MOST FAVORED NATION (MFN)
\mˈə͡ʊst fˈe͡ɪvəd nˈe͡ɪʃən ˌɛmˌɛfˈɛn], \mˈəʊst fˈeɪvəd nˈeɪʃən ˌɛmˌɛfˈɛn], \m_ˈəʊ_s_t f_ˈeɪ_v_ə_d n_ˈeɪ_ʃ_ə_n__ ˌɛ_m_ˌɛ_f_ˈɛ_n]\
Sort: Oldest first
-
Non-discriminatory trade policy commitment offered reciprocally offered between two countries. Both countries set the lowest import duty and quota restrictions on each other's imports as they do on similar imports from any other country. Under the General Agreement On Tariffs And Trade (GATT) and its successor, the World Trade Organization (WTO), Article 1 states that all signatory states must extend this treatment to each other. However, free trade areas, common markets, and customs unions are exempt from MFN provisions.
By Henry Campbell Black
