OECD WORKING PAPERS ON INTERNATIONAL INVESTMENT – The Most Favoured Nation and Non-Discrimination Provisions in international trade law and the OECD Codes of Liberalisation
OECD WORKING PAPERS ON INTERNATIONAL INVESTMENT – The Most Favoured Nation and Non-Discrimination Provisions in international trade law and the OECD Codes of Liberalisation. By Andrea Marín Odio. Increasing moves away from multilateralism have created a fragmented trade and investments cenario 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.