Very niche🧵
Who invented the 4 modes of services supply?
I took a deep dive into historical Uruguay Round negotiating documents following contributions from @ScheeleJonathan @AmyPorges @henrysgao @RMelendezOrtiz
Short answer: it was an evolution, crystallised by the EU
1/14
The four modes of services supply are:
1 cross border supply
2 consumption abroad
3 foreign commercial presence
4 movement or presence of natural persons
Within the 1986–94 Uruguay Round negotiations, this evolved from Feb 1987 to Oct 1989
2/14 wto.org/english/tratop…
Feb 23–25, 1987 meetings
The earliest reference to this idea is in summary note MTN.GNS/7
docs.wto.org/dol2fe/Pages/S…
This has (1) cross-border supply, (2) (partial) presence of natural persons, (3) commercial presence.
Not consumption abroad
3/14
Apr 9, 1987—Singapore discusses the concepts in detail under “consumption” v “trade” in paper MTN.GNS/W/6
docs.wto.org/dol2fe/Pages/S…
Apr 8–10, 1987 meeting—Discussed at length under “definitional issues”. First mention of consumption abroad. MTN.GNS/8
4/14 docs.wto.org/dol2fe/Pages/S…
Also in the Apr 8–10, 1987 meeting—one delegation proposed five types (one being purely domestic). The way these modes are described shows how much negotiators were still struggling with concepts
5/14 docs.wto.org/dol2fe/Pages/S…
Jun 19, 2022—UN Statistical Office notes these modes in paper MTN.GNS/W/9
docs.wto.org/dol2fe/Pages/S…
This shows that other organisations were also grappling with the concepts. Whether any of them ended up with four is not reflected in the Uruguay Round negotiating documents
6/14
Discussion continues
Jun 24, 1988. A GATT Secretariat paper on “definitions” has an in-depth look at two concepts
• where the service itself crosses the border
• cross-border factor flows but not necessarily the service itself
MTN.GNS/W/38/Rev.1
7/14 docs.wto.org/dol2fe/Pages/S…
Nov 25, 1988. The negotiating group’s report to the Montreal Ministerial TNC. MTN.GNS/2
docs.wto.org/dol2fe/Pages/S…
Under “definition”—3 types: cross-border movement of services, consumers, factors of production (which would cover commercial presence and movement of people)
8/14
In the same document for the Montreal Ministerial meeting—the first time “mode” is used in this context (“mode of delivery”), but it comes under “transparency” (or with market access, which seems to be the US route)
MTN.GNS/2
docs.wto.org/dol2fe/Pages/S…
9/14
Dec 9, 1988. Montreal ministerial decision. Echoes MTN.GNS/2 on the definition. MTN.TNC/7(MIN), but not on transparency/market access
10/14 docs.wto.org/dol2fe/Pages/S…
Sep 18–22, 1989 meeting. Lengthy discussion reflects paragraph 4 of the Montreal Decision, with several delegations referring specifically to commercial presence and movement of people, instead of just factors of production. MTN.GNS/25
11/14 docs.wto.org/dol2fe/Pages/S…
Oct 17, 1989. US draft has different approach. MTN.GNS/W/75
Ch 3 “Market Access”—separate articles on “Establishment”, “Cross-Border Provision of Services”, “Temporary Entry for Services Providers”
“Definitions” includes movement of consumers
12/14 docs.wto.org/dol2fe/Pages/S…
Oct 19, 1989—the first time the four modes appear together clearly, but not called “modes”.
In an EU paper on definition of trade in services. MTN.GNS/W/76
docs.wto.org/dol2fe/Pages/S…
The approach ended up in GATS
13/14
It's pretty clear therefore that the final formulation came from the EU, although the ideas had already been percolating in the negotiating group for almost 2 years.
@ScheeleJonathan says the EU was thinking about it before the paper was circulated
14/14
Correction. In the previous tweet that should be "percolating in the negotiating group for almost THREE years"
CORRECTION June 19, 1987
Thread continues here
The 🧵⬆️ is now blogged tradebetablog.wordpress.com/2022/02/15/ori…
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