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Posted 29 Feb 2024

2 min read

  • The new disciplines on services domestic regulation, announced at WTO’s 13th Ministerial Conference in Abu Dhabi, have been negotiated under the General Agreement on Trade in Services (GATS).
    • GATS, entered into force in 1995 as a result of Uruguay Round Negotiations, is a legally binding WTO treaty covering international trade in services.  
  • Disciplines aim to ensure that qualification requirements and procedures, technical standards and licensing requirements do not constitute unnecessary barriers to trade in services.
    • Disciplines are binding only on those WTO members who inscribe them into their GATS schedules.
    • India, although a member of GATS, is yet to commit to new disciplines
    • Developing economies that adopt the disciplines can delay the application of specific provisions in sectors where they face implementation difficulties for up to 7 years

 

  • Significance of the disciplines
    • Will reduce trade costs in services with overall savings of USD 127 billion.
    • Reduction in costs of business startup procedures 
    • Broader financial inclusion and boost to participation in global value chains

 

  • Benefits to India: Disciplines will be applied on a “most-favoured nation” principle, and will benefit all WTO members including India. 
    • Potential benefits to India include market access, boost in services exports, competitiveness in global services market, conducive environment for MSMEs etc.
  • Tags :
  • World Trade Organization
  • General Agreement on Trade in Services (GATS)
  • WTO’s 13th Ministerial Conference
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