unctad.org | MOST FAVOURED-NATION TREATMENT
MOST FAVOURED-NATION TREATMENT
Book Information
UNCTAD Series on Issues in International Investment Agreements
Full Report ( 57 Pages, 136.0 KB )

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The most-favoured-nation treatment standard is a core element of international investment agreements. It means that a host country treats investors from one foreign country no less favourably than investors from any other foreign country. The most-favoured-nation standard gives investors a guarantee against certain forms of discrimination by host countries, and it is crucial for the establishment of equality of competitive opportunities between investors from different foreign countries. While most-favoured-nation treatment is generally more than the minimum standard required under customary international law, it does not go so far as to put the foreign investor on an equal footing with domestic investors in the host country.

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