What is an MFN (Most Favoured Nation) duty rate?

The MFN (Most Favoured Nation) rate is the standard duty rate a country applies to imports from all WTO member countries without a preferential trade agreement. Despite the name, MFN does not mean the best rate available. It means the standard, non-discriminatory rate applied equally to all WTO trading partners. When does a lower rate apply? 1. Free Trade Agreements: USMCA, EU-UK TCA, ASEAN AFTA — goods meeting rules of origin get 0% or reduced rates 2. GSP (Generalised Scheme of Preferences): Preferential rates for developing country exporters 3. Some goods from specific countries face additional duties ON TOP of MFN rates (US Section 301 on China, EU anti-dumping on Chinese EVs) Example — T-shirt (HS 6109.10) to the US: - MFN rate: 16.5% from most countries - USMCA rate: 0% if made in Mexico or Canada - From China: 16.5% MFN + 7.5–25% Section 301 surcharge