
WTO reports 83% of global trade benefits from most-favored-nation principle
The World Trade Organization (WTO) has revealed that 83% of global merchandise trade is now conducted under the Most-Favored-Nation (MFN) principle, a cornerstone of the global trading system. This principle guarantees that countries extend the same trade advantages and concessions to all WTO members, fostering a non-discriminatory, open, and predictable international trade environment.
Under the MFN framework, member countries are required to treat all trading partners equally, offering them the same tariffs and market access unless there are specific exceptions, such as through free trade agreements (FTAs) or customs unions. This structure helps to ensure fair and equitable access to global markets for all nations, especially benefiting developing economies by opening doors to trade they may otherwise not have had.
Despite challenges like protectionist policies, supply chain disruptions, and geopolitical tensions, the MFN principle has been vital in stabilizing international commerce. The WTO emphasizes that maintaining and strengthening this principle is essential for sustaining fair global trade, particularly as the world continues to recover from the economic impacts of the pandemic.