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Max Planck Encyclopedia of Public International Law [MPEPIL]

Most-Favoured-Nation Clause

Robin Geiβ, Meinhard Hilf

From: Oxford Public International Law (http://opil.ouplaw.com). (c) Oxford University Press, 2015. All Rights Reserved.date: 10 December 2019

Subject(s):
Most-favoured-nation treatment (MFN) — Taxation — Developing countries — BITs (Bilateral Investment Treaties) — Peace treaties — Treaties, effect for third states — Vienna Convention on the Law of Treaties — Ejusdem generis rule

Published under the auspices of the Max Planck Foundation for International Peace and the Rule of Law under the direction of Rüdiger Wolfrum.

1 A most-favoured-nation clause (commonly abbreviated as ‘MFN’) is a treaty provision whereby a State (the granting State) undertakes an obligation towards another State (the beneficiary State) to accord most-favoured-nation treatment in an agreed sphere of relations. Most-favoured-nation treatment is treatment accorded by the granting State to the beneficiary State, or to persons or things in a determined relationship with that State not less favourable than treatment extended by the granting State to a third State, or to persons or things in the same...
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