The Multilateralization Of Laws On International Trade In Financial Serveces

From the eighties of the twentieth century, the liberalization of international trade in financial services has greatly developed along with the rapid development of science and technology, the new financial tools and new financial business' spring up and international goods trade's continuously increasing requirement of financial services. The development of international trade in financial services has been by means of the internationalization of trade in financial services, while the internationalization of trade in financial services requires inevitably liberalization of trade on financial services. The development of financial services' industry isn't balanced between countries particularly developing country and developed country. Financial service industry is the core of modern national economy and financial services involve every side of national economy. To open financial service market often involve some sensitive things such as the sovereign rights and safe of economy. The inherent risk of financial service industry is huge. Every country set up in varying degrees some barriers that hinder the liberalization of international trade in financial services. The liberalization of international trade in financial services as a global conception, requires realizing freedom of trade in financial services between countries all over the world,for which multilateral laws on trade in financial services is indispensable. Every country can't make identical law on liberalization of international trade in financial services. It is difficult to set up an integral law system on international trade in financial trade in financial services. It is also in practice very difficult to wear a huge bilateral treaty network indispensable to deal comprehensively with problems of law on trade in financial services between countries all over the world. The effect of regional convention is limited and different regional conventions have different standards on an identical problem. While multilateral treaty on trade in financial services can remedy defects of the above laws. In fact, international society has reached General Agreement on Trade in Services,GATs, its Annex on Financial Services and Global Financial Services Agreement. Then the multilateralization of laws on international trade in financial services is the necessary requirement of the liberalization of international trade in financial services, also the indispensable and best law means on realizing liberalization of international trade in financial services. So international society has made great efforts for accomplishing the multilateralization of laws on international trade in financial services all along. Before the Uruguay Round of multilateral trade negotiations closed, many countries, regions and organizations concerned had negotiated about some problems on trade in financial services and signed some treaties, the major of which is however to provide how to develop trade in financial services at international uniform standard, not relating to Market Access or Nation Treatment of liberalization of trade in financial services. After the Uruguay Round, Understanding on Commitments in Financial Service and Global Financial Service Agreement were reached. GATs is a milestone in history of the multilateralization of laws on international trade inservices, which brought international trade in services include international trade in financial services into multilateral law systems. Then it made member states probably discuss the development of international trade in financial services within multilateral trade systems and transformed the previous disorder policy and laws on international trade in financial services into the order. However GATs is in general favorable to the developed member states. Some regulations of GATs:Crossed Retaliation, Essential Standard of Nation Treatment, Reciprocal and Mutually Advantageous Arrangements and Overall Balance of Rights and Obligations, will probably be used by developed countries as too...