WTO's Most-Favored Nation (MFN) Principle and North-South Trade

Abstract

According to the Most Favored Nation Treatment of WTO, each contracting party should equally treat all the commodity and service of other parties during the international trade which means that discrimination between parties should be forbidden. On the basis of the treaty established in December 1991 between North & South Korea named, trade between North & South Korea is regarded as internal trade and is duty free. But this treaty was settled without the global agreement so other trade partners raised objection about this. This paper mainly focuses on establishing free trade agreement between North & South Korea, so that flexible project can be made for WTO rules and trade in North & South Korea to be more harmonious.

Keywords

• WTO
• Most-Favored Nation Treatment
• South Korea
• North Korea