On 30 March, Mr Yuriy Pochtovyk, Junior Legal Officer, spoke at the panel “The Fair and Equitable Treatment Standard: Updates and Perspective” in the framework of the Sixth Edition of the Paris Arbitration Week. The panel was dedicated to the past and present of the fair and equitable treatment (FET) clauses in international investment agreements, drafting of the clauses, and arbitral jurisprudence on the application of the FET. A particular focus was made on the ongoing negotiations on the modernisation of the Energy Charter Treaty (ECT).
Mr Pochtovyk discussed the current wording of the FET clause in Article 10(1) of the ECT, statistics on investor-state arbitral proceedings involving FET claims under the ECT, and the background of the modernisation process and the progress achieved so far.
The Definition of FET is among the 25 topics approved for modernisation. Thus far, the topic has been discussed in seven rounds of negotiations. In the last round, the Modernisation Group decided to continue discussing the topic of FET together with the “Umbrella Clause”. The next round of negotiations is scheduled to take place on 19-22 April 2022.
Paris Arbitration Week is an annual forum for legal practitioners from around the globe. The forum comprises of a multitude of conferences, practical workshops, debates, social events, and other activities on arbitration-related matters.