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Fair and Equitable Treatment Standard in International Investment Law

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Abstract

The obligation to provide “fair and equitable treatment” is often stated, together with other standards, as part of the protection due to foreign direct investment by host countries. It is an “absolute”, “non-contingent” standard of treatment, i.e. a standard that states the treatment to be accorded in terms whose exact meaning has to be determined, by reference to specific circumstances of application, as opposed to the “relative” standards embodied in “national treatment” and “most favoured nation” principles which define the required treatment by reference to the treatment accorded to other investment1. Although some references to the standard can be found in the first negotiating attempts of multilateral trade and investment instruments, it became established as a principle mainly through the increasing network of bilateral investment treaties. The obligation of the parties to investment agreements to provide to each other’s investments “fair and equitable treatment” ...

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  • Oecd, 2004. "Fair and Equitable Treatment Standard in International Investment Law," OECD Working Papers on International Investment 2004/3, OECD Publishing.
  • Handle: RePEc:oec:dafaaa:2004/3-en
    DOI: 10.1787/675702255435
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