DP1150 Tentative First Steps: An Assessment of the Uruguay Round Agreement on Services

Author(s): Bernard Hoekman
Publication Date: March 1995
Keyword(s): GATS, Multilateral Trade Negotiations, Trade in Services, Trade Policy
JEL(s): F13
Programme Areas: International Trade and Regional Economics
Link to this Page: cepr.org/active/publications/discussion_papers/dp.php?dpno=1150

The General Agreement on Trade in Services (GATS) is a landmark in terms of creating multilateral disciplines in virgin territory, but is a failure in terms of generating liberalization and locking-in existing policy regimes affecting international transactions in services. There are two key issues that should be addressed in evaluating the GATS. First, what does it do to bind policies? Second, has it established a mechanism that will induce significant liberalization through future rounds of negotiations? This paper concludes that the GATS does not score very high on either dimension. A number of suggestions are made to strengthen the Agreement and support more far-reaching liberalization in the future.