The Challenge of the GATS for Transition Economies Seeking to Join the WTO

Transition economies seeking to join the World Trade Organization (WTO) face a variety of distinctive challenges relating to their prospective obligations under the General Agreement on Trade in Services (GATS). Transition economies are characterized by changing market and industry structures on the one hand, and ongoing reforms to their regulatory structures on the other. Both make it extremely difficult for transition economies to develop a position on what WTO services commitments they should undertake in their national schedules of specific commitments. Accession negotiations are further complicated by the evolving nature of GATS rules themselves and the tough negotiating stance taken by existing Members. Based on evidence from recent accessions, the effective minimum requirements relating to services for transition economies seeking to join the WTO are increasing.