- Definition: An agreement negotiated in the Uruguay Round, effective Jan 1, 1995.
- Developed in response to the huge growth of the services economy.
- Sectors Covered:
- Services represent two-thirds of global output.
- One-third of global employment.
- Nearly 20% of global trade.
- GATS does not require any service to be deregulated or privatized.
- Government services (not supplied commercially, not competing) are carved out.
- Members decide which sectors to open and to what extent.