In recognition of the economic significance of trade in services to growth, the Uruguay Round concluded a legally enforceable agreement to promote free trade in services. This article examines the legislative history of that agreement, the enthusiasm of its proponents, the concern of its opponents, and its inclusion in the WTO package. It critically analyses the major provisions of the agreement. It appraises the fairness and equity of the agreement by evaluating its impact on major stakeholders, particularly on developing and the least-developed countries. It is this dimension of the agreement that exposes the unfairness of fair trade in services and its north-south tension. Finally, it explores some options for improvement.