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Regional Trade Agreements and Trade in Services

Ortino, Federico, Regional Trade Agreements and Trade in Services. in BILATERAL AND REGIONAL TRADE AGREEMENTS: COMMENTARY, ANALYSIS AND CASE STUDIES, Lester & Mercurio, eds, Cambridge University Press, Forthcoming. Available at SSRN: https://ssrn.com/abstract=995781 .... Quote: "‘measures by Members’ means measures taken by central, regional or local governments and authorities as well as non-governmental bodies in the exercise of powers delegated by central, regional or local governments or authorities. However, GATS only requires Members to take such reasonable measures as may be available to them to secure compliance with GATS rules by sub-central and non-governmental bodies (Article I.3(a)). ‘Measures by Members affecting trade in services’ include measures in respect of (i) the purchase, payment or use of a service; (ii) the access to and use of, in connection with the supply of a service, services which are required by those Members to be offered to the public generally; (iii) the presence, including commercial presence, of persons of a Member for the supply of a service in the territory of another Member (Article XXVIII(c)). This list being indicative, the inquiry centers around the term ‘affecting’. WTO jurisprudence has interpreted broadly the term ‘affecting’. A measure affects trade in service when the measure ‘modifies the conditions of competition in supply of a service.’ In other words, GATS disciplines apply, in principle, to any measure of a Member to the extent it affects the supply of a service, regardless of whether such measure directly governs the supply of a service, or whether it regulates other matters but nevertheless affects indirectly trade in services. Furthermore, in line with GATT/WTO jurisprudence, in order to determine whether a measure ‘affects’ trade in services, there is no need to determine actual effects, rather it is enough to demonstrate a potential effect on trade".