Question

What is the meaning and the policies stemming from a most favored nation clause. Are such clauses in effect today for the USA? What is the role of the WTO in regards to the most favored nation clause?

Answer 1

Most favoured nation meaning
Article 1 of general agreement of tariff and trade GATT 1994 requires every World Trade organisation member country to Accord most favoured nation status to all other member countries.although it sounds as most favoured nation offers preferential treatment it only insures non-discriminatory trade.it make sure that any country receiving most favoured nation status avoids any disadvantage situation in comparison to the The granddaughters other trade partners.

In today's scenario most favoured nation clause in effect today for USA. Many time we can see that USA has trade deficit with many countries because of the title he gave to to the the Nations of most favoured nation. Because of trade deficit us economy is hampered. But according to me e it's useful for us economy to give class of most favoured nation to other Nations because of that USA also so reply there finish good in that particular countries. Today countries like China is is bich competitor for USA. With the help of most favoured nation clause USA attract many countries as a friend country e for trade of goods and services in that country and that helps to boost economy of United State of America. Country also showing there reliability to USA because many time USA a tempered with bread officiate but steel USA stand with that countries for helping their economy and because of that country is purchase from USA. And that could help us economy also.

Role of WTO in regards of most favoured nation clause:-
WTO role about most favoured nation clause as under:-
A. Trade without discrimination most favoured nation treating other people equally.

B. National treatment trading foreigners and local equally

C. Free trade gradually through negotiations

D. Practicability through binding and transparency

E. Encouraging development and economic reform.

Deedar de WTO role about most favoured nation clause to other countries.