A Unified Theory of Fair and Equitable Treatment

Abstract

Since the beginning of the decade, international arbitral tribunals have struggled unsuccessfully to define the obligation of “fair and equitable treatment” required by the vast majority of the world’s 2,600 bilateral investment treaties (BITs). Although by the end of 2008 more than fifty awards had been issued by international tribunals interpreting that standard, none of them has purported to offer a unified theory of the standard. This article endeavors to supply such a theory.

Keywords: bilateral investment, BITs, international tribunal, international arbitral tribunal, international arbitration, fair and equitable treatment

JEL Classification: K19, K33