Most Favoured Nation Treatment And Its Exceptions: A Legal Analysis
- IJLLR Journal
- May 12
- 1 min read
Shreyansh Jain, B.B.A. LL.B. (Hons.),Faculty of Law, Jagran Lakecity University, Bhopal, Madhya Pradesh (India)
Kinjal Sharma, B.B.A. LL.B. (Hons.),Faculty of Law, Jagran Lakecity University, Bhopal, Madhya Pradesh (India)
ABSTRACT
The Most Favoured Nation (MFN) principle lies at the centre of the law of international trade and forms the basis of the World Trade Organization (WTO). As a vehicle for promoting the equity, transparency, and stability of global trade, the rule has increasingly been subjected to increasing assault by numerous exceptions that have been perfected to prioritize domestic interests, regional affiliations, and development agendas.
This article provides a comprehensive legal analysis of MFN provisions within the frameworks of the General Agreement on Tariffs and Trade (GATT)1 (General Agreement on Tariffs and Trade (GATT 1947), 2025) regimes and the General Agreement on Trade in Services (GATS)2 (General Agreement on Trade in Services (GATS), 2025) and considers major derogations, including Regional Trade Agreements (RTAs), developing country preferences and national security exceptions.Basingitsanalysis onWTO case law,academicwriting, and treaty provisions,the study considers the consistency and broader policy iss ues of the exceptions. The research ends with some proposals to try to come up with a more realistic and balanced approach to the goals of liberalization of trade and appropriate role of regulatory flexibility in the world trading system.
Keywords: Most Favoured Nation Principle, World Trade Organization, General Agreement on Tariffs and Trade (GATT), General Agreement on Trade in Services (GATS), Regional Trade Agreements (RTAs).
