MOST-FAVORED-NATION CLAUSE • DICTIONARY ONE.COM • Definition of Most-favored-nation clause

Most-favored-nation clause n. (Diplomacy), A clause, often inserted in treaties, by which each of the contracting nations binds itself to grant to the other in certain stipulated matters the same terms as are then, or may be thereafter, granted to the nation which receives from it the most favorable terms in respect of those matters. It is used most frequently in treaties regarding the terms of trade between countries, as regarding tariffs and non-tariff barriers to trade. "There was a "most-favored-nation" clause with provisions for the good treatment of strangers entering the Republic." "Steam navigation was secured by the Japanese as far as Chungking, and under the most-favored-nation clause the right accrued to us."