MFN
Business & Finance abbreviation · Economics
| Stands for | Most favored nation |
|---|---|
| Categories | Business & Finance |
MFN stands for Most favored nation, an economics abbreviation.
Principle of the World Trade Organization under which a country must extend to all WTO members any trade advantage, such as a lower tariff, that it grants to any one member. MFN tariffs are the standard rates applied to imports from other WTO members.
Example: The country's MFN tariff on imported cars is 10 percent, but FTA partners pay nothing.
Usage notes
Despite the name, MFN status means equal rather than special treatment. Exceptions include free trade agreements, customs unions and preferences for developing countries. In the US, MFN status was renamed "normal trade relations" in 1998. Commercial contracts also use MFN clauses that promise a customer the best terms offered to anyone else.
Related abbreviations
More economics abbreviations
- IS-LM – Investment-saving / liquidity preference-money supply model
- JOLTS – Job Openings and Labor Turnover Survey
- LDC – Least developed country
- LFPR – Labor force participation rate
- LMIC – Low- and middle-income countries
- MC – Marginal cost
- MMT – Modern monetary theory
- MPC – Monetary Policy Committee
- MPS – Marginal propensity to save
- MR – Marginal revenue
- NAIRU – Non-accelerating inflation rate of unemployment
- NBER – National Bureau of Economic Research