Fair and Equitable Treatment (FET) Standard in Arbitral Practice: Sustainable Development in Context
Bangladesh Journal of Law, Vol. 16, No. 1 at pp. 21-68, December 2016
48 Pages Posted: 18 Mar 2017 Last revised: 15 Aug 2017
Date Written: 2016
The Fair and Equitable Treatment (FET) standard in international investment law has become an indispensable tool for the foreign investors to bring claims against host countries. These claims largely relates to sectors which are directly linked with the sustainable development of these host countries. Considering the importance of the concept and the commitment of the global community to enhance sustainable development objectives the aim of this article is to examine the aspects of sustainable development as one of the principle to interpret the FET standard. Accordingly it will analyse how the principle of FET and sustainable development relate to each other on conceptual founding. It will analyse some arbitral awards to examine how the current investment tribunals have interpreted the FET clause as an expression of sustainable development objective and how far the FET standard contained in the treaties are compatible with the ideas of sustainable development. The article concludes with a view that the integrative flexibility of FET provides the arbitrators with an ample opportunity to take a comprehensive approach in balancing the interests of foreign investors and host countries with regard to their wider implications on sustainable development.
Keywords: Sustainable Development, FET Standard, Investment Arbitration
Suggested Citation: Suggested Citation