Most-favoured-nation’s false promises

Development summary

In his Arbitration International article, George A Bermann considers the meaning, scope and operation of most-favoured-nation (MFN) clauses in investment treaties. He argues that arbitral case law exposes seriously underestimated uncertainties over their scope and workings; that MFN may disrupt the balance States sought in their treaties; and that it can exacerbate, rather than reduce, discrimination among foreign investors. The article also questions the proposition that MFN necessarily multilateralises investment protection.