What is it about?
The Most-Favoured Nation (MFN) principle, extending the benefits the most favoured trading partner receives to all other trading partners has been a cornerstone of trade liberalization for centuries. Trade on the other hand has been an enabler of peaceful relations between nations. This article explores the historical relevance of the MFN principle and explores its role in the current era of nationalism and protectionism.
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Why is it important?
In the past decade a rise in nationalism and protectionism is apparent. Since 2017, the United States of America (USA) are pursuing an “America First” policy that has as one of its objectives an increase in bilateral agreements. At the same time, the USA has taken moves to destabilise the multilateral trading system of the World Trade Organization by bringing the Appellate Body to a standstill. In light of these and other similar manifestations, it is relevant to review the historical relevance of the Most-Favoured Nation (MFN) principle for trade and peaceful relations in order to understand the potential consequences of the rise in nationalism and protectionism.
Perspectives
As the global (trading) order appears to move toward nationalism, protectionism and bilateralism, it is timely to understand what the consequences of this have been from a historical perspective. As history tends to repeat itself, past experiences should not be overlooked to understand what the future may bring.
Moritz Wüstenberg
University of Eastern Finland
Read the Original
This page is a summary of: Back to the Future: mfn Treatment in an Era of Protectionism, Nordic Journal of International Law, November 2017, Brill,
DOI: 10.1163/15718107-08604004.
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