Article II Sets : Most Favored Nation Treatment ( Mfn )

1477 Words Aug 17th, 2015 6 Pages
i. Most Favored Nation
Article II sets forth an obligation of all Members called Most Favored Nation treatment (MFN). The main purpose of MFN is to ensure the equal treatment among Members by creating an obligation to guarantee and treat all like services and service suppliers of the other members equally and without discrimination. However, what is considered a “like” service or service supplier remains undefined in Article II, and efforts to define the term under GATS is described by the WTO as “limited and inconclusive”. In fact, several disputes brought forward under the WTO’s dispute-resolution body have failed to adequately address this shortcoming. Nonetheless, Members are required to oblige this requirement regardless of its deficiency.
In addition, the MFN obligation lacks teeth compared to the transparency requirement. GATS features built-in exemption provisions, generally for no longer than a period of 10 years, allowing Members an exemption from MFN treatment. ii. Transparency
Transparency plays an important part in promoting trade in services. Article III defines the obligation of transparency imposed on all Members. This principle of transparency is often divided into three primary obligations: (1) the obligation to publish, or otherwise make publicly available, all relevant regulations and subordinate measures of general application that affect trade; (2) the obligation to notify several forms of government action and its possible changes to the WTO;…
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