Question

Q17) The issue of MFN (most favoured nation)

1.Is associated with IMF

2. It means giving special treatment to imports from a country.

Identify the correct statement(s)

• A. a) 1 only
• B. b) 2 only
• C. c) Both
• D. d) neither

Answer 1

The correct option is D d) neither

Answer 17: D

Explanation: According to the MFN principle of the WTO’s General Agreement on Tariffs and Trade (GATT) — to which India is a
signatory/contracting party — each of the WTO member countries should “treat all the other members equally as ‘most-favoured’
trading partners.”
The WTO says, "Grant someone a special favour (such as a lower customs duty rate) and you have to do the same for all other WTO
members." Hence, though MFN sounds like special treatment, in effect it means non-discrimination.