National Treatment

Definition - What does National Treatment mean?

National treatment refers to foreign entities being treated as if they were national entities for certain laws, rules, treaties and regulations. Under the principle of national treatment, it doesn't matter whether a person or company is domestic or foreign; the rules will be the same while the entity is in the nation.

Justipedia explains National Treatment

The concept of national treatment applies in many treaties created by the World Trade Organization (WTO). Often, WTO treaties that have national treatment include how corporations will be taxed when they have locations based in foreign nations.

National treatment can be the subject of lawsuits because it has heavy legal ramifications. So, whether or not a particular law or treaty has national treatment as a component is often highly relevant, in terms of the law, for specific trials.

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