The Most-Favored-Nation Clause and the Courts

Abstract

The recent decision of the United States Court of Customs and Patent Appeals in the case of John T. Bill Co. Inc. v. United States, C.A.D. 57, 27 C.C.P.A. (Customs) 26,104 F. (2d) 67 (decided May 29, 1939), is of distinct importance in its bearing on the foreign commercial policy of the United States. In this case, an appellate court, for the first time, had squarely presented to it the question of giving effect to the unconditional mostfavored- nation provisions of an American commercial treaty as against a later statute containing no express reservation respecting treaty provisions. This decision may well be regarded as the turning-point in the construction given to the most-favored-nation clause by the American courts.