Trade Finance Forum › Forums › Market Regulations › Compliance › Is it true that the GATS applies not only to cross-border flows of services but › Reply To: Is it true that the GATS applies not only to cross-border flows of services but
Yes. The GATS makes a distinction between four ways to provide services: cross-border trade, consumption abroad, commercial presence, and presence of natural persons.
Cross-border supply is defined as the flow of services from one member’s territory into the territory of another member (for example, banking or architectural services sent by phone or mail);
Consumption abroad is when a service consumer (like a tourist or patient) goes to the territory of another member to get a service.
Commercial presence means that a service provider from one member sets up shop in the territory of another member to offer a service, such as when a foreign insurance presence or hotel chain sets up a domestic branch or when a foreign hotel chain opens a domestic branch.
Presence of natural persons is made up of persons from one member entering the territory of another member to supply a service (e.g. accountants, doctors or teachers). The Annex on Movement of Natural Persons, on the other hand, says that members can continue to make permanent rules about citizenship, residence, and access to the job market.
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