Most Favored Nation

(redirected from Most-Favored-Nation Treatment)

Most Favored Nation

A privilege granted by one country to another whereby the products of the privileged country pay the lowest delivered duty paid charged by the granting country.

Most Favored Nation

A status in which a country assesses the lowest possible tariffs that it can assess on another country. For example, if a country's lowest tariff is a certain percentage of the value of a good, it charges this percentage on an import from a country with most favored nation status. Members of the World Trade Organization are required to extend Most Favored Nation status to other members, though exceptions exist. In the United States, most favored nation status is formally called permanent normal trade relations.
References in periodicals archive ?
The BIA establishes the terms for investment between participating countries, including factors such as most-favored-nation treatment, fair trade treatment and dispute resolution.
The investor will be given the most-favored-nation treatment, and state support measures will be provided.
Shinya Murase, The Most-Favored-Nation Treatment in Japan's Treaty Practice During the Period 1854-1905, 70 AM.
Each investment treaty is tailored, however, all of them guarantee that in matters relating to the treatment of investments, the investors of each contracting party shall enjoy national treatment and most-favored-nation treatment in the territory of the other party.
For the open market principles involved in the investment liberalization, both sides will propose a list of products to be eligible under national treatment and most-favored-nation treatment.
The AGP commits signatories to practice the principles of national treatment and most-favored-nation treatment in the laws, regulations, practices, and procedures concerning government procurement.
The following NAFTA articles establish the requirements of national treatment and most-favored-nation treatment with regards to service providers of other NAFTA countries:
The condition imposed by the committee also makes reservation for future exceptions to at least three JPEPA articles dealing with national treatment, most-favored-nation treatment and prohibition of performance requirements,'' she said.
The treaty sets forth legal protection for foreign investment in the energy sector, such as most-favored-nation treatment and equal national treatment, and provides for nondiscriminatory trade access in the sector, including applying multilateral rules to trade between members and nonmembers of the World Trade Organization.
The ruling said Section 211 was inconsistent with the US obligation to protect and enforce intellectual-property rights under TRIPS, which prohibits discrimination against foreigners and guarantees most-favored-nation treatment.
The Chinese measure would also violate the 1974 bilateral trade accord stipulating the countries grant most-favored-nation treatment to each other, he said.
Similarly, the report said Canada's tariff exemption on automobiles based on a local content requirement is inappropriate under WTO provisions of most-favored-nation treatment and national treatment, as well as the trade-related investment accord.