The creation of the WTO’s General Agreement on Trade in Services (GATS), therefore, “was one of the landmark achievements of the Uruguay Round” trade talks. The results of these talks “entered into force in January 1995.”<sup>40</sup> In reflecting upon this policy in context of trade in cultural services (and beyond), consider the following excerpt: The GATS was inspired by essentially the same objectives as its counterpart in merchandise trade, the General Agreement on Tariffs and Trade (GATT): creating a credible and reliable system of international trade rules; ensuring fair and equitable treatment of all participants (principle of non-discrimination); stimulating economic activity through guaranteed policy bindings; and promoting trade and development through progressive liberalization.<sup>41</sup> In its mandate to promote progressive trade, the GATS treaty “distinguishes between four modes of supplying services: cross-border trade, consumption abroad, commercial presence, and presence of natural persons.” The table below considers where creative trade comes in here:

## Figure <u>5</u>

# **The GATS modes of supplying services and how creative trade fits in**

“ **Cross-border supply** is defined to cover services flows from **Consumption abroad** refers to situations where a service the territory of one Member into the territory of another Member consumer (e.g. tourist or patient) moves into another Member's (e.g. banking or architectural services transmitted via territory to obtain a service. telecommunications or mail).

[In addition to architectural services, movie streaming from Nigeria to UK, for example, can be counted here _._ ]

**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).

[An office of, say, a Brazilian Music Station in Japan, or <u>Juilliard in China can be counted here.] Source: WTO</u>

[Cultural tourism can be counted here.]

**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 employment market on a permanent basis.”<sup>42</sup>

[Performers, music teachers, or other creative persons teaching or giving lectures and workshops, for example, can be counted here.] In global trade policy, the exchange of cultural services could be effectively governed by the GATS. But given the broad nature of this framework, concerns of global trade in cultural services are ‘lost in the details.’ Apart from architecture, there is pretty much no specific mention of trade in creative services. This may be part of the global neglect of Patrick Kabanda, “Haiti’s Economic Imperative,” [Letter to the editor] _International New York Times_ , January 20, 2015: 7, accessed June 4, 2015, http://www.nytimes.com/2015/01/20/opinion/haitis-economic- <u>imperative.html?_r=0.</u>

> 40 WTO, “The General Agreement on Trade in Services (GATS),” accessed April 15, 2015, <u>https://www.wto.org/english/Tratop_e/serv_e/gatsqa_e.htm#1.</u> 41 Ibid.

> 42 Ibid. For more on this framework, generally see: Patrick Kabanda. 2014. _The Creative Wealth of Nations,_ 29-66.

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