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Consider the following statements regarding the "Most Favoured Nation (MFl'J)" principle of the World Trade Organisation (WTO):
It is a principle of non-discriminatory trade.
  • A member country can grant more favours to any Most Favoured Nation.
  • Free Trade Agreements have been exempted from the MFN principle.
    Which of the statements given above is/are correct?
    • a)
      1 only
    • b)
      1 and 3 only
    • c)
      2 only
    • d)
      2 and 3 only
    Correct answer is option 'B'. Can you explain this answer?
    Most Upvoted Answer
    Consider the following statements regarding the "Most Favoured Nation...
    • Under WTO agreements, countries cannot normally discriminate between their trading partners. In general, MFN means that every time a country lowers a trade barrier (import duties) or opens up a market or gives some country a special favour, it has to do so for the same goods or services from all its trading partners whether rich or poor, weak or strong. According to the WTO, though the term IVlFN "suggests special treatment, it actually means non-discrimination." However, exemptions allowed to this rule include free trade pacts and special benefits to poor nations. So, statement (2) is not correct and statement (1) is correct.
    • Article 21b(iii) of GATT states that "Nothing in this Agreement shall be construed to prevent any contracting party (including india in this case) from taking any action which it considers necessary for the protection of its essential security interests taken in time of war or other emergencies in international relations." So, statement (3) is correct.
    Therefore, the correct answer is b.
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    Consider the following statements regarding the "Most Favoured Nation (MFl'J)" principle of the World Trade Organisation (WTO): It is a principle of non-discriminatory trade. A member country can grant more favours to any Most Favoured Nation. Free Trade Agreements have been exempted from the MFN principle. Which of the statements given above is/are correct?a)1 onlyb)1 and 3 onlyc)2 onlyd)2 and 3 onlyCorrect answer is option 'B'. Can you explain this answer?
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    Consider the following statements regarding the "Most Favoured Nation (MFl'J)" principle of the World Trade Organisation (WTO): It is a principle of non-discriminatory trade. A member country can grant more favours to any Most Favoured Nation. Free Trade Agreements have been exempted from the MFN principle. Which of the statements given above is/are correct?a)1 onlyb)1 and 3 onlyc)2 onlyd)2 and 3 onlyCorrect answer is option 'B'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Consider the following statements regarding the "Most Favoured Nation (MFl'J)" principle of the World Trade Organisation (WTO): It is a principle of non-discriminatory trade. A member country can grant more favours to any Most Favoured Nation. Free Trade Agreements have been exempted from the MFN principle. Which of the statements given above is/are correct?a)1 onlyb)1 and 3 onlyc)2 onlyd)2 and 3 onlyCorrect answer is option 'B'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Consider the following statements regarding the "Most Favoured Nation (MFl'J)" principle of the World Trade Organisation (WTO): It is a principle of non-discriminatory trade. A member country can grant more favours to any Most Favoured Nation. Free Trade Agreements have been exempted from the MFN principle. Which of the statements given above is/are correct?a)1 onlyb)1 and 3 onlyc)2 onlyd)2 and 3 onlyCorrect answer is option 'B'. Can you explain this answer?.
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