Which WTO agreement covers international trade in services?

The General Agreement on Trade in Services covers international trade in services under the World Trade Organization.

Known as GATS, the agreement was created during the Uruguay Round and entered into force with the WTO in 1995. It established multilateral rules for sectors such as banking, telecommunications, transport, tourism, and professional services.

GATS defines four ways services can be traded. These include cross-border supply, consumption abroad, commercial presence, and the temporary movement of natural persons.

A frequent mistake is assuming GATS requires every country to open every service sector. Members list specific commitments, and those commitments can differ by sector and by mode of supply. Governments also retain room for public-policy regulation within the agreement’s rules.