The fair and equitable treatment (“FET“) standard remains one of the key protections relied on by investors in investment disputes, but is often left undefined. Nonetheless, by general consensus and subject to treaties specifically providing otherwise, the core content of the FET standard appears to be comprised of: (i) protection afforded to the legitimate expectations of the investor; (ii) protection against arbitrary or discriminatory treatment; and (iii) protection against a host state’s denial of justice to the investor.
Rajah & Tann Singapore has contributed a chapter on the FET standard, titled “Fair and Equitable Treatment“, to Lexology’s In-Depth: Investment Treaty Arbitration (formerly the Investment Treaty Arbitration Review). The chapter provides an overview of recent awards that have discussed and applied the FET standard. Covering disputes over renewable energy in Bulgaria to snow crabs in Norway, the awards illustrate how the tribunals sought to strike a balance between investors’ rights, including their legitimate expectations, with the states’ sovereign right to legislate and regulate.
The chapter was authored by Deputy Managing Partner and Head of International Arbitration Kelvin Poon, SC, together with Partners Matthew Koh and David Isidore Tan; Senior Associates Dennis Saw and Benny Santoso; Associates Jodi Siah, Timothy James Chong and Jerry Wang; and Practice Trainee Sean Gregory Rappa.
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