FET breach context analysis explains host state conduct in its political and regulatory environment, establishing whether it fell below the international minimum standard protected by bilateral investment treaties.
Analysis addresses legitimate expectations arising from state representations, stable regulatory frameworks, and specific assurances; due process in regulatory proceedings; transparency; and proportionality of government measures post-Philip Morris jurisprudence.
Country specialists analyse the policy environment at investment and the changes that frustrated investor expectations, supporting both liability and damages arguments in treaty arbitration.
Frequently Asked Questions
What constitutes a breach of fair and equitable treatment?
FET breaches involve frustration of legitimate expectations, failure of due process, discriminatory or arbitrary conduct, and lack of transparency. Political risk experts explain host state conduct in its political and regulatory context.
How do legitimate expectations arise in investment treaty claims?
Legitimate expectations arise from specific host state representations, stable regulatory frameworks, permits, or assurances of treatment. Experts analyse the policy environment at investment and subsequent changes that frustrated expectations.