By committing in their timetables to liberalising trade in certain service sectors in one or more of the four types of supply, Member State governments have “linked” these obligations, since tariffs are linked under the GATT. They can only be amended or withdrawn after negotiations with other contracting parties. These negotiations generally involve compensation in the form of trade concessions of similar value. The creation of the GATS was one of the key principles of the Uruguay Round, the results of which came into force in January 1995. The GATS was essentially inspired by the same objectives as its merchandise trade counterpart, the General Agreement on Tariffs and Trade (GATT): the creation of a credible and reliable system of international trade rules; Ensure fair and equitable treatment of all participants (principle of non-discrimination); boosting economic activity through guaranteed political ties; Promoting trade and development through gradual liberalization. The GATS agreement includes four types of procurement for the provision of cross-border trade services: The initiative to include services in uruguay`s cycle came from OECD countries. Given the growing importance of trade in services in global economic relations, it became clear that a rules-based framework was involved, in particular, by the most advanced non-members of the OECD. Now that this goal has been achieved, this document aims to provide a detailed description of the new global rules on trade in services. The GATS agreement has been criticized for replacing the authority of national law and justice with that of an GATS dispute resolution body that holds closed hearings.
Spokespeople for WTO government members have an obligation to reject this criticism because they had previously pledged to recognize the benefits of the dominant trade principles of competition and “liberalization. One of the most important provisions of the GATS with respect to national rules is Article VI:4, which deals with competency requirements and procedures, technical standards and licensing requirements. In order to ensure that measures taken in these three areas do not constitute unnecessary barriers to trade in services, the GATS requires that these requirements be based on objective and transparent criteria and are not “heavier than necessary to ensure the quality of services”. The GATS provides that signatory governments cannot apply licensing requirements or technical standards in a manner that nullifies or compromises the commitments they have made under the agreement. In addition, Member State governments are encouraged to enter into negotiations on mutual recognition of the qualifications of service providers.