GATS TRAINING MODULE: CHAPTER 8

Misconceptions about the GATS

Click the + to open an item.

8.3 Complexity as a Challenge

show help page

The GATS is structurally more complex than the GATT. Among the most conspicuous differences are the existence of four modes of supply and of two distinct legal parameters, market access and national treatment, to determine conditions of market entry and participation. Thus, while a tariff schedule under GATT, in its simplest form, displays one tariff rate by sector, all specific commitments under the GATS consist of at least eight inscriptions, four under each market access and national treatment. This relatively complex structure of the Agreement is intended to enable Members to accommodate sector- or mode-specific constraints they may encounter in the scheduling process and to progressively liberalize their services trade in line with their national policy objectives and levels of development. Complexity can thus be viewed, in part, as a precondition for effectiveness and flexibility.

Nevertheless, national administrations, in particular in small developing countries, may harbour doubts. From their perspective, the complexity of the Agreement implies a formidable negotiating challenge. It not only complicates internal decision-making and consultation procedures with other Ministries and the private sector, but commands more attention (and resources) in the interpretation of requests received from, and the preparation of offers to be send to, trading partners.

The Agreement seeks to address such concerns. First, it expressly recognizes the situation of developing countries and provides individual Members with “appropriate flexibility” for opening fewer sectors and liberalizing fewer types of transactions in line with their development situation. While these provisions in Article XIX:2 may have been intended mainly to protect developing countries from overly ambitious commitments that, especially in the absence of appropriate regulatory frameworks, may cause excessive adjustment pains, they also protect from undue negotiating pressure across too wide a range of sectors and policy areas. Moreover, Article XXV of the GATS expressly recognizes the need for the WTO Secretariat to provide technical assistance to developing countries. The Article needs to be read in conjunction with the Negotiating Guidelines and Procedures of March 2001 and, even more important, the Doha Ministerial Declaration of November 2001. The Declaration further emphasizes, and elaborates on, the role and necessity of technical cooperation and capacity building (paras. 38 to 41).

 

 

show previous page   show next page

Chapters done:

show previous page show next page