Significance of most-favoured-nation terms in global trade: A comprehensive analysis

The Most-Favoured-Nation (MFN) principle has historically been instrumental in promoting stability and equitable trade conditions. In recent decades there has been a rise in bilateral and regional trade agreements, which deviate from the MFN principle in providing more favourable tariff treatment to specific partners. At the same time, WTO Members can, under certain circumstances, raise trade barriers against imports for different reasons, including to counter unfair trade practices.