Le traitement juste et équitable : pourquoi est-il important et que peut-on faire

The document analyzes the 'fair and equitable treatment' (FET) standard, which appears in nearly 95% of international investment agreements and is the basis for approximately 83% of investor-state arbitrations. It argues that the lack of a precise definition allows tribunals to expand the standard's scope, creating legal unpredictability and 'regulatory chill' for states. The brief details five common drafting approaches—ranging from unqualified FET clauses to those linked to customary international law—and concludes that even 'new generation' treaties often produce the same results as older ones. To protect their right to regulate, the authors suggest three policy options: excluding the FET standard entirely, using alternative terminology like 'fair administrative treatment', or implementing a strictly defined, closed list of violations that explicitly excludes investor expectations.

• The 'fair and equitable treatment' (FET) standard is highly prevalent and central to investment disputes, appearing in nearly 95% of international investment agreements and featuring in approximately 83% of treaty-based investor-state arbitrations.
• The FET standard is considered a vague provision without a fixed definition, leading arbitral tribunals to interpret it inconsistently and expand its scope over time.
• Attempts by states to clarify FET in 'new generation' treaties—such as linking it to customary international law or specifying violation scenarios—have largely failed to protect policy space, as new treaties often yield the same results as older ones.
• The unpredictable application of the FET standard creates 'regulatory chill,' where states are deterred from exercising their regulatory powers for fear of facing investor-state dispute settlement (ISDS) claims.
• Arbitral practice identifies a wide range of behaviors that may constitute an FET violation, including denial of justice, lack of transparency, arbitrary decision-making, bad faith, and the frustration of investors' legitimate expectations.
• To mitigate risks, states can adopt three policy options: completely excluding the FET standard, using alternative terms like 'fair administrative treatment', or using a closed list of violations that excludes references to investor expectations.

APA

Sarmiento, F., & Nikièma, S. (2022). Le traitement juste et équitable : pourquoi est-il important et que peut-on faire. International Institute for Sustainable Development. https://www.iisd.org/system/files/2022-11/fair-equitable-treatment-fr.pdf

Chicago

Sarmiento, Florencia, and Suzy Nikièma. Le traitement juste et équitable : pourquoi est-il important et que peut-on faire. International Institute for Sustainable Development, 2022. https://www.iisd.org/system/files/2022-11/fair-equitable-treatment-fr.pdf.

Wikipedia

{{cite report |last1=Sarmiento |first1=Florencia |last2=Nikièma |first2=Suzy |title=Le traitement juste et équitable : pourquoi est-il important et que peut-on faire |publisher=International Institute for Sustainable Development |date=November 2022 |url=https://www.iisd.org/system/files/2022-11/fair-equitable-treatment-fr.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{sarmiento2022traitement, author = {Sarmiento, Florencia and Nikièma, Suzy}, title = {{Le traitement juste et équitable : pourquoi est-il important et que peut-on faire}}, institution = {International Institute for Sustainable Development}, year = {2022}, month = nov, url = {https://www.iisd.org/system/files/2022-11/fair-equitable-treatment-fr.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }