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Four Modes Of Supply




  • (Mode 1) Cross border trade, which is defined as delivery of a service from the territory of one country into the territory of other country;

  • (Mode 2) Consumption abroad - this mode covers supply of a service of one country to the service consumer of any other country;

  • (Mode 3) Commercial presence - which covers services provided by a service supplier of one country in the territory of any other country, and

  • (Mode 4) Presence of natural persons - which covers services provided by a service supplier of one country through the presence of natural persons in the territory of any other country.

  • A "Natural Person" is a human being, as distinct from legal persons such as companies or organisations.

Countries can freely decide where to liberalize on a sector-by-sector basis, including which specific mode of supply they want to cover for a given sector.