Most Favored Nation (MFN)

The Most Favored Nation treatment is the most important philosophical element of the WTO mechanism. MFN means there should not be any discrimination among countries in the conduct of trade. Under the WTO agreements, countries cannot normally discriminate between their trading partners. If a special favour is granted to a particular country, it should be extended to all other WTO members. The MFN is so important that it is the first article of the GATT, which governs trade in goods.   MFN under WTO actually means non-discrimination and it doesn’t mean any special treatment to a specific country.

December 4, 2017
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