General Agreement on Trade in Services Will Not Be Applicable to

The General Agreement on Trade in Services (GATS) is a global treaty that aims to liberalize international trade in services. However, there are certain situations where GATS does not apply. In this article, we will discuss some common scenarios where the general agreement on trade in services will not be applicable to.

1. Public Services

GATS does not apply to services provided by governments or any other public entity. These services are considered non-commercial and are excluded from the scope of the agreement. Examples of public services include education, health care, and social welfare.

2. National Security

GATS allows countries to take measures necessary to protect their national security. However, these measures should not be used as a disguised trade barrier. In situations where the national security is at stake, countries can suspend their commitments under the agreement.

3. Emergency Measures

GATS also provides for emergency measures in situations where a country faces a crisis that threatens its financial stability. These measures can include temporary restrictions on capital transactions, financial services, and other services-related activities. However, these measures should be non-discriminatory and should not be used as a permanent restriction.

4. Cultural Services

GATS recognizes the importance of cultural diversity and allows countries to take measures to protect their cultural industries. These measures can include subsidies, quotas, and other trade-limiting measures. Cultural services are excluded from the scope of the agreement to promote and protect cultural diversity.

5. Non-Commercial Activities

GATS only covers services provided on a commercial basis. Non-commercial activities, such as services provided by charitable organizations, are not subject to the agreement. These services are considered non-trade-related and are excluded from the scope of the agreement.

In conclusion, GATS is a comprehensive agreement that covers a wide range of services. However, there are certain situations where the agreement does not apply. These include public services, national security, emergency measures, cultural services, and non-commercial activities. Countries are allowed to take measures necessary for their economic and social development, provided that these measures are consistent with the objectives of the agreement.