This chapter conducts an analysis of the GATS disciplines and their applicability to digital services trade. The reader is thereby provided with an overview of the relevant GATS obligations and how they apply to the supply of digital services. The distinction between the GATS’ general obligations and its obligations subject to specific commitments is explained and the implications for digital services trade elaborated upon. The chapter also sets out how the digital supply of services that can also be supplied offline impacts the likeness analysis in various GATS obligations. The most relevant obligations for digital services trade are the most-favoured nation treatment obligation, the market access obligation and the national treatment obligation. The chapter discusses the potential overlap between the latter two obligations and how to interpret WTO Members’ Services Schedules to understand their commitments. The chapter additionally addresses the applicability of the Annex on Telecommunications, the Reference Paper on Basic Telecommunications and the Understanding on Commitments in Financial Services to digital services trade. Finally, the chapter discusses the justification grounds in the GATS and how they relate to digital services.

This chapter analyses the consistency of the barriers to services trade that were identified in Chapter 3 with the GATS obligations as elaborated upon in Chapter 6. First, the chapter addresses restrictions to cross-border data flows, using two case studies: Russia’s amended Law on Personal Data and the EU’s General Data Protection Regulation. Second, the barrier of web filtering and content control is assessed under the applicable GATS obligations, using the case study of China’s Great Firewall. Third, the lack of access to infrastructure as an obstacle to digital services trade is considered using the case study of the United States’ Restoring Internet Freedom Order. Finally, a briefer analysis of the GATS consistency is provided for bans on cross-border supply through electronic means, digital taxes and restrictions on intellectual property rights. For each of these barriers, the services at issue are classified, the different GATS obligations are applied and the potential justification grounds are considered.