A Study on the Major Principles of the GATS and Its Implications for South Korea

Trade in services is stretching its influence in international trade as service industry is becoming the heaviest contributing factor for a country's GDP. Under the WTO system, trade in services is regulated by General Agreement on Trade in Services (GATS). The goal of GATS and GATT is similar, if not identical, as both treaties attempt to realize liberalization of trade in good and services. Among various rules in GATS, MFN and specific commitments are the major principles. The application of such principles in GATS is different from GATT. Deregulation is ultimate measure for liberalization of service trade. South Korea is an active participant in international trade as it has demonstrated ratification of free trade agreements with various countries and regions. However, South Korea keeps service industry regulations beyond reasonable level. Deregulation is necessary for South Korea’s benefit. This paper analyzes the major legal principles of GATS and examines what South Korea would face without active deregulation in service industry.