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Most-Favoured-Nation Treatment (MFN)

Political Economy

Definition

A WTO non-discrimination principle requiring that an advantage granted to one trading partner generally be extended to other WTO members, subject to recognised exceptions.

TERMINOLOGY NOTE

Distinction: MFN compares treatment among foreign trading partners; national treatment compares imported products or services with domestic counterparts.

Theoretical Context

MFN concerns equal treatment among foreign trading partners; it differs from national treatment, which compares imported and domestic products or providers.

Further Reading

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