SPECIAL REPORT
Introduction to Four
Modes of Supply for
International Services.
Compiled by Lim Tau Wee
D
uring the Uruguay
Round of the General
A greement on Tarif fs
and Trade (GATT), the General
Agreement on Trade in Services
was drafted. This has become
enshrined as one of the four
pillars of the international treaty
comprising the World Trade
Organisation (WTO) Agreement
in 1995.
General Agreement on Trade
in Services aims to establish
a multilateral framework of
principles and rules for trades
in services. The objective of the
agreement is the expansion of
such trade under conditions of
transparency and progressive
liberalisation. In addition, it is
seen as a means of promoting
the economic growth of all
trading par tners and the
development of developing
countries.
It recognises the right
of M em b er s of W TO to
regulate, and to introduce new
regulations, on the supply of
services within their territories
in order to meet national policy
objectives. Given asymmetries
existing with respect to the
degree of development of
services regulations in different
countries, the particular needs of
developing countries to exercise
their rights is recognised. This
will also call for the facilitation
of increasing participation of
developing countries in trade in
services and the expansion of
their service exports including,
inter alia, the strengthening
of their domestic ser vices
capacity and their efficiency and
competitiveness.
Trade in Ser vices refers
to the sale and delivery of
an intangible product, called
a service, between a producer
and consumer. Trade in services
takes place between a producer
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