What is the purpose of the GATS?

Master CIPS Commercial Contracting (L4M3) Test. Review with comprehensive multiple choice questions including detailed explanations. Boost your confidence and excel on your exam!

The General Agreement on Trade in Services (GATS) primarily aims to regulate barriers to the provision of services between countries. It provides a framework for international trade in services, which include sectors like telecommunications, finance, and transportation, encouraging countries to liberalize their service markets and enhance cross-border trade. The agreement is an essential part of the World Trade Organization (WTO) framework and seeks to ensure that countries do not impose unfair restrictions on service suppliers from other nations, thereby promoting a more open and competitive global market for services.

The other options address aspects of trade that are not the central focus of GATS. Regulating tariffs on imported goods pertains to goods rather than services, while promoting free trade in agricultural products falls under different trade agreements. Establishing uniform standards for manufacturing is more aligned with other regulatory frameworks, not specifically with the goals of GATS.

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