A Comparative Analysis of GATS and GATT: A Trade in Services Departure from GATT’s MFN Principle and the Affect on National Treatment and Market Access

Abstract:     
In the formative stages of the GATS many key concepts were directly transferred from the GATT to GATS. The framing of GATS clearly exhibits a certain element of the Most-Favored Nation (MFN) treatment principle descending directly from GATT but also displays striking differences. The framers of GATS deliberately altered MFN from its origins in GATT to make it applicable to trade in services. In addition, the GATS does take other voluntary measures not included in the GATT and debatably, not inherent to the execution of GATS. This paper will examine the MFN treatment principle in terms of the GATT and GATS followed by its comparative applications in international law. In addition, further analysis that will bring to light a cascading effect of MFN on other keystone principles found in Part II such as National Treatment, Market Access, and Additional Scheduled Exemptions to MFN commitments.

Number of Pages in PDF File: 18

working papers series