_The Creative Wealth of Nations_ revenue (from adverts, for instance) is collected? And what percentage is distributed to the artists? This is an area of inquiry the WBG’s data group may have reason to consider. The crossborder exchange via media platforms such as YouTube is captured under international trade in services, a topic we discuss next.

# **|| 5 || International Trade in Services**

## _Beyond Trade in Goods_

**<mark>|| Box 9 || The GATS:</mark>** <mark>IV modes of supplying services</mark>

Until recent years, the expansion of trade for developing countries usually focused on goods. But according to the WTO,* services, which range from architecture to telecommunications and to space transport — the performing arts generally fall under this category — “are the largest and most dynamic component of both developed and developing country economies. Important in their own right, they also serve as crucial inputs into the production of most goods. Their inclusion in the Uruguay Round of trade negotiations led to the **General Agreement on Trade in Services (GATS).**<sup>101</sup> Since January 2000, they have become the subject of multilateral trade negotiations.”<sup>102</sup> I. “ **Cross-border supply** is defined to cover services flows from the territory of one Member into the territory of another Member (e.g. banking or architectural services transmitted via telecommunications or mail); II. **Consumption abroad** refers to situations where a service consumer (e.g. tourist or patient) moves into another Member's territory to obtain a service; III. **Commercial presence** implies that a service supplier of one Member establishes a territorial presence, including through ownership or lease of premises, in another Member's territory to provide a service (e.g. domestic subsidiaries of foreign insurance companies or hotel chains); and IV. **Presence of natural persons** consists of persons of one Member entering the territory of another Member to supply a service (e.g. accountants, doctors or teachers). The Annex on Movement of Natural Persons specifies, however, that Members remain free to operate measures regarding citizenship, residence or access to the ”<sup>100</sup> employment market on a permanent basis **.** Regarding trade (in goods and services) the regarding citizenship, residence or access to the WTO recognizes the need to ensure that employment market on a permanent basis **.** ”<sup>100</sup> developing countries fully benefit from Source: World Trade Organization | Services: GATSganization | Services: GATSanization | Services: GATS| Services: GATS Services: GATS participating in international trade and from the system of multilateral trade.<sup>103</sup> In fact, the Agreement establishing the WTO provides that,

Source: World Trade Organization | Services: GATSganization | Services: GATSanization | Services: GATS| Services: GATS Services: GATS

- “there is need for positive efforts designed to ensure that developing countries and especially the least developed among them, secure a share in the growth in international trade commensurate with the needs of their economic development.”<sup>104</sup>

> * The WTO “is the only global international organization dealing with the rules of trade between nations. At its heart are the WTO agreements, negotiated and signed by the bulk of the world’s trading nations and ratified in their parliaments. The goal is to help producers of goods and services, exporters, and importers conduct their business.”  — World Trade Organization, What is the WTO? accessed April 30, 2014, <u>http://www.wto.org/english/thewto_e/whatis_e/whatis_e.htm.</u>

> 100 World Trade Organization, The General Agreement on Trade in Services (GATS): objectives, coverage and disciplines, accessed April 23, http://www.wto.org/english/tratop_e/serv_e/gatsqa_e.htm.

101 See Agreement’s Scope and Definition and other Articles here, (accessed May 1, 2014): <u>http://www.wto.org/english/docs_e/legal_e/26-gats.pdf.</u> 102 World Trade Organization, Services Trade, accessed April 23, 2014, <u>http://www.wto.org/english/tratop_e/serv_e/serv_e.htm.</u> 103 World Trade Organization, Millennium Development Goals, Trade and Development, accessed April 30, 2014, http://www.wto.org/english/thewto_e/coher_e/mdg_e/development_e.htm.

<mark>29</mark>