New Disciplines on Good Regulatory Practice for Services Trade Enter into Force for some World Trade Organization (WTO) members | Current Affairs | Vision IAS
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    New Disciplines on Good Regulatory Practice for Services Trade Enter into Force for some World Trade Organization (WTO) members

    Posted 29 Feb 2024

    2 min read

    • The new disciplines on services domestic regulation, announced at WTO’s 13th Ministerial Conference in Abu Dhabi, have been negotiated under the General Agreement on Trade in Services (GATS).
      • GATS, entered into force in 1995 as a result of Uruguay Round Negotiations, is a legally binding WTO treaty covering international trade in services.  
    • Disciplines aim to ensure that qualification requirements and procedures, technical standards and licensing requirements do not constitute unnecessary barriers to trade in services.
      • Disciplines are binding only on those WTO members who inscribe them into their GATS schedules.
      • India, although a member of GATS, is yet to commit to new disciplines
      • Developing economies that adopt the disciplines can delay the application of specific provisions in sectors where they face implementation difficulties for up to 7 years

     

    • Significance of the disciplines
      • Will reduce trade costs in services with overall savings of USD 127 billion.
      • Reduction in costs of business startup procedures 
      • Broader financial inclusion and boost to participation in global value chains

     

    • Benefits to India: Disciplines will be applied on a “most-favoured nation” principle, and will benefit all WTO members including India. 
      • Potential benefits to India include market access, boost in services exports, competitiveness in global services market, conducive environment for MSMEs etc.
    • Tags :
    • World Trade Organization
    • General Agreement on Trade in Services (GATS)
    • WTO’s 13th Ministerial Conference
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