Conditions and Criteria For The Protection of Legitimate Expectations Under International Investment Law: 2012 ICSID Review Student Writing Competition

Abstract

The protection of legitimate expectations by international investment law is firmly rooted in arbitral practice2 as a self-standing subcategory3 and one of the major components of the fair and equitable treatment standard.4 The rationale behind the protection of legitimate expectations is to encourage foreign investors to make adequate business decisions based on the legal regime of, and representations made by, the host State.5 However, when it comes to legitimate expectations, the international judicial review of governmental conduct6 must be carried out in a balanced and thorough manner, bearing in mind that the undefined nature of bilateral investment treaty (BIT) obligations can be interpreted to create unlimited expectations by investors.7 For that reason, it is necessary to establish the terms and conditions on which investors may invoke the protection of legitimate expectations before international investment tribunals. The aim of this note is to determine...