Environmental Engineering Reference
In-Depth Information
cultural, political and other important characteristics that shape the type of governance
that is successful for a country' (South Centre, 2006).
The service economy is becoming a network of global companies. GATS is the frame-
work for opening their markets, while constraining the authority of government to
regulate, purchase, provide or subsidize services. Providing that framework for governance
is also the function of national constitutions. They now have competition from GATS.
Notes
1.
GATS Article I, Scope and De
fi
nition, states:
1.
This Agreement applies to measures by Members a
ff
ecting trade in services.
2.
For the purposes of this Agreement, trade in services is de
fi
ned as the supply of a service:
(a)
from the territory of one Member into the territory of any other Member;
(b)
in the territory of one Member to the service consumer of any other Member;
(c)
by a service supplier of one Member, through commercial presence in the territory of any other
Member;
(d)
by a service supplier of one Member, through presence of natural persons of a Member in the ter-
ritory of any other Member.
3.
For the purposes of this Agreement:
(a)
'measures by Members' means measures taken by:
(i)
central, regional or local governments and authorities; and
(ii)
non-governmental bodies in the exercise of powers delegated by central, regional or local gov-
ernments or authorities;
In ful
lling its obligations and commitments under the Agreement, each Member shall take
such reasonable measures as may be available to it to ensure their observance by regional and
local governments and authorities and non-governmental bodies within its territory;
fi
(b) 'services' includes any service in any sector except services supplied in the exercise of governmental
authority;
(c) 'a service supplied in the exercise of governmental authority' means any service which is supplied
neither on a commercial basis, nor in competition with one or more service suppliers.
2.
Commitments are
nely tuned, not just within subsectors, but with separate commitments to National
Treatment and Market Access, which are made speci
fi
fi
cally for each of four modes of supplying a service
(GATS art. I:2):
Mode 1 is cross-border services.
●
Mode 2 is tourism and other services supplied to consumers who cross the border.
●
Mode 3 is commercial presence, including investment and subsidiary companies.
●
Mode 4 is movement of natural persons who cross the border to deliver a service.
●
3.
GATS Article II:1, MFN treatment, states:
1.
With respect to any measure covered by this Agreement, each Member shall accord immediately and
unconditionally to services and service suppliers of any other Member treatment no less favourable than
that it accords to like services and service suppliers of any other country.
Article II allows countries to schedule exceptions to MFN treatment, but they must negotiate any new excep-
tions with other countries (GATS Art. II:2, Annex on Article II Exemptions).
4.
GATS Article XVII, NT, states:
1.
In the sectors inscribed in its Schedule, and subject to any conditions and quali
cations set out therein,
each Member shall accord to services and service suppliers of any other Member, in respect of all
fi
