most favored nation (MFN) |
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Definition
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.
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most favored nation (MFN) is in the Economics, Politics, & Society and International Trade & Relations subjects.
most favored nation (MFN) appears in the definition of the following term: general tariff
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