The Applicability to Dispute Settlement of Most Favoured Nation Clauses in International Investment Agreements
(2018) 3(1) Cambridge Law Review 174
19 Pages Posted: 2 Apr 2021
Date Written: November 30, 2018
Abstract
Most Favoured Nation (MFN) clauses are one of the most conventional clauses generally found in international agreements, particularly in trade and investment agreements. In crude terms, the MFN clause prohibits any discrimination against the investor of the contracting state by according any more favourable treatment to the investors of another state. These clauses, which seem benign at first blush, have led to one of the greatest divergences in investor-state arbitration in respect of their effect on jurisdiction of the arbitral tribunal. This article asks the central question of whether, by virtue of the MFN clause in the underlying treaty, an investor may benefit from more favourable dispute settlement provisions found in other treaties concluded by the host state. Ultimately, it argues that the application of the MFN clauses with regard to dispute resolution clauses is not feasible.
Keywords: Most Favored Nationed Clauses, Investment Treaty Arbitration, Jurisdiction, Dispute Resolution, International Investment Agreements
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