Edited By Gerhard Niedrist
Investment Protection Standards in the Mexico – European Union Bilateral Investment Treaties: Fair and Equitable Treatment and Full Protection and Security
Gabriel Cavazos Villanueva & Magda Carolina Sánchez Navarro †
The purpose of this article is to analyze the Mexican experience with respect to the negotiation and implementation of the Bilateral Investment Treaties (BITs) concluded with countries of the European Union (EU). The analysis is focused on two of the most controversial standards in international investment law. On one hand, the obligation to provide “fair and equitable treatment” (FET) is part of the protection due to foreign direct investment (FDI) by host countries. In this context, this obligation refers to the “standard of treatment” often stated in most BITs and the investment chapters of some of the free trade agreements (FTA’s) concluded by Mexico. On the other hand, the obligation to provide “full protection and security” (FPS) is in many treaties linked with FET as part of the minimum standard of treatment.
The level of protection given to an investment in a foreign territory is a significant element to consider for international investors. The most common international practices for the protection of foreign investments are the execution of a BIT or the inclusion of an investment chapter in FTAs. The former type of international agreement is implemented between two States for the reciprocal protection of the investments made by investors of the other contracting Party in their territory.
Consequently, each BIT is different. Nonetheless, international law and the practice of international investment arbitration have identified a number of basic elements that a BIT must contain,...
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