PMFNs & Competition

Most Favored Nation (MFN) clauses are contractual provisions that were historically invoked between countries in treaties and trade agreements, promising, for example, that any lowering of tariffs on any trading partner would apply to all the most favored nations bound by the MFN agreement (hence the use of the term “nations”). However, more generally, MFNs can also apply to vertical agreements between suppliers and buyers, where, for example, a seller promises a buyer that the buyer will always…
By: Secretariat