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 ?
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?
The United States also applies a wide system of combined MFN tariff quota rates in this area particularly with additional safeguard duties.
MFN tariff rates are what the WTO calls "bound", so that if one partner wants to raise its rates, GATT/WTO provisions require that it compensate its trading partners.
Meanwhile, products with current applied MFN tariff rates between 5% and 15% would have to lowered to a rate of 5% by Jan.
Malaysia still uses the MFN tariff of 30% and CEPT tariff of 15% on PE resin although the import duty on PP resins has been reduced to zero.
MFN tariff rates have been reduced substantially through successive trade rounds held under the General Agreement on Tariffs and Trade (GATT).
The main of the BAM project was to pro pp up Ghana s power to compete in exports to EU countries under the MFN tariff.