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Most-Favored-Nation Clauses in the International Trade System
Authors: Vladimir V. Shumilov
Number of views: 350
The article reveals the evolution, the main features and characteristics of the most favored nation (MFN) principle, its scope, place in the system of principles of international law, the role in the international trade system and in ensuring the international economic order. In the law of treaties, the most favoring takes shape of clauses (treaty provisions); in the system of international law regulation appears as a method of equalization of regimes and as a regulatory mechanism; in the system of international law – as a principle, not only sectoral. The article deals with various situations of application and interpretation of the most-favored-nation clauses, and provides facts and circumstances from state practice, in particular with regard to the conditional provision of MFN. Traditionally, the MFN principle has been characterized as a treaty and dispositive principle, although many legitimate exceptions to MFN principle have developed in the customary legal way and have considerable imperative potential. In the international trade system the MFN principle has evolved from a local principle to an "almost universal" one, derives from the principles of Equality, Cooperation among States; closely linked to the principles of non-discrimination, national treatment, preferential treatment for developing countries and to the themes of international economic security. It can be assumed that – at least in the area of tariff benefits, or in the areas specified in the WTO agreements – the MFN principle accumulates imperative properties; stays on study of transforming or has been gradually transformed in imperative principle. This is evidenced by the international law consciousness: broad international cooperation in the field of trade is impossible without the mutual giving of MFN regime, which should be considered as a duty of States, not just a right.