Which of the following is an exception to the most favored nation
Principle?
A)trade in petroleum
B)trade with Japan
C)tariff concessions negotiated within a freetrade area or a customs union
D)trade in services

Question

Which of the following is an exception to the most favored nation
Principle?
A)trade in petroleum
B)trade with Japan
C)tariff concessions negotiated within a free­trade area or a customs union
D)trade in services

Quizplus · Accepted Answer

Tariff concessions negotiated within a free-trade area or a customs union are an exception to the most favored nation principle because they involve trade agreements between a group of countries rather than a single country. Under these agreements, participating countries agree to grant each other preferential treatment and lower tariffs on certain goods, which is not extended to non-participating countries. This allows for greater trade integration and economic cooperation among the participating nations.

Which of the Following Is an Exception to the Most