The principle that whenever one __________ member-state lowers tariffs on certain kinds of imports from another member-state,all member-states are entitled to the same treatment with regard to their goods is known as most-favored nation principle.

Question

Quizplus · Accepted Answer

The most-favored nation principle is a fundamental principle of the World Trade Organization (WTO) which states that any preferential treatment granted to one member must be extended to all members equally. Thus, whenever one member-state lowers tariffs on certain kinds of imports from another member-state, all other member-states should receive the same treatment with regard to their goods. Therefore, option A is the correct answer as it refers to WTO.

The Principle That Whenever One __________ Member-State Lowers Tariffs on Certain