most-favored-nation

[mohst-fey-verd-ney-shuhn]

adjective

1. of or relating to the status, treatment, terms, etc., that are embodied in or conferred by a most-favored-nation clause.

most-favored-nation

1. Status in an international trading arrangement whereby agreements between two nations on tariffs are then extended to other nations. Every nation involved in such an arrangement will have most-favored-nation status. This policy is used, particularly by the United States, to lower tariffs, extend cooperative trading agreements, and protect nations from discriminatory treatment. Most-favored-nation agreements can also be used to apply economic pressure on nations by deliberately excluding them from international trade.

Word History and Origins

Origin of most-favored-nation¹

First recorded in 1750–60

Example Sentences

The company also committed to price all new medicines at parity with other developed markets while extending “most-favored-nation” pricing to Medicaid patients.

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Drugmakers opposed most-favored-nation pricing, arguing that it would deprive them of funding needed to develop future medicines and that it could jeopardize the billions in the recently announced planned investments.

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The drugmaker will also sell to Medicaid at most-favored-nation prices, which it already must do in many cases because of discounts that are required by federal law.

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“For twenty years, Communist China has held permanent most-favored-nation status, which has supercharged the loss of American manufacturing jobs,” Mr. Cotton said.

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Barrack's princes said they could arrange to have the kingdom grant the discount to Haiti; all they needed was for Haiti to reciprocate by extending diplomatic relations and most-favored-nation status to Saudi Arabia.

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