International Law on Investment: The Minimum Standard of Treatment

This briefing examines the evolution and application of the Minimum Standard of Treatment (MST) in international investment law, specifically contrasting traditional customary international law with the broader interpretations adopted by NAFTA tribunals.

• The Minimum Standard of Treatment (MST) typically requires host states to treat foreign investors according to standards like "fair and equitable" treatment, which historically only applied to extreme cases of mistreatment.
• Tribunals under the investment chapter of the North American Free Trade Agreement (NAFTA) have interpreted MST provisions more broadly than traditional standards, removing barriers that previously prevented the second-guessing of legitimate government decisions without establishing a clear, objective replacement standard.
• The development of customary international law regarding MST has been influenced by conflicts of interest between the United States, as a capital exporting nation, and Latin American states, as evidenced by discussions on the Calvo doctrine.

APA

Orellana (2003). International Law on Investment: The Minimum Standard of Treatment. Center for International Environmental Law. https://www.ciel.org/reports/international-law-on-investment-the-minimum-standard-of-treatment-november-2003-orellana-originally-presented-at-the-world-trade-organizations-5th-ministerial-in-august-2003-2/

Chicago

Orellana. International Law on Investment: The Minimum Standard of Treatment. Center for International Environmental Law, 2003. https://www.ciel.org/reports/international-law-on-investment-the-minimum-standard-of-treatment-november-2003-orellana-originally-presented-at-the-world-trade-organizations-5th-ministerial-in-august-2003-2/.

Wikipedia

{{cite report |last1=Orellana |title=International Law on Investment: The Minimum Standard of Treatment |publisher=Center for International Environmental Law |date=1 August 2003 |url=https://www.ciel.org/reports/international-law-on-investment-the-minimum-standard-of-treatment-november-2003-orellana-originally-presented-at-the-world-trade-organizations-5th-ministerial-in-august-2003-2/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{orellana2003international, author = {Orellana}, title = {{International Law on Investment: The Minimum Standard of Treatment}}, institution = {Center for International Environmental Law}, year = {2003}, month = aug, url = {https://www.ciel.org/reports/international-law-on-investment-the-minimum-standard-of-treatment-november-2003-orellana-originally-presented-at-the-world-trade-organizations-5th-ministerial-in-august-2003-2/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }