WTO Article XXIV
FTA Exception to MFN Principle
Under WTO rules, the Most Favoured Nation (MFN) principle requires members to offer the same trade terms to all other members. However, WTO Article XXIV allows members to form Free Trade Agreements (FTAs) or Customs Unions as exceptions to MFN, provided that (a) tariffs and barriers within the FTA area are eliminated on "substantially all trade," and (b) the FTA does not raise barriers against third countries. The India-US BTA, once signed, would qualify as an Article XXIV-compliant FTA.
- WTO MFN principle: Article I of GATT 1994
- FTA exception: GATT Article XXIV (for goods); GATS Article V (for services)
- "Substantially all trade" threshold: WTO Members have generally interpreted this as covering 80–90% of trade by volume
- India is party to 14+ FTAs/PTAs; notable: ASEAN FTA, SAFTA, CEPA with UAE, ECTA with Australia
● Tracked since April 15, 2026 · last seen September 03, 2026 · updates as the daily brief publishes
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