Common use of National Treatment and Most Favored Nation Treatment Clause in Contracts

National Treatment and Most Favored Nation Treatment. Each Contracting Party shall in its territory grant investments made by nationals of the other Contracting Party treatment not less favorable than that it accords to the investments and returns of its own nationals or nationals of any third State. However, this treatment shall not apply to benefits accorded to investors of a third state by either Contracting Party based on a membership of that Contracting Party in a free trade zone, customs union, common market, regional economic arrangement, or under any agreement on the avoidance of double taxation or for the facilitation of frontier trade.