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A Study on the Scope of Incidental Services under the GATS/WTO
Sung Keuk-Je(성극제) 법무부 국제법무정책과 2003 통상법률 Vol.- No.53
Under the GATS classification, there are ‘incidental’ services provided to non-service sectors, which are basically rendered on a fee or contract basis, and many members have made market-opening commitments on these services during the Uruguay Round negotiation. However, under close scrutiny, these services turned out to be pure manufacturing activities provided on the account of a third party, total or partial, and can exist in any sectors. This suggests that there may be an overlap between the GATT and GATS regarding manufacturing. If this is the case, then many complex and conflicting issues should be resolved, including those of subsidies, tariffs and also transparency requirements. At the moment, GATS has decided not to discuss this issue for the time being, but the clarification should be made rather soon.
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Analysis of MFN Exemption in WTO/GATS
Sung Keuk-Je(성극제) 법무부 국제법무정책과 2002 통상법률 Vol.- No.47
MFN is one of the fundamental principles of any multilateral agreement. GATS, however, allowed derogation from this principle, considering the complexity of services trade and the time constraint for UR negotiation. This derogation was supposed to be of temporary in nature, with a duration of 10 years. But many, if not all, members took advantage of this loophole, and used this exemption as a strategic weapon during the UR and subsequent negotiations. Closer look at the current MFN exemption measures show that the more a member committed; he more a member’s economy is developed; and the more a member is engaged in services trade, the more exemptions were listed. Moreover, many exemptions did not specify the duration, condition, and special treatment of MFN inconsistent measures. Some measures even undermine the specific commitments made in their schedule. The most appropriate way to bring these measures would be through the voluntary elimination, and if that is not possible, then by negotiation during the DDA negotiation.
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