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Highway XVI re-visited: the road from non-discrimination to market access in GATS

Published online by Cambridge University Press:  16 February 2007

PETROS C. MAVROIDIS
Affiliation:
Edwin B. Parker professor of law at Columbia Law School, New York, professor at the Law Faculty of the Un. of Neuchatel and CEPR

Abstract

The GATS (General Agreement on Trade in Services) is a highly complicated legal instrument and prone to various interpretations because of the embedded ambiguity. It should not come as a surprise that in the context of all disputes concerning services, WTO panels and the Appellate Body reached diametrically opposite conclusions on the same issues. Un-appealed panel reports, on the other hand, have not been welcome either. One of the major, if not the major, issue is the legal relationship between Arts. XVI and XVII GATS, which regulate market access. The manner in which this relationship has been interpreted inescapably leads to constructing the GATS as a move beyond negative integration. This is at odds with the intent of the founding fathers, the letter and the spirit of the GATS itself. Subjecting Art. XVI to Art. XVII GATS guarantees respect of the negative integration character of GATS. It thus avoids internationalizing issues that WTO Members want to keep in their domaine reservé. Counter-intuitively probably, it allows for more trade liberalization. Using the unfortunate USGambling report as an example, this report suggests an approach to understanding Art. XVI as a sub-set of Art. XVII GATS.

Type
Research Article
Copyright
© Petros C. Mavridis

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