The Tecmed v. Mexico case (ICSID Case No. ARB(AF)/00/2) established that politically motivated regulatory actions can constitute expropriation. The tribunal ruled that Mexico’s refusal to renew a landfill permit violated investor protections, awarding $5.5M in damages.

Fair and Equitable Treatment (FET) ensures stability, transparency, and non-discrimination in investment law. It protects investors' legitimate expectations and prevents arbitrary actions. Its evolving interpretation impacts global investment disputes and treaty practices.