MOST FAVORED NATION CLAUSE. A clause found in most treaties providing that the citizens or subjects of the contracting states may enjoy the privileges accorded by either party to those of the -most favored na tions. It is said that the general design of such clauses is to establish the principle of equality of international treatment. The test of whether this principle is violated by the concession of advantages to a particular nation is, not the form in which such con cession is made, but the condition on which it is granted; whether it is given for a price, or whether this price is in the nature of a sdstantial equivalent, and not of a mere evasion. The United States has always tak en the stand that reciprocal commercial con cessions are given for a valuable considera tion and are not within the scope of this clause. Bartram v. Robertson, 122 U. S. 116, 7 Sup. Ct. 1115, 30 L. Ed. 1118; Whitney v. Robertson, 124 U. S. 190, 8 Sup. Ct. 456, 31 L. Ed. 386. Great Britain has taken the , opposite position.
See Consular Treaty Rights and Comments on the "Most Favored Nation" Clause, by Ernest Ludwig.
Political relations between two states may be of a kind to afford a fair basis for com mercial concessions which other states could not claim to enjoy under this clause ; for, in stance, as between the United States and Cuba. The clause has been considered as not
extending to extradition treaties, nor to the provisions of a pilot law excepting from pilotage American coastwise vessels. But it does cover a law providing for the levying of lower rates of tonnage dues on vessels sail ing from certain foreign ports, as against the ports of a country outside of the specified area whose commerce is, by treaty, to be ac corded the most favored nation treatment. 3 Amer. Journ. Int. L. 57.
A simple form of the clause is that "in all that concerns commerce and navigation, fav ors which either party has granted or may hereafter grant to any other state shall be granted to the other party" ; sometimes fol lowed by a promise that the other party "shall, enjoy the same freely if the conces sion is freely made, and allowing the same compensation if the concession was condition al." The reciprocal civil rights of the sub jects or citizens of the contracting powers are frequently covered by such a clause.
See Herod, Most Favored Nation Treat ment; Moore's Dig. Int. Law ; 3 Amer. Journ. Int. Law 395.