A method of establishing equality of trading opportunity among states by guaranteeing that if one country is given better trade terms by another, then all other states must get the same terms.

In the twentieth century, the history of world trade is dominated by the move from protective tariffs to free trade. International agreements have permitted most of the  world’s nations to export their products without facing discriminatory duties. A key concept in the liberalization of trade is most favored nation (MFN) status.

MFN status is a method of preventing discriminatory treatment among members of an international trading organization. MFN status provides trade equality among partners by ensuring that an importing country will not discriminate against another country’s goods in favor of those from a third. Once the importing country grants any type of concession to the third party country, this concession must be given to all other countries.