Glossary term
Most Favored Nation
The WTO principle that a tariff concession given to one member must be given to all members equally.
The rule that a WTO member must extend to all other members any advantage it grants to one, so that the same tariff applies regardless of source.
MFN is the baseline rate, not a preferential one - the name misleads. Rates below MFN come from free trade agreements, customs unions and preference schemes, which are the recognised exceptions to the rule.