India may oppose US proposal to dismantle WTO's most-favoured-nation rule

India is set to oppose a US push at the WTO to dilute the MFN principle, calling it a threat to the core foundations of the multilateral trading system

India is likely to oppose a US proposal at the World Trade Organisation (WTO) to dismantle the most-favoured-nation (MFN) obligation of member countries that ensures uniform and non-discriminatory tariff regime, with Washington arguing that the multilateral principle has failed to reflect the economic and strategic realities. 

 

“The MFN principle is not just unsuitable for this era; it prevents countries from optimising their trade relationships in ways that would benefit each party in that relationship. Put differently, MFN impedes welfare-enhancing liberalisation. It pushes members to engage in one venue—the WTO— and attempt to develop a one-size-fits-all approach,” the US said in