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16 - Towards a horizontal necessity test for services: Completing the GATS Article VI:4 mandate

from PART 5 - Market access, national treatment and domestic regulation

Published online by Cambridge University Press:  03 September 2009

Marion Panizzon
Affiliation:
Universität Bern, Switzerland
Nicole Pohl
Affiliation:
Universität Bern, Switzerland
Pierre Sauvé
Affiliation:
London School of Economics and Political Science, Universität Bern, Switzerland
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Summary

Introductory remarks

The successful culmination of the General Agreement on Trade in Services (GATS), while unsatisfactory in terms of the ‘teeth’ of general obligations or the level of liberalisation commitments, provides the legal framework for liberalising the services trade. The breadth of the GATS coverage; the novelty of the issues at stake; the sectoral diversity; the specificities associated with services of which the state used to be the monopoly supplier or was involved in supplying; the regulatory intensity of several services sectors and the inherent complexity of the GATS due to the multiple modes of supply, are only few of the justifications for the deficiencies of the GATS. Thus, the GATS can still be seen as a work in progress, more than a decade after its inception.

Although WTO Members concluded the drafting of Articles XVI and XVII, they failed to agree on a provision that would tackle origin-neutral domestic regulations with an unduly trade-distortive effect. Consequently, at the end of the Uruguay Round, Members adopted the current (weak and provisional) wording of Article VI:4 GATS. Leaving this provision unfinished, together with the choice of making the national treatment obligation a negotiable commitment, has considerably weakened the potential ‘bite’ of the GATS.

For want of anything better, Members explicitly conveyed in Article VI:4 their willingness to develop, through a work programme, concrete disciplines on domestic regulation.

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Publisher: Cambridge University Press
Print publication year: 2008

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