Most Favored Nation Clause

A level of status given to one country by another and enforced by the World Trade Organization. A country grants this clause to another nation if it is interested in increasing trade with that country. Countries achieving most favored nation status are given specific trade advantages such as reduced tariffs on imported goods.

Special consideration is given to countries that are classified as "developing" by the World Trade Organization.

During the Clinton presidency, congressional representatives heartily debated the merit of granting most favored nation status (MFN) to China and Vietnam. Proponents of granting MFN status argued that a reduction in tariffs on Chinese and Vietnamese goods would give the American consumer access to quality products at relatively low prices, and would serve to enhance a mutually beneficial trade relationship with the two rapidly developing economies.

Meanwhile, opponents argued that granting MFN status to the two nations would be unfair given their history of human rights violations. Others thought that the inflow of cheaper goods from the China or Vietnam could put some Americans out of work.


Investment dictionary. . 2012.

Look at other dictionaries:

  • Most-favored-nation clause — (Diplomacy), A clause, often inserted in treaties, by which each of the contracting nations binds itself to grant to the other in certain stipulated matters the same terms as are then, or may be thereafter, granted to the nation which receives… …   The Collaborative International Dictionary of English

  • most favored nation clause — + Most Favored Nations Provision (MFN) USA This term has a number of meanings. In the context of: • Finance, business jargon for the concept that the first party will be entitled to at least as favorable terms as a second party in specified… …   Law dictionary

  • most–favored–nation clause — most–fa·vored–na·tion clause n: a clause in a treaty granting to a nation in certain stipulated matters the same terms as are then or may thereafter be granted to any other nation Merriam Webster’s Dictionary of Law. Merriam Webster. 1996 …   Law dictionary

  • most-favored-nation clause — + Most Favored Nations Provision (MFN) USA This term has a number of meanings. In the context of: • Finance, business jargon for the concept that the first party will be entitled to at least as favorable terms as a second party in specified… …   Law dictionary

  • most favored nation clause — A clause found in most treaties providing that the citizens or subjects of the contracting nations may enjoy the privileges accorded by either party to those of the most favored nations. The general design of such clauses is to establish the… …   Black's law dictionary

  • most favored nation clause — section that contains information about most favored nation status …   English contemporary dictionary

  • most favored nation clause — The clause of a treaty between two nations under which either of the parties or its diplomatic or consular representative is entitled to all the rights and privileges of those of the nation most favored by a treaty made with it by the other party …   Ballentine's law dictionary

  • most-favored-nation clause — noun : a clause often inserted in treaties by which a nation binds itself to grant to another nation in certain stipulated matters the same terms as are then or may be thereafter granted to any other nation * * * a clause in a commercial treaty… …   Useful english dictionary

  • most-favored-nation clause — a clause in a commercial treaty or contract by which each signatory agrees to give the other the same treatment that is or will be accorded any other nation. * * * …   Universalium

  • most-favored-nation — adjective of or relating to a commercial treaty where two nations agree to accord each other the same favorable terms that would be offered in treaties with any other nation • Pertains to noun: ↑commercial treaty * * * ˈ ̷ ̷ˈ ̷ ̷ ̷ ̷ˈ ̷ ̷ ̷ ̷… …   Useful english dictionary

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