Most Favoured Nation (MFN) treatment in international law

Badu, Srutee and Saxena, Sanyukta (2022) Most Favoured Nation (MFN) treatment in international law. International Journal of Mechanical Engineering, 7 (4). pp. 51-58. ISSN 0974-5823

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There is an international view that the treatment standards like MFN, National treatment, fair and equitable clause, umbrella clause are uniform in practice and finds place in every foreign investment. However, in practice the formation of standard treatment provisions are never uniform nor their interpretation by investment tribunals are inconsistent with each other. This ultimately creates a number of problems. “In brief, inclusion of MFN clause in investment treaties seems to be all encompassing shrinking the policy-making freedom of sovereign states.”1The main aim of including MFN clause in the investment treaties is to provide the investor a more favourable situation inside the host state. Article 4 of ILC Draft Articles on MFN clause givethat, “most-favoured-nation clause is a treaty provision whereby a State undertakes an obligation towards another State to accord most-favoured-nation treatment in agreed sphere of relations.”

Item Type: Article
Keywords: International Law | MFN | Most Favoured Nation
Subjects: Social Sciences and humanities > Social Sciences > Law and Legal Studies
JGU School/Centre: Jindal Global Law School
Depositing User: Amees Mohammad
Date Deposited: 12 Jun 2022 04:56
Last Modified: 13 Jun 2022 06:29


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