Q11- Gats Schedule Flashcards
On what depends MFN and NT in GATS?
on the parties’ own commitments.
Interpretation of a schedule
- none= free - there are no limitations specific to this sector under the relevant mode except the conditions set out in the horizontal section
- unbound= no commitment. Means that a Member remains free in a given sector and mode of supply to introduce or maintain measures inconsistent with market access or national treatment.
- Mode 1: supply across borders
- Mode 2: consumption abroad
- Mode 3: foreign investment
- Mode 4: people move to supply service
What is a Schedule of Specific Commitments in Services?
A Schedule of specific commitments in services is a legal instrument which specifies the sectoral and modal commitments undertaken by each individual Member.
Each Member of the WTO is required to submit a Schedule which contains market access and national treatment commitments as well as any additional commitments.
By scheduling specific commitments, a Member guarantees other Members minimum conditions of access on an MFN basis, comparable to a tariff binding under the GATT.
Since these are ceiling bindings, Members are not prevented from being more ‘generous’ (or less discriminatory) in practice.
Commitments can only be withdrawn or modified after negotiation and agreement on any compensatory adjustment with affected countries. Such modifications of commitments must be implemented on an MFN basis.
New commitments and improvements to existing ones can be scheduled at any time.
Article XX:1 of the GATS requires each Schedule to specify, inter alia:
- terms, limitations and conditions on market access;
- conditions and qualifications on national treatment;
- undertakings relating to additional commitments;
- implementation timeframe (where appropriate); and,
- the date of entry into force of such commitments.
Parts of a schedule?
Part 1- I (‘‘horizontal commitments’’) contains limitations which apply to all service sectors included in the Schedule.
Part II presents the sector-specific commitments.
Interpretation of schedule in the case
Market access:
(1) supply across borders: do not have market access
(2) consumption abroad: have market access and no limitation
(3) foreign investment: have market access but granted by provinces according to the economic needs
(4) people move to supply service: nationals from country B cannot work in hotels and restaurants
National treatment:
(1) supply across borders: do not have market access
(2) consumption abroad: have market access and no limitation
(3) foreign investment: have market access but in some province licence holder need to reside here and passing an examination in same province may be required
(4) people move to supply service: do not have national treatment
