The most-favored-nation clause in reciprocal trade agreements means that any tariff reductions the United States negotiates with a specific nation will automatically apply to many other nations.

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The most-favored-nation clause states that any trade advantage a country grants to one partner must be extended to all other partners in that agreement. This means that any tariff reductions negotiated with a specific nation will automatically apply to all other nations in that agreement, as they will receive the same treatment.

The Most-Favored-Nation Clause in Reciprocal Trade Agreements Means That Any