Idea put forth by the World Trade Organization (WTO). This principle states that you should give the same benefits or put forth the same tariffs, etc. to all states you trade with as you would to the state whom you have the best relations.
A principle in which one state, by granting another state MFN status, promises to give it the same treatment given to the first states most-favored trading partner. This ensures equality in international trade as it does not allow a state to give any other one state an advantage (such as lower tariffs).
The second definition is on spot. Once combined with the fact that WTO is trying to make MFN the dominant norm in world trade, we have a 4.
The MFN clause is extremely important to keeping world trade at a level playing ground. By asserting that a state cannot impose additional tariffs on the basis of neglected relationships, nations that dislike eachother still have an opportunity for mutual gains through trade, even though there could be differences in political organization, or societal ideals.
Idea put forth by the World Trade Organization (WTO). This principle states that you should give the same benefits or put forth the same tariffs, etc. to all states you trade with as you would to the state whom you have the best relations.
A principle in which one state, by granting another state MFN status, promises to give it the same treatment given to the first states most-favored trading partner. This ensures equality in international trade as it does not allow a state to give any other one state an advantage (such as lower tariffs).
The second definition is on spot. Once combined with the fact that WTO is trying to make MFN the dominant norm in world trade, we have a 4.
The MFN clause is extremely important to keeping world trade at a level playing ground. By asserting that a state cannot impose additional tariffs on the basis of neglected relationships, nations that dislike eachother still have an opportunity for mutual gains through trade, even though there could be differences in political organization, or societal ideals.