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hello and welcome to our class on the exceptions to the most favored nation principle first things first Ill mention all of these exceptions and then well go a bit into more detail as we learned in our previous session basically speaking all states are obliged to treat all the trading partners equally no discrimination between other WTO members however as usual now exceptions to this general principle namely first theyre allowed to discriminate if they on an exceptional basis may impose quotas ie qualify strictures or outright bans if they have balance-of-payments problems well come to that there might be waivers waivers are being granted by the WTO to say okay in an exemption circumstances you are allowed to deviate or to break a certain rule so you dont really break it because you have been allowed to do so and then the most important one being preferential trade areas ie free trade agreements so-called FTAs as they are commonly abbreviated or regional trade agreements RTAs or