Role of GATS in Financial Services Sector

Abstract

A service is a product of human activity aimed at satisfying the needs of the society. Services are an important driving force in economic development, competitiveness and productivity. The liberalization of trade in services has manifold advantages for all countries- higher efficiency, more employment, additional income generation, better consumer choice and quality of life. It facilitates the integration of national economies with global economy and reducing income disparities among the nations. GATS has created a credible and reliable system of international trade rules to ensure fair and equitable trade in services. It aims at stimulating trade and development by seeking to create a predictable policy environment wherein the member countries voluntarily undertake to bind their policy regime relating to the trade in services. India’s commitments in the financial services sector are modest and in several cases are more restrictive than the status quo. However, the financial services sector plays a vital role in the economic growth and development of the country.


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Keywords: Financial Services Sector, GATS, GATT, Multilateral Trade Agreement, World Trade Organisation
Categories: January 2014