Although GATS set out to bring equitable and fair treatment to the nations, there are a few countries that have created a huge empire taking advantages of the WTO which has resulted that most of the counties are now hardly and unconceivably dependent of those nations. Based on this statement, we cannot affirm that GATS has stimulated the world economic activity through binding policies and healthy, transparent and fairer trade practices. 

Do you agree, or don't, with this statement? and why?

Answer:

•            I disagree with the statement; all members of the WTO are members of the GATS at the same time and have assumed responsibilities in the individual service sectors, to varying degrees.

•            The desires of developed countries have influenced both the general framework of the Agreement and individual posts. In particular, the goal of promoting through the involvement of developing countries in trade in services was enshrined in the Preamble to the Agreement and is based on the provisions of Article I.

•            This Article includes members to discuss, among other things, concrete commitments relating to increasing the ability of domestic services in developed countries; enhancing access to distribution systems and knowledge networks by developing countries; and liberalizing market access in areas in export importance to those countries.

•            Although the notion of radical liberalization is one of the fundamental principles of the GATS, Article XIX provides that liberalization takes place with due regard for the goals of national policy and the rates of development of members, both in general and in individual sectors.

•            Thus, developed countries are given the flexibility to open up fewer markets, liberalize fewer types of transactions, and slowly increase market access according to their development situation.

•            Other provisions ensure that developed countries have greater flexibility in implementing policies of economic integration, enforcing constraints on the balance of payments grounds, and deciding access to and usage of their networks and services for telecommunications transport.

Therefore I believe that GATS set out to offer equal and fair treatment to the nations and was not based upon the suffering of the notion of many other countries.