Trade
Most Favored Nation Clause
WTO principle requiring each member to grant all other members the same most favorable trade treatment it grants to any one of them.
WTO principle requiring each member to grant all other members the same most favorable trade treatment it grants to any one of them.
The MFN clause establishes that if a country reduces a tariff for another WTO member, it must automatically extend that reduction to all members. The main exception is FTAs notified to the WTO.
Most Favored Nation
A WTO principle requiring that any trade advantage granted to one member country must automatically be extended to all other WTO members.
TariffsMFN Tariff (Most Favored Nation)
The maximum tariff rate a WTO member country applies to imports from any other member, guaranteeing equal treatment without discrimination among trading partners.
TradeFree Trade Agreement (FTA)
International agreement that eliminates or reduces tariffs and trade barriers between signatory countries.