Investment Law: Understanding the 'Fair and Equitable Treatment' Standard and Its Interpretations

Running head: Investment Law
Investment Law

Investment Law 1
Contents
Answer toQ1(a)...........................................................................................................................................2
Answer toQ1(b)...........................................................................................................................................3
Answer toQ2(a)...........................................................................................................................................4
Answer toQ2(b)...........................................................................................................................................6
Bibliography................................................................................................................................................7
Journal articles.........................................................................................................................................7
Electronic Sources...................................................................................................................................7
Tables of Statutes and Cases.......................................................................................................................8
Table of Statutes......................................................................................................................................8
Table of Cases.........................................................................................................................................8
United Kingdom Cases............................................................................................................................8

Investment Law 2
Answer toQ1(a).
The five interpretations of the ‘Fair and Equitable Treatment’(FET) standard in the investment
treaty practice are as follows:
1. With reference to the usage of Bilateral Investment Treaties (BITs), the actual intention
behind FET clauses was to safeguard against many situations of injustice against the
foreign investors. It may include arbitrary cancellation of licenses, imposing unjust fines
and penalties and harassing the investors.
These were created with a view to interrupting the business of the investors.The standard
would thus act as a gap-filling device.
2. The word ‘fair’ as coined by the Concise Oxford Dictionary means equitable, just as per
the regulations and equitable. So fairness includes equity. Fair and equitable treatment
needs the approach of the government to be established upon impartial regulations
applied with the outlook to doing justice for all the involved parties affected by its
decision1.
3. Fair and equitable treatment is a crucial rule in the universal investment law2. It is
amongst one of the major standards which safeguard the rights of the foreign investors in
the international investment treaty practices.FET is an absolute standard of safeguarding
the investments in a condition without giving reference to how the other bodies are being
treated by the native country.
1 United Nations Conference on Trade and Development ,’Fair And Equitable Treatment : UNCTAD Series on
Issues in International Investment Agreements II’ < https://unctad.org/en/Docs/unctaddiaeia2011d5_en.pdf >
accessed 4 February 2019
2 Roland Kläger,' Fair and Equitable Treatment in International Investment Agreements’
<http://www.oxfordbibliographies.com/view/document/obo-9780199796953/obo-9780199796953-0158.xml >
accessed 4 February 2019