Chapter 8: Most favoured nation clause
In line with the practice followed in international trade relations, the TRIPS Agreement contains in its Article 4(1) a provision according to which 'any advantage, favour, privilege or immunity granted by a Member to the nationals of any other country shall be accorded immediately and unconditionally to the nationals of all other Members'. From this, however, the same paragraph exempts 'any advantage, favour, privilege or immunity accorded by a Member […] granted in accordance with the provisions of the Berne Convention (1971) or the Rome Convention authorizing that the treatment accorded be a function not of national treatment but of the treatment accorded in another country'. In other words the most favoured nation clause does not limit the possibilities of parties to the Berne and Rome Conventions to apply material reciprocity in accordance with the rules of those Conventions that permit such deviation from national treatment. Other international instruments, too, concerning intellectual property rights, which had entered into force prior to the entry into force of the WTO Agreement (that is, before 1 January 1995), are exempted, provided that such agreements are notified to the Council for TRIPS and do not constitute an arbitrary or unjustifiable discrimination against nationals of other WTO member states.
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