1887

OECD Working Papers on International Investment

Selected studies on international investment and investment policy prepared for use within the OECD. They address such issues as investment agreements, dispute settlement, fair and equitable treatment, most favored nation treatment, and corruption.

English

The most favoured nation and non-discrimination provisions in international trade law and the OECD codes of liberalisation

Increasing moves away from multilateralism have created a fragmented trade and investment scenario where economies progressively combine the application of restrictive unilateral actions with bilateral and regional preferences. The application of, and exceptions to, the non-discrimination provisions are a fundamental element of these trends.

This paper sheds light on the two types of non-discrimination provisions considered the founding stones of the multilateral system: the most favoured nation (MFN) clause - as developed under the GATT and GATS - and the non-discrimination clause among countries adhering to the OECD Codes of Liberalisation.

While not taking a position on the complex question of whether a multilateral, plurilateral or bilateral approach to trade and investment liberalisation should be pursued, the paper illustrates the OECD has upheld the non-discrimination obligation as one of its basic principles, dating back to its origins over 60 years ago.

English

Keywords: most favoured nation, MFN, non-discrimination, regional integration, multilateralism, international trade law, WTO, Codes of Liberalisation
JEL: K33: Law and Economics / Other Substantive Areas of Law / International Law; B27: History of Economic Thought, Methodology, and Heterodox Approaches / History of Economic Thought since 1925 / History of Economic Thought since 1925: International Trade and Finance; F60: International Economics / Economic Impacts of Globalization / Economic Impacts of Globalization: General; F13: International Economics / Trade / Trade Policy; International Trade Organizations; F55: International Economics / International Relations, National Security, and International Political Economy / International Institutional Arrangements; F53: International Economics / International Relations, National Security, and International Political Economy / International Agreements and Observance; International Organizations; F15: International Economics / Trade / Economic Integration; F51: International Economics / International Relations, National Security, and International Political Economy / International Conflicts; Negotiations; Sanctions; F42: International Economics / Macroeconomic Aspects of International Trade and Finance / International Policy Coordination and Transmission; B17: History of Economic Thought, Methodology, and Heterodox Approaches / History of Economic Thought through 1925 / History of Economic Thought through 1925: International Trade and Finance
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