Question:
“If a service of any kind is open to one member it should be extended to all member countries in equal measure” is the principle provided under GATS through:
“If a service of any kind is open to one member it should be extended to all member countries in equal measure” is the principle provided under GATS through:
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Exam Tip: The MFN principle ensures non-discrimination among trading partners. It is one of the core pillars of the WTO. In the context of services, it means that a country cannot treat one country's service providers less favorably than another's.
Updated On: Aug 27, 2026
- TRIPS
- TRIMS
- AOA
- MFN
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The Correct Option is D
Solution and Explanation
Step 1: Understanding the Concept:
This question tests knowledge of the General Agreement on Trade in Services (GATS) and its key principles. GATS is a treaty of the World Trade Organization (WTO) that regulates international trade in services.
Step 2: Defining the Terms:
Let's define each term:
• GATS (General Agreement on Trade in Services): A WTO agreement that sets out the rules for trade in services.
• MFN (Most Favored Nation): This is a fundamental principle of the WTO. It requires that any advantage, favor, privilege, or immunity granted by a country to a product or service from one member country must be granted immediately and unconditionally to the same product or service from all other member countries.
• TRIPS (Trade-Related Aspects of Intellectual Property Rights): An agreement on intellectual property.
• TRIMS (Trade-Related Investment Measures): An agreement on investment measures.
• AOA (Agreement on Agriculture): An agreement on agricultural trade.
Step 3: Analyzing the Statement:
The statement says: "If a service of any kind is open to one member it should be extended to all member countries in equal measure."
This is the exact definition of the Most Favored Nation (MFN) principle.
MFN is a key principle under GATS.
Step 4: Final Answer:
The principle is provided under GATS through MFN. Therefore, option (D) is correct.
This question tests knowledge of the General Agreement on Trade in Services (GATS) and its key principles. GATS is a treaty of the World Trade Organization (WTO) that regulates international trade in services.
Step 2: Defining the Terms:
Let's define each term:
• GATS (General Agreement on Trade in Services): A WTO agreement that sets out the rules for trade in services.
• MFN (Most Favored Nation): This is a fundamental principle of the WTO. It requires that any advantage, favor, privilege, or immunity granted by a country to a product or service from one member country must be granted immediately and unconditionally to the same product or service from all other member countries.
• TRIPS (Trade-Related Aspects of Intellectual Property Rights): An agreement on intellectual property.
• TRIMS (Trade-Related Investment Measures): An agreement on investment measures.
• AOA (Agreement on Agriculture): An agreement on agricultural trade.
Step 3: Analyzing the Statement:
The statement says: "If a service of any kind is open to one member it should be extended to all member countries in equal measure."
This is the exact definition of the Most Favored Nation (MFN) principle.
MFN is a key principle under GATS.
Step 4: Final Answer:
The principle is provided under GATS through MFN. Therefore, option (D) is correct.
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