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Economy
Mahesh

15/03/22 13:35 PM IST

Most favoured Nations

In News 

  • The United States, the European Union, Britain, Canada and Japan are considering revoking Russia's "most favoured nation" (MFN) status over its invasion of Ukraine.
About MFN 

  • The World Trade Organization’s 164 members commit to treating other members equally so they can all benefit from each other’s lowest tariffs, highest import quotas and fewest trade barriers for goods and services.
  • This principle of non-discrimination is known as most favoured nation (MFN) treatment.
  • There are some exceptions, such as when members strike bilateral trade agreements or when members offer developing countries special access to their markets.
Exceptions 

  • For countries outside the WTO, such as Iran, North Korea, Syria or Russian ally Belarus, WTO members can impose whatever trade measures they wish without flouting global trading rules.
Losing MFN status 

  • Revoking Russia’s MFN status sends a strong signal that the United States and its Western allies do not consider Russia a economic partner in any way, but it does not in itself change conditions for trade.
  • It does formally allow the Western allies to increase import tariffs or impose quotas on Russian goods, or even ban them, and to restrict services out of the country.
  • They could also overlook Russian intellectual property rights.
Source- Indian Express 

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