary between full competition and denial of any 
degree of market access and national treatment.  In many 
cases, members have opted for an intermediate solution, 
subjecting their commitments to particular limitations.  
Typical market access limitations, listed in GATS, are 
quota-type ceilings on the number of service suppliers, 
their operations or employees, and restrictions on the 
legal form of establishment or the participation of 
foreign capital.  Frequently used national treatment 
limitations concern the eligibility of foreign suppliers for 
subsidies and restrictions on foreign land ownership. 
2.12.  The assumption of specific commitments does 
not prevent Governments from regulating the service 
concerned or the licensing of suppliers for quality 
purposes.  GATS requires WTO members to ensure that 
the relevant standards, requirements and procedures do 
not constitute unnecessary barriers to trade and, in