G20 trade ministers convened in Milwaukee on 30 September–1 October 2026 and opened a potentially far-reaching debate over revising the Most-Favoured Nation (MFN) principle — the cornerstone of the multilateral trading system — with a growing number of member economies signalling willingness to explore treating trading partners differently under specific circumstances. The Milwaukee meeting, held under the US G20 presidency, marks the first structured multilateral deliberation on MFN reform in recent memory.

What the MFN Debate Is About

Under the MFN principle, World Trade Organization (WTO) members are generally required to extend any trade advantage granted to one member to all other WTO members, subject to permitted exceptions. The rule has underpinned global commerce for decades, but critics argue it has not kept pace with contemporary trade realities.

The US presidency argued that the MFN principle had failed to promote reciprocity and balance, and could prevent countries from negotiating arrangements designed to address what they regard as unfair trade practices. Many G20 members, however, continued to describe MFN as a foundational pillar of the multilateral trading system, reflecting the deep divisions on the issue.

Key Proposals Discussed

Despite those divisions, the Milwaukee discussions moved well beyond a general philosophical review. Several concrete reform pathways were put on the table:

Some members expressed willingness to consider targeted changes to MFN to achieve rebalancing, expanding the exceptions to unconditional MFN, and issuing legal interpretations that could permit greater use of existing exceptions. Reviewing Article XXIV of the General Agreement on Tariffs and Trade (GATT) was also among the possibilities discussed.

Another proposal involved so-called 'closed' plurilateral agreements — an arrangement under which countries undertaking stronger commitments would receive MFN treatment, while the benefits of an agreement would accrue only to participating countries. Several members also proposed making trade remedies faster, more automatic, and more directly targeted at the source of trade distortions.

The reasons cited by members for differential treatment included economic security, an unlevel playing field, value-based standards, and the development of high-standard marketplaces.

What the US Said

US Trade Representative Jamieson Greer said after the ministerial that the discussions indicated growing interest in examining the principle. 'I'm encouraged that members across the development spectrum indicated that they see merit in considering how the MFN principle might be improved to address today's global trade environment,' Greer said.

Notably, the chair's statement described the Milwaukee discussions as the beginning rather than the conclusion of the process. 'Overall, the wide range of views expressed by G20 members underscored that these sessions marked the beginning of a serious and necessary deliberation about MFN reform,' it stated.

Broader Agenda at Milwaukee

The MFN debate formed part of a wider examination of the international trading system at the Milwaukee ministerial. The other three priorities taken up by ministers were: the weaponisation of food through coercive trade measures, structural excess capacity and production, and eliminating forced labour in global supply chains.

No agreement to change the MFN principle emerged from Milwaukee; instead, the meeting recorded a range of proposals and divergent views that could form the basis for further deliberations. The United States holds the G20 presidency in 2026, with the chair's statement noting that Washington looks forward to the United Kingdom assuming the presidency in 2027.

With the G20 trade track now formally engaged on MFN reform, the direction of future talks — and India's positioning on them — will be closely watched by emerging economies that have historically benefited from the principle's non-discrimination guarantee.