What is the Difference Between GATT and GATS?

The General Agreement on Tariffs and Trade (GATT) and the General Agreement on Trade in Services (GATS) are both multilateral trade agreements aimed at expanding market access and reducing trade barriers. However, they differ in their approach and scope:

1. Scope: GATT primarily focuses on international trade in goods (merchandise), while GATS covers international trade in services.
2. Integration: GATT was designed with "shallow integration" in mind, achieving market access expansion primarily through negotiated reductions in tariffs. In contrast, GATS reflects an orientation towards "deep integration," whereby the negotiated change or removal of non-tariff barriers plays a more significant role.
3. Modes of Supply: GATS distinguishes between four modes of supplying services: cross-border trade, consumption abroad, commercial presence, and presence of natural persons. GATT, on the other hand, does not have such distinctions.
4. National Policy Objectives: Both GATT and GATS expressly recognize the right of members to regulate the supply of services and pursue national policy objectives. However, GATS allows for more protectionist measures compared to GATT.

In summary, GATT and GATS differ in their focus on trade in goods versus trade in services, their approach to integration, the modes of supply they cover, and the extent of protectionist measures they allow.

Comparative Table: GATT vs GATS

The main differences between the General Agreement on Tariffs and Trade (GATT) and the General Agreement on Trade in Services (GATS) are related to the types of trade they govern and the level of protection they provide. Here is a table summarizing these differences:

Both GATT and GATS share the same goal of liberalizing trade, but they differ in the types of trade they cover and the specific provisions they include. For example, GATT primarily uses tariffs as the main instrument for managing market access, while GATS relies on commitments in a member's schedule and the Article XVI market access column. Additionally, GATS allows for more protectionist measures compared to GATT, particularly in the area of domestic regulation.