US Trade Representative Jamieson Greer has questioned whether the Most-Favoured-Nation (MFN) principle, the WTO’s non-discrimination cornerstone, still serves the world economy. Speaking at the G20 Trade Ministerial in Milwaukee, Wisconsin, he argued that unconditional MFN treatment “constrains economies’ ability to effectively respond to distortive policies.”
The G20 Trade Ministerial runs on October 1-2, 2026, with India represented by Commerce and Industry Minister Piyush Goyal. Greer is hosting the meeting and used it to call for a reshaped global trading system.
What Did Greer Say About the MFN Principle?
Greer said the world is “trying to meet 21st century challenges with an architecture designed for another era.” He named four priority issues: food weaponization, excess production capacity, the MFN principle itself, and forced labor in supply chains. He also discouraged G20 members from pushing difficult trade matters to the WTO in Geneva.
The MFN rule requires WTO members to give every member the same tariff treatment they give their best-treated trading partner. Questioning it goes to the heart of how the multilateral system works, because the principle underpins most tariff schedules worldwide.
How Is the US Approach Different From the WTO Model?
Greer said the US has used “a combination of tariffs and bilateral deals” to reduce trade deficits, strengthen supply chains and bring more reciprocity into trade. Asked about tariff approaches across countries, he said each nation would do what it thinks is appropriate. This points to a trade order built more on bilateral bargains than on uniform multilateral rules.
What Else Is on the G20 Trade Agenda?
Reports from the meeting say the agenda also covers steel overcapacity, forced labor in supply chains and trade weaponization. Participants reported include India, the United States, Russia, Canada and Japan. A steel-focused forum was reported to have introduced a “Milwaukee Framework” on excess capacity covering trade remedies, supply-chain monitoring and scrutiny of transhipment. The ministerial comes ahead of the G20 leaders’ summit later in 2026.
What Does It Mean for India and Exporters?
India has backed a rules-based multilateral system while negotiating bilateral and regional trade agreements. A shift away from MFN would raise the importance of India’s own deals and could change how exporters of steel, textiles, chemicals and engineering goods plan for market access. Steel exporters in particular will follow the transhipment and trade-remedy discussions closely.
Market and Trade Reaction
No formal responses from other G20 members to Greer’s MFN remarks had been reported at the time of writing. Trade analysts will be watching whether the final ministerial outcome refers to WTO reform, and how emerging economies respond to a US push to treat MFN as negotiable.
What Happens Next?
The ministerial concludes on October 2. Next steps include any chair’s statement from the meeting, follow-up work on steel overcapacity, and preparations for the G20 leaders’ summit later this year. Watch for WTO members’ positions on reform and for India’s bilateral trade talks.
Frequently Asked Questions
What is the MFN principle in WTO rules?
The Most-Favoured-Nation principle requires a WTO member to extend any trade advantage it gives one member to all other members. It prevents discrimination between trading partners and is a core WTO rule.
What did Greer say at the G20 Trade Ministerial?
Greer said the global trading architecture was designed for another era and questioned whether unconditional MFN still helps economies respond to distortive policies. He also named food weaponization, excess capacity and forced labor as priorities.
Who is representing India at the meeting?
Commerce and Industry Minister Piyush Goyal is representing India at the G20 Trade Ministerial in Milwaukee.
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