Are there any specific exemptions in the GATS to cater to important national policy interests?
Governments are free to pursue any national policy objectives provided the relevant measures are compatible with the GATS. More specifically, the GATS allows Members in specified circumstances to take or maintain measures in contravention of their obligations. This applies in particular to: (i) measures in reaction to serious balance of payments and external financial difficulties; (ii) measures necessary to protect public morals or human, animal or plant life or health; and (iii) measures necessary to secure compliance with laws or regulations not inconsistent with the Agreement including, among others, measures necessary to prevent deceptive or fraudulent practices. Further, the Annex on Financial Services entitles Members, regardless of other provisions of the GATS, to take measures for prudential reasons,including for the protection of investors, depositors,policy holders or persons to whom a fiduciary duty is owed by a financial service supplier, or to ensure the integrity and sta
