# Most-Favoured-Nation

*Last updated: 2026-06-26*

> Most-Favoured-Nation (MFN) is a foundational principle of WTO law: any trade advantage – a tariff reduction, fee waiver, or simplified customs procedure – that one WTO member grants to any other country must be extended immediately and unconditionally to all WTO members.

Most-Favoured-Nation (MFN) is a foundational principle of WTO law: any trade advantage – a tariff reduction, fee waiver, or simplified customs procedure – that one WTO member grants to any other country must be extended immediately and unconditionally to all WTO members. Selective preferential treatment between trading partners is thereby prohibited as a general rule. Recognised exceptions cover regional free-trade agreements, customs unions such as the EU or MERCOSUR, and certain preferential schemes for developing countries. For freight forwarders and shippers, MFN means uniformly applied duty rates that remain predictable regardless of a shipment's country of origin within the WTO membership. MFN is distinct from National Treatment, a complementary but separate principle that governs the treatment of imported goods only after they have cleared the border.

**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-Favoured-Nation |
| Language | EN |
| Word count | 126 |
| Last updated | 2026-06-26 |
| Source | https://www.wto.org/english/thewto_e/whatis_e/tif_e/fact2_e.htm |

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