Most Favoured Nation (MFN) Principle

Categories: Economics,

most favoured nation (MFN) principle is a principle of non discrimination embodied in Article 1 of the general agreement on tariffs and trade (GATT), whereby any concession or privilege granted by one contracting party to GATT to a product of another contracting party will be unconditionally granted to the like product of all other contracting parties. In practice, MFN treatment is no longer limited to GATT contracting parties but applicable to other trading partners within the world trade organisation (WTO).