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An Introduction to Domestic Regulation in GATS
regulatory reform, multilateral negotiations
Author Yeongkwan Song Series 05-09 Language Korean Date 2005.12.31
Domestic regulations have a profound effect on services trade. A major challenge for the GATS is how to design rules that prevent the protectionist use of domestic regulations but do not deprive regulators of the freedom they need to pursue legitimate objectives. Members of the World Trade Organization (WTO) have agreed that a central task in the ongoing set of services negotiations will be to further develop rules to ensure that domestic regulations support rather than impede the opening of services markets to trade and investment. Since these rules are bound to have a significant effect on the evolution of domestic services policy, it is important that they will be conducive to economically rational policymaking while preserving the regulatory autonomy required to pursue and achieve domestic policy objectives. This paper provides an introduction to the discussions of domestic regulation in the WTO and aims to develop effective strategies, from the Korean point of view, for ongoing discussions.
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