Trade in Services

Trade in Services refers to transactions of services between residents of one country and non-residents, covering four modes under the GATS definition: cross-border supply, consumption abroad, commercial presence, and movement of natural persons. Unlike trade in goods, trade in services does not involve the import and export of physical goods; instead, value exchange is realized through the provision of labor, technology, finance, transportation, tourism, consulting, and other services. Use cases include international engineering contracting, transportation and logistics, intellectual property licensing, finance and insurance, telecommunications, tourism, etc. Notes: It is necessary to distinguish the statistical scope of trade in services from trade in goods. Trade in services is generally governed by the General Agreement on Trade in Services (GATS) and involves rules on foreign exchange management, market access, and national treatment. The difference from 'technology trade' is that trade in services has a broader scope, while technology trade only involves technology transfer or licensing. Foreign trade practitioners should pay attention to cross-border service taxation, foreign exchange verification and cancellation, and service delivery standards in contract terms.