- published: 14 Dec 2013
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In international economic relations and international politics, "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.) In effect, a country that has been accorded MFN status may not be treated less advantageously than any other country with MFN status by the promising country. There is a debate in legal circles whether MFN clauses in bilateral investment treaties include only substantive rules or also procedural protections.
The members of the World Trade Organization (WTO) agree to accord MFN status to each other. Exceptions allow for preferential treatment of developing countries, regional free trade areas and customs unions. Together with the principle of national treatment, MFN is one of the cornerstones of WTO trade law.
A nation may refer to a community of people who share a common language, culture, ethnicity, descent, or history. In this definition, a nation has no physical borders. However, it can also refer to people who share a common territory and government (for example the inhabitants of a sovereign state) irrespective of their ethnic make-up. In international relations, nation can refer to a country or sovereign state. The word nation can more specifically refer to people of North American Indians, such as the Cherokee Nation that prefer this term over the contested term tribe.
According to Joseph Stalin writing in 1913 in Marxism and the National Question: "a nation is not a racial or tribal, but a historically constituted community of people;" "a nation is not a casual or ephemeral conglomeration, but a stable community of people;" "a common language is one of the characteristic features of a nation;" "a nation is formed only as a result of lengthy and systematic intercourse, as a result of people living together generation after generation;" "a common territory is one of the characteristic features of a nation;" "a common economic life, economic cohesion, is one of the characteristic features of a nation;" "a common psychological make-up, which manifests itself in a common culture, is one of the characteristic features of a nation;" "A nation is a historically constituted, stable community of people, formed on the basis of a common language, territory, economic life, and psychological make-up manifested in a common culture." According to Stalin, this would exclude Jews as they have no common territory.