Mari and Juana are both members of the WTO. Mari supplies special herbs to Juana, which processes and sells them as medicinal herbs. However, it was discovered that Mari entered into an agreement with its two ex-colonies, Maricoke and Marispliff, whereby special herbs were supplied at a lower price.

Juana has approached the WTO, arguing that Mari’s discriminatory pricing violates both the GATT and the GATS; the latter is invoked because companies in Juana include “medicinal processing departments” which provide the service of treating special herbs prior to their sale. Do you think Juana has a valid claim under the GATS? mk5 GATS and NAFTA Commitments