A level of status given to one country by another and enforced
by the World Trade Organization. A country grants this clause
to another nation if it is interested in increasing trade with that
country.
Countries achieving most favored nation status are given
specific trade advantages such as reduced tariffs on imported
goods.
The MFN status proclaimed in the WTO has been granted
to about 168 countries. Only a handful of communist countries
have been denied MFN status.
Years ago, America heartily debated the
merit of granting most favored nation status
(MFN) to China and Vietnam.
Violations by Trump in 2018.
Proponents of granting MFN status argued
that a reduction in tariffs on Chinese and
Vietnamese goods would give the American
consumer access to quality products at
relatively low prices, and would serve to
enhance a mutually beneficial trade
relationship with the two rapidly developing
economies.
Trade experts consider MFN clauses to have
the following benefits:

A country that grants MFN on imports will
have its imports provided by the most
efficient supplier.


MFN allows smaller countries, in particular,
to participate in the advantages that larger
countries often grant to each other, whereas
on their own, smaller countries would often
not be powerful enough to negotiate such
advantages by themselves.
Under WTO norms, member countries
are mandated to give this status to each
other on a reciprocal basis.
As MFN clauses promote non discrimination
among countries, they also tend to promote the
objective of free trade in general.
India:
MFN status to Pakistan in 1995 withdrawn in
2019 after Pulwama attack.
200% duties applied.
Pakistan:
MFN status to India in 2011. Withdrawn in
2019 after abolishment of article 370 in J&K.
Pakistan is one of the founder Members of the WTO since
1995, and its predecessor organization the GATT set up in
1948. We are following an export led growth strategy and
as such market access is of vital importance for our
businesses.
Pakistan has been actively engaged in the Doha round of
trade talks that were launched in the Qatari capital in
November 2001. Aptly named the "Doha Development
Agenda" (DDA), this round of trade talks has been focusing
on removing distortions in the world agriculture markets
and attaining enhanced market access for both products
and service providers of Pakistan.