VIII Standards of Protection

Abstract

This chapter describes the standards of protection under international investment law. Most bilateral investment treaties (BITs) and other investment treaties provide for fair and equitable treatment (FET) of foreign investments. Thus, this concept is the most frequently invoked standard in investment disputes. It is also the standard with the highest practical relevance: a major part of successful claims pursued in international arbitration are based on a violation of the FET standard. The chapter then considers the notion of full protection and security (FPS); arbitrary or discriminatory measures; clauses on national treatment; most-favoured-nation (MFN) clauses; and ‘umbrella clauses’. It also looks at the explicit obligation to provide effective means to assert claims and enforce rights, and the conditions for the transfer of funds by investors into the host State and out of the host State.