Illustration- If India grants special treatment to Germany, that goods imported especially related to motor vehicle industry from Germany to India will have no import duty of trade tariff and in the manner, Germany excludes India from trade tariffs and import duty about thee the goods imported to Germany from India. The main objective of these principles is to promote trade and provide equal opportunity to get the best benefits of any member nation’s resources. The concept not only ends here, but the main principle of the MFN principle is also that if any privileges are granted to any member nation by another member nation of the WTO then the same privilege of like products has to be given to all the other member nations of the WTO. With further development in the scope of these principles, now these principles not only deal with the trade in goods practices rather now they also govern the trade in services and trade in IPR.Ī most-favoured-nation (MFN) principle explains the concept where a country has to grant some privileges related in a trade agreement to any of the member nations of the World Trade Organization. The only things which are amended in these principles were the scope otherwise the objective of these principles is the same as of framed in 1947.Īrticle I and Article III of the GATT 1994, deals with Most Favoured Nation Principle and National Treatment Principle respectively. After the great development in the Uruguay Round which leads the Marrakesh Agreement and established the World Trade Organisation on 1 January 1995, the basic principle of non-discrimination principle formed in 1947 is consistently same to the latest organisation between member nations. We can see different multilateral rules and principles which were set up in 1947 to govern International trade relating to goods between member nations of GATT, 1947.

Non-discrimination is a fundamental principle of the World Trade Organization (WTO) and is embodied in the:

The article explains about the two Non-Discriminations Principles of WTO and brief about the application of MFN & National Treatment principles. This article is written by Sparsh Mali, a fourth-year law student at the School of Law, UPES, Dehradun.

Difference between wto and gatt pdf