text: non-discriminatory manner depends upon the criteria adopted and the manner of deternining whether they have been respected. The erosion of the unconditional most-favoured-nation principle can be attributed, in part, to the decline of the relevance of the taiff as an instrument of trade policy. /...A/40/444 Eng lish Page 13 5. The manner in which the Tokyo Round Agreenents rrere negotiated and applied resulted in the resurrection of the "conditional" most-favoured-nation concept. Certain of the countries primarily inrrolved in the negotiation of the various codes considered that the only way to induce other countries, and especially developing countries, to accept these new obligations was to wtthhold the benefits from non-signatories and even to introduce additional discriminatory measures so as to "encourage" countries to adhere to the codes. This "conditional" application was in cornplete conflict with GATT article I and departed from the approach used in similar situations in the past, where new rules were extended on a most-favoured nation basis once they had been accepted by certain "keytr countries. 6. The draft articles represent the first comprehensive attenpt to generaLize the experience gained in the application of the most-favoured-nation clause. As such, the document can represent a valuable source of reference. However, the objective of the Conmission is to conclude "a convention". 7. While noting the statement that "all modern developnents which may have a bearing upon the codification of rules pertaining to the operation of the clauserl had been taken into consideration (para. 63 of the Connrissionrs report), it would not seem to be the case. This might be explained partially by the fact that the International Law Conunission finished its r,prk on the issue in 1978, i.e. a year before the conrpletion of the multiLateral trade negotiations (tt{TN) and the conseguent coning into effect of the so-called "post-tqTNn trading system. In its
analysis: The text appears to be discussing the principles and application of international trade agreements, specifically the most-favoured-nation principle and its implications for trade policy. The language used is formal and technical, suggesting a focus on international economic relations and trade negotiations.