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Most Favoured Nation

A status given by one country to another that regulates trade between them and which is enforced by the World Trade Organisation. Under WTO agreements member countries cannot normally discriminate between their trading partners. If one country grants another a special favour, such as a lower customs duty for one of their products, all other WTO members have to be given the same favour. In effect, a nation with MFN status will be treated no worse than any other nation with MFN status. The principle of MFN treatment is the first article of the General Agreement on Tariffs and Trade (GATT) governing trade in goods.

See: http://www.wto.org/english/theWTO_e/whatis_e/tif_e/fact2_e.htm