MFN exemptions in Global Commerce Policy
In this regard, a definition of this issue is as follows: under the GATS, permission granted to a member country not to apply most-favoured-nation treatment in a given sector. The entries on trade policy are here. In most cases, these are necessary because of earlier treaty obligations, such as membership of a market-sharing agreement, a preferential arrangement or a cooperation agreement. MFN exemptions are for a maximum of 10 years, and they have to be reviewed after 5 years. Many WTO members took out MFN exemptions when the GATS entered into force. The entries on trade policy in the Encyclopedia are here. Others have since been granted exemptions upon accession. The entries on trade policy are here. It is possible for existing members to take out new MFN exemptions, but this can only be done with the agreement of 75% of the WTO membership at a WTO Ministerial Conference. See also waiver.
MFN exemptionsin the wold Encyclopedia
For an introductory overview on international trade policy, see this entry.
Notes and References
- Dictionary of Trade Policy, “MFN exemptions” entry (OAS)