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• Mode 2 – the consumer of service from country

A travels across borders, consuming the service
provided by suppliers in country B, for example,
a Manila tourist going to Ha Long bay taken care

by tour and hotel service providers of Vietnam;

• Mode 3 – the service provider from country A
sets up shop in country B to provide the service,
for example, a commercial bank in country A

establishing a branch in country B;
• Mode 4 – the service provider from country A

send its service personnel to country B to perform
certain services such as trouble-shooting for a

computer system gone awry. This mode was given
a technical-sounding term “movement of natural
persons”.

But how do countries negotiate for the liberalization
of services of other countries? The GATS proponents came

up with the “request-offer” system – a country A requesting
country B to liberalize certain service industries, for example,
banking, and country B making an offer on what industries it is

prepared to open up. To simplify WTO negotiations, services
were classified into 12 sectors:

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