A Bilateral Investment Treaty (BIT) is an agreement establishing the terms and conditions for private investment by nationals and companies of one state in another state. The concept is in the news from time to time.
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Nature of Bilateral Investment Treaty
Most BITs grant investments made by an investor of one Contracting State in the territory of the other a number of guarantees, which typically include fair and equitable treatment, protection from expropriation, free transfer of means and full protection and security
This type of investment is called Foreign Direct Investment (FDI). BITs are established through trade pacts. A nineteenth-century forerunner of the BIT is the friendship, commerce, and navigation treaty (FCN). Most BITs grant investments made by an investor of one Contracting State in the territory of the other a number of guarantees, which typically include fair and equitable treatment, protection from expropriation, free transfer of means and full protection and security.
Read about the Bilateral Investment Promotion and Protection Agreements (BIPA) at the linked article.
BIT:- Download PDF Here
Frequently asked Questions about Bilateral Investment Treaty
Why have Bilateral Investment Treaties come under criticism?
How do BIT’s function?
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