Fair And Equitable Treatment And Evolving Standards Under Investment Treaty Arbitration

The Fair and Equitable Treatment (FET) standards play an important place in International Investment Treaty Arbitration and International Investment Law. The host state is required to protect the alien territory, its investors, and investments from physical and legal encroachment. Hence, the FPS and FET clause of Bilateral Investment Treaty (BIT) should not be vague, absurd, arbitrary, or flawed. It is indispensable for sustainable business and investment growth that the host States provide physical and legal protection to the investor States and their investments. It is equally important to protect the investors from manifest arbitrariness, denial of justice and discrimination. The investors and investments should be protected from the actions of third parties and organs of the state and its officials. They, therefore, must be protected from every kind of illegitimate, unreasonable, arbitrary, irrational, and objectionable action of the state.