Which statement correctly describes the Most Favoured Nation (MFN) principle?

Which statement correctly describes the Most Favoured Nation (MFN) principle?

• A. It allows unlimited discrimination
• B. It prevents any special deals
• C. If one member gets a special trade deal, all WTO members must receive the same deal
• D. It applies only to agriculture

Answer: (C)

Most Favoured Nation means treating all trading partners equally. If one country gets a tariff cut or any other favorable trade term, that same term must be offered to every WTO member. This keeps trade rules predictable and prevents giving special treatment to just one partner. The idea isn’t about unlimited discrimination or about banning all special deals forever; it’s about ensuring any advantage granted to one member is extended to all. It also applies across a wide range of goods and services, not only agriculture.

Most Favoured Nation means treating all trading partners equally. If one country gets a tariff cut or any other favorable trade term, that same term must be offered to every WTO member. This keeps trade rules predictable and prevents giving special treatment to just one partner. The idea isn’t about unlimited discrimination or about banning all special deals forever; it’s about ensuring any advantage granted to one member is extended to all. It also applies across a wide range of goods and services, not only agriculture.