Most-favored-nation clause


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1.(Diplomacy) A clause, often inserted in treaties, by which each of the contracting nations binds itself to grant to the other in certain stipulated matters the same terms as are then, or may be thereafter, granted to the nation which receives from it the most favorable terms in respect of those matters. It is used most frequently in treaties regarding the terms of trade between countries, as regarding tariffs and non-tariff barriers to trade.
There was a "most-favored-nation" clause with provisions for the good treatment of strangers entering the Republic.
- James Bryce.
Steam navigation was secured by the Japanese as far as Chungking, and under the most-favored-nation clause the right accrued to us.
- A. R. Colquhoun.
References in periodicals archive ?
In turn their main object in using the most-favored-nation clause was to obtain a guarantee that exact equality of treatment with all third States be maintained at any given point of time with regard to commercial, shipping, and other such rights and privileges.
'The Most-Favored-Nation Clause in American Commercial Treaties', Journal of Political Economy, 32 (1), pp.
all the old lumber, most-favored-nation clause and all the rest which was a notorious failure and made such a hash of the old world.
Santiago explained the condition prohibits three clauses -- a national treatment clause accords Japanese the same rights as those accorded to Filipinos, a most-favored-nation clause between the two states provides that each state will treat the other as well as any other state that is given preferential treatment, and a performance requirement imposes certain conditions for investment activities in the Philippines.
The industry also included a most-favored-nation clause. To avoid penalizing Mississippi for reaching the first settlement, it said that any subsequent settlement that had better terms would apply retroactively to Mississippi.
The proposed extension of GATT rules to cultural products would not involve the immediate removal of barriers, but through such devices as the most-favored-nation clause (which would mean that, say, American films must be treated like German or British ones), it would spell their destruction in the not-too-distant future.
Article I is the most-favored-nation clause, where each party to GATT is obligated to treat other GATT members at least as well as it treats any other country with regard to import or export of goods.
(By contrast, in the context of trade and capital movements, nondiscrimination usually refers to the prohibition of discrimination among foreign residents of different nationalities; the concept is similar to that of a most-favored-nation clause, that is, benefits of any liberalization must be extended to all foreign countries on a nondiscriminatory basis.) Although the right of establishment and the right to provide services in other member states without being subject to any restrictions based on nationality were set forth in the Treaty of Rome, legislative action by the Community and decisions of the European Court of Justice have been necessary to give practical effect to these rights.
most-favored-nation clause found in China's older BITs, Article
Among their topics are general rules and principles on state responsibility and damages in investment arbitration: some critical issues, jurisdiction ratione temporis in international investment arbitration, the relevance of the foreign investor's good faith, sustainable development and investment: trends in law-making and arbitration, and most-favored-nation clauses and the centrality and limits of general principles.
(14) The First Order also preempted "most-favored-nation clauses" (15) which LFAs used to require new cable providers to meet expectations that incumbent providers were exempt from, and limited "LFAs' jurisdiction...