Note 167 — Chapter XIX · THE ENCOURAGEMENT AND REGULATION OF COMMERCE.

Many of the commercial treaties which the United States has concluded with other countries contain what is known as the “most favored nation clause”. This is a provision that if either of the treaty-making countries should grant to a third nation any special trading privilege, this same privilege shall at once accrue to the other treaty-making country. For example, if the United States and Brazil conclude a commercial treaty containing the “most favored nation clause” and Brazil should subsequently grant to Mexico the privilege of shipping oil into Brazil without payment of duty, the United States would become forthwith entitled to the same privilege or favor.