MFNperiaate

MFNperiaate, commonly referred to in English as the Most-Favoured-Nation (MFN) principle, is a rule of non-discrimination in international trade. In its core form, it requires WTO member countries to extend any favorable terms granted to one trading partner to all other members, thereby ensuring equal access to trade concessions. The principle is a cornerstone of multilateral trade rules and helps prevent a country from giving preferential treatment to one partner while disadvantaging others.

Under the GATT/WTO framework, Article I states that any advantage, favour, privilege, or immunity granted to products from one member must be accorded immediately and unconditionally to like products from all other members. This means, for example, that if a country reduces tariffs on a product from one country, it must apply the same tariff reduction to the same product from all other members. The MFN rule covers tariffs, tariff-rate quotas, licensing practices, and other measures that affect trade in goods, and is closely linked to the broader nondiscrimination regime of WTO law.

Exceptions to the MFN rule include preferential schemes such as the Generalized System of Preferences (GSP) for developing countries and regional trade agreements (RTAs) allowed under specified WTO provisions. Security exceptions and temporary waivers granted by WTO members also provide limited relief from MFN obligations in certain circumstances.

History and context: the MFN principle originated with the 1947 General Agreement on Tariffs and Trade and became a core WTO rule when the organization began operating in 1995. It complements the national treatment principle, which prohibits discrimination between domestic and foreign products after entry into the market.

Critics argue that MFN can limit more tailored or development-oriented arrangements, while supporters say it promotes predictable, non-discriminatory rules and lowers bargaining costs in a multilateral system. The balance between universal nondiscrimination and policy flexibility remains a central feature of contemporary trade discourse.