Commentary of GATS Article XI: Payments and Transfers

MAX PLANCK COMMENTARIES ON WORLD TRADE LAW, WTO - TRADE IN SERVICES, Vol. 6, pp. 245-257, Rüdiger Wolfrum, Peter-Tobias Stoll and Clemens Feinäugle, eds., Leiden/Boston: Martinus Nijhoff Publishers, 2008

10 Pages Posted: 8 Feb 2010 Last revised: 15 Feb 2010

See all articles by Benedict F. Christ

Benedict F. Christ

VISCHER Ltd Attorneys-at-Law

Marion Panizzon

University of Bern Law School

Date Written: February 8, 2008

Abstract

Art. XI GATS prohibits any restrictions on current (payments and transfers) and capital transactions, made in connection with a GATS specific commitment, but permits exceptions in five sets of circumstances (Art. VII GATS, Art. XIV and XIVbis, prudential measures according to GATS Annex on Financial Services, IMF agreement and at the request of the IMF). These exceptions, basically function as a conflict rule delineating the IMFs jurisdiction from the one of the GATS over international monetary transactions. The IMF permits to temporarily restrict current transactions, if such measures are necessary to preserve global financial stability. In such cases, IMF takes precedence over GATS Art. XI. Both IMF and GATS Art. XI prohibit bans on capital transactions; however, at the express request of the IMF, such transactions can be restricted in exceptional circumstances.

Keywords: payments, transfers, capital transactions, current transactions, IMF, GATS, prudential measures, international monetary system, financial stability

JEL Classification: F 31, F 32, F33, F34

Suggested Citation

Christ, Benedict F. and Panizzon, Marion, Commentary of GATS Article XI: Payments and Transfers (February 8, 2008). MAX PLANCK COMMENTARIES ON WORLD TRADE LAW, WTO - TRADE IN SERVICES, Vol. 6, pp. 245-257, Rüdiger Wolfrum, Peter-Tobias Stoll and Clemens Feinäugle, eds., Leiden/Boston: Martinus Nijhoff Publishers, 2008, Available at SSRN: https://ssrn.com/abstract=1549530

Benedict F. Christ

VISCHER Ltd Attorneys-at-Law ( email )

Schützengasse 1
PO Box 1230
Zurich, CH-8001
Switzerland

Marion Panizzon (Contact Author)

University of Bern Law School ( email )

Institute of Public Law
Schanzeneckstrasse 1
Bern, CH-3012
Switzerland
++41 1 31 631 4199 (Phone)
++41 31 631 3630 (Fax)

HOME PAGE: http://nccr-onthemove.ch/home/

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
182
Abstract Views
849
rank
190,109
PlumX Metrics