December 2015
Intermediate to advanced
313 pages
16h 2m
English
Content preview from International Business, 2nd Edition by Pearson
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84 International Business
Most-Favored-Nation (MFN)
According to the WTO agreements, countries cannot normally discriminate between their trading part-
ners. If a country gives a special favor, advantage, or privilege to one country (such as a lower customs
duty rate for one of their products), it has to be similarly granted to all other WTO members. This is
known as the most-favored-nation (MFN) status, which is granted by WTO members to each other.
The MFN treatment is a basic pillar of multilateral trade negotiations and was also the first article of
the General Agreement on Taris and Trade (GATT), which governs trade in goods. MFN is also ...
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