Q. The 13th Ministerial Conference (MCA 13) of the World Trade Organization has recently implemented fresh regulations aimed at streamlining international trade in services, applying them on a Most Favored Nation (MFN) basis. Which one of the following is the implication of the new regulations for member countries?

[A] Developing countries receive special treatment in terms of service trade.

[B] They can impose stricter regulations on service providers from certain countries.

[C] All member countries must offer the same level of market access to service providers from other member countries.

[D] They can offer preferential treatment to specific trading partners in the service sector.

Answer: C
Notes:

Explanation – The Most Favored Nation (MFN) principle, which is a fundamental pillar of the World Trade Organization (WTO), requires that each member country treat all other member countries equally in terms of trade policy. In the context of the new regulations aimed at streamlining international trade in services, applying MFN means that member countries must offer the same level of market access to service providers from all other member countries. The regulations address the bureaucratic hurdles in cross-border service trade, aiming to simplify procedures and ensure equal opportunities for service providers globally.

Source: Forum IAS

Blog
Academy
Community