Professional paper

https://doi.org/10.65342/door.1.1.3

Legal Analysis of Arbitral Practice in cases of FET Standard Violation due to changes in the State's Legislative or Regulatory Framework

Kosjenka Krapac orcid.org/0009-0001-0441-3334 ; State Attorney's Office of the Republic of Croatia, Zagreb, Croatia

Abstract

In recent decades, the number of investment disputes at an international level has steadily increased based on official data from the International Centre for Settlement of Investment Disputes (ICDIS). In 2024 alone, the number of cases conducted and administered totalled 341. This upward trend is driven by investors seeking fair dispute resolution before a neutral forum, outside the scope of the national law of the country where the investment was made, in other words, before a body that guarantees maximum equitable access to investment protection. The FET standard has become one of the fundamental pillars of investment protection. However, this standard must be weighed against an assessment of a state's regulatory conduct in terms of its justification. Legal doctrine has developed guidelines for tribunals in evaluating state conduct concerning the FET standard, though always based on facts of each particular dispute. Therefore, any new assessment of a potential breach of the FET standard depends on the facts of the dispute, as well as the specific circumstances and period in which certain regulatory measures were adopted.

Keywords

fair and equitable treatment standard, arbitral practice, bilateral investment treaty

Hrčak ID:

338884

URI

https://hrcak.srce.hr/338884

Publication date:

8.12.2025.

Article data in other languages: croatian

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