GATS Article XIV: General Exceptions

[James Love <love@cptech.org>]

This is Article XIV, regarding General Exceptions to the WTO's General
Agreement on Trade in Services (GATS).   It provides an important level
of protection for national laws dealing with various consumer protection
and privacy problems, but it is still subject to some interpretation by
the WTO, which is one reason why it is unfortunate that the WTO's
Council in Trade in Services and some national governments are pushing
for a narrow interpretation of this provision, as it relates to national
laws dealing with privacy and consumer protection.

 Jamie

http://www.wto.org/wto/services/2-obdis.htm

GENERAL AGREEMENT ON TRADE IN SERVICES 


                 Article XIV
              General Exceptions

    Subject to the requirement that such measures are not applied in a
manner which would constitute a means of arbitrary or unjustifiable
discrimination between countries where like conditions prevail, or a
disguised restriction on trade in services, nothing in this Agreement
shall be construed to prevent the adoption or enforcement by any Member
of measures: 

(a)    necessary to protect public morals or to maintain public order;
See footnote 5 

(b)    necessary to protect human, animal or plant life or health; 

(c)    necessary to secure compliance with laws or regulations which are
not inconsistent with the provisions of this Agreement including those
relating to: 

      (i)    the prevention of deceptive and fraudulent practices or to
deal with the effects of a default on services contracts; 

     (ii)    the protection of the privacy of individuals in relation to
the processing and dissemination of personal data and the protection of
confidentiality of individual records and accounts; 

    (iii)    safety; 

(d)    inconsistent with Article XVII, provided that the difference in
treatment is aimed at ensuring the equitable or effective (See footnote
6) imposition or collection of direct taxes in respect of services or
service suppliers of other Members; 

(e)    inconsistent with Article II, provided that the difference in
treatment is the result of an agreement on the avoidance of double
taxation or provisions on the avoidance of double taxation in any other
international agreement or arrangement by which the Member is bound. 


Footnote: 5
The public order exception may be invoked only where a genuine and
sufficiently serious threat is posed to one of the fundamental interests
of society.

Footnote: 6
Measures that are aimed at ensuring the equitable or effective
imposition or collection of direct taxes include measures taken by a
Member under its taxation system which:
-- 
James Love / Director, Consumer Project on Technology
http://www.cptech.org / love@cptech.org
P.O. Box 19367, Washington, DC 20036
voice 202.387.8030 / fax 202.234.5176