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most-favored-nation

most-favored-nation

6 8.2
A country that receives the same trade advantages as other countries under a trade agreement
  • adjective
  • /moʊst ˈfeɪvərd ˈneɪʃən/
  • Formal
translation icon : nación más favorecida
  • NAFTA's three primary service obligations, as set out in Chapter 12, are national treatment, most-favored nation treatment, and local presence.
  • most-favored-nation status
  • most-favored-nation treatment
  • most-favored-nation trade

Examples

  • Free-trade agreements may be desirable as barriers against dumping and other predatory tactics that raise adjustment costs, but unconditional most-favored-nation treatment of third parties should be part of all FTAs.

    Academic text (1998)
  • U.S. trade with China rose rapidly after 1980, when the two nations granted mutual most-favored-nation trade status.

    Academic text (1999)
  • If not, then India wanted to conduct trade on a most-favored-nation basis.

    Academic text (1992)
  • Little wonder that the Bush administration has called on Congress to renew the most-favored-nation status until China is able to enter the World Trade Organization.

    Academic text (2002)
  • Any effort to condition most-favored-nation trade status would seriously jeopardize the U.S.-China relationship and would prompt retaliation.

    Academic text (1993)
  • First, the United States signed only 14 of the 335 BITs surveyed by the World Bank that contain national or most-favored-nation treatment provisions for admission.

    Academic text (1994)
  • TRIPs adds to intellectual property treaties the most favored nation principle that has been characteristic of GATT.

    Academic text (1994)
  • The second key NAFTA obligation is the most-favored nation or MFN obligation, which is contained in Article 1203.

    Academic text (1996)
  • The trade agreement ensures that the country will receive most-favored-nation treatment, which means lower tariffs compared to others.

  • Under the new policy, Japan benefits from most-favored-nation status, allowing it to trade with reduced import quotas.

Surface Forms

favored nation positive

Morphology

most-favored-nation = most + favor + nation (opaque) = most + favor + nation

The term is a legal and diplomatic term that does not follow standard English compositional rules.

Etymology

Most-favored-nation joins most ('greatest'), favored ('given special help') and nation ('country'), and was used in treaties to name the country that got the best deal. It began as a promise to treat one country as well as the 'most favored' partner, so today it means a nation will receive the same trading advantages as others.