MFN Tariff

MFN Tariff

A tariff applied to a country with most favored nation status. An MFN tariff is the lowest possible tariff a country can assess on another country. For example, if a country's lowest tariff is 2% of the value of a good, this is its MFN tariff, and 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 ?
Interestingly, the products commonly imported into Pakistan such as minerals and metal, petroleum, chemicals and non-electrical machinery report the lowest average MFN tariff rates.
The opposite will happen to purchases from the EU: the decline in demand will slightly lower their supply price, so that the net effect is to increase their 'landed' price in the UK by a little less than the newly imposed MFN tariff.
166) Proponents of the PTA and Enabling Clause state that they are reasonable because the difference between the preferential tariff and the MFN tariff, otherwise known as the preference margin, is small.
2 % MFN Tariff Trade Restrictive Index (TTRI), Oman's trade regime is more restrictive than that of an average high-income non-OECD country (4.
In addition as was the case between Japan and Thailand when a temporary reversal meant that the FTA preferential tariff was actually higher than the MFN tariff utilizing an FTA can sometimes actually be detrimental so companies must also be careful to make comparisons against MFN tariffs.
61, in October 2011, he laid down the country's MFN tariff structure for 2011-2015.
No developing country has ever lowered an applied MFN tariff on the altar of a GAIT
15% Margin of Preference (MoP) over the MFN tariff.
It has been targeted by the programme to aid the ACP member states to meet with the new EU banana authorities after December 2009, when the EU agreed to cut the EU's banana tariff for Latin American countries - its so-called Most Favoured Nation or MFN tariff - which lead to minimize in the preferential margin which ACP countries enjoyed.
It provides an access to an online database of current MFN Tariff, Preferential Tariff of top 25 destinations with which India has entered into regional or bilateral agreements or variants of them, Rules of Origin ("Ro0"), Sanitary and Phytosanitary Measures ("SPS") and Technical Barriers to Trade ("TBT") requirements of various products that an Indian trader requires for ensuring successful trade transactions.
Then again, when I discovered that the European Union which started the pandemic while the United States had grossly aggravated it, had its MFN tariff applicable to only six countries today--Australia, New Zealand, Canada, Japan, Taiwan, and the United States--with all other nations enjoying more favorable tariffs, I asked Pascal Lamy, who was then the EU Trade Commissioner, "Why not call it then the LFN (the Least-Favored-Nation) tariff?
imports from developing countries entered duty free under other preferential tariff programs, such as the Caribbean Basin Initiative, the Andean Trade Preference Act, and the African Growth and Opportunity Act, or because the MFN tariff rate is zero.