Most favored nation (MFN)status occurs when two countries agree bilaterally to give each other preferred trading rights.

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Most Favored Nation (MFN) status is a principle in international trade agreements where a country agrees to give the same trade advantages (such as lowest tariffs or fewest trade barriers) to all its trading partners that are part of the agreement, not just bilaterally to one country.

Most Favored Nation (MFN)status Occurs When Two Countries Agree Bilaterally