The value of the WTO: An economic viewpoint in six instalments Part II: Why MFN matters

The most-favoured-nation (MFN) principle is one of the cornerstones of the multilateral trading system founded by the General Agreement on Tariffs and Trade (GATT) and embodied by the WTO. It is often described simply as a non-discrimination rule, requiring that any tariff granted to one trading partner be extended to all WTO members. But its economic significance runs much deeper.