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What does “Most Favoured Nation” (MFN) treatment mean?

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What does “Most Favoured Nation” (MFN) treatment mean?

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Article I of the GATT 1994 requires countries to not discriminate between goods on the basis of country of origin or destination. Free trade agreements, such as NAFTA, and customs unions, such as the European Union, are negotiated under a special exemption to the MFN principle (GATT Article XXIV).

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