Global Trade Thrives on Equal Terms, Most Favoured Nation Principle Bolsters Trade Stability
Geneva: Roughly 74% of global trade in May 2025 adheres to the Most Favoured Nation (MFN) principle, which ensures equal treatment for all trading partners and promotes stability in international commerce despite recent trade tensions, according to the latest World Tariff Profiles report.
This comprehensive publication, jointly produced by the World Trade Organization (WTO), the International Trade Centre (ITC), and the United Nations Trade and Development (UNCTAD) agency, provides detailed data on tariffs and non-tariff measures (NTMs) imposed by over 170 economies, covering agricultural and non-agricultural products as of the end of 2024.
The report highlights the MFN principle as a cornerstone of the multilateral trading system, noting that MFN trade shares vary significantly across economies and product groups. It includes summary tables comparing bound tariffs—the maximum tariffs countries commit to under trade agreements—with applied tariffs, which are the rates actually imposed. Each economy is featured in a one-page profile detailing tariff data by product groups, using the WTO’s Multilateral Trade Negotiations (MTN) categories, the product classification system used for trade statistics and policy analysis.
These profiles also show tariffs imposed on an economy’s exports by its main trading partners, alongside summaries of import and export tariffs for each economy. Non-tariff measures, such as regulations or standards, which are increasingly significant in international trade, are analysed by economy and product group.
The report is structured in five main parts. The first part presents summary tariff and trade statistics for all countries and territories, with breakdowns for agricultural and non-agricultural products, including indicators like tariff averages, maximum tariffs, percentage of duty-free tariff lines, tariff peaks, non-ad valorem duties, and measures of tariff dispersion, such as the number of distinct duties and the coefficient of variation. These indicators are calculated based on a pre-aggregation to the Harmonised System (HS) six-digit subheadings, standardising data for cross-country comparisons. The second part provides a full-page profile for each economy, disaggregating tariff data by sectors and duty ranges, and includes a section on market access conditions faced in their major export markets, specifically the top five markets, with data split into agricultural and non-agricultural products. It also includes indicators on the occurrence of special safeguards and tariff quotas. The third part covers non-tariff measures, with summary tables on anti-dumping actions, countervailing duties, and safeguard measures, which are critical for understanding trade barriers. The fourth part focuses on this year’s special topic, “Global trade on most-favoured-nation terms,” exploring its role in fostering equitable trade. The fifth part contains annexes with data sources and a compilation of frequently asked questions.
The summary tariff tables in the first part are designed to enable cross-country comparisons of bound and applied duties, incorporating standard indicators and tariff dispersion metrics. The summary trade table shows import and export profiles, facilitating comparison of selected indicators among economies, with export data based on mirror data reported by importing countries. The tariff profiles are divided into two blocks: the first covers domestic market access protection, detailing bound and applied duties by duty ranges and sectors, with separate data for agricultural and non-agricultural products; the second outlines protection faced in the five major export markets, depicting trade diversification and market access conditions for agricultural and non-agricultural products. This detailed structure, combined with standardised data and comprehensive metrics, makes the report a vital resource for understanding global trade dynamics and the critical role of the MFN principle in maintaining fairness and stability.
– global bihari bureau
