I. WHAT IS GATS? - AN INTRODUCTION

In order to "build a trustworthy and reliable framework of international trade laws," the General Agreement on Trade in Services was created. The World Trade Organization (WTO) seeks to increase economic activity through guaranteed policy agreements while assuring the non-discrimination of all participants, i.e., the WTO members. This is accomplished through the enforcement of the General Agreement on Trade in Services (GATS).

A treaty of the World Trade Organization (WTO), known as the General Agreement on Trade in Services (GATS), became effective in 1995. One of the most important outcomes of the Uruguay Round was the creation of the General Agreement on Trade in Services (GATS).

Since, General Agreement on Trade in Services (GATS) entered into force in 1995, India has been a signatory to it.

II. TWIN OBJECTIVE OF GENERAL AGREEMENT ON TRADE IN SERVICES

The two main goals of the General Agreement on Trade in Services (GATS) are to ensure that:
• All signatories are treated fairly when entering foreign markets; and
• To promote the gradual liberalization of trade in services.

III. WHO ARE THE MEMBERS OF GENERAL AGREEMENT ON TRADE IN SERVICES (GATS)?

Although all WTO members are concurrently the members of General Agreement on Trade in Services (GATS), the countries have differing degrees of commitments in individual service sectors.

IV. BASIC OBLIGATIONS UNDER GENERAL AGREEMENT ON TRADE IN SERVICES (GATS)

The GATS's fundamental commitments can be divided into two subcategories:
a. General Obligations: All members and the services sectors are subject to the GATS' general obligations.
b. Specific Obligations: These obligations are outlined in members' individual schedules, which might have a wide range of commitments.

These obligations bind member countries to refrain from enacting more onerous regulations that would hinder commerce.

V. GENERAL OBLIGATIONS UNDER GATS

1. Most-Favoured-Nation Treatment [Part II Article II of GATS]
MFN treatment refers to treating one's trading partners fairly. According to the General Agreement on Trade in Services (GATS), if a country allows foreign competition in a sector, service providers from all other WTO members should be given equal chances in that sector. The "Favour One, Favour All Principle" is the foundation of it.

2. Transparency [Part II Article III of GATS]
Members must promptly publicize "any relevant measures of general applicability" that have an impact on how the agreement functions. Members must also inform the Council for Trade in Services of any new or amended laws or regulations that have an impact on the trade in services covered by their individual agreement-related responsibilities. Each member is expected to set up an information point where they can answer inquiries from other members.

VI. SPECIFIC COMMITMENT UNDER GATS

1. Market Access: Following talks, each Member agrees to grant other parties market access in certain industries. It might be made subject to a few restrictions. For instance, limitations may be placed on the quantity of service businesses, service providers, or workers in a given industry.

2. National Treatment: National Treatment calls for treating domestic and foreign providers equally. There shouldn't be any distinction between local and foreign providers whenever a foreign supplier is allowed to provide a service in a country. This is not the same as MFN.

VII. MODES OF SUPPLY RECOGNISED BY GATS

In accordance with the General Agreement on Trade in Services (GATS), trade in services is defined as the ‘Delivery of A Service’ through any one of the following four modes of supply:

1. CROSS BORDER SUPPLY: It takes place when a service crosses a national border. It involves the supply of services flowing from the territory of one member into the territory of another member. Example: Services supplied through Postal Infrastructure, Tele-Communication etc.
2. CONSUMPTION ABROAD: It means when a consumer of services moves into another member territory to obtain a service.
Example: Patients coming to India from the US for treatment, Tourists etc.
3. COMMERCIAL PRESENCE: It involves setting up of territorial presence in another member territory by a service supplier to provide a service.
Example: Hotel chains, Hospital chains etc.
4. PRESENCE OF NATURAL PERSONS: It means when a person of one member enters the territory of another member to supply a service.
Example: Doctors going abroad to provide service, Teachers going to foreign universities for teaching etc.

VIII. CONCLUSION

The General Agreement on Trade in Services (GATS) is the foremost set of international rules for ‘International Trade in Services’. The General Agreement on Trade in Services (GATS) established a set of legally binding guidelines to direct international trade in services. When the General Agreement on Trade in Services (GATS) went into effect, India made its initial commitments. The website of the Ministry of Commerce provides access to the commitments that India has so far arranged.