Exceptions to the Most-Favoured-Nation Treatment Principle

GATT article I (1) provides for WTO members to accord Most-Favoured-Nation treatment to like products of other WTO members regarding tariffs, regulations on exports and imports, internal taxes and charges, and internal regulations. The MFN is a fundamental principle of the WTO.The GATT and the WTO Agreement provide for certain exceptions to the MFN principle, for example, generalized system of preferences, non-application of multilateral trade agreements and other exceptions. Exceptions guarantee the account of interests of participants and flexibility of the WTO law, but related exceptions need to be carefully administered so as not to undermine the MFN principle.