This essay critically analyzes the WTO Appellate Body’s evolving interpretation of the ‘treatment no less favorable’ in Article III: 4 with respect to the EC Seal product. It reviews the interpretation of ‘treatment no less favorable’ and analyzes the new approach of the WTO Appellate Body to such interpretation in the EC Seal Products. It concludes by suggesting that the Appellate body’s decision in EC Seals Products has not disproportionately widened the NT obligation, instead it has clarified three significant issues in future WTO dispute settlements.