Critical Analysis of the Most-Favoured-Nation Principle: Myth or Path to Trade Liberalisation

Abstract

In this dissertation, the principle of the Most Favoured Nation treatment and some of the key issues that arise in its negotiation was examined extensively by the author. This principle of universal equal treatment underpins the World trade Organization. It is a non discriminatory trade policy that obligates members of the world trade organization to extend the same treatment to all members.

The controversy that exists at the heart of this study was whether the Most Favoured Nation principle has been successful in achieving the lofty goals of equality and non-discrimination. It examined the growing irrelevance of the Most Favoured Nation principle in international trade due to an increase in the formation of free trade areas.

The analysis then progressed to cut across the multiple facets of international trade. It evaluates the effects of the Most Favoured Nation Principle in the liberalisation of trade in goods, services and intellectual property rights. The author then recommends that the key functions of the Most Favoured Nation Principle should be reinforced through the establishment of a more efficient enforcement mechanism.