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

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  • Andrea Marín Odio

    (OECD)

Abstract

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.

Suggested Citation

  • Andrea Marín Odio, 2020. "The most favoured nation and non-discrimination provisions in international trade law and the OECD codes of liberalisation," OECD Working Papers on International Investment 2020/01, OECD Publishing.
    • Handle: RePEc:oec:dafaaa:2020/01-en
    DOI: 10.1787/c7abd09b-en
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    More about this item

    Keywords

    Codes of Liberalisation; international trade law; MFN; most favoured nation; multilateralism; non-discrimination; regional integration; WTO;
    All these keywords.

    JEL classification:

    • B17 - Schools of Economic Thought and Methodology - - History of Economic Thought through 1925 - - - International Trade and Finance
    • B27 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - International Trade and Finance
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F15 - International Economics - - Trade - - - Economic Integration
    • F42 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - International Policy Coordination and Transmission
    • F51 - International Economics - - International Relations, National Security, and International Political Economy - - - International Conflicts; Negotiations; Sanctions
    • F53 - International Economics - - International Relations, National Security, and International Political Economy - - - International Agreements and Observance; International Organizations
    • F55 - International Economics - - International Relations, National Security, and International Political Economy - - - International Institutional Arrangements
    • F60 - International Economics - - Economic Impacts of Globalization - - - General
    • K33 - Law and Economics - - Other Substantive Areas of Law - - - International Law

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