Until 1995, there was no multilateral agreement on trade in services. This is mainly due to a lack of knowledge of trade in services itself. The creation of the GATS was one of the milestones of the Uruguay Round, the results of which entered into force in January 1995. The GATS was essentially inspired by the same objectives as its merchandise trade equivalent, the General Agreement on Tariffs and Trade (GATT), namely the creation of a credible and reliable system of international trade rules; ensure fair and equitable treatment of all participants (principle of non-discrimination); stimulate economic activity through guaranteed political ties; Promote trade and development through progressive liberalization. II. What about the current GATS AgreementThe agreement is still under negotiation and has not yet been concluded. A number of already developed countries have put forward specific proposals based on the strengths and interests of their private sector. On the other hand, developing countries have made very few proposals. In principle, the agreement should cover all service sectors and all measures taken by the State to regulate services within the national framework. Some of the most important principles underlying the GATS agreement are:1. National treatment: this means that host countries are prohibited from discriminating against foreign companies and entities that can provide services currently provided on the national territory (by public or private funds).
In developing countries, domestic/local firms often do not have the resources or capacity to compete successfully with foreign firms. If foreign firms enjoy the same privileges as domestic firms, it is very likely that both the domestic ability to provide services in the country and the domestic potential to export services to other countries will be seriously compromised.2. Host governments must grant the same market access to all WTO member countries, i.e. they must grant most-favoured-nation (MFN) status to all WTO members. This means that national treatment must be applied “horizontally” or territory-specifically to businesses in all countries. Host governments cannot choose which enterprises receive national treatment and those that do not receive national treatment.3. .