The past two decades have seen a significant proliferation of trade and investment treaties around the world. States are increasingly negotiating agreements that regulate both trade and investment, such as the Trans-Pacific Partnership Agreement and the Transatlantic Trade and Investment Partnership. The number of investor-state dispute settlement cases is growing dramatically each year, yet states' enthusiasm for investor-state arbitration has become more qualified as concern has intensified that the system can be abused by foreign investors. Good faith is therefore becoming increasingly important as a principle, particularly in the investment context, due to disputes about investor conduct such as corporate restructuring in order to gain the protection of a particular investment treaty regarding an existing or foreseeable dispute, and States' responses to public policy concerns through attempts to modify or terminate investment treaties in the face of ongoing or expected claims. Tribunals adjudicating investment disputes have used the principle of good faith in a haphazard and uncoordinated manner, causing serious problems of uncertainty and inconsistency. In response to these developments, this book contains the first comprehensive and integrated analysis of the treatment of good faith in international investment law, noting the broader implications of good faith in public international law and international trade law.

Written by a leading legal researcher, this book offers a comprehensive study of the principle, a frequently invoked but rarely analysed aspect of investment arbitration. It is a thorough and expansive study that considers the application of good faith by arbitral tribunals and parties in international investment disputes, encompassing both procedural and substantive aspects of good faith. Expertly negotiating a complex principle, this book diligently follows the arbitral process from jurisdiction through merits and to cost decisions, identifying the various applications of good faith in investment disputes. The author offers detailed analyses of the role of good faith in defining nationality and investor as well as in pre-dispute admissibility requirements. The study then delves into the ways the principle guides parties' arguments and informs tribunals' decisions regarding evidence, substantive protections, and costs. It further addresses the role of good faith in the behaviour of arbitrators and other actors. This is a guide for anyone wishing to understand this important principle that has accompanied the developing system of international investment law.

Good Faith in International Investment Arbitration offers a comprehensive study on both the theory and application of the principle of good faith in the international arbitration process. It is an essential book for both practitioners and academics.

Although considered a somewhat ‘hazy’ concept (particularly in common law), good faith may nevertheless be defined as a duty incumbent on a person negotiating or performing an agreement. Thus, it may be understood as obligatory on all parties in the conduct of arbitral proceedings. In this collection of expert chapters, notable jurists and legal academics from around the world fully investigate the multifaceted notion of good faith in international arbitration. All the following aspects of the matter are covered: detailed analysis of good faith in both common law and civil law traditions as reflected in doctrine, scholarship, and case law; good faith implications in treaty interpretation; using good faith as a negative defence against claims or as a positive basis for claims; good faith in the specific field of international investment arbitration; procedural aspects of the parties’ obligation to act in good faith during pre-arbitral negotiations, conciliation, and mediation, as well as during the arbitral proceedings; the duty of arbitrators and arbitral institutions to act in good faith; and the role of good faith in actions to set aside. As an authoritative survey and analysis of how the concept of good faith has been applied in international arbitration – and defined in the case law relevant to it – this matchless book provides invaluable guidance to parties involved in international arbitral proceedings.

General Principles of Law in Investment Arbitration surveys the function of general principles in the field of international investment law, particularly in investment arbitration. The authors’ analysis provides a representative case study of how this informal source operates alongside and in the absence of other sources of applicable law. The contributions are divided into two parts, devoted respectively to substantive principles and procedural ones. The principles discussed in the book are selected for their currency in the practice, their contested nature and their relevance.

International investment cases show the frequent use of good faith arguments by both investors and respondent states. These cases also illustrate how parties and tribunals tend to conceptualize the good faith principle which has become an important rule of international investment law. This article will explore recent trends in order to assess the importance of this argument for both parties and at different stages of the proceeding. This article will also provide an overview of responses given by the tribunals faced with good faith arguments. Whereas claimants have traditionally relied on this concept to argue the breach of fair and equitable treatment and legitimate expectations, recent cases such as Inceysa, Phoenix and TSA Spectrum, indicate a new defence strategy for respondent states. Given the fact that investment tribunals have shown willingness to treat the good faith principle as autonomous and as a self-standing standard, the possibilities for respondent states have increased. Respondent states can rely on good faith to deny the right of claimants to seize the tribunal (Article 41(5) of the ICSID Rules), to challenge the jurisdiction of the tribunal or admissibility, to contest the right of the claimant to have a decision in its favour, or to challenge the right to compensation.