The most-favored nation treatment principle designates two different terms in the world trade right and in the procedural law.

World trade right

After the most-favored nation treatment principle or the most favored clause (English: Most favoured nation, MFN) must be granted commercial advantages, which are granted to a contracting party, in the course of the equal rights to all contracting parties. So it is to become impossible to grant to commercial privileges only particulars or few states. There are exceptions of most-favored nation treatment for regional integration agreements, or in handling developing countries so mentioned, so that for example the European union of commercial advantages of their domestic market must grant not also third states.

This principle is together with the resident treatment in such a way specified the most important basis of all treaty systems of the world trade organization (World trade Organization, briefly World Trade Organization), under what the general tariff and trade agreement (general Agreement on Tariffs and trade, briefly HOLE), which service agreement (general Agreement on trade in services, briefly GATS) as well as the agreement for the protection of intellectual property (Agreement on trade Related Aspects OF Intellectual Property Rights, briefly TRIPS) fall.

Together with the the most-favored nation clause forms the basic principle of the World Trade Organization right and is thus the core element of the world-wide trade liberalisation. The states that commercial preferences, the country A grants to the country B, turned around also by country B the country A to be granted must. If it concerns with country B a very underdeveloped country, an exception of the is possible in the framework enabling the clause.

Foreign trade zones offend against the most favored clause, since are granted to the members of the foreign trade zone. Third states are disadvantaged by the detour of commercial stream, following those from, (discriminated against). Article XXIV of the hole contract grants however due to the commercialcreative effect for the members exceptions for foreign trade zones, if these all tariff eras and non-tariff eras eliminate trade barriers for approximately the entire trade internally and the external tariff is not increased opposite third countries.

Procedural law

In the procedural law the most-favored nation treatment principle means that a judicial decision, which was made in the wrong form (e.g. Resolution instead of judgement), both with the redress to be contested can, which corresponds to the form, and with the redress, which would be given with the correct decision form. A goal is it to decrease to the redress leader the risk that it inserts a wrong redress. Normally an inadmissible redress is rejected as inadmissible.

See also

• World trade organization
• Globalization
• Foreign trade

Related links

• World trade organization (World Trade Organization)

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