# Most-Favored-Nation Clause

*Last updated: 2026-06-18*

> A Most-Favored-Nation (MFN) Clause is a trade law principle obligating a country to extend to any trading partner the most favorable tariff rates and trade conditions it grants to any other country for comparable goods.

A Most-Favored-Nation (MFN) Clause is a trade law principle obligating a country to extend to any trading partner the most favorable tariff rates and trade conditions it grants to any other country for comparable goods. Enshrined in GATT Article I, it forms the cornerstone of non-discriminatory treatment within the WTO framework. In practice, any tariff reduction negotiated bilaterally must automatically apply to all WTO members — preventing selective advantages that would distort global competition. Recognized exceptions include regional free trade agreements and preferential schemes for developing countries, provided they meet WTO criteria. The MFN principle is distinct from national treatment, which governs the equal treatment of imported and domestic goods once they have cleared customs.

**Source:** [https://www.wto.org/english/thewto_e/whatis_e/tif_e/fact2_e.htm](https://www.wto.org/english/thewto_e/whatis_e/tif_e/fact2_e.htm)

## Quick Facts

| Property | Value |
|---|---|
| Term | Most-Favored-Nation Clause |
| Language | EN |
| Word count | 115 |
| Last updated | 2026-06-18 |
| Source | https://www.wto.org/english/thewto_e/whatis_e/tif_e/fact2_e.htm |

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