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Most favoured nation (MFN) is a status or level of treatment accorded by one state to another in international trade. The term means the country which is the recipient of this treatment must, nominally, receive equal trade advantages as the most favoured nation by the country granting such treatment. (Trade advantages include low tariffs or high import quotas.) With respect to any measure covered by this Agreement, each Member shall accord immediately and unconditionally to services and service suppliers of any other Member treatment no less favourable than that it accords to like services and service suppliers of any other country. Most favoured nation Most favoured nation relationships extend reciprocal bilateral relationships following both GATT (General Agreement on Tariffs and Trade) and WTO norms of reciprocity and non-discrimination. In bilateral reciprocal relationships a particular privilege granted by one party only extends to other parties who reciprocate that privilege, while in a multilateral reciprocal relationship the same privilege would be extended to the group that negotiated a particular privilege. The non-discriminatory component of the GATT/WTO applies a reciprocally negotiated privilege to all members of the GATT/WTO without respect to their status in negotiating the privilege. First complaint renewed after the expiry of the old regime of the EU. 1. Issues Licences to import under general quota violated Article III .4 on national treatment. ( Discriminatory against non-EU banana distributors) The use of discriminatory tariff quotas in place of specific national quotas contravened Article XIII of discriminatory tariff quotas. 2. Outcome The second GATT panel found against EU that the quotas were in contravention of Art XIII Licensing system found to be in contravention of Article X on National Treatment The GATT panel was unenforceable because of the weakness of the GATT dispute settlement procedures. 2. Key findings: GATT Art. I:1 (
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