Under the normal-trade-relations (most-favored-nation) principle, two nations agree to apply tariffs to each other at rates as low as those applied to any other nation.

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This principle is commonly referred to as "most-favored-nation" (MFN) because each country is to be treated as the most-favored trading partner with respect to tariffs. This means that under the MFN principle, two nations agree to apply tariffs to each other at rates as low as those applied to any other nation.

Under the Normal-Trade-Relations (Most-Favored-Nation) Principle, Two Nations Agree to Apply