Most-favored-nation clause In international investment law

Abstract

In view of the need for foreign investment in order to promote their economies, developing countries have begun to compete with each other to grant facilities and privileges, to provide investment conditions within the limits of their national laws and regulations and to enshrine the basic principles recognized in international law, including the most-favoured-nation clause, which guarantees equality among foreign investors and prohibits all forms of discrimination on the basis of the investor’s nationality. In view of the lack of agreement on an international standard governing the treatment of foreign investors in terms of their rights and obligations, and in view of the lack of confidence of investors in the field.