What does the GATS say about subsidies and public funding?
The GATS does not currently contain any subsidy disciplines, but this is one of the subjects under discussion in the current negotiations. These discussions are an opportunity for Canada to influence the definition of subsidies in the GATS, and to ensure that any future disciplines are targeted at trade-distorting subsidies (i.e. export subsidies) and not funding for domestic services. In any case, governments would remain free to fund library activities covered by the “governmental authority” exception, which are excluded from the GATS. Commercial activities in the Library Services sector could also remain publicly funded due to Canada’s lack of commitments in this area.
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