Most favored nation (MFN),

Definition of Most favored nation (MFN):

1. A country which has been granted the most favourable trading terms available by another country.

2. Non-discriminatory trade policy commitment offered by one country to another on a reciprocal basis. Both countries apply that lowest import-duty and quota-restrictions on imports from each other which they apply on the similar imports from any other country. Under Article I of the General Agreement On Tariffs And Trade (GATT) and its successor World Trade Organization (WTO), all signatory states must extend this treatment to one another. common markets, customs unions, and free trade areas, however, are exempt from MFN provisions.

How to use Most favored nation (MFN) in a sentence?

1. My import-export company had to pay high taxes on products we imported from China until the United States granted China most favored nation status.
2. As a result of the treaty, a network of bilateral trade agreements based on most favored nation trading status spread across Europe as other countries sought to obtain equal access to the French market in the aftermath of the accord.
3. John grew up in the Untied States of America and believed with all his heart the country he was born in was the most favored nation in the world.
4. The most favored nation agreement was realized during the trade negotiations as each nation generated favorable terms of trade going forward.