Knight / Trade Talk Trade Talk: An Analysis of the Impact of Trade Liberalization and the General Agreement on Trade in Services on Higher Education

The international dimension of higher education is now becoming a major issue of discussion in trade talks and negotiations around the world. Why? Because education is one of 12 service sectors covered by the General Agreement on Trade in Services (GATS). The current debate on the impact of GATS is rather polarized. Critics focus on the threat to the role of government, public good, and quality aspects of higher education. Supporters highlight the benefits that more trade can bring in terms of innovation through new delivery systems and providers and greater student access and economic value. This article aims to take a balanced approach and examines both the risks and opportunities that GATS can bring to the higher education sector and tries to identify implications and directions for higher education policy. The international dimension of higher education is now becoming a major issue of discussion in trade talks and negotiations around the world. Why? Because education is one of 12 service sectors covered by the General Agree-ment on Trade in Services (GATS). GATS is the first legal trade agreement that focuses exclusively on trade in services. The purpose of GATS is to progres-sively and systematically promote freer trade in services by removing many of the existing barriers to trade. The emergence of GATS and other regional trade agreements such as the North American Free Trade Agreement, Southern Afri-can Development Community, European Union, and Asia Pacific Economic Communities (APEC) means that trade liberalization has increasing impact and importance for education services, especially higher and adult education. Sup-porters highlight the benefits that more trade can bring in terms of innovatio