Most Favoured Nation - MFN

Most favoured nation (MFN), also called Normal Trade Relations in the United States, is a status awarded by one nation to another in international trade. It means that the receiving nation will be granted all trade advantages - such as low tariffs - that any other nation also receives.

The members of the World Trade Organization, which include all developed nations, accord MFN status to each other. MFN is one of the cornerstones of WTO trade law. Sample MFN benefits are:

• A country that grants MFN on imports will have its imports provided by the most efficient supplier.
• MFN allows smaller countries, in particular, to participate in the advantages that larger countries often grant to each other.