MFN Tariff Definition
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MFN Tariff 0. 01 sec.
MFN Tariff
A tariff applied to a country with most favored nation status. An MFN tariff is the lowest possible tariff a country can assess on another country. For example, if a country s lowest tariff is 2% of the value of a good, this is its MFN tariff, and it charges this percentage on an import from a country with most favored nation status. Members of the World Trade Organization are required to extend most favored nation status to other members, though exceptions exist. In the United States, most favored nation status is formally called permanent normal trade relations.
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The MFN tariff rates are taken from UNCTAD Handbook of Statistics (48) database: Average applied import tariff rates on non-agricultural and non-fuel products.
Global trading system: decline of nondiscrimination and rise of . by Srinivasan, T. N. Stanford Journal of International Law
Tariff Cooperation over Free Trade under ({[PHI]}) Suppose each country employs a zero tariff until someone defects, in which case cooperation breaks down with countries switching to their MFN tariffs forever.
The implications of a south-south customs union on tariffs, welfare, . by Nath, Hiranya K. ; Yildiz, Halis Murat Journal of Business Strategies
As members of the World Trade Organization (WTO), each NAFTA country is generally required to apply its MFN tariffs to all other WTO members.
What s next for NAFTA by Frozen Food Digest
Mervyn King
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