Most Favoured Nation (MFN) Principle Overview

These flashcards cover the definitions and concepts related to the Most Favoured Nation (MFN) principle as outlined in the lecture notes.

Most Favoured Nation (MFN) Principle

A principle of non-discrimination in international trade, requiring that any concession granted by one country to another must be extended to all other countries that are part of the agreement.

GATT Article I:1

Part of the General Agreement on Tariffs and Trade that outlines the MFN principle and its implications for trade between contracting parties.

Non-discrimination

A principle stating that countries cannot discriminate between their trading partners, ensuring equal treatment.

WTO Member

A country that is a member of the World Trade Organization and agrees to abide by its rules and regulations.

Tariff

A tax imposed on imported goods, meant to regulate trade and protect domestic industries.

Trade barrier

Any regulation or policy that limits international trade, often through tariffs, quotas, or other restrictions.

Duty free

The status of goods that are not subject to import duties or tariffs.

Concession

An agreement or privilege granted by one country to another, often related to reductions in tariffs or trade barriers.

Negotiating round

A session in which WTO members come together to discuss and negotiate trade agreements and concessions.

Advantage under MFN

When one WTO member grants a favorable trading condition to another member, it must be extended to all other WTO members.