WTO Most Favoured Nation (MFN) Principle
The Most Favoured Nation (MFN) principle, enshrined in Article I of the General Agreement on Tariffs and Trade (GATT), requires WTO member states to extend the same trade terms to all other members without discrimination. If a country lowers tariffs for one WTO trading partner, it must offer the same rate to all members. Exceptions exist for free trade agreements (FTAs), preferential treatment for developing countries, and WTO-authorized retaliatory tariffs.
- MFN is the cornerstone of the multilateral trading system and appears in GATT (goods), GATS (services), and TRIPS (intellectual property)
- WTO-bound tariff rates set the maximum MFN tariff a country can charge; applied rates may be lower
- India's average MFN applied tariff rate is approximately 17-18% (among the highest for major economies)
- The US average MFN applied tariff rate was approximately 3.4% before the emergency tariff escalation
● Tracked since February 20, 2026 · last seen July 25, 2026 · updates as the daily brief publishes
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