Most Favored Nation

(redirected from MFN Status)

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 ?
India had granted the MFN status to Pakistan in 1995.
The grant of the MFN status meant that a country would treat all WTO member states equally in matters of tariffs on imports.
The MFN status to Pakistan was given by India in 1996.
MFN status is accorded by one state to another in international trade under the WTO.
He said bilateral trade between the two neighbours remained largely in favour of India and despite being granted the MFN status in 1996, Pakistan was never essentially helped to avail the relevant opportunities.
India on Friday announced the withdrawal of the MFN status for Pakistan, following the deadly terror attack on CRPF personnel in Pulwama in Jammu and Kashmir, and hiked the customs duty by 200 per cent on goods originating from Pakistan with immediate effect on Saturday.
New Delhi revoked its MFN status to Pakistan on Thursday, after the attack on Indian forces in Pulwama.
India on Friday had announced the withdrawal of MFN status for Pakistan, following the attack on Indian forces in Pulwama, a move which would enable India to increase customs duty on goods coming from Pakistan.
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.
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,