Most Favored Nation
/ˌmoʊst ˈfeɪvɚd ˈneɪʃən/
Definitions
- (n.) A contractual clause in trade agreements ensuring that the parties receive terms no less favorable than those given to any other party.
The trade agreement includes a most favored nation clause guaranteeing equal tariff treatment among signatories.
- (n.) In international trade law, a principle obligating a country to extend to one trading partner the same trade advantages granted to others.
Under the most favored nation principle, Country A cannot impose higher tariffs on Country B than it does on Country C.
Forms
- most favored nation
Related terms
See also
Commentary
Commonly used in trade treaties to prevent discrimination among countries; drafting must clearly define scope and exceptions to avoid disputes.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.