The breaches of IIA standards of treatment and protection provisions in Investor-State dispute settlement- Case study in Ecuador

Abstract

International Investor-State disputes have become widespread, complicated and of particular concern in recent years. The most common reason for these disputes comes from the breaches of standards of treatment and protection provisions that the country has signed in the international investment agreements (IIA). This article focuses on clarifying the relationship between Investor-State dispute settlement (ISDS) and these provisions in IIA until 2019. Through the synthesis and analysis method, the article provides an overview of the current situation of breaching IIA standards of treatment
and protection provisions in foreign investor-state disputes in the world today. Moreover, the article also uses a case study method to analyze a practical dispute to illustrate in more detail about these breaches. The article concludes that the most violated IIA provisions are fair and equitable treatment
(FET) and expropriation. Host countries should be cautious about commitment and enforcement in their IIAs to minimize legal and financial exposures.