The government issued a statement regarding Most Favoured Nation (MFN) duties on US apples and walnuts.
About Most Favoured Nation (MFN):
- MFN is a crucial aspect of international trade agreements that promotes equal treatment among trading partners.
Key Concepts:
- Non-discrimination principle in trade:
- Equal treatment of all trading partners ensures that when a country lowers trade barriers or opens its market, it must do so for all partners.
- Slow pace of bilateral trade negotiations: Bilateral pacts must consider their impact on all trading partners, leading to lengthy negotiations.
- Exemptions: Certain major economies, like Iran, Libya, Algeria, and Kazakhstan, remain outside the WTO’s ambit, not bound by GATT or MFN provisions.
Ref: Source
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