Question

Q. Which of the following is/are the modes of negotiations under the General Agreement on Trade and Services (GATS)?

Select the correct answer using the codes given below:

• A. 1 and 2 only
• B. 1, 2 and 3
• C. 1, 3 and 4
• D. 1, 2, 3 and 4

Answer 1

The correct option is C 1, 3 and 4

Explanation:

Negotiations in services under GATS are classified into 4 modes:

• (i) Cross border supply of services, without the movement of natural persons. For e.g. Business Process Outsourcing (BPO), KPO or LPO services. India can leverage its large pool of human resources and competitive IT sector and push for liberalisation in mode 1.
• (ii) Supply of a service of one country to the consumer of another country; e.g. telecommunication.
• (iii) Commercial presence, which encompasses services provided by a service supplier of one country in the territory of any other country, creating scope for foreign investment. Accordingly, it is in the West’s interest to push for liberalization here. For example, higher education, insurance, medical, etc.
• (iv) Presence of natural persons, which covers facilities provided by a service supplier of one country through the presence of natural persons in the territory of any other country; e.g. a company sending its engineers for onsite work in US/Europe or Australia.

Note: Geographical indications come under the Trade Related Aspects of Intellectual Property Rights (TRIPS).