Most Favoured Nation (MFN) rate

According to the Most Favored Nation (MFN) Clause, any trade benefits granted to a trading partner must be granted to all other trading partners. The World Trade Organisation (WTO) member countries grant each other MFN rates. There are, however, exceptions in the context of free trade agreements or under the Generalized System of Preferences (GSP). Also non-WTO member states can offer MFN rates to other countries.