According to the MFN principle of the WTO’s General Agreement on Tariffs and Trade (GATT), each of the WTO member countries should “treat all the other members equally as ‘most-favoured’ trading partners.”  

• If a special favour such as a lower customs duty rate is grant to someone by a nation, then it has to do the same for all other WTO members.  
• Thus, in effect it means non-discrimination. 
• Recently, India withdrew the Most Favored Nation (MFN) status from Pakistan. 

Source: WTO