Bilateral Investment Treaty

Bilateral Investment Treaties (BITs) are reciprocal agreements between two countries to promote and protect foreign private investments in each other’s territories. The Agreements establish minimum guarantees between the two countries regarding the treatment of foreign investments, and protect them from arbitrary decisions of national Governments.

Benefits of Bilateral Investment Treaties (BITs)

• BITs have a potential to attract Foreign Direct Investment (FDI).
• BITs generally provide a mechanism for settling disputes between investors and the country of investments.
• BITs encourage the adoption of market-oriented domestic policies that treat private investment in an open, transparent, and non-discriminatory manner.
• BITs support the development of international law ....