A Study On The Provision Of Fair And Equitable Treatment Standard In NAFTA

Accompany with the liberalization of international investment, foreign direct investment (FDI)develops rapidly. As part of the protection due to FDI by host countries, the provisions of"fair and equitable treatment"(FET) standard is broadly adopted in international investment treaties. The Chapter 11 of North American Free Trade Agreement(NAFTA), which is famous for its high standard of FDI protection, also incorporates the provision of FET standard. Studying on the FET Standard in NAFTA will provide a beneficial reference to China's relevant practice. Except for Preface and Conclusion, this article is divided into three chapters. Chapter one introduces regulations of FET standard in NAFTA. The chapter firstly reviews the origins and developments of FET standard in international investment laws. Then analyzes the basic provision of FET standard and relevant rules in NAFTA. In addition, the note of interpretation of FET standard issued by Free Trade Commission(FTC), is also discussed in this chapter.Chapter two focus on the practice of FET standard in NAFTA. As we know, chapter 11 of NAFTA establishes an Investor-State disputes resolution system. Therefore, many investors bring their FET standard claims under the system. The chapter selects some representative cases, in order to show the application of FET standard in NAFTA.Chapter three inquires into the influences of FET standard in NAFTA. After clarifying some issues about FET standard, the chapter demonstrates how the provision of FET standard in NAFTA impacts on international investment treaties. Lastly, the chapter returns to the relevant practice of China and give some advice on how to improve the provision of FET standard in China's BITs.