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National treatment in the GATS: Corner-stone or Pandora's Box

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  • Mattoo, Aaditya

Abstract

This paper is concerned with three problems in the interpretation of the national treatment obligation in GATS. First, the precise domain of Article XVII on national treatment has not been clearly delineated, particularly in relation to Article XVI dealing with market access. Secondly, there is a conflict between the text of Article XVII and the structure of the schedules of commitments, which makes it difficult to interpret the scope of the national treatment obligation even for identical services supplied through different modes. The final, and most complex, problem arises in establishing the definition of like services and like service suppliers. Uncertainty about the precise meaning of the national treatment commitment may undermine the key GATS objective of creating a secure, predictable trading environment. Moreover, the extent of liberalization implied by the commitments under GATS depends on the precise choice of interpretation.

Suggested Citation

  • Mattoo, Aaditya, 1997. "National treatment in the GATS: Corner-stone or Pandora's Box," WTO Staff Working Papers TISD-96-02, World Trade Organization (WTO), Economic Research and Statistics Division.
    • Handle: RePEc:zbw:wtowps:tisd9602
    DOI: 10.30875/b1dde982-en
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    References listed on IDEAS

    as
    1. Hoekman, Bernard, 1995. "Tentative First Steps: An Assessment of the Uruguay Round Agreement on Services," CEPR Discussion Papers 1150, C.E.P.R. Discussion Papers.
    2. Laura Altinger & Alice Enders, 1996. "The Scope and Depth of GATS Commitments," The World Economy, Wiley Blackwell, vol. 19(3), pages 307-332, May.
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    Cited by:

    1. Philipp Harms & Aaditya Mattoo & Ludger Schuknecht, 2003. "Explaining liberalization commitments in financial services trade," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 139(1), pages 82-113, March.
    2. Mattoo, Aaditya, 1999. "Financial services and the World Trade Organization - liberalization commitments of the developing and transition economies," Policy Research Working Paper Series 2184, The World Bank.
    3. Low, Patrick & Mattoo, Aaditya, 1998. "Reform in basic telecommunications and the WTO negotiations: The Asian experience," WTO Staff Working Papers ERAD-98-01, World Trade Organization (WTO), Economic Research and Statistics Division.
    4. Panagiotis Delimatsis & Bernard Hoekman, 2017. "National Tax Regulation, International Standards and the GATS: Argentina—Financial Services," RSCAS Working Papers 2017/42, European University Institute.
    5. Mattoo, Aaditya, 1998. "Financial services and the WTO: Liberalization in the developing and transition economies," WTO Staff Working Papers TISD-98-03, World Trade Organization (WTO), Economic Research and Statistics Division.
    6. Mattoo, Aaditya, 2005. "Services in a development round : three goals and three proposals," Policy Research Working Paper Series 3718, The World Bank.
    7. Kono, Masamichi & Low, Patrick & Luanga, Mukela & Mattoo, Aaditya & Oshikawa, Maika & Schuknecht, Ludger, 1997. "Opening markets in financial services and the role of the GATS," WTO Special Studies, World Trade Organization (WTO), Economic Research and Statistics Division, volume 1, number 1.
    8. Mattos, José Carlos Silva & Noguera, Nicolás & Prieto, Francisco Javier, 1999. "Manual for completing the questionnaire on measures affecting services trade in the hemisphere," Manuales 5569, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).

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    More about this item

    Keywords

    national treatment; GATS; trade in services;
    All these keywords.

    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation

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