The principles of consent and good faith are relevant to the law relating to the rule of local remedies in so far as the rule may be excluded by the operation of either of them. The application of the principle of consent results in the exclusion of the rule on the basis that it has been waived, either expressly or impliedly, by the host or respondent state, while the principle of good faith has the effect of excluding the application of the rule in circumstances such as where the doctrine of estoppel or its equivalent would operate.

Express waiver

Express waiver takes place where the host or respondent state expressly agrees that the rule of local remedies will not apply to a particular dispute or particular disputes. In the law of diplomatic protection, this may take place either before or after the dispute has arisen and may even be by a unilateral act by the host or respondent state. Such waivers have been given in both multilateral treaties and bilateral treaties and do not raise any real problems. Examples of such waivers in bilateral treaties are to be found in those that set up the Mixed Arbitral Tribunals and Mixed Claims Commissions between the two World Wars. Particular reference may be made to Article V of the Convention of 1923 establishing the US–Mexican General Claims Commission. A more recent example is the treaty between Canada and the US setting up the in 1965.