{"id":17105,"date":"2023-09-13T18:11:33","date_gmt":"2023-09-13T12:41:33","guid":{"rendered":"https:\/\/www.nextias.com\/current_affairs\/?p=17105"},"modified":"2023-09-13T18:12:37","modified_gmt":"2023-09-13T12:42:37","slug":"most-favoured-nation-mfn-duty","status":"publish","type":"post","link":"https:\/\/www.nextias.com\/ca\/current-affairs\/13-09-2023\/most-favoured-nation-mfn-duty","title":{"rendered":"Most Favoured Nation (MFN) Duty"},"content":{"rendered":"\n<p><strong>Syllabus: GS3\/Indian Economy<\/strong><\/p>\n\n\n\n<p><strong><span style=\"text-decoration: underline;\">Context<\/span><\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>India has withdrawn additional duties on eight US origin products, including apples, walnuts and almonds.<\/li>\n<\/ul>\n\n\n\n<p><strong><span style=\"text-decoration: underline;\">About<\/span>:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The relaxation of an additional duties (20% each on apples and walnuts and Rs 20 per kg on Almonds) by the Union government which was imposed as a retaliatory measure on the US&#8217;s products in 2019 over and <strong>above the Most Favoured Nation (MFN)<\/strong> as a retaliation to US\u2019s protectionist measure of increasing tariffs on certain steel and Aluminium products.<\/li>\n<\/ul>\n\n\n\n<p><strong><span style=\"text-decoration: underline;\">Most Favoured Nation (MFN) duty:<\/span><\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The MFN clause is the <strong>founding principle of the World Trade Organization (WTO)<\/strong>.\n<ul class=\"wp-block-list\">\n<li>Under the WTO agreements, <strong>countries cannot normally discriminate between their trading partners.<\/strong><\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>In general, MFN means that every time a country lowers a trade barrier or opens up a market, it has to do so for the same goods or services from all its trading partners \u2014 whether rich or poor, weak or strong.<\/li>\n\n\n\n<li>It is a priority in the General Agreement on Trade in Services (GATS) and the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS).<\/li>\n\n\n\n<li>The <strong>loss of MFN status<\/strong> exposes a country to discriminatory import tariffs on its products.<\/li>\n<\/ul>\n\n\n\n<p><strong><span style=\"text-decoration: underline;\">Exception<\/span>:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Countries can set up a free trade agreement that applies <strong>only to goods traded within the group<\/strong> \u2013 discriminating against goods from outside.\n<ul class=\"wp-block-list\">\n<li>They can give developing countries special access to their markets.<\/li>\n\n\n\n<li>A country can raise barriers against products that are considered to be traded unfairly from specific countries.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>In services, countries are allowed to discriminate,&nbsp; on a limited basis.<\/li>\n<\/ul>\n\n\n\n<p><a href=\"https:\/\/www.pib.gov.in\/PressReleasePage.aspx?PRID=1956692\" target=\"_blank\" rel=\"noopener\">Source: PIB<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Syllabus: GS3\/Indian Economy Context About: Most Favoured Nation (MFN) duty: Exception: Source: PIB<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-17105","post","type-post","status-publish","format-standard","hentry","category-current-affairs"],"acf":[],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/17105","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/comments?post=17105"}],"version-history":[{"count":1,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/17105\/revisions"}],"predecessor-version":[{"id":17106,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/17105\/revisions\/17106"}],"wp:attachment":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media?parent=17105"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/categories?post=17105"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/tags?post=17105"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}