{"id":1012,"date":"2026-03-24T04:25:05","date_gmt":"2026-03-24T04:25:05","guid":{"rendered":"https:\/\/materials.simplycurrentaffairs.com\/?p=1012"},"modified":"2026-04-09T04:25:14","modified_gmt":"2026-04-09T04:25:14","slug":"most-favoured-nation-principle","status":"publish","type":"post","link":"https:\/\/materials.simplycurrentaffairs.com\/index.php\/2026\/03\/24\/most-favoured-nation-principle\/","title":{"rendered":"Most\u00a0Favoured\u00a0Nation Principle"},"content":{"rendered":"\n

Most\u00a0Favoured\u00a0Nation Principle<\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/mark><\/strong><\/h2>\n\n\n\n

About<\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/mark><\/strong><\/h3>\n\n\n\n
    \n
  • The Most\u00a0Favoured\u00a0Nation (MFN) principle is a\u00a0fundamental rule of the World Trade Organization (WTO)<\/strong>\u00a0that ensures\u00a0countries do not discriminate between their trading partners.<\/strong>\u00a0\u00a0\n
      \n
    • If a WTO member grants\u00a0favourable\u00a0trading terms\u2014like lower tariffs\u2014to one country, it must extend the same benefits to all other WTO members.\u00a0\u00a0<\/li>\n<\/ul>\n<\/li>\n\n\n\n
    • This promotes\u00a0equality and fairness<\/strong>\u00a0in international trade.\u00a0\u00a0<\/li>\n\n\n\n
    • The\u00a0WTO\u00a0<\/strong>has made the\u00a0MFN\u00a0principle<\/strong>\u00a0part of its rules under the\u00a0General Agreement on Tariffs and Trade (GATT) –\u00a0<\/strong>to which\u00a0India<\/strong>\u00a0is a signatory.<\/li>\n<\/ul>\n\n\n\n
      \n

      General Agreement on Tariffs and Trade:<\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/h3>\n\n\n\n
        \n
      • GATT, signed in\u00a01947<\/strong>, is a treaty\u00a0minimizing barriers to international trade<\/strong>\u00a0by eliminating or reducing quotas, tariffs, and subsidies. It was intended to\u00a0boost economic recovery after World War II.<\/strong>\u00a0<\/li>\n\n\n\n
      • GATT was expanded and refined over the years, leading to the\u00a0creation in\u00a01995<\/strong>\u00a0of the\u00a0World Trade Organization,<\/strong>\u00a0which absorbed the organization created to implement GATT.\u00a0\u00a0<\/li>\n\n\n\n
      • The\u00a0Council for Trade in Goods (Goods Council)<\/strong>\u00a0is now responsible for the GATT and consists of representatives from all WTO member countries.<\/li>\n<\/ul>\n<\/div><\/div>\n\n\n\n

        Exceptions:<\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/h3>\n\n\n\n
          \n
        • Some exceptions are allowed. For example:\u00a0\u00a0\n
            \n
          • countries can set up a\u00a0free trade agreement\u00a0<\/strong>that applies only to goods traded within the group \u2014\u00a0\u00a0 discriminating against goods from outside.\u00a0\u00a0<\/li>\n\n\n\n
          • Or they can\u00a0give developing countries\u00a0special access<\/strong>\u00a0to their markets.\u00a0\u00a0<\/li>\n\n\n\n
          • Or a country can raise\u00a0barriers against products<\/strong>\u00a0that\u00a0are considered to be\u00a0traded unfairly<\/strong>\u00a0from specific countries.\u00a0\u00a0<\/li>\n\n\n\n
          • And in\u00a0services<\/strong>, countries are allowed, in\u00a0limited circumstances<\/strong>, to\u00a0discriminate.\u00a0<\/strong>\u00a0<\/li>\n<\/ul>\n<\/li>\n\n\n\n
          • But the agreements only\u00a0permit\u00a0these exceptions under\u00a0strict conditions<\/strong>.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"

            Most\u00a0Favoured\u00a0Nation Principle About General Agreement on Tariffs and Trade: Exceptions:<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[],"class_list":["post-1012","post","type-post","status-publish","format-standard","hentry","category-economy"],"_links":{"self":[{"href":"https:\/\/materials.simplycurrentaffairs.com\/index.php\/wp-json\/wp\/v2\/posts\/1012","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/materials.simplycurrentaffairs.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/materials.simplycurrentaffairs.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/materials.simplycurrentaffairs.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/materials.simplycurrentaffairs.com\/index.php\/wp-json\/wp\/v2\/comments?post=1012"}],"version-history":[{"count":1,"href":"https:\/\/materials.simplycurrentaffairs.com\/index.php\/wp-json\/wp\/v2\/posts\/1012\/revisions"}],"predecessor-version":[{"id":1013,"href":"https:\/\/materials.simplycurrentaffairs.com\/index.php\/wp-json\/wp\/v2\/posts\/1012\/revisions\/1013"}],"wp:attachment":[{"href":"https:\/\/materials.simplycurrentaffairs.com\/index.php\/wp-json\/wp\/v2\/media?parent=1012"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/materials.simplycurrentaffairs.com\/index.php\/wp-json\/wp\/v2\/categories?post=1012"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/materials.simplycurrentaffairs.com\/index.php\/wp-json\/wp\/v2\/tags?post=1012"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}