INGENIEUR
and consumer that are, in
legal terms, based in different
countries, or economies, this
is called International Trade in
Services.
I n te r n a t i o n al t r a d e i n
services is defined by the Four
Modes of Supply of the General
A g r e e m e n t o n Tr a d e i n
Services (GATS).
Mode 1: Cross-border
supply is defined to cover
service flows from the territory
of one Member into the
territory of another Member
(e.g. banking or architectural
s e r v i c e s t r a ns mi t te d v ia
telecommunications
or
m ail, dis t an c e le ar nin g ).
Mode 1 contributes to 35% of
services traded internationally.
The service supplier is not
present within the territory of
the member.
Mode 2: Consumption
abroad refers to situations
where a service consumer (e.g.
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tourist or patient) moves to
another Member’s territory to
obtain a service. The service
supplier is not present within the
territory of the member.
Mode
3:
Commercial
presence implies that a
service supplier of one Member
e s t a b li s h e s a t e r r i t o r i a l
presence, including through
ownership or lease of premises,
in another Member’s territory to
provide a service (e.g. domestic
subsidiaries of foreign insurance
companies or hotel chains). The
service supplier is present within
the territory of the member.
Mode 4: Presence of natural
persons consists of persons of
one Member entering the territory
of another Member to sup B