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World Trade Organization Toolkit : Services

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Market access

Article XVI of the GATS requires each Member to accord services and service suppliers of any other Member treatment no less favourable than that provided for under the terms, limitations and conditions agreed and specified in its Schedule. This is therefore an obligation to accord, as a minimum, the specific level of treatment (like that in Article II of the GATT).

For the services which are listed in the Schedule, the Member cannot maintain or adopt one of the limitations and restrictions that are stated in the six subparagraphs of paragraph 2, except where the Member has indicated a derogation in respect of that sector in the appropriate column of its Schedule. The prohibited quantitative restrictions include limitations on the number of service providers, on the total value of service transactions, and limitations on the participation of foreign capital, either in terms of a percentage limit on foreign shareholding or on the total value of foreign investment, either in the aggregate or by a single entity.

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