Most-Favoured-Nation (MFN) Principle
MFN is the cornerstone non-discrimination rule of the multilateral trading system, set out in Article I of the General Agreement on Tariffs and Trade (GATT), 1947 (carried into the WTO framework from 1995). It requires that any trade advantage — such as a tariff concession — granted by a WTO member to one trading partner must be extended "immediately and unconditionally" to like products from all other WTO members, subject to limited exceptions (such as free trade agreements under GATT Article XXIV).
- GATT Article I:1 is the foundational MFN clause; it applies to tariffs, import/export regulations, and internal taxes and charges on traded goods
- WTO members may deviate from MFN only through explicitly permitted routes — regional/free trade agreements (Article XXIV), special and differential treatment for developing countries, or general/security exceptions (Articles XX and XXI)
- A tariff imposed unilaterally on specific countries, outside these permitted routes, is what trade-policy statements typically mean by "inconsistent with WTO rules"
● Tracked since March 24, 2026 · last seen September 12, 2026 · updates as the daily brief publishes
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