# Non-discrimination in trade

*Last updated: 2026-06-18*

> Non-discrimination in trade is a foundational WTO principle that differs fundamentally from preferential trade arrangements: where preferential agreements grant advantages to selected partners, non-discrimination prohibits unjustified differential treatment between comparable goods and services.

Non-discrimination in trade is a foundational WTO principle that differs fundamentally from preferential trade arrangements: where preferential agreements grant advantages to selected partners, non-discrimination prohibits unjustified differential treatment between comparable goods and services. It operates through two specific rules. The most-favoured-nation (MFN) clause requires WTO members to extend to all partners the same tariff conditions granted to their most favoured trading partner. National treatment ensures that once goods have cleared customs, they face no less favourable tax or regulatory conditions than equivalent domestic products. In customs practice, this means a customs authority cannot arbitrarily classify or value identical goods differently depending on their country of origin. Breaches are actionable through the WTO's dispute settlement mechanism. Free trade agreements and customs unions are defined as explicitly permitted exceptions to this principle.

**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 | Non-discrimination in trade |
| Language | EN |
| Word count | 130 |
| Last updated | 2026-06-18 |
| Source | https://www.wto.org/english/thewto_e/whatis_e/tif_e/fact2_e.htm |

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