Transcript Most-favoured-nation treatment

Most-favoured-nation treatment
Cornerstone of the GATT and of the WTO
trading system (exceptions).
No discrimination between like products and
equality of opportunity to import or to
export.
Discrimination de jure and de facto (originneutral measures) are prohibited.
Article I:1 GATT (I)
The MFN rule covers any advantage granted to any
product originating in (or destined for) any other Member.
Advantages (broad notion, limits):
- Customs duties or other charges on importation and
exportation, included methods of levying them;
- Charges on international transfer of payments;
- All rules and procedures regarding importation and
exportation;
- Internal taxes or charges and rules affecting internal
sale.
Article I:1 GATT (II)
The MFN rule regards like products:
- that have the same organoleptic
characteristics;
- that have the same end-use;
- that are considered to be like in the
consumers’ perspective.
Article I:1 GATT (III)
The MFN rule requires that the advantage
concerned must be granted immediately and
unconditionally to any other Member.
Different interpretations of “unconditionally”:
- not to be subject to conditions requiring
compensation or conduct of the other Member
States;
- not to be subject to any condition;
- not to be subject to conditions that discriminate
between products on the basis of their origin.
Article II:1 GATS (I)
The MFN rule concerns measures covered
by the GATS and affecting the trade in
services.
4 modes of supply of service:
1) cross border mode;
2) consumption abroad mode;
3) commercial presence mode;
4) presence of natural persons mode.
Article II:1 GATS (II)
The MFN rule:
- regards like services or like services
suppliers;
- requires that a treatment no less
favourable must be granted immediately
and unconditionally to any other Member.