Most-Favored-Nation (MFN)

Most-Favored-Nation (MFN) is a trade principle where a country agrees to give the same favorable terms—such as low tariffs or preferential treatment—to all other countries it has signed MFN agreements with. Essentially, if one country lowers tariffs or offers better trade conditions to one nation, it must do the same for all MFN partners, ensuring non-discrimination in international trade. This promotes fairness and predictability, encouraging more open and equal trade relationships among countries.