This book comprehensively examines various issues regarding the scope of
Most-Favoured Nation (MFN) Clauses in International Investment
Agreements (IIAs), and addresses the reform, interpretation, and
enforcement of IIAs with a specific focus on the MFN clause. The book
begins with a study of the history and evolution of the MFN. It then
presents a substantive analysis focusing on the drafting style and how
it affects the scope of the MFN; rules of interpretation and arbitral
case law on the scope of the MFN, procedural prerequisites to
arbitration and jurisdiction of arbitral tribunals, and the implications
of adopting an expansive approach to the MFN clause.
The book's argument centres on the need for arbitral tribunals to
interpret the MFN in a manner that reflects the expressed intent of the
parties. This requires taking into consideration the text of the MFN,
its purpose, and the overall context of the IIA, rather than relying on
values and assumptions that have nothing to do with the original intent
of the parties. In making this argument, the book draws on Articles 31
and 32 of the Vienna Convention on the Law of Treaties and other
interpretative rules. What sets the book apart is its comprehensive
coverage of issues concerning the interpretation and application of the
MFN in IIAs. At the same time, it addresses issues in connection with an
expansive interpretation of MFN clauses, as well as concerns regarding
the legitimacy crisis in investor-state arbitration. Accordingly, it
contributes to future Investor-State Dispute Settlement (ISDS) reform,
while also offering a wealth of theoretical and practical insights for
future treaty drafters, arbitrators, and policymakers.
