What does the most favored nation principle mean?
A)That one nation is selected to benefit the most from free trade
B)That if a state lowers a tariff toward one General Agreement on Tariffs and Trade (GATT)member, it is obliged to give all members the same low tariff
C)That regional trading partners are given favorable trading terms
D)That the GATT ensures that one country receives preferential trade treatment

Question

Quizplus · Accepted Answer

The most favored nation (MFN) principle requires a country to provide any concessions, privileges, or immunities granted in a trade agreement to one nation to all other World Trade Organization (WTO) member countries. This ensures equal trading opportunities among all WTO members by preventing discriminatory trade practices.

What Does the Most Favored Nation Principle Mean