The GATS (Art. II) contains an unconditional Most-Favoured-Nation clause which requires Members to accord immediately and unconditionally to services and service suppliers of any other Member treatment no less favourable than that it accords to like services and service suppliers of any other country.
Article 5 (Art. V) of the GATS (Economic Integration) provides for an exception to the Most-Favoured-Nation Treatment principle as regards agreements liberalising trade in services. To comply with Article 5 of the GATS, a FTA containing a services chapter must provide for substantial sectoral coverage and for the absence or elimination of substantially all discriminations.