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 ?
With respect to the argument that nonrenewal of MFN status will jeopardize Hong Kong, if the Beijing regime continues to see little or no costs involved in suppressing dissent, even Hong Kong may be subject to arbitrary repression.
Modi had decided to have a relook at MFN status in the wake of the terror attack on an Army base in Uri, but it has been rescheduled," sources said.
Pakistan was reluctant to grant MFN status to India, as it would be obliged to allow transit trade between Afghanistan and India, and also provide market access to Central Asian republics.
According to Dawn News, when asked at a news briefing if Islamabad would offer the status to India now as the elections were over and a new government might soon take charge, Khan said giving (India) the MFN status is not necessary.
The unanticipated move from the Nawaz government came at the latest trade discussion with India by offering New Delhi the MFN status, however with a condition.
He said that Pakistan's business community had always supported granting of MFN status to India, however, the existing non-tariff barriers were hindering smooth flow of trade between the two countries.
New Delhi already accorded MFN status to Pakistan in 1996.
Pakistan has step by step allowed more Indian goods to be imported by shifting to trade based on negative list, but has escaped the December 31, 2012 deadline to lift all control by giving MFN status to India.
He said that the Federal Cabinet had already agreed to grant the MFN status to India.
During a media briefing yesterday, foreign ministry spokesperson Tehmina Janjua indicated that the status was yet to be formally extended, saying the cabinet had authorised the commerce minister to pursue negotiations with India leading to MFN status.
Washington has the right to say unilaterally whether it will grant MFN status to any countries.
Guaranteeing MFN status -- and the symbolic importance of the China visit itself -- is important for the region, including Australia.