The agreement is based on the principle of the treatment of the Most Favoured Nation (MFN), according to which each Member State does not treat the enterprises of another Member State less favourably than its own or those of other countries. However, there are exceptions for certain service activities in a list of exceptions to the MFN requirement. In fact, any government could impose restrictions on foreign companies` access to their markets. Financial Services The instability of the banking system has an impact on the economy as a whole. The Financial Services Annex gives governments a very broad leeway to take prudential measures, such as protecting investors, depositors and policyholders, and to ensure the integrity and stability of the financial system. The annex also excludes services provided when a government exercises its authority over the financial system. B, for example, central bank services. OECD countries have taken the initiative to include services in Uruguay`s cycle. Given the growing importance of trade in services in global economic relations, it became clear that a rules-based framework was involved, in particular, by the most advanced non-members of the OECD.
Now that this goal has been achieved, this document aims to provide a detailed description of the new global rules on trade in services. Article 24 of the GATT forms the basis of two or more territories for the construction of a customs union or the construction of a free trade agreement. It also provides for an interim agreement necessary to establish a customs union or free trade area. The MFN applies to all services, but some specific temporary exemptions have been admitted. By the time GATS came into force, a number of countries had already entered into preferential agreements on services they had signed with trading partners, either in bilateral terms or in small groups. WTO members felt that it was necessary to maintain these preferences temporarily. They have given themselves the right to continue to give more favourable treatment to certain countries, particularly service activities, by listing exceptions to the MfN in addition to their first obligations. In order to protect the general principle of the MFN, exceptions could only be made once; nothing can be added to the lists. They are currently under review as planned and generally do not last more than 10 years. On 15 April 1994, at the ministerial meeting in Marrakech, ministers from more than 100 countries signed the final act of Uruguay`s multilateral trade round.
This is the end of the eighth round of GATT trade negotiations, which began in Punta del Este, Uruguay, in September 1986. As part of the World Trade Organization (WTO) agreement, the package includes agreements on topics as varied as agriculture, textiles, intellectual property and trade-related investment measures. And for the first time, the parties have established global rules on trade in services through the General Agreement on Trade in Services (GATS). The GATS is expected to enter into force with the WTO on 1 January 1995. Some activist groups believe that GATS risks undermining the ability and authority of governments to regulate commercial activities within their own borders, which will lead to the flight of power from the commercial interests of citizens.