Question

Which of the following is/are true about concept of Most  Favored Nation (MFN)?

I. It establishes the sovereign equality of states with  respect to trading policy. 
II. There are two forms of MFN treatment: conditional  and unconditional. 
III. Such treatment has always applied primarily to the  duties charged on imports. 
IV. Custom unions and free trade areas are exceptions to  MFN principle. 

Options

• I, II. III

• II, III, IV

• I, II. III, IV

• I, III, IV

Answer 1

I, II. III, IV

Explanation: As per the WTO agreements Most-favoured-nation  (MFN) defined as treating trading partners equally. The countries cannot normally discriminate between their trading partners.