Common use of Most-favoured Clause in Contracts

Most-favoured. nation provisions 1. Investments made by investors of either Contracting Party in the territory of the other Contracting Party and/or returns accrued, shall receive treatment which is fair and equitable, and not less favourable than that accorded to any third State. 2. Each Contracting Party shall not in its territory subjects investors of the other Contracting Party, as regard their management, use, enjoyment or disposal of investment, as well as to any activity connected with these investments, to treatment less favourable than that which it accords to investors of any third State. 3. The provision of this Agreement relative to the granting of treatment not less favourable than that accorded to the investors of any third State shall not be construed so as to oblige one Contracting Party to extend to the investors of the other the benefit of any treatment, preference or privilege resulting from: (a) Any existing or future customs union or free trade area or a common market or a monetary union or similar international agreement or other forms or regional cooperation to which either of the Contracting Parties is or may become a party; or the adoption of an agreement designed to lead to the formation or extension of such a union or area within a reasonable length of time; or (b) Any international agreement or arrangement relating wholly or mainly to taxation or any domestic legislation relating wholly or mainly to taxation.