GlossaryEN1 min readUpdated: Jun 26, 2026
Most Favored Nation (MFN)
Customs authorities, exporters, and trade economists work daily with the Most Favoured Nation (MFN) principle – a foundational rule of the World Trade Organization (WTO).
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Source: https://www.wto.org/english/thewto_e/whatis_e/tif_e/fact2_e.htm
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Definition & Explanation
Customs authorities, exporters, and trade economists work daily with the Most Favoured Nation (MFN) principle – a foundational rule of the World Trade Organization (WTO). It obliges every WTO member to automatically extend to all other members the most favourable tariff rates and trading conditions it grants to any single partner. The principle covers goods, services, and intellectual property rights alike. Free trade agreements and customs unions are the principal exceptions: parties to such arrangements may grant each other preferential tariffs without extending them to the broader WTO membership, provided the agreement meets WTO requirements. MFN treatment should be distinguished from national treatment, which concerns the equal treatment of imported and domestic goods once they have cleared customs.
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