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The agreement entered into force in January 1995 as a result of the Uruguay Round negotiations. With a view to achieving a progressively higher level of liberalization, pursuant to Article XIX of the GATS, WTO Members are committed to entering into further rounds of services negotiations. The first one of these rounds started in January 2000. The GATS’ contribution to world services trade rests on two main pillars: (a)?ensuring increased transparency and predictability of relevant rules and regulations, (b)?promoting progressive liberalization through successive rounds of negotiations. 5.1. The Achievement of the GATS and Its Framework5.1.1. GATS and trade negotiations in services The need for a trade agreement in services has long been questioned: domestic activities classical domains of government ownership and control governmental responsibilities Some services sectors have been largely open for centuries - as the natural complements to merchandise trade. The traditional framework of public service increasingly proved inappropriate for operating some of the most dynamic and innovative segments of the economy, and governments apparently lacked the entrepreneurial spirit and financial resources to exploit fully existing growth potential. Services have become the most dynamic segment of international trade. In services, the Uruguay Round was only a first step in a longer-term process of multilateral rule-making and trade liberalization. 4.2.3. Organization of tariff negotiation Tariff negotiations may be carried out: (a) on a selective product-by-product basis (b) by the application of such multilateral procedures as may be accepted by the members concerned . On a product-by-product basis During the first GATT Rounds (up to and including the 1961-2 Dillon Round), negotiation opted for a product-by-product request-and-offer approach to tariff negotiations. Major disadvantage of the product-by-product approach: For practical reasons, the number of product that
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