Briefing Paper 25 – November 2018 Julia Magntorn Key points Introduction What is the Most Favoured Nation (MFN) clause? The wild world of EU MFN clauses Repeating GATS/GATT National Treatment & MFN combined Asymmetric MFN clauses in goods trade Comprehensive MFN clauses in services and investment Exceptions to MFN Impact on market access and national treatment commitments Implications for a future UK-EU deal Implications for improving on EU FTAs Conclusion Footnotes Key Points Most Favoured Nation clauses contained in EU’s trade agreements could limit the EU’s willingness to offer the UK better treatment in a future trade deal, as it would be required to extend the same treatment ‘for free’ to a number of its existing FTA partners. The EU’s agreements with Canada, South Korea, Japan, CARIFORUM, Vietnam and the updated EU-Mexico agreement all contain MFN clauses with respect to services and investment. MFN obligations impose an even larger constraint … Continue reading Most Favoured Nation clauses in EU trade agreements: one more hurdle for UK negotiators