GATS Mode 3 (Commercial presence)

GATS Mode 3, or "Commercial Presence," refers to a country's ability to allow foreign companies or investors to establish a physical business within its borders. This includes setting up subsidiaries, branches, or joint ventures to provide services such as banking, telecommunications, or consulting. Essentially, it enables a company from one country to operate directly in another country’s market by creating a local establishment, subject to the host country's regulations. This mode promotes international investment and allows foreign service providers to compete and serve customers locally.