Most Favored Nation (MFN) principle

The Most Favored Nation (MFN) principle is a trade agreement concept where a country promises to give the same favorable trade terms, such as low tariffs or barriers, to all other countries it has signed similar agreements with. This means if one country offers better trade conditions to another, the MFN guarantees that all countries under the same agreement will receive those same advantages. It promotes fairness and equality in international trade, encouraging countries to offer better terms without fear of losing competitive advantages elsewhere.