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11 - The ‘fair and equitable treatment’ standard and the circumstances of the host State

from Part III - Actors in international investment law

Published online by Cambridge University Press:  05 December 2011

Chester Brown
Affiliation:
University of Sydney
Kate Miles
Affiliation:
University of Sydney
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Summary

Introduction

Investment treaties oblige the parties to provide a certain level of protection to investments and investors from the other parties to the treaty. For example, most investment treaties oblige the State to pay compensation if it expropriates the investment, as well as to provide ‘fair and equitable treatment’. The treaties generally also give foreign investors the right to claim before a tribunal that the State has failed to provide that level of protection.

Some States have responded to these claims by arguing that their circumstances affect the standard of fair and equitable treatment that they are obliged to provide. The States have argued that, while their treatment of the foreign investor was fair and equitable, similar treatment by another State not facing similar circumstances would fall short of the standard.

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Publisher: Cambridge University Press
Print publication year: 2011

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References

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