Why the most-favoured nation principle matters for business

A rules-based global trading system, with the World Trade Organization’s (WTO) most-favoured nation (MFN) principle at its core, provides the stability and predictability that businesses require for strategic planning, investment decisions, and day-to-day operations.

This paper explains:  

• What the most-favoured nation principle is in practical terms and common misconceptions 

• How the principle relates to reciprocal and retaliatory tariffs 

• How it impacts businesses and consumers 

• Its importance for business operations, whether or not the business exports goods 

• Its role in promoting equality and fairness in international trade 

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