International Relations GS 2 In the news 5 times

WTO Framework

MFN Principle and GATT Article XXIV

The World Trade Organization (WTO) operates on the Most-Favoured Nation (MFN) principle under GATT Article I: any trade advantage a country grants to one WTO member must immediately and unconditionally be extended to all other WTO members. This is the cornerstone of non-discrimination in international trade.

Key details

Exception for FTAs: GATT Article XXIV permits WTO members to form Free Trade Areas and Customs Unions as exceptions to the MFN obligation, provided the agreement covers "substantially all the trade" between the parties (generally interpreted as 90%+ of tariff lines) and does not raise barriers to third parties.
The India-New Zealand FTA, covering 95% of current bilateral trade by value, explicitly incorporates WTO provisions on national treatment, import licensing, customs valuation, and non-tariff measures — ensuring WTO compatibility.
Rules of Origin: FTAs include rules of origin to prevent "tariff shopping" — where goods from a third country are minimally processed in one signatory country to take advantage of the FTA's preferential tariffs.

In the news

● Tracked since April 27, 2026 · last seen August 06, 2026 · updates as the daily brief publishes

06 Aug '26

India may rationalise most customs tariffs by budget 2027-28, Nirmala Sitharaman says

Economics

09 Jul '26

PM Modi invites Australian businesses to invest in India, seeks early conclusion of CECA

International Relations

24 Jun '26

India, US move closer to interim trade deal after Goyal-Greer talks

International Relations

28 Apr '26