MFN – Most Favoured Nation
In international economic relations and international governmental issues, MFN which has abbreviation Most Favoured Nation is a status or level of treatment concurred by one state to another in exchange or trade at international level. The term MFN implies that the country which is the beneficiary of this treatment should ostensibly get equivalent benefits of trade as the Most Favoured Nation by the nation granting such type of treatment. The advantages of trade incorporate low tariffs or even high import quotas. In actuality, a nation that has been agreed on MFN status may not be dealt with less favorably than some other nation with MFN status by the promising nation. There is a great discussion in legal circles that whether clauses of MFN in bilateral investment treaties incorporate just substantive guidelines or additional procedural protections. The World Trade Organization’s members agree to accord MFN status to each other.