An Analysis of the Bottlenecks in Implementing the Most Favored Nation (MFN) Treatment Principle: The Impact of Its Substantial Exceptions

Author(s)	Samuel NZAKOMEZA
Country	Rwanda
Abstract	The Most-Favored-Nation (MFN) principle is a cornerstone of the World Trade Organization (WTO) which requires that any favorable treatment (such as lower tariffs or fewer trade barriers) granted by one member country to another must be extended immediately and unconditionally to all other WTO members. Nevertheless, there are several exceptions to this principle which recognize situations where differential treatment is justified or necessary. The main exceptions to the MFN principle include: Regional Trade Agreements (RTAs) or Free Trade Areas (FTAs), Preferences to Developing Countries (Generalized System of Preferences GSP), Special Treatment for Developing and Least-Developed Countries, Measures Allowed Under General or Security Exceptions, Waivers Granted by the WTO and Frontier Traffic and Historical Preferences. This paper examines the potential for nations that refuse or may refuse to implement the Most-Favored-Nation principle to justify their actions by invoking the substantial exceptions to the principle, thereby creating obstacles to its effective implementation. It further proposes practical measures to enhance the operational effectiveness of the MFN principle.
Keywords	MFN principle, Exceptions, WTO, RTAs, FTAs, GATT, TRIPS
Field	Sociology > Administration / Law / Management
Published In	Volume 16, Issue 4, October-December 2025
Published On	2025-12-12

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