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(such as banking services transmitted through telecommunications

or mail). Consumption abroad (Mode 2) refers to situations
29
where a service consumer moves into another member’s
territory to obtain a service. Commercial presence (Mode 3) is
30
a situation where a service supplier of one member establishes
a territorial presence, including through ownership or lease of

premises, in another member’s territory to provide a service
(for instance, domestic subsidiaries of foreign insurance
31
companies). The presence of natural persons (Mode 4) refers
to persons of one member entering the territory of another
member to supply a service. In this connection, Article
32
4 of AFAS provides that the negotiation among members
shall be directed towards achieving commitments, which are
beyond those inscribed in each member’s schedule of specific

33
commitments under the GATS. This implies that the principles
concerning the four modes of supplying services under GATS

are recognised and applied under the context of AFAS.

29 World Trade Organisation, The General Agreement on Trade in Services
(GATS): objectives, coverage and disciplines(2016), available at https://www.
wto.org/english/tratop_e/serv_e/gatsqa_e.htm.
30
id. at.
31
id. at.
32
id. at.
33 § Article 4 (1992).

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