MFN is a principle under the World Trade Organization (WTO) that mandates non-discrimination among member countries in trade policies.

Features

  • Ensures lowest tariffs, highest import quotas, and minimal trade barriers among member countries.
  • Aims to promote fair trade and equitable market access.

Exceptions:

  • Bilateral or regional trade agreements.
  • Special access for developing nations.
  • These rules do not bind Non-WTO countries like Iran or North Korea.

Removal of MFN:

  • No formal WTO procedure for suspending MFN status exists.
  • Members are not obligated to notify the WTO when removing MFN treatment.

 

Source: The Hindu