Trade in Higher Education Services: The Implications of GATS

Abstract

Trade in higher education services is a billion dollar industry, including recruitment of international students, establishment of university campuses abroad, franchised provision and online learning. The General Agreement on Trade in Services (GATS) is currently being negotiated under the auspices of the World Trade Organisation (WTO). GATS is designed to increase trade liberalisation internationally, and includes ‘education’ as a service sector. Examples of perceived ‘barriers’ in the trade in higher education services might include visa restrictions, taxation that disadvantages foreign institutions and accreditation arrangements that privilege domestic institutions and qualifications. Some view GATS as a positive force, accelerating the influx of private and foreign providers of higher education into countries where domestic capacity is inadequate. Other take a more negative view, concerned that liberalisation may compromise important elements of quality assurance and permit private and foreign providers to monopolise the best students and most lucrative programmes. Many aspects of GATS are open to interpretation, and many nations have yet to fully engage in the process, at least in respect of the potential implications for education. In this report, Dr Jane Knight of the University of Toronto, an expert in the internationalisation of higher education, sets out a clear overview of the GATS agenda, and considers a wide range of issues that may affect developing and developed countries.