chapter  6
The absolute standards of treatment
Pages 71

Modern bilateral investment treaties (“BITs”) and multilateral agreements provide for, among other things, fair and equitable treatment (“FET”), minimum standard of treatment, non-discrimination, and full protection and security, as well as often including an umbrella clause.1 These standards of treatment-unlike most-favored-nation (“MFN”) treatment and national treatment (“NT”), which are dependent on the standards applied by the host state to its own investors or those of third countries-are independent of the standards that a host state applies to domestic investors. In other words, whether or not a violation has been committed needs to be determined in accordance with international law rules and not in accordance with the national laws of the host state. Therefore, there are certain objective requirements of each of these standards of treatment, which means such treatment must comply with certain absolute standards.