A most-favored-nation (MFN) clause in an international trade agreement requires participants in the agreement to offer all other participants treatment as favorable as that extended to any other country. Therefore most-favorednation clauses, with some exceptions, eliminate discrimination among countries on the basis of TARIFFs and duties and provide freedom for INVESTMENT. In the 19th and early 20th centuries, most-favorednation clauses were generally reciprocal agreements between two countries. Sometimes powerful Western countries unilaterally imposed MFN clauses on Asian nations. With the creation of the General Agreement on Tariffs and Trade (GATT, 1947) and the WORLD TRADE ORGANIZATION (WTO, 1995) with over 100 member nations, most-favored-nation status has become a widespread basis for trade arrangements. Occasionally WTO members will ignore most-favored-nation clauses, allowing other members to impose higher tariffs or other restrictions. Logically most-favored-nation clauses expand trade, and equal trading opportunities favor the economically strongest countries. The United Nations and GATT deliberations have led to special concessions to EMERGING MARKETS. In recent years in the United States, the most controversial aspect of MFN clauses has been the annual renewal of MFN status for China. Critics often cite labor and human-rights abuses as well as unfair trading practices on China’s part, whereas supporters of MFN for China note it is one of the largest economies in the world and therefore needs to be part of a global trading agreement. As of 2001 the United States stopped opposing China’s application to join the World Trade Organization. When China became a WTO member, in 2002 gained access to most-favorednation trade access without annual renewal through the U.S. Congress.