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Max Planck Encyclopedia of International Procedural Law [MPEiPro]

Jurisdictional Impact of Most Favoured Nation Clause

Edoardo Stoppioni

From: Oxford Public International Law (http://opil.ouplaw.com). (c) Oxford University Press, 2015. All Rights Reserved.date: 28 February 2020

Consent to jurisdiction — BITs (Bilateral Investment Treaties) — Most-favoured-nation treatment (MFN) — International investment law

Published under the direction of Hélène Ruiz Fabri, with the support of the Department of International Law and Dispute Resolution, under the auspices of the Max Planck Institute Luxembourg for Procedural Law.

1 The most-favoured-nation clause (‘MFN clause’) is ‘a treaty provision whereby a State undertakes the obligation towards another State to accord most-favoured-nation treatment in an agreed sphere of relations’ (Art 4 1978 International Law Commission Draft Articles on Most-Favoured-Nation Clauses [‘ILC Draft Articles’]). This clause, contained in a ‘basic treaty’, consists of the undertaking of a ‘granting State’ to accord to the ‘beneficiary State’ (or persons or things in a determined relation to it) a non-less favourable treatment than the one accorded to a...
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