The Role of Transparency in Interpretation of the FET Standard in International Investment Law

The fair and equitable treatment (FET) standard has recently become an indispensable element for international investment treaties and consequently in investment arbitrations, but its definition, content and scope have been the subject of controversy. Some factors have relied upon by tribunals to find a violation of the FET, such as Non-discrimination, proportionality, reasonableness, due process and stability of regulatory framework. But a number of possible elements, such as transparency have generated concern and criticism. Thus, the main question is the role and effect of transparency in interpretation of the FET. The survey shows that transparency has been often considered as an element of the FET by tribunals and it has a significant role in interpretation of the FET. Transparency issues were among the first to be considered by tribunals concerning the FET standard and it is an important element that authors and tribunals understand as forming part of the FET standard.