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The Rule That Made Global Trade in Financial Services Possible
Season 2
Episode 88
Published 1 week ago
Description
This episode explores GATS, the General Agreement on Trade in Services, and one specific rule that unlocked cross-border financial services. Lucas and Luna explain how the 'prudential carve-out' in GATS allows countries to regulate banks and insurers for safety while still permitting trade in financial services. They discuss the 1997 WTO Financial Services Agreement, the $3.5 trillion annual trade in financial services, and a 2025 dispute over India's data localization rules. The hosts anchor the discussion with concrete examples: how a German insurer can sell policies in Singapore, and why the carve-out prevented a global trade war after the 2008 crisis. A must-listen for understanding the invisible plumbing of global finance.