The most-favored-nation principle allows a country to give preferential treatment to the other member nations of the same free trade area or customs union.

Question

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The most-favored-nation principle requires a country to give equal treatment to all member nations, regardless of whether they are in a free trade area or customs union. Preferential treatment can only be given through separate bilateral or regional agreements.

The Most-Favored-Nation Principle Allows a Country to Give Preferential Treatment