Most-Favoured-Nation Treatment (MFN) is meant to ensure equal competitive conditions between foreign investors of different nationalities. .

An investor may also invoke an MFN clause to incorporate substantive standards of other international investment treaties.

Issues frequently arising under MFN clauses are:

  • Whether MFN clauses also apply to dispute-resolution agreements contained in other BITS,
  • Whether MFN clauses permit a selective approach, resulting in a synthetic set of conditions, derived from multiple BITs,
  • Whether MFN clauses may be invoked in relation to regional integration agreements providing for a deep overall integration of multiple policy fields (as opposed to only FDI).

Relevant Experience of BODENHEIMER Attorneys

Axel Benjamin Herzberg and Dr Rouven F Bodenheimer routinely advise both, investors and governments on international investment law issues. Mr Herzberg also handled a number of ISDS cases as Deputy Counsel at the Secretariat of the ICC International Court of Arbitration in Paris.

Dr Nicolas Klein worked for German Federal Constitutional Court Justice Professor Dr Andreas Paulus, himself a renowned public international law specialist who represented Germany, inter alia, before the International Court of Justice in the LaGrand case against the United States. Both, Dr Klein’s doctoral thesis and his LL.M. studies at Columbia University (New York) revolved around issues of international investment law, in particular the scope of application ratione personae of bilateral investment treaties.