Fair and Equitable Treatment on Foreign Investment and its Effects Essay

Fair and Equitable Treatment on Foreign Investment and its Effects - Essay Example tle to the School of Law at Oxford Brookes University in 13th of February 2012, there are two significant issues that have been discussed by a plethora of scholars. The first issue is on the field of the concept of the FET standard. Some scholars discussed the difference between â€Å"fairness† and â€Å"equity†. In other words, whether the FET standards contains two standards, namely â€Å"fair† and â€Å"equitable† with independent meaning for each one or the FET standard appears as an unified standard. Scholars examined this question, due to the fact that arbitrators always make their decision on international investment dispute according to their notions of â€Å"fairness† and â€Å"equity†.4 As a result, the first argument of the dissertation is to analyse the meaning of the FET standard in order to know whether it contains two standard or not. The second issue is on the field of the interpreting the FET standard. Several scholars critic ized the heterogeneity of the FET standard language in investment treaties and illustrated how that could affect on the extent of the standard.5 In other words, they argued that whether the FET standards reflect the international minimum standards of treatment? Such as national treatment and most favoured nation treatment, or it works as an autonomous standard or independence from other standards. Scholars observed this issue because some treaties state the FET standards as equivalent to the international minimum standard required by customary international law. Therefore, the second argument on the dissertation is whether the FET standard is measured the international minimum standard required by customary international law or it is an absolute or an autonomous standard. A Literature Review In order to gather relevant information to the... The researcher started searching for information by using secondary sources first, such as books and journal articles on order to gather relevant information to the FET standard. Dolzer and Schreuer book is the first source that he has read. The authors discuss in their book the meaning of the FET according to tribunals practise in a number of cases. For instance, in the TECMED v Mexico case the tribunal presented the most comprehensive definition of the FET when it said that: The foreign investor expects the host State to act in a consistent manner, free from ambiguity and totally transparently in its relations with the foreign investor†¦ The foreign investor also expects the host State to act consistently, i.e. without arbitrarily revoking any preexisting decisions or permits issued by the State that were relied upon by the investor to assume its commitments as well as to plan and launch its commercial and business activities. The investor also expects the State to use the leg al instruments that govern the actions of the investor or the investment in conformity with the function usually assigned to such instruments, and not to deprive the investor of its investment without the required compensation. Therefore, the authors conclude that there is no a specific meaning of the FET standard owing to the fact that the concept of the standard in investment treaty is a broad and depend on different circumstances. Moreover, they analyse the history of the FET standard by illustrating multilateral investment treaties and bilateral investment treaties that contain the standard.