Article I: Scope of application – Measures affecting trade in services

See also GATT 1994: Relationship between the GATT 1994 and the GATS (G.2.2)

(WT/DS27/AB/R)

…we note that Article I:1 of the GATS provides that “[t]his Agreement applies to measures by Members affecting trade in services”. In our view, the use of the term “affecting” reflects the intent of the drafters to give a broad reach to the GATS. The ordinary meaning of the word “affecting” implies a measure that has “an effect on”, which indicates a broad scope of application. This interpretation is further reinforced by the conclusions of previous panels that the term “affecting” in the context of Article III of the GATT is wider in scope than such terms as “regulating” or “governing”. We also note that Article I:3(b) of the GATS provides that “ ‘services’ includes any service in any sector except services supplied in the exercise of governmental authority” (emphasis added), and that Article XXVIII(b) of the GATS provides that the “‘supply of a service’ includes the production, distribution, marketing, sale and delivery of a service”. There is nothing at all in these provisions to suggest a limited scope of application for the GATS.…