The World Trade Organization (WTO)abides by the most favored nation principle,which states that WTO nations must apply the same standards to imports that they apply to domestic goods.

Question

Quizplus · Accepted Answer

The Most Favored Nation (MFN) principle under the WTO requires that a WTO member must apply the same conditions on its trade with all other WTO members. This means if a country grants someone a special favor (such as a lower customs duty rate for one of their products), it has to do the same for all other WTO members. It does not specifically relate to applying the same standards to imports as to domestic goods, which is more accurately described by the principle of national treatment.

The World Trade Organization (WTO)abides by the Most Favored Nation