MFN

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2020-06-25 23:20:09

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MFN – is a term that in international economic relations defines the status of the country, benefiting from reduced tariffs and reductions of trade barriers. He is awarded two (or more) countries with trade agreements.

So, all the countries-members of WTO receive this status. This means that they have equal trade benefits. It is extremely important for smaller countries participating in trade agreements because it gives the right to reduce the cost of exports making them competitive. The country that received the status of the NLR cannot be regarded as less useful than any other developed (with status), has a promising economy. Thus, the most favored Increases the export and economic development of the state. Exceptions take into account preferential treatment of developing countries, regional free trade areas and customs unions.

The Disadvantage of the NLR is that some countries are unable to protect their industry from cheaper goods produced by foreign partners. This problem is especially exciting. For example, when some state has to export cheap food to the American market, it essentially loses its agriculture, as local farmers can't compete with subsidized food in the United States and the EU. They are forced to move to cities in search of work. However, merchants increase prices, leading to food riots.

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In any case, national treatment and MFN are the main principles of trade law WTO. The first refers to the fact that foreign companies in the countries-trading partners have equal status with the locals.

Historical roots of the status can be found already in the eleventh century. But in its modern form, it began to emerge in the eighteenth century. In the early years of the development of international trade it has been used between the two countries. In 1794, the ‘Jay Treaty”, the United States granted trading status in the UK.

In the late 19th – early 20th centuries in connection with the situation, when a strong West empires MFN imposed actually forced Asian countries, it began to be regarded as a tool of predatory policy. One of the clearest examples of such unequal relations, to the looting of the economy of the weaker States, is the Treaty of Nanking (1842) between the Qing Empire (China) and great Britain, concluded after the First Opium war in which Britain received Hong Kong island.

In the Korean history textbook said that a trade agreement with the United States, 1882 – an unequal agreement that allowed the US to unjust privilege from the Joseon dynasty. However, many people consider the most favored As favorable for countries with poor economies, enabling them to protect their interests. It is likely that they are right. As you know, the superpowers in the past, the desire would not be hard to destroy completely the economy of the weaker countries, regardless of whether they have status or not.

After the Second world war, commercial treaties were concluded both between many countries through the General agreement on tariffs and trade, which led ultimately, in 1994, to the WTO.

The WTO Agreement – is very complicated, verified legal documents covering a wide range of activities. They relate to agriculture, textile industry, banking, telecommunications, government procurement, industrial standards, product safety rules, food hygiene, intellectual property and much more. The main principle is that the WTO requires that members gave each other preferential treatment. Experts in the trade believe that many of the items on the NLR have great advantages and has a tendency to promote trade relations without discrimination and free trade in General.

 


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UK: https://tostpost.com/uk/b-znes/41172-rezhim-nayb-l-shogo-spriyannya.html

ZH: https://tostpost.com/zh/business/34005-mfn.html






Alin Trodden - author of the article, editor
"Hi, I'm Alin Trodden. I write texts, read books, and look for impressions. And I'm not bad at telling you about it. I am always happy to participate in interesting projects."

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