Most Favoured Nation Treatment

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Most Favoured Nation Treatment

Most Favoured Nation Treatment (MFN) in International Trade

Meaning of Most Favoured Nation Treatment (MFN), according to the Dictionary of International Trade (Global Negotiator): A non discriminatory trade policy commitment on the part of one country to extend to another country the lowest tariff rates it applies to any other country. All contracting parties to the General Agreement on Tariffs and Trade (GATT) – now World Trade Organization (WTO) – undertake to apply such treatment to one another under Article 1 of the treaty. Under MFN principles, when a country agree to cut tariffs on a particular product imported from one country, the tariff reduction automatically applies to imports of this product from any other country eligible for most favoured nation treatment. This principal of non discriminatory treatment of imports appeared in numerous bilateral trade agreements prior to the establishment of the GATT.

The Principle of Most Favoured Nation Treatment

This section provides an overview of the principle of most favoured nation treatment within the legal context of Most-Favoured Nation Treatment (MFN) in international economic law, with coverage of Non-Discrimination in Trade of Goods and Services (Principles).

Most-Favoured Nation Treatment (MFN) in International Economic Law

In international economic law, most-favoured nation treatment (mfn) includes the following legal areas, with coverage in this world legal encyclopedia:

    li> The Principle of Most Favoured Nation Treatment
  • Unconditional MFN
  • Conditional MFN
  • Regional Integration and Preferential Trade
  • Special and differential Treatment
  • Enabling Clause
  • Graduation
  • Implied Departures from MFN and Differential Treatment


Further Reading

  • Armand de Mestral, “The Principle of Most Favoured Nation Treatment,” Elgar Encyclopedia of International Economic Law, Cheltenham Glos (United Kingdom), Northampton, MA (United States)

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