A Study on the Scope of ＂Incidental Services＂ under the GATS/WTO

Abstract

Under the GATS classification, there are ‘incidental’ services provided to non-service sectors, which are basically rendered on a fee or contract basis, and many members have made market-opening commitments on these services during the Uruguay Round negotiation. However, under close scrutiny, these services turned out to be pure manufacturing activities provided on the account of a third party, total or partial, and can exist in any sectors. This suggests that there may be an overlap between the GATT and GATS regarding manufacturing. If this is the case, then many complex and conflicting issues should be resolved, including those of subsidies, tariffs and also transparency requirements. At the moment, GATS has decided not to discuss this issue for the time being, but the clarification should be made rather soon.