MFN duty

Stands for: Most Favoured Nation duty

The standard customs duty rate a country applies to imports from other World Trade Organization members when no preference or trade agreement applies.

For apparel, MFN rates can be high: the European Union charges around 12% on most knitted garments and the United States 16.5% on cotton knit T-shirts. Preference schemes such as EBA replace the MFN rate with a lower one when origin rules are met.