most favored nation (MFN)

Popular Terms
Non-discriminatory trade policy commitment offered by one country to another on a reciprocal basis. Both countries apply that lowest import-duty and quota-restrictions on imports from each other which they apply on the similar imports from any other country. Under Article I of the General Agreement On Tariffs And Trade (GATT) and its successor World Trade Organization (WTO), all signatory states must extend this treatment to one another. common markets, customs unions, and free trade areas, however, are exempt from MFN provisions.

Use 'most favored nation (MFN)' in a Sentence

My import-export company had to pay high taxes on products we imported from China until the United States granted China most favored nation status.
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John grew up in the Untied States of America and believed with all his heart the country he was born in was the most favored nation in the world.
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The most favored nation agreement was realized during the trade negotiations as each nation generated favorable terms of trade going forward.
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