word
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Most-Favored-Nation
MOAST FAY-verd NAY-shun
/moʊst ˈfeɪ.vərd ˈneɪ.ʃən/Listen
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Syllable breakdown
MostFavoredNation
Dictionary meaning
A principle in international trade law (WTO Article I) requiring a country to extend the same trade privileges it grants to one trading partner to all other WTO members; prohibits discriminatory tariff treatment.
Examples
- The most-favored-nation clause ensures that China receives the same tariff rate as Canada.
- Violating MFN obligations can trigger dispute settlement at the WTO.
The US uses 'most-favored-nation'; the UK and WTO official texts often use 'most-favoured-nation' (MFN).
Synonyms: MFN principle, non-discrimination clause, MFN treatment
Common mispronunciations
confusing MFN with preferential treatment given under FTAs
Pronunciation tips
Abbreviate as MFN in most trade contexts. Memorize as 'treat your best friend like your worst enemy and vice versa' — everyone gets the same deal.
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