Most Favored Nation

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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 ?
Replying to a question in the National Assembly, he said the extension of WTO is a reciprocal measure therefore the other 163 WTO members have extended MFN status to Pakistan.
The Indian media quoted an anonymous official who said that the withdrawal of the MFN status was not under consideration, and it was mere speculation due to the tense situation between India and Pakistan.
The US MFN status was restored to Bulgaria and Mongolia in November 1991, and to Estonia, Latvia, Lithuania in December 1991, in April 1992 to Czechoslovakia, Flungary and Armenia, to Russia and Ukraine in June 1992, to Republic of Moldova in July 1992, to Kyrgystan in August 1992, etc.
Pakistan has "unfortunately" failed to give MFN status to India, Minister of State for Commerce and Industry Nirmala Sitharaman said.
India had granted the MFN status to Pakistan in 1996 to lure Pakistan into reciprocating, so that with improved trade ties it could also ask Pakistan to allow using land route to export to Afghanistan and Central Asian republics.
According to Dawn, while India granted Pakistan "Most Favoured Nation (MFN)" status in 1999, Pakistan had pledged to grant India MFN status by the end of 2012, meaning Indian exports would be treated the same as those from other nations, but has so far not done so.
When India gave MFN status to Pakistan in 1995-96, the trade ratio between the two countries remained in favour of India by standing at 1:2, which rose to 1:6 in 2010-11,
He also informed the House that India granted the MFN status to Pakistan in 1996 but Pakistan is still contemplating on the issue.
The government is taking considerations like Kashmir before making a decision on the MFN status.
There is no immediate consideration to grant India MFN status," Dar told Hamid Mir on Geo News program ' Capital Talk'.
While India has long ago granted Pakistan the MFN status but Pakistan has only recently expressed willingness to follow suit.
However, officials believe that right wing groups, backed by the agriculturist lobby, were opposing the MFN status to India.