Prudential Carve-out Of The General Agreement On Trade In Services Research

Prudential Carve-out is the core content of GATS, which endows the research on this topic with great value. However, How to interpret prudential Carve-out? How to tell the differences between prudential Carve-out and general Carve-out, safe Carve-out and specific commitment? How to identify the features and characteristics of prudential Carve-out? Why does the application of prudential Carve-out play an active role in balancing the financial liberalization and supervision and how should we properly adopt prudential Carve-out? The insufficiency of the previous studies on these questions leaves space for further research.Based on the result of the previous research, this paper adopts jurisprudential analysis, material analysis and theoretical deduction to elaborate and analyze the criteria of prudential Carve-out and puts forward new standard for prudence reasons, the standards of crisis. Moreover, this paper also analyzes and discusses the feature of law regulation on prudential Carve-out after the discrimination on law principle and regulation. The author also summarizes the major differences between prudential Carve-out and general Carve-out as well as safe Carve-out and specific commitment through contrast and analysis. After this, the author further discusses the six major characteristics of prudential Carve-out:temporality, voluntary applicability, high flexibility, restrictiveness, defensibility and great veto power against other regulations of GATS. Besides, the authors also demonstrates that the financial liberalization should keep in pace with the financial supervision on the basis of analysis on inhibitory stat of China's finance and the increase of financial fragility under the background of financial liberalization. In the end, the author proposes two suggestions on the application of prudential Carve-out on the foundation of China's specific commitment. First, the prudential Carve-out can make up the loopholes resulted by the lag and risk from specific commitment and second, it can be fully and correctly applied to effectively prevent the risks in the reformation of financial system.