What is the fundamental principle of a multilateral trade agreement like WTO?
The “Most Favoured Nation” (MFN) clause of the GATT agreement is the fundamental principle of WTO. It states that all countries belonging to GATT should be treated equally. Therefore, if India, a member of WTO reduces tariffs on goods imported from Singapore, it should also do so for all other member countries. This founding principle of GATT/WTO and is described in Article I of its preamble.
