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Abstract

The General Agreement on Trade and Services 1994 (GATS) strikes a balance between liberalizing the trade in services among the Members of the World Trade Organisation (WTO), while granting a considerable margin of discretion to the Members in the manner in which they choose to discharge their obligations. One of the most crucial obligations contained therein is that of National Treatment – which prohibits discrimination between foreign and domestic services. The bare text of the provision has however created more confusion rather than given clarity – particularly in light of the advent of new technology not envisaged at the time of its enactment. When presented with disputes regarding the applicability of this obligation, WTO adjudicating bodies have attempted to devise various tests and thresholds to outline the instances of its breach. This paper culls out the specific lacunae in the provision, analyses its relationship with other Articles of the GATS, and suggests approaches towards a more determinative assessment of its breach.

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