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Max Planck Encyclopedia of Public International Law [MPEPIL]

Most-Favoured-Nation Clause

Akbar Rasulov, Robin Geiß, Meinhard Hilf

From: Oxford Public International Law (http://opil.ouplaw.com). (c) Oxford University Press, 2021. All Rights Reserved.date: 27 July 2021

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

Published under the auspices of the Max Planck Institute for Comparative Public Law and International Law under the direction of Professor Anne Peters (2021–) and Professor Rüdiger Wolfrum (2004–2020). 

1 A most-favoured-nation (‘MFN’) clause is a treaty provision whereby one State (the granting State) undertakes the obligation to accord to another State (the beneficiary State), in a designated sphere of economic or other relations, treatment not less favourable than the treatment it extends in the same sphere to any other third State. The object of an MFN obligation may extend to the treatment accorded by the granting State to the beneficiary State itself as well as to its nationals or to the products or services originating in or destined for its territory. The...
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