Fair and Equitable Treatment

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  points to CIL
  
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    “Each party shall accord to covered investments treatment in accordance with CIL, including fair and equitable treatment and full protection and security.”
    
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  Then goes on to clarify concepts of “fair and equitable treatment” and “Full protection and security”
  

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  Sometimes question is whether govt conduct is procedurally violative of due process
  
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  Other times question is not whether process is unfair but whether outcome is unfair
  
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    two ways of looking at it. govt conduct ok
    
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      unless manifestly arbitrary
      
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        1930s intl arbitration tribunal
        
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      unless ivnestor has legitimate expectations of what govt would do and relied on those expectations, and govt changes behavior
      
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    recent intl arbitral tribunal decisions are not consistent on this question
    
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      decisions involving Argentina have involved legitimate expectations approach
      
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      some NAFTA decisions have followed legitimate expectations approach and others have followed manifestly arbitrary approach
      
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      US govt interpretation is manifestly arbitrary
      

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  See page 462
  

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  many intl investment agreements guarantee free transfer for inbound and outbound investment flow
  
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  however, nature of commitment differs from treaty to treaty, as do the nature of the qualifications to that commitment
  

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  see page 483
  

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  see page 485
  

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  compensation in the event of nationalization
  
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  repatriation
  
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  nondiscriminatory treatment
  
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  stabilization of taxes and other regulations
  
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  convertibility of local currency
  

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  limitations on foreign equity
  
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  sectoral limits
  
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  geographic limitations
  
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    may be forbidden to own land
    
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    may be forbidden to use certain areas of land (national security, cultural concerns
    

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  corporation
  
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    also LLC
    
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