Difference between MFN and NT

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MFN and NT are terms used in international trade. MFN stands for Most Favored Nation and NT stands for National Treatment.

MFN is a principle of non-discrimination where a country extends its best trade terms to all its trading partners.
NT is a principle where a country treats foreign goods and services the same as domestic goods and services.
MFN is a multilateral agreement under the WTO, while NT is a bilateral agreement between two countries.
An example of MFN is when a country lowers its tariffs for all its trading partners, not just one specific country.
An example of NT is when a country does not discriminate against foreign companies when it comes to government procurement contracts.

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